Li3 Enters into MOU with Chilean Investor, Will be Fully Funded through Feasibility Study

Li3 Energy, Inc. (OTCBB:LIEG) entered into a Memorandum of Understanding (MOU) with a Chilean Investment group on October 30, 2013. The MOU is subject to a 60-day Exclusivity Period for due diligence and documentation and Closing is expected in January 2014.

The terms of the MOU include:

• Li3 will receive $8m as consideration for the sale of 51% of Li3 Chilean subsidiary Li Energy SpA (holder of all of Li3´s assets in Chile)
• $7m will be received at Closing and will be destined for the payment of the Cocina properties acquired in April 2013, as well as debt repayment and working capital.
• Li3 will receive another $1m upon achievement of a milestone to be defined or at the latest 24 months from date of Closing.
•  Li3 will receive within the next five days from this press release an advance $500,000 as a bridge loan against this proposed investment.
• Li3 will also receive from the Chilean Investor a $2.5m loan on Closing destined for debt repayment with a maturity of 18 months from Closing.
• The Chilean Investor will also provide a loan to Li3 to cover Li3´s 49% share of the investments towards completing a Feasibility Study for the Maricunga project, with a maturity of 24 months from the date of disbursement.
• Li3 will receive an additional $1.6m subject to certain conditions.

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