Lithic Metals and Energy

('Lithic' or 'the Company')

Lithic Secures New Title over Zambian Uranium Assets

Lithic today announces the grant of 5 new Large Prospecting Licences for uranium exploration by the Zambian government to its 51% controlled Joint Venture Company Chalimbana Resources. The new licences replace portions of existing Joint Venture licences held by Zambezi Resources Limited and cover the most prospective areas for uranium mineralisation identified through detailed geophysical surveys and field activities undertaken by Lithic over the past year.  Chalimbana holds the uranium rights to the new licences and is managed and sole funded by Lithic.

The grant of new title provides up to an additional 7 years of exploration tenure under the new Zambia Mines and Minerals Development Act and allows for a simplification of the Joint Venture structure. 

Commenting on these events, Lithic MD Jim Kerr stated 'The completion of a full field season of exploration over our Zambian uranium assets has allowed us to accurately define the most prospective areas for uranium mineralisation, as exemplified by our recently announced discovery of high grade uranium values at our Katoba prospect. Not only does the creation of new title over these obviously prospective areas significantly extend the length of time our licences have to run but also provides additional security over our existing investment by moving ownership of the licences into a specific Joint Venture company controlled by Lithic. This process enhances the value of our assets through the extended licence validity period and the de-risking of security of tenure.  

This forward thinking policy enacted by the government of Zambia demonstrably allows companies to effectively utilise the prospective areas of Zambia on a commodity-specific basis.'  

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

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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.