Ultra Lithium Signs LOI for $4.25 MM Strategic Alliance

Fri Mar 2, 2012 9:00am EST

* Reuters is not responsible for the content in this press release.

  VANCOUVER, BRITISH COLUMBIA, Mar 02 (MARKET WIRE) --
Ultra Lithium (TSX VENTURE:ULI) ("the Company" or "Ultra") is pleased to
announce that it has entered into a non-binding letter of intent ("LOI")
with Beijing Explo-Tech Engineering Co. Ltd. (BETEC) to form a strategic
alliance for the exploration of its highly prospective Serbian
exploration licenses (the "Property").

    This strategic alliance will allow Ultra to move its Property forward
expeditiously, both from a financial and geological perspective. This
partnership will ensure the rapid advancement of our exploration program
with minimal dilution to the Company.

    Ultra's Chief Executive Officer, Marc Morin, commented, "We believe this
$4.25 million investment highlights the unrecognized value of the
Company's lithium/boron assets and accomplishes several objectives for
the benefit of Ultra and its stakeholders. We look forward to working
with BETEC."

    Highlights of the LOI:


--  BETEC will invest CAD$750,000 through the purchase of units of
    securities of Ultra at $0.10 per unit. Each unit will consist of one (1)
    common share of Ultra and one-half of one (1/2) common share purchase
    warrant, with each whole warrant entitling BETEC to acquire one (1)
    additional common share of Ultra at $0.15 per share for period of two
    (2) years. 
--  BETEC undertakes and commits to fund up to CAD$3,500,000 of approved
    expenditures. Such expenditures will be incurred within a period of
    three (3) years. 
--  BETEC will earn a five (5%) per cent equity interest in Ultra Balkans
    d.o.o., Ultra's wholly-owned Serbian subsidiary, for each CAD$500,000 of
    approved expenditures incurred and up to a 35% equity interest once the
    entire CAD$3,500,000 of qualified expenditures has been incurred. 


    About Ultra Lithium:

    Ultra Lithium Inc. is a junior explorer listed on the TSX Venture
Exchange under the symbol ULI. The Company is committed to the aggressive
pursuit of properties with high returns-on-investment and maximizing the
value of assets through a disciplined process of assessment and
responsible acquisitions. Currently, the Company holds exploration
licenses in Ontario, Canada, Nevada, U.S.A and Serbia.

    Property Highlights:


--  643 sq. km. of lithium/boron mineral exploration licenses in the
    Republic of Serbia. 
--  All 7 exploration concessions are within well-defined sedimentary
    basins. 
--  Standard exploration technique to define drill targets, "Magneto-
    Tellurics" and Gravity. 
--  Proximity to infrastructure (rail/road/sea), (electricity), and (labour
    force). 
--  Ultra has 100% ownership of its exploration licenses. 
--  The same geological belt as Rio Tinto's Jadar deposit. Rio Tinto is
    completing a $27 million pre-feasibility study. They are projecting
    production for 2016. 
--  Rio Tinto's Jadar deposit could produce up to 20% of the current
    worldwide annual lithium demand. 
--  Off the shelf technology can process Jadarite ore (soda ash / sulfuric
    acid). 


    About Beijing Explo-Tech Engineering Co. Ltd.

    BETEC is a high-tech enterprise which provides geological exploration
services, research, software development and technology support for the
mining industry. Areas of expertise include geological, geophysical,
geochemical and remote sensing. BETEC has 110 official employees.

    Terms of the proposed transaction:

    As stated in the preceding highlights, under the terms of the LOI, BETEC
will invest CAD$750,000 through the purchase of units of securities of
Ultra at $0.10 per unit. Each unit will consist of one (1) common share
of Ultra and one-half of one (1/2) common share purchase warrant, with
each whole warrant entitling BETEC to acquire one (1) additional common
share of Ultra at $0.15 per share for a period of two (2) years. BETEC
also undertakes and commits to fund up to CAD$3,500,000 of approved
exploration expenditures on the Property to be incurred within a period
of three (3) years from the date of formation of the joint venture. BETEC
will earn a five (5%) per cent equity interest for each CAD$500,000 of
approved expenditures incurred and up to a thirty five (35%) per cent
equity interest once the entire CAD$3,500,000 of qualified expenditures
has been incurred.

    Both parties agree to hold the Property and the other assets of the
partnership consistent with applicable legislation, to explore the
Property for minerals and, if feasible, develop a mine thereon, and so
long as it is technically, economically and legally feasible, operate
such mine and exploit the minerals extracted from the Property, and carry
out any other activity in connection with or incidental to any of the
foregoing.

    Closing of the proposed transaction is subject to satisfaction or waiver
of terms and conditions, customary or otherwise, including, but not
limited to, satisfactory completion of a definitive agreement as well as
the equity financing, acceptance by the TSX Venture Exchange of the
proposed transaction, and other applicable shareholder and regulatory
approvals. There can be no assurance that the proposed transaction will
be completed as proposed or at all. Investors are cautioned that, except
as disclosed in the filing statement to be prepared in connection with
the proposed transaction, any information released or received with
respect to the proposed transaction may not be accurate or complete and
should not be relied upon.

    Ultra intends to issue further announcements as the definitive agreement
is signed, due diligence is completed and other milestones are achieved.

    Statements in this press release regarding the Company which are not
historical facts are "forward-looking statements" that involve risks and
uncertainties. Such information can generally be identified by the use of
forwarding-looking wording such as "may", "expect", "estimate",
"anticipate", "intend", "believe" and "continue" or the negative thereof
or similar variations. Since forward-looking statements address future
events and conditions, by their very nature, they involve inherent risks
and uncertainties such as the risk that the closing may not occur for any
reason. Actual results in each case could differ materially from those
currently anticipated in such statements due to factors such as: (i) the
inability of the parties to consummate the definitive letter agreement;
(ii) fluctuation of mineral prices; (iii) a change in market conditions;
(iv) the inability to produce the technical report for any reason
whatsoever; and (v) the refusal of the Exchange to accept the proposed
transaction for any reason whatsoever. Except as required by law, the
Company does not intend to update any changes to such statements.

    We seek Safe Harbor.

    Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

Contacts:
Ultra Lithium Inc.
Andrew Brown
Corporate Communications
604-669-9788 ext. 202

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