Lithium Australia NL announced that it has entered into an acquisition and joint venture agreement with Galan Lithium Limited which will purchase an 80% interest in the Greenbushes South Lithium Project. The Greenbushes South Lithium Project (`the Project') is located 200 km south of Perth, the capital of Western Australia. With an area of 353 km2, Lithium Australia was initially attracted to the Project due to its proximity to the world-class Greenbushes Lithium Mine ('Greenbushes'), and tenure that covered the southern strike projection of the geological structure that hosts Greenbushes.

The Project area commences approximately 3km south of the Greenbushes open pit mining operations. Terms of the transaction: Unincorporated joint venture formed between Galan (80%) and the Company (20%) ('the Parties') by the issue of 1,221,000 fully paid ordinary shares in the capital of Galan; Galan to pay the Company's joint-venture expenditure share until completion of a preliminary feasibility study; Thereafter the Parties to contribute on a pro-rata basis or the Company may dilute out but retain a 2% net smelter royalty; It is expected that the acquisition will be completed within five business days, or at such later date as the Parties agree; and Sale of the exploration license and prospecting license applications are subject to regulatory approvals.