Drilling Report

    RNS Number : 9177H
  Lithic Metals and Energy Limited
  11 November 2008
   

    Lithic Metals and Energy 
    ("Lithic" or "the Company")

    Drilling at Mvula East, Zambia, Discovers Further Uranium Mineralisation 

    Lithic Metals and Energy (AIM:LMY) announces final drilling results from its Mvula East uranium prospect, Zambia.

    Highlights

    *     All assays for drilling at Mvula East now received
    *     Uranium encountered in multiple zones in all drill holes
    *     Maximum value of 455ppm U3O8; generally below 200ppm U3O8

    Mvula East, a 6 kilometre-long uranium radiometric anomaly with surface rock chips to 736ppm U3O8 is located on the Mpande licence,
approximately 60 kilometres south of the capital city of Lusaka.

    A scout diamond drilling programme of 1532.4 metres consisting of 8 drill holes spaced approximately 500 metres apart targeting, a 3
kilometre-long zone in the centre of the radiometric anomaly, was completed in August of this year. 

    Although every drill hole intersected multiple zones of >100ppm U3O8, results were generally below 200ppm U3O8. 

    Commenting on these results today, Lithic Managing Director Jim Kerr said, "Having completed this first-pass scout drilling programme,
we are at least pleased to confirm that our exploration methodology is proving effective at rapidly discovering uranium occurrences.  

    Assays and data from exploration programmes already completed by our field teams this year over a large number of other highly
prospective uranium radiometric targets, will be forthcoming shortly.

    With the on-set of the wet season and cessation of exploration activities for this year, the company is undertaking a review of its
forward exploration programmes and associated expenditure, with a view to ensuring effective long term management and allocation of its cash
resources.  Further communication regarding this review will be made to shareholders."

    For more information, please visit www.lithicme.com

    Or contact
 Jim Kerr, Lithic Metals & Energy                     Tel: [phone]
 David Youngman/Katy Mitchell, WH Ireland Limited     Tel: [phone]
 Laurence Read / Beth Harris, Threadneedle            Tel: [phone]
 Communications
      Table 1. Mvula East Significant Drill Intersections
            ARC1950 zone 35S                        Intercept U3O8 ppm
  Hole ID    East     North   Dip/ Azimuth   From     To    Interval  U3O8 ppm
 MVUDD001   678707   8255200    -50/225      61.4    62.4      1       140.3

                                             93.2    93.6     0.4      143.84
                                            102.2   106.8     4.6      168.9
 MVUDD002   679187   8254802    -50/225      49.4    50.2     0.8      110.8

                                              69     69.8     0.8      103.7
                                             72.4    73.4      1       103.7
                                             75.6    76.6      1       107.3
                                             79.2     80      0.8      104.9
                                            105.8   106.6     0.8      224.0
                                             118    118.4     0.4      193.4
                                            172.4   174.2     1.8      139.8
                                            205.2   206.4     1.2      109.6
                                            227.6   230.8     3.2      127.7
 MVUDD003*  679743   8254316    -50/225     149.4   151.5     2.1      127.7

                                            187.96   194      6.04     142.2
                                             198    199.8     1.8       198
                                             205     212       7        137
                                             222    223.6      1        135
 MVUDD004   680100   8253943    -50/225      76.8    78.1     1.3      123.7

                                             92.7    92.9     0.2      154.3
                                            103.6   104.2     0.6      157.8
                                            146.9   147.6     0.7       139
                                            149.7   150.2     0.5      315.7
                                            153.4   153.85    0.45     177.9
                                            164.8   165.15    0.35     454.7
                                             188    189.2     1.2      122.5
                                            201.2   201.4     0.2      101.3
 MVUDD005   680388   8253626    -50/225      78.2    79.2      1       137.8

                                             96.4    97.4      1       119.0
                                            149.4    150      0.6      147.4
                                            160.2   160.6     0.4      185.1
                                            163.6   163.9     0.3      206.3
                                            168.94  170.05    1.11     122.6
                                            174.2   175.6     1.4      104.9
 MVUDD006   680778   8253246    -50/225      74.2    74.6     0.4      121.4

                                             85.8    86.8      1       110.8
                                            131.2   131.8     0.6      153.3
 MVUDD007   681178   8253057    -50/225      48.4    48.6     0.2      109.6

                                             86.9    87.2     0.3      120.3
 MVUDD008   679700   8254286    -50/225      63.2     64      0.8      110.8

                                             72.6    73.6      1       123.8
                                            74.15    74.6     0.45     115.5
                                             76.4    76.8     0.4      148.5
                                            103.8   104.4     0.6      113.2
                                            107.05   108      0.95     121.4
                                            169.2   171.6     2.4      141.0
                                             175    175.8     0.8      120.3
    Notes:
    *     Uranium analysis by 25gm pressed powder XRF by Genalysis Laboratories of Perth, Western Australia
    *     Significant intervals calculated as a weighted average using a 100ppm U3O8 cutoff, with a maximum of 2m internal waste 
    *     Metal values (U) converted to oxide values (U3O8) using a factor of 1.179
    *     Grid coordinates in ARC1950_35S projection

    *    Reported Earlier
      About Mvula East
    Located on the Mpande licence approximately 60km south-east from the capital city of Lusaka, Zambia, the Mvula East prospect is a
6km-long uranium radiometric anomaly associated with an outcropping unit of metamorphosed dolomite.

    The prospect was discovered by airborne radiometric survey, with subsequent ground surveys confirming uranium values up to 736ppm U3O8.


    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


    The information in this report that relates to Exploration Results is based on information compiled by Managing Director Jim Kerr (BSc
Geol, MSc Min Econ, MSEG). Mr Kerr, a full-time employee of Lithic Metals and Energy is a Member of the Australasian Institute of Mining and
Metallurgy and is a Competent Person as defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves. Mr Kerr consents to the circulation and inclusion in the report of the matters based on the information in the form and context in
which it appears.


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The company news service from the London Stock Exchange
 
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