Lithium Exploration Group Secures Additional $1,500,000 Investment

Lithium Exploration Group LEXG announces that it has secured an additional $1,500,000 in capital to advance its Valleyview Project. The term sheet that has been executed by the parties is in regards to a placement of convertible debentures in the principal amount of $1,500,000, payable in three equal tranches, to be fully funded by August 1, 2011. The debentures shall bear interest at 12% per annum and shall be due and payable 18 months from their issuance. The financing will be primarily used for the advancement of the Valleyview Project in Alberta and will immediately allow for the following steps to take place: Resource Estimate: The resource estimate for the Valleyview Project will include the data from the 12-week testing program completed in May 2011 and a hydrogeological analysis of the aquifer underlying the property. This process will begin immediately and should be completed before the end of Q3 of 2011. Laboratory Partner: The laboratory partner has been identified to design the separation process specific to the Valleyview Project brines. There has already been an initial outline of the process to target lithium, potassium, and magnesium separation and refinement. This process will be expanded once legal contracts have been completed and will immediately begin the process to initiate a bench testing program to outline the most cost-effective and efficient techniques. Strategic Acquisitions: There have been a number of acquisition targets identified in the region that overlay the same aquifers tested at the Valleyview Project. These acquisitions will allow for expanded reach in the region as the project comes closer to production. “This financing is critical for the advancement of our efforts in Canada. From the beginning I have taken the approach on this project that the first group to begin production of lithium and other minerals from the Swan Hills brines will have a huge advantage over potential competition. This financing will allow us to move quickly and execute on all aspects of our strategic plan while the ultrasonic generator is being built,” said Lithium Exploration Group CEO Alex Walsh. “There is a lot of work that needs to be done over the next few months but we are certainly now able to control our own destiny. I expect there to be a number of exciting developments for the company in Q3 that will be a direct result of this financing and will potentially add substantial value to the company's shareholders.” The securities referred to herein will not be or have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.