Talison Lithium Limited visits Asian Metal

In the afternoon of November 8, 2012, Ronald Mitchell, Marketing Manager of Talison Lithium Limited and Gu Li, Sales Representative of Talison Lithium (Shanghai) visited Asian Metal and exchanged opinions on the current lithium market with Joy Kong, Associate Analyst of Asian Metal.

This is the first time that Ronald Mitchell comes to Beijing and he is very much impressed by Beijing and Asian Metal. On August 9-10, 2012, Joy Kong attended lithium concentrate production expansion ceremony of Talison Lithium Limited, located in Greenbushes. During the period of the ceremony, Mr. Mitchell and Joy Kong exchanged views about lithium market and this is the second meeting. Mr. Mitchell expressed that they hope to have more communication with Asian Metal and exchange more information about lithium market. He expressed full recognition of Asian Metal and Talison Lithium Limited is a member of Asian Metal.

Recently, many market participants reported to Asian Metal that Talison intends to raise spodumene price by USD50/t, but Chinese buyers have not accepted it. Mr. Mitchell expressed that smart phone and tablet giants like Apple and Samsung earn generous profits and he hopes to see some profit will transfer to suppliers of lithium cobalt oxide, lithium nickel manganese cobalt oxide, lithium carbonate, lithium concentrates, brine. At the same time, he is optimistic about the development of lithium battery industry, especially in Chinese market. On the other hand, Joy Kong thinks that it is oversupplied in lithium cobalt oxide and lithium nickel manganese cobalt oxide markets in China and prices fall with the decreasing price of cobalt and there is thin profit for lithium cobalt oxide and lithium nickel manganese oxide producers. Finally, whether spodumene price will rise depends on the supply and demand sides.

Talison Lithium Limited announced on August 23 2012 that it has entered into a definitive Scheme Implementation Agreement with Rockwood Holdings, Inc. or a wholly-owned entity of Rockwood, will acquire 100% of the ordinary shares in the capital of Talison by way of a Scheme of Arrangement under the Australian Corporations Act 2001 for cash consideration of C$6.50 per share. This values the equity of Talison at approximately C$724 million on a fully diluted basis. About the development of the merger, Mr. Mitchell and Ms. Gu expressed that the acquisition is expected to be finished at the end of 2012.

Meanwhile, Joy Kong welcomed the visit of Mr. Mitchell and Ms. Gu and expressed the appreciation of the support from Talison all the time. Joy Kong invites delegates from Talison to attend World Cobalt & Lithium Forum 2013, which will be held in April 2013.

Talison Lithium is a leading global producer of lithium and is listed on the Toronto Stock Exchange (TSX Code: TLH). Talison Lithium’s headquarters are in Perth, Western Australia and the Company has over 140 employees located in Australia, Canada, Chile and China. Talison Lithium currently produces lithium concentrate at its lithium mineral project in Western Australia located in the town of Greenbushes. The lithium orebody at Greenbushes is unique in that it contains large zones of high grade lithium ore. Lithium has been produced from the Greenbushes operations for over 25 years and Talison Lithium currently exports over 350,000 tonnes of lithium products annually to a global customer base.