Disclosure

Disclosure for Historical Resource

In 2012 Li3 published a technical report documenting a resource estimate that it completed within the framework of NI43-101 F1 and referred to it as a 43-101 technical report. The Company considers this as a Historical Estimate as defined by National Instrument 43-101 and that Bearing has not completed the work required to independently analyze and verify the results of the previous operators nor has a qualified person completed sufficient work to classify the estimates as current mineral resources or mineral reserves. The company believes these historic results provide an indication of the potential of the property. Further technical disclosure as required under section 2.4 of NI43-101 specific to Historical resources follows.

Title of report

TECHNICAL REPORT ON THE MARICUNGA LITHIUM PROJECT REGION III, CHILE
NI 43-101 REPORT PREPARED FOR Li3 Energy
By: Don Hains, P.Geo, Frits Reidel, CPG, Amended May 23, 2012
Prepared for Li3 Energy Inc. (Posted to Li3 website)

Framework

The report was prepared in conformance with the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects and the associated Companion Policy 43-101CP and Form 43-101F1 of the Canadian Securities Administrators (modified June 24, 2011) and the associated Best Practice Guidelines for Industrial Minerals and Mineral Processing as issued by the Canadian Institute of Mining and Metallurgy. The Report also includes technical judgment of appropriate additional technical parameters to accommodate certain specific characteristics of minerals hosted in liquid brine as outlined in Ontario Securities Commission Staff Notice 43-704; the draft Best Practice Guidelines for Reporting Brine Resources and Reserves as prepared by one of the authors (Hains) and as discussed by Houston (Houston et al, 2011).

Relevance and Reliability

The Company believes the historical resource is relevant as it provides an indication of the potential of the property and expected tenor or the brines. Bearing has not completed the work required to independently analyze and verify the results of the previous operators nor has a qualified person completed sufficient work to make a conclusion on the reliability of the historical resource.

Bearing is not treating the resource estimate as a current mineral resource estimate.

Assumptions, Parameters, Methods

• Limited to Litio 1 to 6 concessions
• 6 sonic boreholes, 3 RC boreholes
• 431 Brine samples, 192 QA/QC samples
• 285 porosity measurements
• 6 shallow pumping tests
• The lithium and potassium resource estimates were calculated from the average total grades determined by the stochastic simulations and the defined aquifer volumes

Categories

The historical mineral resource estimate used measured mineral resource, inferred mineral resource which are categories set out in National Instrument 43-101

Robert Cameron, P.Geo., who is a technical consultant to the Company and is a qualified person within the context of National Instrument 43-101, has reviewed this disclosure.