Ultra Lithium signs Option Agreement with Canadian Orebodies Inc. for Zigzag Lake

Vancouver, BC – Ultra Lithium Inc. (TSX-V: ULI) (FSE: QFB) (“ULI” or “the Company”) wishes to announce that it has signed an agreement with Canadian Orebodies Inc. (TSX-V: CO) (“Orebodies”) and the underlying property owners (the “Owners”), pursuant to which Orebodies has been granted an option to earn an 80% interest in the Zigzag Lake property, on the following terms:

  1. Orebodies to make the following cash payments to Ultra:
    • $10,000 upon execution of the agreement
    • $15,000 on or before the first anniversary of the agreement
    • $25,000 on or before the second anniversary of the agreement
    • $50,000 on or before the third anniversary of the agreement
  2. Orebodies to make the following shares issuance to Ultra:
    • 200,000 Orebodies shares within 10 days of the TSX Venture Exchange approval date (“Approval Date”)
    • 175,000 Orebodies shares on or before the first anniversary of the Approval Date
    • 150,000 Orebodies shares on or before the second anniversary of the Approval Date
    • 125,000 Orebodies shares on or before the third anniversary of the Approval Date
  3. Orebodies to spend the following amounts on exploration work:
    • $50,000 on or before October 31 2010
    • $50,000 on or before October 31 2011
    • $100,000 on or before October 31 2012
    • $150,000 on or before October 31 2013
  4. Upon fulfillment of all of the obligation in paragraphs 1, 2 and 3, Orebodies shall have earned an 80% interest in the Zigzag Lake property.
  5. Orebodies shall be the operator of the property and responsible for managing all exploration work carried out.  Following the earn-in by Orebodies of an 80% interest in the property, further exploration and development will be carried out pursuant to a joint venture agreement, with the initial participating interests in the joint venture to be: Ultra – 20%; and Orebodies – 80%, subject to a 2% net smelter royalty to the Owners.
  6. Orebodies will also issue 150,000 commom shares of Orebodies to the Owners on TSXV approval.

The Zigzag Lake property is located 60 km north east of the town of Armstrong, Ontario. The project contains five occurrences, the Tebishogeshik, the Dempster L28, Bird River No.1, the Dempster East, and the Ketchican Road Beryl. The total land package is approximately 2064 hectares.  Early exploration on the property have returned grades of up to 1.8% Li2O and 0.3% Ta.

See also Canadian Orebodies (TSX.V : CO)

On behalf of the Board of Directors
Tony M. Ricci, 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.