Lithium One and Galaxy Lithium One Agree to Amend Terms of Exchangeable Shares

Galaxy Lithium One Inc., a wholly owned subsidiary of Galaxy Resources Limited, has agreed to amend the terms of the exchangeable shares which may be issued to certain eligible shareholders of Lithium One Inc. (TSXV:LI) who elect to receive Exchangeable Shares under the previously announced plan of arrangement transaction whereby Galaxy will acquire all of the outstanding securities of Lithium One.

As quoted in the press release:

Under the terms of the Arrangement, holders of common shares (“Shareholders”) of Lithium One (the “Common Shares”) will be entitled to receive 1.96 common shares of Galaxy (“Galaxy Shares”), in exchange for each issued and outstanding Common Share. Certain eligible Shareholders may elect to receive all or a part of their consideration in the form of Exchangeable Shares in lieu of the Galaxy Shares, to allow such Shareholders to potentially benefit from a deferral of capital gains tax consequences. Holders of options to acquire Common Shares (“Options”), shall receive that number of Galaxy Shares per Option equal to the product determined by multiplying 1.96 by the quotient of (a) the positive difference between $1.55 and the exercise price of such Option divided by (b) $1.55, and holders of convertible notes of the Company (“Notes”) would receive a convertible note of Galaxy in exchange for each issued and outstanding Note as well as all interest accrued on such Notes.

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