First Lithium Closes Private Placement and Gets Exchange Appoval of Yukon Claims

First Lithium Resources Inc. has finished the final closing of its non-brokered private placement financing. The offering raised gross proceeds of $330,000. A total of 3.3 million units of the company were issued in the private placement at a price of 10 cents per unit. The units were issued in two tranches, whereby 600,000 units issued were issued on June 30, 2009, and 2.7 million units issued in the second and final tranche were issued on July 9, 2009. Each unit comprises one common share and one warrant, with each warrant entitling the holder to acquire one common share of the company for a period of two years following the closing date at an exercise price of 15 cents per share in the first year and 20 cents per share in the second year. Finders’ fees comprising $6,000 cash and 60,000 warrants are payable to Northern Securities Inc. with the same terms as those to be issued pursuant to the private placement and $20,000 cash only is payable to Frontline Investment Managers Ltd. All securities issued in the private placement are subject to a four-month hold period in Canada from the date of issuance. All currency references are in Canadian dollars. The moneys will be used for general working capital and for further development of the company’s Canadian properties.

The TSX Venture Exchange has accepted for filing a purchase agreement dated June 16, 2009, between First Lithium Resources and Blair Naughty, whereby the company is to acquire 25 quartz claims located in the Yukon, 95 kilometres south of Dawson City, Yukon. In consideration, the company will pay $75,000 in cash and issue 800,000 shares in the first year. Work commitments are $25,000 in exploration expenditures by June 1, 2010, and $225,000 by Sept. 30, 2010. Mr. Naughty will retain a 3-per-cent net smelter return royalty, of which 1 per cent can be purchased by the company at any time before the commencement of commercial production upon payment of $1-million in cash, shares or combination thereof, subject to the exchange approval.

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