Ultra Lithium Executes Balkans Framework Agreement and Announces Equity Financing

Thu May 31, 2012 9:15am EDT

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

  VANCOUVER, BRITISH COLUMBIA, May 31 (MARKET WIRE) --
Ultra Lithium (TSX VENTURE:ULI)(FRANKFURT:QFB) ("the Company" or "Ultra")
is pleased to announce that it has executed a legally binding Framework
Agreement with Beijing Explo-Tech Engineering Co. Ltd. (BETEC) to explore
and develop its Balkans Project in the Republic of Serbia. In addition,
Beijing Guofang Mining Investment Co. Ltd. (BGMI) will complete a
financing in the amount of C$1 million to ensure rapid advancement of the
Company's exploration program.

    This joint venture will allow Ultra to commence geophysical exploration
work on its seven highly-prospective, mineral exploration licenses in the
Republic of Serbia. Ultra anticipates two exploration crews in the field
from mid-June to commence "Magneto Telluric" surveys over all seven
concessions. 

    Highlights from the agreement include:


--  BGMI and associates will invest C$1,000,000 through the purchase of
    units of securities of Ultra at $0.05 per unit. Each unit will consist
    of one (1) common share of Ultra and one common share purchase warrant,
    with each warrant entitling BETEC to acquire one (1) additional common
    share of Ultra at $0.10 per share for a 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.


    Ultra Lithium's Chief Executive Officer Marc Morin commented: "This $4.5
million investment strengthens our balance sheet and allows us to start
our exploration program which will include soil sampling, geophysics and
a drilling program to advance the Balkans Project. We are very excited to
be working with our new partners."

    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 km2 of lithium/boron mineral exploration licenses in the Republic of
    Serbia
      
--  All seven exploration concessions are within well-defined sedimentary
    basins
      
--  Proximity to infrastructure (rail/road/sea), (electricity), and (labour
    force)
      
--  Ultra has 100% ownership of its exploration licenses
      
--  Rio Tinto is completing a $27 million pre-feasibility study & projecting
    production for 2016(1)  

--  Rio Tinto's Jadar deposit could produce up to 20% of the current
    worldwide annual lithium demand(1) 

--  Off the shelf technology can process Jadarite ore(2)


    About Beijing Explo-Tech Engineering Co. Ltd.

    BETEC is a high-tech geological exploration 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 framework
agreement, BGMI and its associates will invest CAD$1,000,000 through the
purchase of units of securities of Ultra at $0.05 per unit. Each unit
will consist of one (1) common share of Ultra and one common share
purchase warrant, with each warrant entitling BGMI and associates to
acquire one (1) additional common share of Ultra at $0.10 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, acceptance by the TSX Venture Exchange of the proposed
transactions. 

    The units issued will be subject to a four-month hold period from the
closing date of the private placement offering. Finders' fees may be
payable in connection with this private placement in accordance with TSX
Venture Exchange policy. 

    ULTRA LITHIUM INC. 

    On behalf of the Board

    Marc Morin, President & CEO

    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.

    Sources:

    (1) Serbian Lithium Under Focus, Critical Materials for Green Energy,
September 2011

    (2) Jadar Project, IM Lithium Conference, Santiago, 28th January 2009


    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.
Mr. Marc Morin
President and CEO
604-669-9788

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