AmeriLithium Receives Second Draw Down on $10 Million Finance Agreement to Accelerate Exploration

LAKE TAHOE, NV, May 5 /PRNewswire-FirstCall/ -- AmeriLithium (OTC Bulletin Board: AMEL; "AmeriLithium" or "the Company") is pleased to announce the Company received its second draw down from its $10 million finance agreement on April 29, 2010 to accelerate the Company's ongoing US exploration program on its Paymaster Project in Nevada.

The first phase of a three-phase exploration program on the Paymaster asset is currently about to conclude: a gravity survey over the claim area to determine the depth of the basin and define areas of maximum potential for lithium brine concentrations (details from the gravity survey will be released in the near future). The second exploration phase includes completing a 2d seismic survey over the claim block to delineate the depth and thickness of the Lithium rich layers. If results from the gravity and seismic surveys are successful, the third phase would be recommended: a drill program to define reserves and establish the grade of lithium mineralization within the delineated basins that contain anomalous amounts of lithium.

"We feel the need to expedite our Paymaster Project exploration program," said Matthew Worrall, AmeriLithium's CEO. "Now that we've nearly completed our first exploration phase, it's become clearer than ever that moving forward with domestic exploration in a strategic and efficient manner is key to AmeriLithium establishing itself as a major player in the Lithium production and supply market. And what better way to meet America's growing demand for Lithium than to explore right here in the US."

AmeriLithium's Paymaster Project represents a 5,880-acre claim block adjacent to the Clayton Valley playa, where lithium-rich brines and evaporates have been accumulating for more than 30,000 years, resulting in the highest lithium content found in any brines tested by the US Geological Survey (USGS) in southwestern US playas and basins(1).

Clayton Valley is home to the only US-based lithium producing plant, operated by neighboring Chemetall Foote Corporation, a subsidiary of Rockwood Holdings, Inc. The plant has been in production since 1967, producing an estimated 50 million kg (55,000+ tons) of lithium to date from the region's rich brines(2).

Lithium deposits are currently mined to the immediate south of AmeriLithium's Paymaster Project in Clayton Valley via an environment-friendly and economic solution-mining technique, pumping brines from aquifers only a few hundred meters beneath the valley(3). Such subsurface brines currently represent the dominant raw material for lithium carbonate production worldwide due to the lower production costs when compared with hard-rock ore mining and processing(4).

Recovery costs are further reduced through the absence of royalty fees on mining in Nevada; a quicker and easier permitting process for placer (alluvial deposit) mining than hard-rock mining; and lower recovery costs due to the brine's low manganese content when compared to the high-manganese brines found in Chile(2), which represent 63% of America's lithium imports (USGS, 2010)(4).

ADDITIONAL GRAVITY SURVEY DETAILS

Mr. Jim Hasbrouck, Hasbrouck Geophysics, Inc., Prescott, Arizona, has recommended one kilometer line spacing and 250m stations for a total of about 100 gravity stations (based on approximately 25 line kilometers). The project, including mobilization-demobilization, should take approximately 15 days for field completion and another 30 days for the interpretation and final report. The gravity data will be acquired with a leased LaCoste and Romberg Model G gravity meter by Jim Hasbrouck, Hasbrouck Geophysics, Inc., Prescott, Arizona, and/or Lorin Stieff of GeoXplor Corp. with infrastructure and support supplied by GeoXplor Corp.

The data will be processed using the GravMaster computer software developed by GeoTools Corporation with field estimation of terrain corrections to Hammer Zone C and the use of DEMs to Hammer Zones M. Deliverables will include Bouguer Anomaly sections along each line, a three-dimensional compilation of those results, and a final report detailing the methodology, data acquisition, processing and interpretation. Mr. Hasbrouck will process and interpret the data, and prepare the final report.

FOR MORE INFORMATION

More information on the Paymaster Project, and additional information regarding the Company, can be found at AmeriLithium's corporate website www.amerilithium.com along with the facility to sign up for regular news updates.

ABOUT LITHIUM: Lithium is a lightweight metal used in a wide range of consumer products the world over: the medical industry uses lithium as an anti-depressant; industrial uses include glass, ceramic and porcelain enamel manufacture; the aviation industry uses lithium in alloys. Of particular interest is the use of lithium for battery production, which has expanded significantly in recent years due to rechargeable lithium batteries being used increasingly in electrical tools and in the rapidly expanding portable electronics market. Furthermore, the next generation of hybrid and electric vehicles are being designed to use high-capacity lithium-ion batteries as environmentally-friendly fuel alternatives while the Obama administration has introduced $5 billion in funding and incentives for the development of a secure, domestic battery industry with special focus on lithium-ion batteries.

ABOUT AMERILITHIUM: AmeriLithium is a publicly traded (NASD OTC BB: AMEL), mining company committed to progressively developing into one of the leading American players in the global lithium industry. The Company is headquartered in Lake Tahoe, NV. AmeriLithium has amassed a lithium portfolio consisting of ~724,000 acres, including three Nevada-based projects nearby the only lithium producing plant in the US, a large project in Alberta, Canada, and a project in Western Australia.

ON BEHALF OF THE BOARD OF DIRECTORS,

AmeriLithium Corp.

Matthew Worrall, Chief Executive Officer

Certain statements in this press release are forward-looking and involve a number of risks and uncertainties.  Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended.  AmeriLithium Corp. bases these forward-looking statements on current expectations and projections about future events, based on information currently available.  The forward-looking statements contained in this press release may also include statements relating to AmeriLithium Corp.'s anticipated financial performance, business prospects, new developments, strategies and similar matters.  AmeriLithium Corp. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.

1 NI 43-101 Technical Report by Coast Mountain Geological Ltd for Rodinia Minerals Inc, Mar. 12, 2009

2 Rodinia Minerals Inc website, Feb. 25, 2009

3 Clayton Valley Lithium presentation, GeoXplor Corporation

4 USGS Mineral Commodity Summary, 2010

SOURCE AmeriLithium Corp.