LIVIUM LTD — Capital/Financing Update 2016

Oct 11, 2016

ACN: 126 129 413 ASX: LIT

Level 1 675 Murray St West Perth WA 6005 PO Box 1088 West Perth WA 6872

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12 October 2016

ASX ANNOUNCEMENT

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LITHIUM AUSTRALIA’s SILEACH™ PILOT PLANT TESTS MOVE TO CONTINUOUS

LITHIUM CARBONATE PRODUCTION AT ANSTO MINERALS

Highlights

 Lithium Australia (ASX:LIT) advances lithium carbonate production

Lithium Australia NL (ASX: LIT) has commenced piloting for continuous production of lithium carbonate under the second stage of the Company’s new test program at the Sileach™ pilot plant in Sydney operated by ANSTO Minerals (a division of the Australian Nuclear Science and Technology Organisation). The step-up to “continuous” lithium carbonate production commenced in the past 24 hours and followed the initial pilot scale extraction of lithium from pegmatite ore sourced from Lepidolite Hill, located 15km south of Coolgardie in Western Australia, as announced by Lithium Australia to the ASX on 4 October 2016.

The second stage of pilot testing will recover lithium carbonate, and potassium salts from solutions generated during the previous pilot plant test. Lithium carbonate is used in lithium-ion batteries and potassium salts, which are valuable by-products of the process, are used as a major component of fertiliser.

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Sileach™ continuous pilot plant operation, ANSTO Minerals, Lucas Heights, NSW.

Lithium Australia NL ASX release, 11 October 2016

Lithium Australia’s Managing Director, Mr Adrian Griffin:

“Pilot testing the Company’s 100% owned Sileach™ process at the ANSTO Minerals has been very successful to date, extracting over 95% of the lithium. We anticipate very good results for the carbonate production step as the initial solutions are largely devoid of impurities.”

Adrian Griffin

Managing Director Mobile +61 (0) 418 927 658 Adrian.Griffin@lithium-au.com

About Lithium Australia

Lithium Australia NL is a dedicated developer of disruptive lithium extraction technologies, and 100% owner of the Sileach™ process for the recovery of lithium from silicates. LIT has strategic alliances with a number of companies, potentially providing access to a diversified lithium mineral inventory. LIT aspires to create the union between resources and the best available technology and to establish a global lithium processing business.

MEDIA CONTACT:

Adrian Griffin Lithium Australia NL 08 6145 0288 | 0418 927 658 Kevin Skinner Field Public Relations 08 8234 9555 | 0414 822 631

Lithium Australia NL ASX release, 11 October 2016