Ultra Lithium Signs LOI for $4.25 MM Strategic Alliance

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/02/12 -- 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