FIRST LITHIUM LIMITED — Capital/Financing Update 2011

Nov 14, 2011

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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

15 November 2011

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

Update

Advanced Engine Components Limited (“ACE”) has been negotiating a cooperation agreement with a Chinese State Owned Enterprise (“CSOE”). The CSOE technical due diligence was completed successfully. However the parties have been unable to agree commercial arrangements and negotiations have now ceased. The CSOE remain interested in pursuing engine developments and business opportunities with ACE in China.

Since 25 August 2011 ACE has been in negotiation and facilitated due diligence procedures with other parties interested in investing in ACE through equity, joint venture and/or product licensing. A natural gas components manufacturer in China has completed technical due diligence and advised of their interest in investing in ACE. They have arranged two parties to conduct commercial due diligence with the intent of one of those parties funding the transaction.

Representatives of a North American company will conduct initial due diligence and commence commercial discussions with ACE later this month.

ACE is unable to place a time estimate or likely success factor on either of these ongoing discussions.

For further information email shares@advancedengine.com

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