LIVIUM LTD — Capital/Financing Update 2015

Aug 18, 2015

LI T 86909

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18 A u gust 2015

Dear O ption Hold e r,

Expiry of Option Series

This i s a reminde r that your options, exercisable at $ 0 .0875, will b e expiring o n 2 Septe m ber 2015 a t the close of bu s iness.

On th e other side of this pag e is a generi c option exercise form s h ould it be r equired.

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Outli n ed below is the price history for th e past three months.

Deta ils	Dat e	Share P rice
Mar (bein ket price of ful gthe last trad ly paid ordinar ingday priort y shares (LIT) o the date oft in the Compan his notice) y	17 August 201 5	$ 0.07
Duri notic in th ng the threem e, the highest e Company onths immed market price iately precedin of fully paid or g the date oft dinary shares his (CXB)	23 June 201 5	$0 .096
Duri notic the ng the threem e, the lowest Company onths immed market priceo iately precedin f fully paid ord g the date oft inary shares( his LIT) in	11 August 201 5	$0 .055

Pleas e call me closer to the o p tion expiry date shoul d you wish t o discuss this.

Regar d s

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Adrian Griffin Mana g ing Direct o r

Mobile +61 (0) 418 927 658 Adria n .Griffin@li t hium‐au.co m

LIT86909

LITHIUM AUSTRALIA NL

A C N 126 129 413

INCORPORATED IN WESTERN AUSTRALIA APPLICATION FOR SHARES UPON EXERCISE OF OPTIONS

I/We ___________________

Security holder Reference Number (S.R.N) / Holder Identification Number (H.I.N) ________

Contact Telephone Number ________

The registered holder(s) of the Options hereby exercise my/our Option for:___ _______ In figures In words

Ordinary Fully Paid Shares and enclose application money of $0.0875 per share $.................................................

(amount payable on exercise)

I/We whose full name(s) and address(es) appear above hereby apply for the number of Shares shown above. I/We agree to be bound by the Constitution of the Company.

I/We whose full name(s) and address(es) appear Constitutionofthe Company.	above hereby apply for the number of Shares shown above. I/We agree to be bound by the
Signature Of Option holder(s) (All joint holders must sign) �------------------------------------------- Signature Date �------------------------------------------- Signature Date �------------------------------------------- Signature Date	Companies Only -Executed in accordance with the Company’s Constitution and the Corporations Law. �---------------------------------------------------------------------- Sole Director and Sole Secretary �----------------------------------------- Date �------------------------------------------ Director Date �----------------------------------------- Secretary Date �------------------------------------------ Director Date Director Date
Note: If signed under Power of Attorney, a Certified Copy of the relevant Power of Attorney document must be exhibited to the Registry. TheAttorney declares thathe/shehashadnonotice of revocationofthePowerof Attorney.

TERMS AND CONDITIONS

• (i) Each Option gives the holder the right to subscribe for one Share. To obtain the right given by each Option, the Option holder must exercise the Options in accordance with the terms and conditions of the Options. The Options have an expiry date that is 2 September 2015 (2 years less one day following the date of issue) ( Expiry Date ) and the exercise price is $0.0875 (125% of the VWAP for the 5 Trading Days preceding the date of the Meeting) ( Exercise Price ).

• (ii) Any Option not exercised before the relevant Expiry Date will automatically lapse.

• (iii) A holder may exercise their Options by lodging with the Company, before the relevant Expiry Date:

• (a) written notice of exercise of Options specifying the number of Options being exercised ( Exercise Notice ); and

• (b) cheque or electronic funds transfer for the relevant Exercise Price for the number of Options exercised.

• (iv) An Exercise Notice is only effective when the Company has received the full amount of the relevant Exercise Price in cleared funds.

• (v) Within 14 Business Days of receipt of the Exercise Notice accompanied by the relevant Exercise Price for the number of Options being exercised, the Company will allot the number of Shares required under these terms and conditions in respect of the number of Options specified in the Exercise Notice.

• (vi) All Shares issued upon the exercise of Options will rank pari passu in all respects with other Shares.

• (vii) In the event the Company remains listed on ASX at the time of exercise of the Options, the Company will apply for quotation on ASX of all Shares issued on exercise of Options within 10 business days after the date of issue of those Shares.

• (viii) If at any time the issued capital of the Company is reconstructed, all rights of a holder are to be changed in a manner consistent with the Corporations Act and the Listing Rules (if applicable) at the time of the reconstruction.

• (ix) There are no participating rights or entitlements inherent in the Options and Option holders will not be entitled to participate in new issues of capital offered to Shareholders during the currency of the Options. However, the Company will ensure that for the purposes of determining entitlements to any such issue, the record date will be at least 7 business days after the issue is announced. This will give Option holders the opportunity to exercise their Options prior to the date for determining entitlements to participate in any such issue.

• (x) In the event the Company proceeds with a pro rata issue (except a bonus issue) of securities to Shareholders after the date of issue of the Options, the exercise price of the Options will be treated in accordance with the Listing Rules (if applicable).

• (xi) In the event the Company proceeds with a bonus issue of securities to Shareholders after the date of issues of the Options, the number of securities over which a Option is exercisable may be increased by the number of securities which the Option holder would have received if the Option had been exercised before the record date for the bonus issue. The Exercise Price will not change as a result of the bonus issue.

Cheques should be made payable to LITHIUM AUSTRALIA NL and crossed “Not Negotiable” and drawn on an Australian Bank and posted to Advanced Share Registry Ltd, PO Box 1156, Nedlands, Western Australia 6909.

NOTE: OPTIONS NOT EXERCISED BY 02 SEPTEMBER 2015 WILL AUTOMATICALLY EXPIRE.