20th August 2008

Lithic Metals and Energy 

("Lithic" or "the Company")

Radiometric Survey Discovers Numerous Uranium Targets in Southern Zambia

Lithic Metals and Energy today announces the results of its recently-flown radiometric and magnetic survey over the southern portion of the Mpande licence, Zambia. The results are encouraging, identifying 18 high priority uranium radiometric anomalies.

Lithic, working in conjunction with its joint venture partner Zambezi Resources Limited, has completed 6800 kilometres of airborne radiometric and magnetic survey over highly prospective Proterozoic basement lithology in the southern portion of the Mpande licence.

Commenting on these results, Lithic Managing Director Jim Kerr said "We are very pleased with the results of this survey, which confirms our belief in the uranium prospectivity of our joint venture licences.  We have now flown approximately 38,000 kilometres of airborne surveys over our licences, discovering 41 high priority uranium targets in the process. We now have a very full pipeline of quality targets that are currently being assessed by our field teams."

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Uranium Rights Joint Venture

Lithic Metals and Energy entered into a joint venture with Zambezi Resources (AIM/ASX: ZRL) in May 2008, under which Lithic Minerals and Energy has the right to earn 51% of the uranium rights over 6800km² of four granted exploration licences (Chumbwe, Mpande, Mulungushi and Rufunsa) by spending US$5 million over 2.5 years.  

With respect to the four exploration licences Lithic can increase its uranium rights in the Chumbwe licence to 75% by completing a definitive feasibility study over the Oryx prospect. It can also increase its uranium rights to 75% over the other three licences by completing a definitive feasibility study (DFS) on any one uranium resource.

Lithic can move to 100% by sole funding mine development after completion of a DFS, assuming Zambezi Resources elects not to contribute pro rata, in which case Zambezi will dilute to a 2.5% Net Smelter Return royalty. 

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