FIRST LITHIUM LIMITED — Capital/Financing Update 2013

Nov 11, 2013

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ADVANCED ENGINE COMPONENTS LIMITED

ACN: 009 081 770

c/- NORVEST CORPORATE PTY LTD GROUND FLOOR, 57 HAVELOCK ST WEST PERTH 6005 PO BOX 1696 WEST PERTH 6872 WESTERN AUSTRALIA

TEL: +61 8 9324 8555 FAX: +61 8 9324 8560

12 November 2013

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

CHINA CO-MARKETING AND SUPPLY AGREEMENT

To further reduce Advanced Engine Components Limited (“ACE” or “the Company) ongoing overheads and cash costs the company has signed a co-marketing and supply agreement (“Agreement”) for its China business. This Agreement is an extension of the Business Sale Agreement signed in March 2012.

Pursuant to the Agreement ACE will sell its China inventory, equipment, customer and supplier contracts for the Chinese yuan equivalent of US$221,000 inclusive of VAT. Settlement will be part cash by instalments and part forgiveness of debt.

ACE retains the ACE trade mark for China and the non-exclusive right to manufacture, service and sell the ACE natural gas vehicle system in China. Pursuant to the March 2012 Supply and Licence Agreement ACE retains access in China, on a fee for service basis and agreed terms, to existing ACE technology, former employees and supply of product including software and technical services.

The transaction enables ACE to significantly reduce its China overheads and cash costs including rent, insurances and employee costs.

The transaction does not impact ACE’s ongoing negotiations with other parties regarding a potential recapitalisation plan. The proceeds from the transaction will assist with ACE’s funding requirements during the recapitalisation process.

For further information email aec@norvest.com.au

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