FIRST LITHIUM LIMITED — Capital/Financing Update 2010

Apr 8, 2010

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

1 April 2010

Dear Shareholder

Please find enclosed the following documents:

• Annual Report Election Form;

• Announcement by the Company entitled “Extension of Rights Issue” notifying the extension of the closing date of the rights issue to 5.00pm (WST) on Friday 30 April 2010; and

• Notice of Meeting and Proxy Form for a General Meeting to be held on 11 May 2010.

These documents are important. Please read each document to determine if you need to do anything. If you do not understand the documents or what action you should take, you should consult with your professional advisers without delay.

Enquiries regarding the following documents can be directed to the Company’s share registry, Computershare Investor Services, as follows:

• Annual Report Election Form on 1300 850 505; or

• Rights Issue on 1300 725 613.

If you wish to discuss any aspects of the documents with the Company, please contact Mr Antony Middleton, Managing Director, on telephone +61 8 9209 6900.

Yours sincerely

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Graham Keys Chairman

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INVESTOR CENTRE www.investorcentre.com/au

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000001 000 ACE MR JOHN SMITH 1 FLAT 123 123 SAMPLE STREET THE SAMPLE HILL SAMPLE ESTATE SAMPLEVILLE VIC 3030

FOR ALL ENQUIRIES CALL: (within Australia) 1300 850 505 (outside Australia) +61 3 9415 4000

ALL CORRESPONDENCE TO: Computershare Investor Services Pty Limited GPO Box 2975 Melbourne Victoria 3001 Australia Facsimile +61 3 9473 2500

IMPORTANT NOTICE

The default option for receiving your annual report has changed from a printed copy to be via our website. You have the choice of receiving notification about accessing your annual report online or continuing to receive a printed annual report.

MAKE YOUR SELECTION ON THE BACK OF THIS FORM

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Dear valued securityholder

LEGISLATION CHANGE - WHAT THIS MEANS FOR YOU

The Australian Government recently introduced legislation allowing the default option for receiving annual reports to be via a company’s website. You will now receive timely, cost effective and greener online annual reports unless you request a printed copy. You can choose to be notified by email when the annual report becomes available on our website at www.advancedengine.com - otherwise this information will be provided in your AGM mail pack. All other securityholder communications will continue to be sent to you by post.

WHAT ARE YOUR OPTIONS?

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Elect to continue receiving, free of charge, a printed copy of the annual report.

If you take no action, information on accessing your online annual report will be provided in your AGM mail pack.

If you have any questions about this form please contact an investor services representative on 1300 725 613.

Yours sincerely

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Susan Hunter Company Secretary

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000001 000 ACE MR JOHN SMITH 1 FLAT 123 123 SAMPLE STREET THE SAMPLE HILL SAMPLE ESTATE SAMPLEVILLE VIC 3030

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ACE

ACN: 009 081 770

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24 March 2010

ADVANCED ENGINE COMPONENTS LIMITED

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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

Company Announcements Office Australian Securities Exchange

By: e-lodgement (ASX code ACE)

EXTENSION OF RIGHTS ISSUE TO 30 APRIL 2010

Advanced Engine Components Limited (“ACE” or “the Company”) announces the extension of the closing date of its non-renounceable rights issue from the current date of 30 March 2010 to 5.00pm (WST) on Friday 30 April 2010 . The revised timetable is set out below.

As previously announced on 23 February 2010, the Company has offered all eligible shareholders as at 3 March 2010 the opportunity to participate in the rights issue on the basis of 1 new share for every 3 shares held together with the right to acquire additional shares without any brokerage fees at 5.5 cents, being the same price as the $1,200,000 placement completed on 18 February 2010.

The Company is pleased to advise that all ACE Directors, including newly appointed Director Mr Nathan, have subscribed for their full personal share entitlements in the rights issue raising approximately $560,000. Further, 698 Capital, the Company’s major shareholder, has accepted 20,000,000 shares of its 21,474,577 share entitlement under the Rights Issue being $1,100,000.

REVISED RIGHTS ISSUE TIMETABLE	2010
Revised Closing Date (5.00pm WST)	30 April
Company to notify ASX of under-subscriptions (if any)	5 May
Allotment and issue of shares	7 May
ASX trading of shares commences	10 May
Dispatch of holding statements	10 May
The above timetable is indicative only. The Company reserves the right, subject to ASIC and ASX
requirements, to extend the Closing Date at its discretion. Should this occur, the extension will have
a consequential effect on the subsequent dates.

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

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