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FIRST LITHIUM LIMITED Capital/Financing Update 2010

May 4, 2010

64921_rns_2010-05-04_35d548de-4b79-468e-bb4f-e8846af4bb87.pdf

Capital/Financing Update

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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

5 May 2010

Company Announcements Office Australian Securities Exchange

By: e-lodgement (ASX code ACE)

NOTIFICATION OF SHORTFALL UNDER RIGHTS ISSUE

Advanced Engine Components Limited (“ACE” or “the Company”) advises that the Company's non-renounceable rights issue (Rights Issue) closed at 5.00pm (WST) on 30 April 2010.

Shareholders have subscribed for 32,806,611 shares at an issue price of 5.5 cents per share raising $1,804,363.61.

The resultant shortfall equates to 24,152,639 shares (amounting to $1,328,395.15).

As referred to in the Offer Document, the Directors reserve the right to place the shortfall shares at the same issue price of 5.5 cents per share, other than to related parties of the Company, within three months of the closing date of the Rights Issue.

Allotment and issue of the total 32,806,611 shares will occur on 7 May 2010 with trading on ASX expected to commence on 10 May 2010. Dispatch of holding statements will occur on 10 May 2010.

The Directors wish to thank all parties that participated in the Rights Issue.

For further information please contact: Tony Middleton (Managing Director) on (08) 9209 6900; or email [email protected]

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