FIRST LITHIUM LIMITED — Regulatory Filings 2003

Nov 5, 2003

ADVANCED ENGINE COMPONENTS LIMITED

14 ENERGY STREET PO BOX 3126 MALAGA 6090 WESTERN AUSTRALIA

TEL: +61 8 9209 6900 FAX: +61 8 9209 6999

6 November 2003

Company Announcements Office The Australian Stock Exchange Limited Exchange Centre 20 Bond Street SYDNEY NSW 2000

By: e-lodgement

Dear Sir/Madam

Re: Co-operation Agreement with Chinese Automotive Group

The Company announces that it has signed a Co-operation Agreement with the research and development arm of a Chinese vehicle and engine manufacturer.

The agreement provides that the entities work together to design, develop, test and certify a natural gas engine converting an existing diesel engine by incorporating AEC's natural gas technology.

The agreement is subject to many conditions including certification by the appropriate Chinese authority.

Yours sincerely

NERIDA SCHMIDT COMPANY SECRETARY