Safe Harbor/Confidentiality Statement:

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2 Safe Harbor/Confidentiality Statement: This presentation includes certain estimates and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements with respect to anticipated operating and financial performance, clinical results, potential partnerships, licensing opportunities, and other statements of expectation. Words such as expects, anticipates, intends, plans, believes, assumes, seeks, estimates, should, and variations of these words and similar expressions, are intended to identify these forwardlooking statements. While we believe these statements are accurate, forward-looking statements are inherently uncertain and we cannot assure you that these expectations will occur and our actual results may be significantly different. These statements by the Company and its management are based on estimates, projections, beliefs and assumptions of management and are not guarantees of future performance. Important factors that could cause actual results to differ from those in the forward-looking statements include the factors described in the Risk Factors section of the preliminary prospectus. The Company disclaims any obligation to update or revise any forward-looking statement based on the occurrence of future events, the receipt of new information, or otherwise. This presentation contains information that is Confidential and Proprietary. By requesting and taking receipt of this Document, you acknowledge and agree to maintain that Confidentiality and agree not to circumvent or make contact with any entity named or suggested unless prior written approval is granted by Li3 Energy Inc. Recipient further agrees not to directly or indirectly, disclose or permit its affiliates or representatives to disclose any of such information to any other person or reproduce this Document, in whole or in part, without the prior written consent of the Company. 2

3 Introduction & Summary: Address the growing demand for green technologies and alternative energy sources by providing low cost lithium, potassium, iodine and other strategic minerals used in multiple markets to global clients seeking to secure stable supplies while easing global dependence on fossil fuels. Second tier supplier next to SQM, FMC, Talison; Closed Maricunga May 2011; Option to purchase June 2011; CORFO data of 224,300 tonnes of Lithium; 3,274 tonnes of KCI (Potash); Worldwide demand for Lithium is forcasted to increase driven primarily by increased use of EV; A Top 11 Lithium Salar (SignumBOX) May 2011; NI Project of Merit (Hains Technology Assoc) May 2011; Strategic MOU (POSCO) May 2011; Proven Team, High Profile Board & Mineral Advisory Board; 3

4 Room to Grow - Growth is Good: Li3 plans to be second tier provider SignumBOX2010 4

5 Worldwide demand for Lithium estimated to exceed 250,000 tonnes by 2020 driven by: Growing interest exploring use in Solar USGS

6 Global Market Share for Potassium Nitrate 2008 global demand was 960,000 tonnes: Celfin Capital

7 Current junior lithium mining paradigm: Current junior lithium producers have many limitations: A Location Country Risk Geo-political Prime Salars available Logistics Proximity to Shipping B Geology Lithium Concentrations Li to Potassium ratios C Exploration Hard-Rock Mining Long exploration cycle Brine Mining Long evaporation cycle Li3 is the future of synergistic mineral exploration E Distribution Off-Take Partner D Govt & Environmental Permits /Approvals 7

8 Value Proposition & Implementation: Tremendous Partnering Potential: Who wants, who wins Auto Fertilizer Battery Makers Industrial GM SQM POSCO Chrysler FMC GE Ford TATA Slumberger BMW Potash Corp Halliburton Mercedes Mosaic SQM Tesla Agrium Audi K&S 8

9 Business Model: economics Maricunga & Other M A R K E T S P A R T N E R S Global Auto Secure predictable source of Lithium Lithium, Potassium Nitrate, Boron and Iodine Provide access to our minerals in $Billion markets : Typical Off-Take deals Investment $ plus % of Lithium Additional revenue on mineral sales or transfer price. Global Battery Secure predictable source of Lithium Global Conglomerate Strategic Investment.. 9

10 First Commercial Deal: Validation May 11 Li3 - PKS signed exploratory development and option agreement. MOU covers off-take agreement; Pilot & Demonstration Plant in Korea and or Chile. Strong vote of confidence in Maricunga and its advantages; Option to purchase $25MM in equity June 30 th 2011; Option to purchase additional equity in demonstration plant; Option to purchase additional equity in full operational facility in Chile; 10

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12 Maricunga highlights: meters above sea level; 1438 hectares in a world class mining region; Close to Caldera International Airport, Caldera Port & Chaneral Mining Port; Close to strategic mining epicenters in Chile (Copiapo & El Salvador). Infrastructure (road & power) in place to support development; Access via four established routes; Paved roads operative throughout the year; Lowest cost of production versus other Chilean salars; Initial drilling estimated assay values of 1.1g/L lithium, 7.93 g/l potassium, 1.81 q/l boron and 6.6 g/l magnesium; CORFO initial resource estimate of 224,300 tonnes of Lithium; 3,274 tonnes of KCI (Potash); 12

13 Other project highlights: 13

14 Leverage operating synergies & economics: Maricunga Lithium Process Lithium Carbonate Potassium Chloride Credit $1,500 / tonne other Nitrate Process Maricunga will produce a potassium chloride (potash) co-product; Potassium Nitrate Potash will be shipped to Other where it will be upgraded to potassium nitrate fertilizer; Value added process will upgrade the lithium carbonate potash to 120,000 tonne per year of potassium nitrate which is currently priced at US$900 per tonne; Other will also produce 700 tonnes per year of iodine which is currently priced at US$27,000 per tonne; Credit from the transfer of the potash will reduce the production cost of lithium carbonate by US$22 million per year cost or US$1,500 per tonne lithium carbonate; Iodine 14

15 Hains Technology & Associates highlights: NI MARICUNGA: Project of Merit Exploration potential to warrant expenditures for prefeasibility stage; Significant potential for development as a source of lithium, potassium and boron; Exploration work show brines are enriched in lithium and potassium and that the brine has a Mg/Li ratio permitting lithium recovery; Classified as a mixed type of salar of the Na-Cl-Ca-/SO 4 system; Historical hydrology and hydro-geological work indicated that the aquifers feeding the salar are highly productive; Possible to develop a NI compliant resource approximately equivalent to the historical estimate; Preliminary electrical and road infrastructure in place; Relatively high boron concentration should permit high extraction rates for recovery as boric acid, a valuable co-product; Low levels of Sulphate for a Chilean salar, reducing the need for additional reagents for Sulphate removal; 15

16 SignumBOX May 2011 highlights: Ranked 11 th top lithium projects in the world; SBGI of 3.23 SiBGEI of 3.60 (50% higher than average); Potential to become the #1 lithium project; Second best lithium deposit in Chile; Sodium chloride and other potassium salts as by- products; Disadvantage - higher elevation - longer evaporation times; Highest Li concentrations, extensions and Li to p_ ratios; Argentinean brines have lower Li and p_ concentrations; Maricunga has 2 nd highest quality deposit of Li in Chile; 16

17 2011 Q1 Q2 Plan Cost (USD) Acquisition cost $6,000,000 Complete geological and hydrological work $500,000 Conduct surface brine sampling on property $500,000 Process development work, lab process simulation and phase chemistry development $750,000 Drilling survey $2,500,000 Q3 Q4 Conduct pumping tests and sampling data integration Complete resource evaluation and scoping study $750,000 $1,000,000 Total cost to bring project to feasibility stage is estimated to be US$12 million 17

18 2011 Q1 Q2 Plan Cost (USD) Acquisition cost $6,000,000 Complete geological and hydrological work $500,000 Conduct surface brine sampling on property $500,000 Process development work, lab process simulation and phase chemistry development $750,000 Drilling survey $2,500,000 Q3 Q4 Conduct pumping tests and sampling data integration Complete resource evaluation and scoping study $750,000 $1,000,000 Total cost to bring project to feasibility stage is estimated to be US$12 million 18

19 Summary of Maricunga & Economics and Project Value Second Highest Lithium & Lithium Potassium Concentrations in Chile 20+ Year Mine Plan Net revenues of US$100+ million per year Total Capex: US$311 million Consolidated NPV of US$443 million IRR of 29.9% discounted at 10% 19

20 Li3 Board of Directors: Exemplary, Vision & Track Record Experienced executives from the mining and minerals industries who have founded and operated firms valued at billions of dollar. Luis Saenz President, CEO Li3 Energy, Inc., Standard Bank, Peru, UC Berkeley, 18 years in minerals & mining finance. Insert Name Chairman insert brief bio. Kjeld Thygesen Ivanhoe Mines (NYSE IVN) Resource Investment Trust Lion Resource Management -. David G. Wahl South Hampton Associates Mining & Mineral Global Thought Leader Director Latin American Minerals (TSXV LAT) Temax Resources (TSXV- TME) Anthony Hawkshaw CFO & Director Rio Alto Mining Inc.(OTC RIOAF) - Director Statesman Resources Former CFO Pan American Silver (NASDAQ PAAS). David Rector Minerals & Mining Director to several public companies 20

21 Li3 Minerals Advisory Board: Supported by a broad spectrum of mining, minerals and exploration expertise. Exploration: Don Hains - World-respected lithium & mineral expert. Carlos Thune - Respected geologist authority lithium exploration. Strategy: Pedro Pavlovic add bullets. Add name add bullets. Process Technology & Regulatory: Pedrp Pavlovic Add bullets. Tom Nueman - add bullets. POSCO add info 21

22 Li3 Management Team: A veteran team whose collective strengths & experiences provides attention to detail ensuring timely execution. Luis A. Saenz, President, CEO Standard Bank, Peru, UC Berkeley, 18 years in minerals & mining finance. R. Thomas Currin, COO LimeTech, FMC (NYSE: FMC), Reynolds Metal Erin Marin, CFO Accenture, Consultant to Fortune 100 Name Tech support Name Engineering Support Name Legal & Regulatory 22

23 Timing: Progress & Timelines: 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter 23

24 Li3 Financial Overview: 24

25 Li3 Cap Table & Market Data: Shares Issued & Outstanding 1 289,793,920 Outstanding Warrants and Other Rights 2 41,957,745 Reserved under 2009 Equity Incentive Plan 2,500,000 Convertible Note 126,700 Fully Diluted Shares Outstanding 166,819,704 Share Price (March 14, 2011) $0.41 Shares Deemed Outstanding for Market Cap Calculation (in millions) Market Capitalization (in millions of USD) 3 $65.2 Add: Total Debt 4 $0.1 Less: Cash 4 ($1.1) Total Enterprise Value (in millions of USD) $

26 Valuation Metrics: Recent Comparable Off-Take & Strategic Deals Compelling Argument: TSX- ORL Mkt Cap $243MM S/O 102MM Area of focus Argentina Toyota-Tsusho (2010) Largest Lithium Brine SBOXGI Ranking of SBOXGEI Ranking of Pre-Tax NPV 9% Discount Rate = USD Funded to feasibility Projected commercialization TSXV LI Market Cap $115MM S/O 63.4 Million Area of Focus Argentina LG GS Caltex Galaxy Res. Largest Lithium Brine SBOXGI Ranking of SBOXGEI Ranking of Pre-Tax NPV 14% Discount Rate = USD Funded To Feasibility Projected commercialization TSXV LAC.TO Mkt Cap $147MM S/Outstanding 88MM Areas of Focus: Argentina Mitsubishi & Magna Intl. 3rd Largest Lithium Brine SBOXGI Ranking of SBOXGEI Ranking of Pre-Tax NPV 14% Discount Rate = USD Funded To Feasibility Projected commercialization 26

27 Valuation Metrics: Recent Comparable Off-Take & Strategic Deals Compelling Argument: Key Asset Location Deposit Type Total LCE Grade Li/Mg Mkt Cap NAV P/NAV TEV TEV/Tet 27

28 Li3 Offering Summary: Offering Size [ ] million primary shares $[ ] million Over-Allotment Option [ ] million primary shares Initial Price Range Use of Proceeds $[ ].00 to $[ ].00 per share Feasibility Studies Preliminary Work Program TSX Listing General corporate purposes Exchange / Ticker NASDAQ - OTCBB / LIEG TSX -?? Expected Pricing Week of [ ] Bookrunner Co-Managers TBD 28

29 Contact information: Luis Saenz Chief Executive Officer Office: Cellular: Tom Currin Chief Operating Officer Office: Cellular: 29