FIRST LITHIUM LIMITED — Capital/Financing Update 2010

Nov 21, 2010

==> picture [127 x 44] intentionally omitted <==

ADVANCED ENGINE COMPONENTS LIMITED

ACN: 009 081 770

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

Company Announcements Office Australian Securities Exchange By: e-lodgement (ASX code ACE)

22 November 2010

Working Capital Finance Facility

Advanced Engine Components Limited (“ACE”) is pleased to announce that a party introduced by ACE’s major shareholder and Mr Vivekananthan M V Nathan (“Nathan”), ACE’s second largest shareholder, have agreed to provide a $600,000 Working Capital Financing Facility (“Facility”).

The lenders will provide funds proportional to the relative shareholdings in ACE. That is, the introduced party will fund 75% of the Facility and Nathan will fund 25%. The funds are available immediately.

The Facility is repayable on or before 31 December 2011. Interest is payable quarterly in arrears calculated at 8% pa on the daily outstanding loan amount. A further interest premium, taking the 8% pa to a maximum 12% pa, is payable within 30 days of loan repayment. The interest premium, if any, will be calculated as 4% of ACE’s EBITDA (earnings before interest, tax, depreciation and amortisation) in the three calendar month period immediately preceding the repayment date.

The monies borrowed provide ACE with the required working capital to advance ACE’s deliveries of:

• (a) 100 ACE Natural Gas Vehicle Systems (“NGVS”) to Deutz (Dalian) Engine Co (“DDE”) in China for their hybrid natural gas/electric engines. This will increase the number of vehicles using the DDE/ACE hybrid engines in China to 200.

• (b) 14 engines, incorporating ACE NGVS, to AU-Serechai Co Ltd in Thailand. This order is the precursor to a larger order of 200 engines for Thailand.

• (c) 3,500 electronic control units (“ECU”) and 16,000 injectors to SHIGAN Quantum Technologies Pvt Ltd in India by 30 June 2011. Initial deliveries have the capacity to increase the number of vehicles in India, using ACE NGVS components, to 1,000 by 31 December 2010.

• (d) 2,500 injectors to Iveco in France by 30 June 2011.

Recent and future orders for ACE components mean an immediate requirement for working capital. The Facility provides suppliers and customers with confidence in ACE’s financial capability to meet commitments on a timely basis. The Facility also demonstrates the confidence of the major shareholders in the immediate and long term future of ACE.

For further information contact Tony Middleton, Managing Director, on +618 9209 6900; or email shares@advancedengine.com; or visit www.advancedengine.com

==> picture [454 x 32] intentionally omitted <==