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TEELS LITHIUM PROJECT (Mineral County, Nevada)


First Lithium resources has entered into an option agreement to earn an 80% interest in the Teels lithium prospect located at Teels Marsh, Mineral County, Nevada, approximately 54 miles northwest of Clayton Valley. The prospect comprises 120 placer claims (2,400 acres -- 3.7 square miles) which cover approximately the western two-thirds of the Teels Marsh, a closed desert basin.

In the mid seventies, the U.S.G.S. performed extensive sampling to evaluate the potential for economically viable lithium sources in Nevada (Lithium in Sediments and Rocks in Nevada, 1976, U.S.G.S. O.F.R 76-828). Though 58 basins were sampled in all, particular attention was given to the Teels Marsh Basin, as evidenced by greater than 25% of the total number of the study’s samples being collected there. Hydrofluoric acid dissolution of the crushed, dried samples followed by atomic absorption tests yielded the top “high samples” produced in the entire study. They are as follows:

850 ppm (high sample) - 47 samples near springs marginal to playa

580 ppm (high sample) - 50 samples from backhoe pits near springs

560 ppm (high sample) – 30 samples from playa surface

Subsequent water sampling along the northwest margin of the Teels Marsh playa (see news ABR.V, 2010-01-11) has confirmed lithium anomalies detected in the above referenced U.S.G.S. surveys. Three 2009 water samples containing 530 to >1000 ppb Li were collected from surface springs near the edge of the playa; the anomalously high lithium contents are interpreted to reflect Li input into the playa from the hills to the northwest. The hills are largely underlain by Tertiary volcanic rocks and Cretaceous granodiorite, either of which could be source rocks for lithium-bearing brines at depth in the playa.

The Teels prospect is a playa (dry lake) deposit containing chlorides, sulphates, carbonates, bicarbonates and borates of sodium and potassium. These occurences, and the existence of historical data suggesting lithium water flows into the marsh are the factors responsible for eliciting the Company's keen interest.

Teels Marsh was first worked in the 1860s for salt. Then in approximately 1872, borax was discovered and was produced steadily until 1892, by U.S. Borax, which still holds the private ground to the east. Operations ceased when other borax resources were found in Death Valley.

The Clayton Valley (which has been producing lithium brines since the 1960s and continues in production today) was also mined in the 1800s for salt and borax, denoting obvious similarities to Teels. As lithium-bearing brines tend to be the last product of evaporation, it appears (and from the Clayton Valley work) that the deeper portions of the playa, usually fault derived (as at Atacama, Chile) have been allowed the proper time for evaporation of these last stages of brines. A fault along the western margin of the Teels playa, within the claims’ boundary, appears to have down-dropped (or tilted), potentially forming a deep basin.

                                                                                                         VIEW OF TEELS FACING NW