Lithic Metals and Energy 

('Lithic' or 'the Company')

Equity Buy Back

Change of Directors' Holdings

Change of Number of Shares in Issue

Lithic Metals and Energy (AIM: LMY) today announces that it has purchased 26,000,000 ordinary shares in the Company ('Ordinary Shares'), at a price of 0.5p per share (the 'Buy Back Shares').  Pursuant to the Bermudan Companies Act, the Buy Back Shares are deemed to be immediately cancelled at the date of the buy back, so that the total number of shares of the Company now in issue is 126,305,446 Ordinary Shares.

The Buy Back Shares represent the shareholding of Zambezi Resources Limited, which was purchased at short notice by certain directors and employees of Lithic and others at a price of 0.5p on 28 October 2008, in response to an offer from Zambezi Resources Limited. The directors of the Company believe that all shareholders should benefit from the value that the transaction represented and have effected the buy back to achieve this goal. 

The following directors disposed of shares in the buy back:

Commenting today, Lithic Managing Director Jim Kerr said 'As a management group, we took the expedient action of securing the large equity overhang held by Zambezi Resources in our Company in difficult market conditions. This action was deemed necessary at the time to stabilise the company's shareholding and its Zambian investments.  Now that close period restrictions imposed on the Company immediately following the initial transaction have ended, the directors have resolved to pass the significant benefit of this transaction on to all shareholders through the buyback arrangement.' 

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