Talison Lithium Announces Preliminary Fiscal Year 2011 Production Results - Full FY 2011 sales volume up 32%, production up 30%- Talison invests in future growth projects

PERTH, WESTERN AUSTRALIA -- (Marketwire) -- 07/14/11 -- Talison Lithium Limited ('Talison' or the 'Company') (TSX: TLH) today announced its preliminary sales volume and production results for the three months ('Q4 2011') and the twelve months ('FY2011') ended June 30, 2011. The Company also provided an update on its three growth projects encompassing progress in its Australian capacity expansion, lithium minerals conversion plant and South American salar exploration program.

Preliminary Results

Robust Growth in Sales Volume and Record Production

Compared to the previous year, FY2011 sales volume increased 32% to 339,501 tonnes lithium concentrate (or approximately 50,000 tonnes lithium carbonate equivalent ('LCE')). FY2011 production was 342,097 tonnes lithium concentrate (approximately 51,000 tonnes LCE), a 30% y/y increase.

Compared to the year-earlier period, Q4 2011 sales volume increased 5% to 92,416 tonnes lithium concentrate (approximately 14,000 tonnes LCE). The Company produced a record 89,505 tonnes of lithium concentrate in Q4 2011 (approximately 13,000 tonnes LCE), a 25% y/y increase. Sales of lithium concentrates are made in large shipments to customers and consequently this may result in variations between production and sales in individual quarters.

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                  Three    Three
                 Months   Months
                  Ended    Ended                  Year      Year
                   June     June                 Ended     Ended
                    30,      30,  Percentage  June 30,  June 30,  Percentage
                   2011     2010      Change      2011      2010      Change

Production(i)    89,505   71,627         25%   342,097   262,539         30%

Sales(i)         92,416   88,208          5%   339,501   256,767         32%
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(i) Tonnes of lithium concentrate

The sales volume and production figures represent continued robust growth for Talison. The Company's Greenbushes Lithium Operations is fully utilizing the new capacity created both by its Stage 1 Expansion and ongoing process improvement programs. Demand remains strong for all of the Company's technical and chemical grade lithium concentrate products and Talison continues to maintain its dominant position in the rapidly growing Chinese lithium market.

Peter Oliver, Chief Executive Officer, commented, 'We are extremely pleased with the growth in our sales volume and production. The Greenbushes Lithium Operations is the highest grade lithium mineral resource in the world, and completion of the current expansion will ensure Talison is highly leveraged to a stronger lithium price in a world where security of supply is expected to become increasingly important as governments look to reduce reliance on oil imports and decrease carbon dioxide emissions.'

Guidance for Fiscal 2012

During fiscal year 2012, Talison expects that demand will remain strong for its entire suite of products. A full year contribution from the Stage 1 Expansion of the Greenbushes Lithium Operations is anticipated and Talison expects both production and sales to be capacity constrained until completion of the Stage 2 Expansion in Q4 fiscal year 2012.

Peter Oliver added 'We are very optimistic about the outlook for Talison as a result of the rapidly changing supply/demand dynamics developing in the lithium industry. Recent substantial price increases from other lithium suppliers are reflective of a tightening in supply conditions while global demand remains strong. In anticipation of sustained growth in lithium consumption, driven primarily by the secondary lithium battery market, Talison is investing heavily in its three growth projects.'

Growth Projects

Greenbushes Stage 2 Expansion On Schedule and On Budget

The Stage 2 Expansion at the Greenbushes Lithium Operations is proceeding on schedule and on budget. Earthworks are largely complete, concrete was poured for the finished product stockpile, and the foundation framework for the two new ball mills is being erected. The Company continues to expect commissioning of the Stage 2 Expansion during the second calendar quarter of 2012 (fiscal Q4 2012). Upon completion, the Stage 2 Expansion will double the current production capacity at Greenbushes. Total nameplate production capacity will increase to approximately 740,000 tonnes per annum lithium concentrate (approximately 110,000 tonnes per annum LCE).

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Proposed Minerals Conversion Plant

Responding to growing global demand for an additional secure supply of lithium carbonate, particularly from electric vehicle battery manufacturers, Talison is focusing heavily on its proposed plant to convert lithium minerals into lithium carbonate ('Minerals Conversion Plant'). Plant capacity is proposed to be 20,000 tonnes per annum LCE in the first stage, and an additional 20,000 tonnes per annum LCE in the second stage.

Basic engineering and location studies for the Minerals Conversion Plant have commenced. The location study is evaluating several Western Australian locations, including at the Greenbushes Lithium Operations, and one overseas location. An external engineering consultant has been appointed to expand on previously completed scoping studies and prepare an updated estimate of capital costs. Discussions with potential customers regarding future lithium carbonate requirements and specifications are also underway.

Talison has employed additional technical and marketing personnel to drive this project. Based on its analysis of the supply/demand conditions in the lithium industry, the Company is targeting commissioning for the Minerals Conversion Plant in fiscal year 2015.

Salares 7 Project - Second Phase Exploration Program

Following the receipt of outstanding results for both lithium and potassium from the initial drilling at the Salares 7 Project in Chile, Talison is accelerating its exploration program. Talison is currently designing the next phase (Phase 2) of its exploration program and a new custom built sonic drill rig with specific capabilities to suit the ground conditions at the Salares 7 Project is being assembled.

The Phase 2 exploration program will commence in the next Chilean field season and Talison expects to invest approximately US$5 million on the program in fiscal year 2012. The Phase 2 program includes further drilling at Salar de la Isla, sufficient to form the basis for a potential lithium mineral resource estimate, as well as additional drilling at Salar de Las Parinas, and initial drilling at Salar de Aguilar and Salar Grande.

Talison is also initiating process test work studies to assist in designing a processing facility for the project, and collecting baseline environmental data, an activity that will need to continue for several field seasons, to be incorporated into the facility permitting procedures.

Financial Results Release September

Talison will release its financial results for the Fourth Quarter and 2011 Year End in early to mid September, 2011.

Peter Oliver, Chief Executive Officer and Managing Director of Talison will host a conference call to discuss the results.

Teleconference and replay call details will be distributed prior to release of financial results.

About Talison

Talison is a leading global producer of lithium. Talison mines and processes the lithium bearing mineral spodumene at the Greenbushes Lithium Operations in Western Australia. In addition, Talison explores for lithium at the Salares 7 lithium project made up of seven salars located in Chile. Talison has an extensive, well established global customer network and a leading position in the growing Chinese market.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this press release, including any information as to Talison's strategy, projects, plans, prospects, future outlook, anticipated events or results or future financial or operating performance, may constitute 'forward-looking information' within the meaning of Canadian securities laws. All statements, other than statements of historical fact, constitute forward-looking information. Forward-looking information can often, but not always, be identified by the use of words such as 'plans', 'expects', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', 'predicts', 'potential', 'continue' or 'believes', or variations (including negative variations) of such words, or statements that certain actions, events or results 'may', 'could', 'would', 'should', 'might', 'potential to', or 'will' be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts. The purpose of forward-looking information is to provide the reader with information about Talison's expectations and plans. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made or incorporated in this press release are qualified by these cautionary statements.

Forward-looking statements are necessarily based on a number of factors, estimates and assumptions that, while considered reasonable by Talison, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such factors, estimates and assumptions include, but are not limited to: anticipated financial and operating performance of Talison, its subsidiaries and their respective projects; Talison's market position; future prices of lithium or lithium concentrates; estimation of mineral reserves and mineral resources; realization of mineral reserve and mineral resource estimates; timing, amount and costs of estimated future production; grade, quality and content of concentrate produced; sale of production; capital, operating and exploration expenditures; costs and timing of the expansion of the Greenbushes Lithium Operations; exploration and development of the Salares 7 lithium project; costs and timing of future exploration; requirements for additional capital; government regulation of exploration, development and mining operations; environmental risks; reclamation and rehabilitation expenses; title disputes or claims; absence of significant risks relating to Talison's mining operations; the costs of Talison's hedging policy; sales risks related to China; currency; interest rates, and limitations of insurance coverage. While Talison considers these factors, estimates and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Talison and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such risk factors include, among others, those described in the unaudited interim consolidated financial statements of Talison and the related notes thereto as at and for the three and nine month interim periods ended March 31, 2011 dated May 11, 2011 and under the heading 'Risk Factors' in the annual information form of Talison for the year ended June 30, 2010 dated January 12, 2011 and in the short form prospectus of Talison dated February 8, 2011, each of which can be found on Talison's SEDAR profile at www.sedar.com. While Talison considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.

Although Talison has attempted to identify statements containing important factors that could cause actual actions, event or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is made as of the date of this press release based on the opinions and estimates of Talison on the date statements containing such forward-looking information are made. Except as required by law, Talison disclaims any obligation to update any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.

Contacts:

Investor Relations:

ICR, LLC

Gary T. Dvorchak, CFA

Senior Vice President

1 (310) 954-1123
Gary.Dvorchak@icrinc.com