Ultra Lithium Executes Balkans Framework Agreement And Announces Equity Financing

Vancouver, BC – Ultra Lithium Inc. (TSX-V: ULI) (FSE: QFB) (“ULI” or “the Company”) 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 demand1
  • Off the shelf technology can process Jadarite ore2

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.

On behalf of the Board of Directors
Marc Morin, President & CEO

For further information, please contact:
T: +1-778-968-1176
F: +1-604-909-4682
E: info@ultralithium.com
W: www.ultralithium.com
Or view the Company’s filings at www.sedar.com

Cautionary Statement Regarding “Forward-Looking” Information
Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as “plans”, “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words or phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company’s control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

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