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Press release from Marketwire

Talison Lithium Reports Positive Results From Initial Drill Program at Salares 7 Project

Results From Salar de la Isla Indicate up to 1,080 mg/l Lithium and up to 9,830 mg/l Potassium

Wednesday, May 25, 2011

Talison Lithium Reports Positive Results From Initial Drill Program at Salares 7 Project09:24 EDT Wednesday, May 25, 2011PERTH, WESTERN AUSTRALIA--(Marketwire - May 25, 2011) - Talison Lithium Limited ("Talison" or the "Company") (TSX:TLH) is pleased to announce the results from the first drill program at two of the seven salars that comprise the Salares 7 Project ("Salares 7") in Chile.HighlightsInitial shallow reconnaissance drill programs completed at Salar de la Islaand Salar de Las ParinasBrine analyses at Salar de la Isla indicate:up to 1,080 milligrams per liter ("mg/l") lithium, with an average of 863 mg/l lithium; andup to 9,830 mg/l potassium, with an average of 7,979 mg/l potassiumBrine analyses at Salar de Las Parinas indicate:up to 480 mg/l lithium, with an average of 331 mg/l lithium; andup to 8,210 mg/l potassium, with an average of 5,650 mg/l potassiumPeter Oliver, Chief Executive Officer, commented, "We are excited about the results from our initial reconnaissance drill program. The results are very encouraging for the further development of Salares 7 to meet the expected future growth in demand for lithium-ion batteries in the years ahead, and support the confidence that Talison has in the potential of Salares 7. With lithium values of up to 1,080 mg/l, we believe Salares 7 has the potential to be amongst the world's best new lithium brine prospects."Salares 7 OverviewSalares 7 consists of seven salars (salt lakes) and playas located in the Atacama Region of Northern Chile. Five of the seven salars are 100% owned by Talison and its Chilean partners, and these five are clustered within a radius of approximately 30 kms. The salars are largely underlain and surrounded by volcanic rocks of andesitic to basaltic affinity that make up some of the 800 volcanoes located in the Andes Mountains of northern Chile.Talison's exploration program at Salares 7 to date has included Transient Electromagnetic (TEM) geophysical surveys, regional surface water geochemical sampling programs, site access preparation and an initial shallow reconnaissance drill program on two of the salars. The location of Salares 7 is set out in Figure 1.Note: To view "Figure 1: Location Map Salares 7", please click the following link: http://media3.marketwire.com/docs/tlh0525a.pdfInitial Drill Programa) ObjectivesTalison established and achieved the following specific objectives for the initial drill program:Shallow reconnaissance drilling in selected areas of the two salars; Formation of a well-qualified and experienced team to oversee the drilling program; and Establishment of very stringent sampling and analytical quality control procedures to ensure integrity of the drill samples and to meet the requirements of NI 43-101 reporting. b) Drill ProgramThe initial drill program consisted of shallow reconnaissance drilling utilizing a sonic drill rig at Salar de la Isla and Salar de Las Parinas. A total of 33 holes were completed for a total of 557 metres at sites generally located between one and three kilometres apart. The maximum depth drilled was 43.5 metres and the average depth of the holes was approximately 17 metres.c) Drill ResultsA total of 91 drill hole brine samples were collected at varying depths of up to 42 metres from 26 holes located in Salar de la Isla and 7 holes located in Salar de Las Parinas. Each sample was analysed to measure relevant chemical and physical characteristics. In addition, a comprehensive protocol of standard, blank and duplicate samples formed the Quality Control/Quality Assurance program.Continuous drill cores have been collected and geologically logged. Selected drill core samples have been submitted for laboratory determination of physical characteristics including porosity and permeability. Results are not yet available.Samples from Salar de la Isla demonstrate lithium values ranging from 220 mg/l to 1,080 mg/l with an average of 863 mg/l, and potassium values ranging from 1,960 mg/l to 9,830 mg/l with an average of 7,979 mg/l. The drill holes and corresponding lithium values on Salar de la Isla are shown in Figure 2, and further information is contained in Table 1.Note: To view "Figure 2: Salar de la Isla Drill Hole Collar Plan and Lithium Results Summary", please click the following link: http://media3.marketwire.com/docs/tlh0525b.pdfSamples from Salar de Las Parinas demonstrated lithium values ranging from 260 mg/l to 480 mg/l with an average of 331 mg/l, and potassium values ranging from 4,440 mg/l to 8,210 mg/l with an average of 5,650 mg/l. The drill holes and corresponding lithium values on Salar de Las Parinas are shown in Figure 3, and further information is contained in Table 2.Note: To view "Figure 3: Salar de Las Parinas Drill Hole Collar Plan and Lithium Results Summary", please click the following link: http://media3.marketwire.com/docs/tlh0525c.pdfFurther Exploration at Salares 7The drilling completed to date at Salares 7 is considered preliminary. Wider coverage and follow-up drilling to greater depths will be required to support the definition of a potential mineral resource.Interpretation of the shallow reconnaissance drilling results in relation to geological profiles and TEM surveys is continuing and is expected to provide input to further drill programs currently being planned for Salar de la Isla, Salar de Las Parinas and the other salars.The next stage of exploration on site will include environmental base line studies, regional geochemical sampling programs and drill testing on a number of the salars, and is planned to commence during the summer season in Chile.Quality ControlThe brine liquid samples from the Salares 7 drill program, including randomly inserted quality control samples comprising blind standards, replicates and duplicates, were analyzed by Talison's laboratory at the Greenbushes Lithium Operations. Talison's laboratory at the Greenbushes Lithium Operations is certified ISO9002 for the preparation and analysis of various sample types, included waters.Furthermore, the laboratory at the Greenbushes Lithium Operation has internal quality systems, which include replicate laboratory analyses, and analysis of known standards. Known solution standards and blanks are embedded in each batch and the accuracy of the calibration is monitored during the analysis of each batch.In addition, blind standard samples from Salares 7 were submitted to several independent check laboratories in South America and North America, as a round robin test. Results for these round robin samples are being finalised at this time. However, available quality control results (discussed above) indicate that the Salares 7 dataset is valid and acceptable for the purposes of this initial reconnaissance program.Table 1: Drill Hole Brine Sample Results – Salar de la IslaSalar de la IslaSampleHoleDepth (m)SGLiNaBCaKMgSO4Clg/cm3mg/lmg/lmg/lmg/lmg/lmg/lmg/lmg/lSLI-018.01.18720872001804206550484010700159335SLI-0117.01.218601040001965207860561012300196888SLI-0216.81.218401020001985207700548011900190987SLI-036.51.218801040002004808260580012500198498SLI-0312.51.229001060002004808360587012500194206SLI-0318.51.219001060002004808310584012400194742SLI-0324.51.218801050002005008130572012300185086SLI-0330.51.29001050002204808280583012400188305SLI-0336.51.219001050002004608250581012500192060SLI-0339.51.218601060002004808210583012500191524SLI-046.51.218201090001945207830542011800193670SLI-04A6.01.27801050001825007230504010700194079SLI-056.01.218801080002204808320587012400197425SLI-076.01.06220261005422019601460275046710.5SLI-0712.01.1558070600140420523040208730119408SLI-0718.01.218401020001914607870557011900182940SLI-0724.01.218601070002004808170575012300189378SLI-0730.01.218601060002004608150577012400190987SLI-0736.01.218601060002004608140574012200190451SLI-0742.01.198601050002004608090569011900189914SLI-086.01.219001100002005408500592012600187232SLI-0812.01.28401020001994807780555011900188048SLI-0815.51.218401040002005207690550011200194079SLI-096.01.1146056000114680396032007520104795SLI-0912.01.28201010001914607540539011600194079SLI-106.01.135607020014210405140388010200118062SLI-1012.01.2820985001905007470537011600183017SLI-1018.01.218801040002005008130588012300190241SLI-1024.01.218801060002205208300594012500194079SLI-116.01.218801060002005008320593012700194627SLI-1112.01.219001060002005008500605012600193966SLI-1118.01.218801030001974808240588012200193531SLI-1124.01.19820976001806007620549011900174342SLI-1130.01.28401030001954607800557011700177632SLI-1136.01.219601180002205009020633013300197917SLI-126.01.218401030001945007860554011600198312SLI-136.01.28601050001875208090558011800185307SLI-156.01.211060996002403809630690014400194627SLI-1512.01.210801000002403809820699014300191886SLI-1518.01.219801060002204409020636013400196272SLI-1524.01.219001070002204608380592012500195175SLI-1530.01.219201050002004408460597012400196272SLI-166.01.228601060002204808180583012000197176SLI-1612.01.218801060002204808300592012300184100SLI-176.01.28201000002205807740566011800184623SLI-1712.01.218601040002205008160584012000196653SLI-186.01.228801050002205608230584010800198222SLI-196.01.218601010001964607570550011800187261SLI-1912.01.219201040002005208050580012200193487SLI-206.01.18760892001793606770495011600170019SLI-2012.01.28601020002004207690559013100185345SLI-2018.01.29401070002804408640613013600190217SLI-2024.01.29601090002804208690619014700192529SLI-2030.01.29001020002004007850568013500192529SLI-216.01.29201060002004208110582013400196360SLI-2112.01.219001080002204608540615014300191092SLI-2118.01.219201070002204408710628014100193676SLI-226.01.2110601070003004409830679015600192529SLI-2212.01.2110401050003004409770675015200193966SLI-236.01.218601040002004408070587012800196839SLI-2312.01.218801090002204808300599013300193487SLI-2318.01.219001100002204808330600013300194923SLI-246.01.219601100002144608750616013500194444SLI-256.01.29401080002144608550603013000196429SLI-2512.01.219001040001944808250584012400195437SLI-266.01.219601090002144808780617013000196429SLI-276.01.29401100002144608530597012800204365Table 2: Drill Hole Brine Sample Results – Salar de Las ParinasSalar de Las ParinasSampleHoleDepth (m)SGLiNaBCaKMgSO4Clg/cm3mg/lmg/lmg/lmg/lmg/lmg/lmg/lmg/lSLP-016.01.22601080003005804440261011000189854SLP-0112.01.22601080003005804550274011400189854SLP-0118.01.212801100003205804580283011600185824SLP-0124.01.23201110003605405220329012400188808SLP-0130.01.213001090003604805110313013800186192SLP-026.01.213001130003804805120325013900191946SLP-0212.01.213001080003805005020319013000188697SLP-0218.01.213201150004205205320332013800191423SLP-0224.01.213201140004005205380344013700189854SLP-036.01.213401130005003605810372017400186715SLP-0312.01.213001120004005005270335013800189854SLP-0318.01.213401100004404405620362015300186715SLP-0324.01.213401090004404605670362014600186715SLP-046.01.212801140003204804870316012700191946SLP-0412.01.212801150003205004950320012900192469SLP-056.01.213201140004204005560337015100196653SLP-0512.01.213601130004804006210387018100187762SLP-066.01.224801110003804208210508016100197318SLP-0612.01.213801180004004606770404016500191571SLP-0618.01.213801110004204206560403015700194444SLP-0624.01.214001110004204206920426016300189655SLP-0630.01.223801140004404406690408015900192050SLP-076.01.213401090003405005750385013000188218SLP-0712.01.213601130003405405990398013500190134Scientific and technical information in this press release was reviewed and approved by Andrew Purvis (BSc (Hons), MSc, MAusIMM), General Manager Geology, and a full time employee of Talison; Dr. Ian Hutcheon (PhD., P. Geo.);and Dr. Mark King (Ph.D., P. Geo.), of Groundwater Insight Inc. Dr. Hutcheon and Dr. King are independent of Talison and each is a "Qualified Person" in accordance with National Instrument 43-101.About TalisonTalison is a leading global producer of lithium. Talison mines and processes the lithium bearing mineral spodumene at the Greenbushes Lithium Operations in Western Australia. In addition, Talison explores for lithium at the Salares 7 lithium project made up of seven salars (brine lakes and surrounding concessions) located in Region III, Chile. Talison has an extensive, well established global customer network and a leading position in the growing Chinese market. Cautionary Note Regarding Forward-Looking Statements Certain information contained in this press release, including any information as to Talison's mineral reserve and mineral resource estimates, strategy, projects, plans, prospects, future outlook, anticipated events or results or future financial or operating performance, may constitute "forward-looking information" within the meaning of Canadian securities laws. All statements, other than statements of historical fact, constitute forward-looking information. Forward-looking information can often, but not always, be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "predicts", "potential", "continue" or "believes", or variations (including negative variations) of such words, or statements that certain actions, events or results "may", "could", "would", "should", "might", "potential to", or "will" be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts. The purpose of forward-looking information is to provide the reader with information about management's expectations and plans. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made or incorporated in this press release are qualified by these cautionary statements.Forward-looking statements are necessarily based on a number of factors, estimates and assumptions that, while considered reasonable by Talison, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such factors, estimates and assumptions include, but are not limited to: anticipated financial and operating performance of Talison, its subsidiaries and their respective projects; Talison's market position; future prices of lithium or lithium concentrates; estimation of mineral reserves and mineral resources; realization of mineral reserve and mineral resource estimates; timing, amount and costs of estimated future production; grade, quality and content of concentrate produced; sale of production; capital, operating and exploration expenditures; costs and timing of the expansion of the Greenbushes Lithium Operations; exploration and development of the Salares 7 lithium project; costs and timing of future exploration; requirements for additional capital; government regulation of exploration, development and mining operations; environmental risks; reclamation and rehabilitation expenses; title disputes or claims; absence of significant risks relating to Talison's mining operations; the costs of Talison's hedging policy; sales risks related to China; currency; interest rates, and limitations of insurance coverage. While Talison considers these factors, estimates and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Talison and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such risk factors include, amount others, those described in the Financial Statements and under the heading "Risk Factors" in the annual information form of Talison for the year ended June 30, 2010 dated January 12, 2011, each of which can be found on Talison's SEDAR profile at www.sedar.com. While Talison considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.Although Talison has attempted to identify statements containing important factors that could cause actual actions, event or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is made as of the date of this press release based on the opinions and estimates of management on the date statements containing such forward-looking information are made. Except as required by law, Talison disclaims any obligation to update any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.FOR FURTHER INFORMATION PLEASE CONTACT: Gary T. Dvorchak, CFAICR, LLCSenior Vice PresidentInvestor Relations+1 (310) 954-1123Gary.Dvorchak@icrinc.comORTodd HilditchTalison Lithium LimitedInvestor Relations Director604 443 3831Todd.Hilditch@talisonlithium.comwww.talisonlithium.com