Western Lithium Announces C$8.0 Million Bought Deal

RENO, NEVADA--(Marketwired - April 16, 2014) -

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Western Lithium USA Corporation ("Western Lithium", the "Company") (TSX:WLC)(OTCQX:WLCDF) is pleased to announce that it has entered into an agreement with Dundee Securities Ltd., on behalf of a syndicate including Haywood Securities Inc. (collectively, the "Underwriters"), with RK Equity Capital Markets LLC to act as a U.S. Placement Agent, to purchase, on a "bought deal" basis by way of a short form prospectus, 13,800,000 units of the Company (the "Units") at a price of C$0.58 per Unit for aggregate gross proceeds of C$8,004,000 (the "Offering"). The Underwriters have been granted the option to purchase up to an additional 15% of the Offering, exercisable in whole or in part at any time up to 30 days after the closing of the Offering. In the event that the over-allotment option is exercised in its entirety, the aggregate gross proceeds to the Company from the Offering will be C$9,204,600.

Each Unit shall consist of one common share ("Share") of the Company and one-half of one common share purchase warrant. Each whole common share purchase warrant shall entitle the holder thereof to acquire one Share at a price of C$0.75 for a period of 24 months following the closing of the Offering.

The Offering is scheduled to close on or about May 9, 2014. The Units will be offered in all provinces of Canada (except Quebec) by way of a short form prospectus. The Offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.

The net proceeds of the Offering will be used for the completion of the organoclay manufacturing plant in Nevada, which is scheduled for commissioning in the summer of 2014, and for working capital and general corporate purposes. Upon completion of the financing the Company will have access to capital of approximately C$16 million, including the Company's current treasury and remaining US$4 million from Orion Mine Finance (Master) Fund I LP, pursuant to the Royalty Financing (see news release dated September 23, 2013), which funds are expected to be drawn down in the next several months subject to the completion of certain corporate milestones. In addition to the organoclay plant in Nevada, the Company is advancing the procurement of the equipment for the Lithium Demonstration Plant in Germany, planned to be in operation in the fourth quarter of 2014. The plant will collect design data for a definitive feasibility study and to demonstrate the viability of producing low cost lithium carbonate from the Company's Kings Valley lithium-rich hectorite clay deposit in Nevada.