Small Number of Miners and Split of the Pie - The market demand for lithium carbonate equivalents is currently close to 100K tonnes per annum and is supplied by the following split for market supply:   Figure 1: Source; Market Equities Research Group Q4/09 Report Currently lithium production supply and demand are relatively in balance, however the possibility of a lithium production supply deficit is a realistic scenario as the problem with predicting demand is that no one actually knows just how enthusiastic developing trends will be. The future use of lithium in transportation as a preferred medium of energy storage, among other uses, has earmarks of going viral in the next couple decades. New entrants and the ramping up of production from existing producers is expected by some industry forecasts to keep supply in step with demand, but the fear of possible supply chain interruption is a motivator for major industrial end users to take preemptive measures and ensure they are strategically involved now. What is not necessarily factored into the forecast assumptions is that there will not only be a "demand" but rather a "cultural push" that will forever change the future of transportation as we know it and a tight supply market carries risk for end industrial users of lithium. Capital investment now in the form of strategic partnerships are minimal to offtake partners in comparison to risk of loss by not taking action to protect the billions of dollars of sales in which lithium is an integral component, however what is minimal to major industrial manufacturers can translate to a windfall for shareholders of certain junior development lithium companies.   Necessity of Offtake Agreements for New Entrants The current suppliers of lithium in the market place are few (see chart to the right) and new participants need the involvement of offtake partners, among other necessities, to exist as producers successfully.   Offtake agreements allow producers to sell portions of future production. An offtake agreement is normally negotiated prior to the construction of a facility in order to secure a market for the future output of the facility. These offtake partners could approach the existing majors for long term contracts but they have their own reasons to not want to deal with the existing companies and their participation in one or more juniors is what is going to make a difference for in bringing new entrants over the finish line and into production. it is a symbiotic relationship as lithium producers can't walk into the market blindly and think they are going to produce lithium and find a home for it as there is no spot market, there might be one in the future but today that's just not part of the equation.    List of recently announced strategic partnerships: • Galaxy Resources with Mitsubishi of Japan, • Canada Lithium with Mitsui of Japan, • Lithium Americas Corp. with Magna International Inc. and Mitsubishi Corp., • Lomiko Metals with Japan, Oil, Gas and Metals National Corporation, • Minera Santa Rita (non public) with Bollore and Eramet of France, • Orocobre with Toyoto TushoToyota Group of Japan, • Pan American Lithium with  South Korean POSCO Pohang Iron and Steel Company. A Canaccord Adams analyst noted the following on strategic partnerships of late “At the very least these partnerships are inexpensive hedges and levers for use against the lithium oligopoly but they should also be viewed as sincere expressions of a desire for new, diverse sources of lithium as end-users anticipate the penetration of e-cars well ahead of that perceived in North America”.    ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------   Noteworthy New Participants Positioned for Near Term Lithium Production The following companies are distinguished from other lithium juniors as they have made corporate announcements regarding intentions to engage in near term production and have followed up with action to support plans to actually and realistically come online near term. The mentioning of these companies is NOT an endorsement as certain ones have advantages over others and require in-depth  analysis; some of these (without mentioning names) have substantial permitting issues to battle through, jurisdictional/political risk issues, and some even have serious questions about the actual economic viability due to the nature of their resource.    1) Orocobre Limited (ASX: ORE) (corporate website). Orocobre's Salar de Oloraz brine deposit in the Puna Region of Argentina is being touted as a near term large scale, low cost lithium-potash brine resource operation. Orocobre had joined forces with Toyoto Tusho to develop Salar de Oloraz, and expects to complete the Definitive Feasibility Study on the project in mid 2010, with initial commercial production starting in late 2011. 2) Simbol Mining Corp. (private company) (corporate website) has exclusive mineral rights contracts with geothermal developers. Information is guarded by Simbol as they are private however they are believed to be newly operational and actually producing lithium and growing. 3) Canada Lithium Corp. (TSX-V: CLQ) (corporate website) has initiated a prefeasibility study on its hard rock Quebec Lithium Project near Val d'Or, Quebec. CLQ.V has announced anticipated plans for mine construction in 2011. Canada Lithium Corp is currently completing a Pre-Feasibility Study for the development of the project that anticipates production of up to 19,200 tonnes of 99.5% lithium carbonate product annually, commencing around 2012. 4) Galaxy Resources Limited (ASX: GXY) (corporate website) is finalizing plans to establish a lithium carbonate chemical facility in Jiangsu Province, producing 17,000 tpa of lithium carbonate. We note none of this product is likely to enter the North American market and will be for internal consumption in China. 5) Reed Resources Ltd. (ASX: RDR) (corporate website) in JV with Mineral Resources Ltd. (ASX: MIN) have announced 2010 production start-up of hard rock project in Western Australia. 6) Western Lithium Corporation (TSX-V: WLC) (corporate website) has received approval for its plan of operation for its hectorite clay Kings Valley Lithium Project in Nevada.   Anticipated addition to list: See case study below on Pan American Lithium Corp. (TSX-V: PL) (US Listing: PALTF); Pan American is advancing the development of geothermal brines at Cierro Prieto, Baja California, Mexico with the goal of producing 5,000 tpy lithium carbonate. Pan American also possess nine salars in in Atacama Region III, Chile where surface water lakes offer quick and cost effective means to calculate an initial resource estimate, and offer quick access to a source that can be processed cost effectively. Pan American Lithium possesses a relatively short timeline into production and is considered to be positioned to be quicker to market than any other new lithium related projects in the market.  ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------    Forward Looking Demand for Lithium Li-ion in automotive use to surge Interest and demand in lithium minerals has increased significantly, driven by the increased importance and production of lithium-ion batteries as the next generation power source. Current global lithium demand (measured as Lithium Carbonate Equivalent (LCE)) is below 115,000 t – mostly in ceramics, glass and Li-Ion batteries in consumer electronics. This demand is estimated by numerous respected sources to grow to close to 300,000 t by 2020 with the bulk of the growth in lithium batteries driven by electric vehicles, however these estimates are an educated guess on the popularity of trends.     Figure 2. Actual and Forecasted Breakdown of Lithium-contained demand Source: representation of known data and forward looking general consensus estimates/guesstimates  ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------   Case Study: Pan American Lithium Corp. (TSX-V: PL) (US Listing: PALTF) - Lithium, Potash Exceptional risk-reward scenario with fast track to production planed for geothermal brine in Mexico and one of nine Salars in Chile For exposure to the lithium sector Pan American Lithium Corp. (TSX-V: PL) (US Listing: PALTF) offers the best risk-reward characteristics as PL.V possesses advanced projects with near term production potential in stable mining friendly jurisdictions. Their Mexican geothermal brines have the existing infrastructure and feedstock to facilitate low cost lithium production. Pan American's Chilean Salars (located in the Atacama Region III) are among the best in the world and are highly coveted assets to anxious global industrial manufactures looking to ensure they have adequate supplies of lithium to satisfy demands.   Key characteristics which will drive the success of Pan American Lithium Corp.: • Superior quality lithium brines. • Located in stable, mining friendly jurisdictions. • Figured to be in the lowest part of the lowest quartile of operating costs globally. • Designed and operated by a management team with considerable Latin America mining expertise. • Appears Pan American Lithium be quicker and cheaper than other junior company competition to resource estimate, feasibility, and production. • Ideally suited to be supported by one or more large, international, strategic offtake or joint venture partners.   Upside Valuation/Summary: Pan American Lithium Poised for Significant Upside Revaluation - With only ~31M shares outstanding (~34M fully diluted) and trading under CDN$0.80 PL.V is poised for significant upside revaluation. PL.V is positioned to be first to market in an environment where, among other industries, auto manufacturers are looking to control the lithium supply chain. The advanced nature and quality of their projects on two fronts ideally positions investors in PL.V to profit from what is quickly being acknowledged as the strongest lithium story in the market.      Pan American Lithium Corp. is a new mineral development and exploration mining company listed on the TSX Venture Exchange (ticker symbol PL) (US Listing: PALTF). PL.V was formed to develop attractive, low cost and well-located lithium projects.   Pan American Lithium is advancing lithium brine projects in Chile's Atacama Region III and possesses a relatively short timeline into production on their Cierro Prieto geothermal brine mineral recovery project in Baja California, Mexico.   Nine Salars, Atacama Region III, Chile - 100% owned by Pan American Lithium Corp. Figure 3. Pan American's Laguna Verde Salar, Chile One of nine salar projects Pan American Lithium owns in Chile. The surface lake provides an advantage to quickly and cost effectively calculate a resource estimate and offers easy access to a source that should be competitive. The PL.V salars are considered among the best salars in the world prospective for Li production. Pan American's Laguna Verde Project is located in the lithium triangle which also hosts SQM’s (world’s largest producer of lithium carbonate) Salar del Atacama facilities. Pan American's Laguna Verde Project is the company's primary Chilean salar to be advanced with the goal of near term low cost lithium production. A resource estimate study on the Laguna Verde Salar is expected to be completed by April 30, 2010.   The Advantage of Surface Lakes on Pan American Lithium's Salars Quick and cost effective to calculate a resource • Quick access as a source to be processed cost effectively Several of the PL.V salars have The PL.V salars are considered among the best salars in the world prospective for Li production. Pan American's Laguna Verde Project is located in the lithium triangle which also hosts SQM’s (world’s largest producer of lithium carbonate) Salar del Atacama facilities. Pan American's Laguna Verde Project is the company's primary Chilean salar to be advanced with the goal of near term low cost lithium production. A resource estimate study on the Laguna Verde Salar is expected to be completed by April 30, 2010. The PL.V salars are considered among the best salars in the world prospective for Li production. Pan American's Laguna Verde Project is located in the lithium triangle which also hosts SQM’s (world’s largest producer of lithium carbonate) Salar del Atacama facilities. Pan American's Laguna Verde Project is the company's primary Chilean salar to be advanced with the goal of near term low cost lithium production. A resource estimate study on the Laguna Verde Salar is expected to be completed by April 30, 2010. key advantage of significant surface brine lakes and thus are likely substantially less costly and faster to establish an initial resource by measuring the surface brine volume and concentration. A simple bathymetric survey of the lake-bottom and sampling will establish volume and grade. Beneath their salar lakes PL.V will also have brines, probably in higher concentration, and there the geologist’s task will be the same as all other companies who own salars with dry crustal surfaces. However the distinction is that PL.V’s surface water lakes should be comparatively inexpensive and far faster to establish a resource and will also allow quick access to a source of lithium and other constituents that can be processed for extraction.   Based on historical sampling data, Pan American Lithium's Laguna Verde Salar surface water body, with a surface area of 15 square kilometers, is expected to be above 200 ppm in lithium content. The company is performing the work to establish grade and volume of the lake to be stated in a compliant NI 43-101 Technical Report. PL.V has publicly released information regarding its initial depth soundings of Laguna Verde, which show the average lake depth to be 33 meters. Pan American's ultimate production costs of lithium carbonate are projected to be the lowest quartile in the world.   Geothermal Brine Mineral Recovery Project, Baja Mexico Figure 4. Geothermal Brines Project, Mexico. PL.V has rights to the brines from the 2nd largest geothermal facility in the world, a ~720MW facility with plans to expand. Pan American Lithium has rights to commercial scale lithium recovery from brines produced at the 2nd largest geothermal plant in the world. 5.7 Million gallons per day brine flow, plans for fast track to production, sizeable interest in potential for an initial 5,000 tonnes of li carbonate per annum. The project has exceptional existing infrastructure.   Scoping Study Now Underway: The Cierro Prieto Project will exploit geothermal brines produced from deep wells which feed an evaporation lagoon with a surface area of 14.3 square kilometres. Pan American intends to systematically sample the concentrated brines in the lagoon and submit samples for analysis by a certified laboratory. Concurrently, Pan American will determine an estimate of the volume of the lagoon and its contained brines, either from historical construction data or from current depth measurements. Pan American believes that, globally, these geothermal brines are potentially among the lowest cost sources of lithium and may offer the quickest route to production.   Currently Pan American Lithium has an arrangement to be owner of an indirect 25% interest in the lithium part of the project at the geothermal brine mineral recovery project; PL.V would receive a direct carry (no cost to PL.V) through to lithium production, without spending any money. As the project develops there is a possibility PL.V will take a greater interest as they may be relied upon to bring project financing. It is also anticipated that PL.V will be awarded a subcontract to be the mining operator of all elements/resources at the project, as well as the subcontracted marketing operator for disposition of all lithium and potentially all other products.   NOTE By-products are critical in adding value: Pan American Lithium's brine projects in Chile (100% PL.V owned) and Mexico (as the mine operating and marketing agreements develop) will give PL.V the opportunity to recover other elements/resources such as potash.