FIRST LITHIUM LIMITED — Capital/Financing Update 2008

Jul 8, 2008

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ADVANCED ENGINE COMPONENTS LIMITED

ACN: 009 081 770

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14 ENERGY STREET PO BOX 3126 MALAGA 6090 WESTERN AUSTRALIA

TEL: +61 8 9209 6900 FAX: +61 8 9209 6999

ISO 9001 Lic.13705 SAI Global

9 July 2008

Company Announcements Office ASX Limited

By: e-lodgement (ASX code ACE)

Notification under section 708A(5)(e) of the Corporations Act 2001 (“the Act”)

Advanced Engine Components Limited (“ACE” or “the Company”) is pleased to confirm that it has issued a total of 4,361,529 shares at 20 cents each pursuant to the underwriting arrangements referred to in the announcement made on 14 May 2008. Total funds of approximately $872,000 were raised from the issue which the Company will apply to the costs of the issue and additional working capital. These shares were the subject of the Appendix 3B lodged with ASX on 7 July 2008.

Secondary Trading Exemption

The above shares were issued without disclosure to investors under Part 6D.2 of the Act. The Act restricts the on-sale of securities issued without disclosure, unless the sale is exempt under section 708 or 708A. By the Company giving this notice, sale of the securities noted above will fall within the exemption in section 708A(5) of the Act.

The Company gives this notice pursuant to Section 708A(5)(e) of the Act.

The Company, as at the date of this notice, has complied with:

• (a) the provisions of Chapter 2M of the Act as they apply to the Company; and (b) Section 674 of the Act.

As at the date of this notice, there is no information:

• (i) that has been excluded from a continuous disclosure notice in accordance with the ASX listing rules; and

• (ii) that investors and their professional advisors would reasonably require for the purpose of making an informed assessment of:

  • (A) the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or

  • (B) the rights and liabilities attaching to the Shares.

By order of the Board

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Susan Hunter

Company Secretary

For further information please contact Tony Middleton – Managing Director on (08) 9209 6900; or email – shares@advancedengine.com

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