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Lithic Metals and Energy

('Lithic' or 'the Company')

High Grade Uranium Values from Katoba and Mukwisi Prospects, Zambia

Lithic Metals and Energy (AIM:LMY) today announces results from first-pass sampling at the newly discovered Katoba and Mukwisi prospects (MPU33 and MPU34 targets), within its uranium joint venture licences, Zambia.

Highlights

Three new uranium target areas confirmed:

 

Katoba trenching:

• 3m @ 3252ppm U3O8 (maximum 5715ppm U3O8)

• 20m @ 411ppm U3O8 (maximum 1405ppm U3O8)

Mukwisi MPU33: 

• Trenching to 4m @ 524ppm U3O8

Mukwisi MPU34: 

• Rock chips to 527ppm U3O8

Katoba Prospect

The Katoba prospect is located within the Mpande licence area, approximately 45 kilometres south east of the capital city Lusaka.

Identified by airborne geophysical surveys, the Katoba prospect was initially inspected by Lithic geologists in late 2008, immediately prior to the on-set of the wet season. Exploration undertaken at that time comprised limited first-pass geological mapping and spectrometry programmes together with shallow trenching over peak uranium spectrometry values.

A small batch of samples were collected from trenches with higher uranium spectrometry values and despatched for analysis, with significant results as follows:

Trench 1:	3m @ 249ppm U3O8
Trench 2:	1m @ 362ppm U3O8
Trench 2:	1m @ 773ppm U3O8
Trench 2:	2m @ 250ppm U3O8
Trench 2:	7m @ 1466ppm U3O8 (including 3m @ 3252ppm U3O8)
Trench 4:	20m @ 411ppm U3O8  (maximum 1405ppm U3O8)
Trench 7:	4m @ 187ppm U3O8
Trench 7:	1m @ 113ppm U3O8

Trenching exposed numerous pegmatite dykes that also outcrop within a 500m x 500m area. Uranium mineralisation appears to be related to a dense, crystalline mineral thought to be davidite, that occurs within pegmatite and associated quartz veins, as well as in surface soils as a residual lag.

 Mukwisi River Targets

The Mukwisi targets, located within the Mpande licence area 25 kilometres south west of Katoba, comprise several distinct uranium radiometric anomalies, the two largest of which were mapped and sampled.

MPU33

Initial reconnaissance of the MPU33 target in late 2008 encountered a pegmatite dyke up to 15 metres wide and visible over a strike length of 400m. Ground spectrometry confirmed a strong uranium anomaly coincident with the pegmatite and the presence of a crystalline, uraniferous mineral thought to be davidite.

Due to time constraints, only two areas were selectively channel sampled to provide geochemical information on uranium values within the pegmatite. Care was taken not to sample massive davidite mineralisation.

Significant values from the sampling of pegmatite included:

4m @ 524ppm U3O8

1m @ 616ppm U3O8

1m @ 127ppm U3O8

2m @ 214ppm U3O8

MPU34

Located adjacent to MPU33, MPU34 is a carbonate unit up to 40 metres wide, outcropping over 200 metres in strike length.

A total of 52 reconnaissance rock chips were collected over the target area, with significant assay results including:

527ppm U3O8

486ppm U3O8

387ppm U3O8

370ppm U3O8

280ppm U3O8 etc.

Commenting on these results, Lithic Managing Director Jim Kerr stated 'These results confirm our belief in the prospectivity of our Zambian joint venture properties. Whilst this is early stage exploration, the confirmed presence of uranium at surface and over significant areas is very encouraging.'

For more detailed information, please visit our website www.lithicme.com

Or contact

Jim Kerr, Lithic Metals & Energy	Tel: +61 8 9322 5804
David Youngman, WH Ireland Limited	Tel: +44 (0)161 832 2714
Laurence Read / Beth Harris, Threadneedle Communications	Tel: +44 (0)20 7653 9850

Uranium Rights Joint Venture 

Lithic Metals and Energy entered into a joint venture with Zambezi Resources (AIM/ASX: ZRL) in May 2008, under which Lithic Minerals and Energy has the right to earn 51% of the uranium rights over 6800km² of four granted exploration licences (Chumbwe, Mpande, Mulungushi and Rufunsa) by spending US$5 million over 2.5 years. 

With respect to the four exploration licences Lithic can increase its uranium rights in the Chumbwe licence to 75% by completing a definitive feasibility study over the Oryx prospect. It can also increase its uranium rights to 75% over the other three licences by completing a definitive feasibility study (DFS) on any one uranium resource. 

Lithic can move to 100% by sole funding mine development after completion of a DFS, assuming Zambezi Resources elects not to contribute.

The information in this report that relates to Exploration Results is based on information compiled by Managing Director Jim Kerr (BSc Geol, MSc Min Econ, MSEG). Mr Kerr, a full-time employee of Lithic Metals and Energy is a Member of the Australasian Institute of Mining and Metallurgy and is a Competent Person as defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Kerr consents to the circulation and inclusion in the report of the matters based on the information in the form and context in which it appears.

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