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Canada Lithium to Divest Tully Gold Prospect in Northern Ontario

Canada Lithium Corp. (TSX:CLQ)(OTCQX:CLQMD)(PINK SHEETS:CLQMD) ("Canada Lithium") announced today that it has entered into a purchase agreement with San Gold Corporation ("San Gold") and SGX Resources Inc. ("SGX") to sell a 100% interest in 18 mineral claims held by Canada Lithium located in Tully Township, Porcupine Mining Division of northern Ontario (the "Tully Gold Prospect").

The consideration to be paid for the Tully Gold Prospect by San Gold and SGX consists of $200,000 in cash, 600,000 common shares of SGX and 150,000 common shares of San Gold.

The agreement is subject to receipt of all necessary approvals of regulatory, stock exchange and securities authorities, as well as approval by the boards of San Gold, SGX and Canada Lithium. Final closing of the sale of the Tully Gold Prospect is expected to take place in the next couple of weeks.

In other developments, Canada Lithium points out that its shares trading on the U.S. QX exchange are temporarily trading under the symbol CLQMD following its successful completion of the recent share consolidation and share split that affected only those shareholders with less than 100 shares. These holders were given cash to relinquish their holdings. (See release dated July 20, 2010.)

The original QX symbol CLQMF will be reinstated shortly.

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