JAMES BAY PROJECT: Current Exploration

Current Exploration

Lithium One is currently working with SRK Consulting to compile the first NI 43-101 compliant resource estimate for the James Bay project, which is expected in the second quarter of 2010. In addition, Hazen Research is conducting a metallurgical study of the project, including mineralogy, grindability, various flotation trials, and acid roasting to process the spodumene into lithium carbonate, a common starting point for use in manufacturing lithium ion batteries. The first lithium carbonate was produced from the project's spodumene in July 2010. (See News Release dated July 28th, 2010.)

In 2009 the Company completed a Phase 2 drill program on the property, incuding 12,380 metres of drilling in 84 holes. The goal of the drill program was to better define the 3-dimensional aspects of the pegmatite swarms and establish the foundation for a resource estimate. Thick intersections of pegmatites were included in most holes, with the best intersections being 64.0m of 1.65% Li₂0, 57.9m of 1.66% Li₂O, 45.5m of 1.80% Li₂O, and 51.1m of 1.54% Li₂I thO. The weighted average grade of significant intercepts reported during this program is 1.56% Li₂O.

Figures 1 through 3 show the project location, infrastructure and drill hole locations in increasing detail. The dykes are typically long (>200m) and from surface mapping appear to thicken to the west. A detailed list of intersections and drill collar data can be found in Tables 1 and 2 below. For additional details please refer to the original news releases.

Figure 1. Dykes and Infrastructure on SPOT background	Figure 2. Simplified Geology with Drilling
Figure 3. Simplified Geology with Drilling Detail	Figure 4. Swarm 7 - Baseline Cross Section Looking NE

The dykes are stacked to yield a high volume of pegmatite per vertical metre and demonstrate strong continuity and grade, as seen in the following cross sections.

Figure 5. Swarm 7 Cross Section Line 0 + 50S	Figure 6. Swarm 7 Cross Section line 1 + 00S
Figure 7. Swarm 7 Cross Section Line 0 + 50N	Table 1. Assays to 10 07 2009
Table 2. Collar Data 2009 Drill Holes to 10 07 2009

Quality Control
The Company logs, collects, and cuts the drill core on site. Drill core samples are sealed and shipped to TJCM (Table Jamésienne de Concertation Minière) in Chibougamau for sample preparation. The prepared samples are then sent by courier to COREM in Québec City for Li2O assay by multi-acid digestion and AA finish. COREM is a government-industry consortium of applied research for the treatment and processing of mineral substances, with a track record in lithium analysis and ore beneficiation. Certain of their laboratories are certified ISO 9001:2000 by BNQ and the analytical laboratory is certified ISO 17025:2005 for certain procedures. The laboratory employs quality control systems throughout that are compliant with ISO 9001 and ISO 17025 standards. The Company is employing a rigorous quality assurance and quality control program, including the insertion of analytical control samples and field duplicates, as well as the tracking of replicate analyses and check assays from an independent laboratory.

The work program is under the supervision of Mr. A. James McCann, the Company’s consulting exploration manager for Quebec. Mr. McCann is a licensed Professional Geologist in Quebec and a qualified person as defined by National Instrument 43-101.