Lithium Exploration Group CEO Distributes November 2014 Newsletter

SCOTTSDALE, AZ, United States, via ETELIGIS INC., 11/06/2014 – – Lithium Exploration Group Inc. (OTC Pink: LEXG) (PINKSHEETS: LEXG), CEO Alex Walsh discusses ongoing business activity in his November 2014 newsletter:

Dear Shareholders,

We have been through a few interesting months at LEXG. We have retired as significant amount of debt associated with the Tero acquisition from March, but there has been a lack of support in the market to hold our market cap in a position that I feel is appropriate. This has led to a precipitous decline in our trading price since the end of August.

As I craft this letter, our market cap is somewhere between $1.2M and $1.3M. I continue to feel that this undervalues our overall operations and opportunity in the future. That being said, we have only just reported our first revenue from the Tero acquisition and our Morinville facility via our wholly-owned subsidiary, Alta Disposal. We have not yet started the field testing of the water or oil technology, which I imagine is also a catalyst that many investors are wanting to see before putting support behind our stock.

We are still going through the growing pains that many small public companies go through, but we are fortunate to have many irons in the fire that have the potential to ignite our company and our market capitalization. We are also fortunate to be in a position where we are not at risk of going “out of business” or not being able to meet our obligations; so, while it doesn’t look great right now, we have a very bright future ahead of us.

What the past few months have also told us as a company is that our focus must not stray from the technology aspects of our company. We made a significant investment in the first two disposal facilities, which have both in their own way been a success, but this has led to a lot more debt than we have been able to support. Internally we have made the decision that, before taking that business any further, we need to sustain positive cash flows and have a significantly greater market cap at the parent company level.

Disposal Update

The Morinville facility is one of the most dynamic opportunities in all of Alberta. The well itself is almost 30 years old but continues to operate on vacuum at levels over 150 m/3 per day. When a well operates on vacuum, it means that the zone that we dispose into actually sucks the water down instead of having to force the water down with pressure and pumps. This reduces the risk of harming the integrity of the well and operational expenses significantly. This well also has a grandfathered Class 1A designation which is the highest designation for disposal wells in Alberta. Its location on the border of Fort Saskatchewan is ideal because Fort Saskatchewan is the largest petrochemical region in Canada.

Unfortunately this facility needs significant capex to bring it to full Class 1A status and, while we have increased the revenue from the present Class 2 activity each quarter this year, it still operates at a loss. While we are fully committed to this facility, given all of the other moving parts we have and the current low market cap, we have decided to look for a strategic partner to carry some of the costs of bringing the facility to its full potential. We also are considering the sale of the facility to get the cash that we have invested in it back onto our balance sheet so we can pay off some of the debt on our books. It is disappointing that our market cap can’t sustain this operation because it is a great project; but either of the aforementioned options will be very beneficial for our company today and in the future and are a necessary step.

We have raised the capital to fund the execution of the option to buy an additional 25% of Tero, which will close on December 31, 2014. Our legal team is starting the process and the first tranche of the escrowed funds will arrive next week. Unlike the Morinville facility, Tero continues to cover its own costs and generate profits. Tero is also crucial for the field testing of the ultrasonic technology and is going to be a significant part of our future. The capital that we raised to fund the acquisition has been the direct cause of the downward pressure on our market cap and stock price, but I believe it will prove to be one of the best investments we could ever have made as a company.

Technology Developments

As I mentioned earlier, we are refocusing the efforts of the company back to the technology development side of our business. We are prepping for the arrival of the oil unit from Texas, once it is assembled to Dr. Glotov’s satisfaction. We have initiated discussions, and are testing some of our oil from Tero, with an additive company in Texas that is looking for a strategic partner in Canada. I also recently met with a group that has a water treatment additive. They are also looking for a partner in Canada and this would dovetail nicely with our efforts on water treatment with the ultrasonic technology.

These relationships will look very similar to the relationship we have with Sonic Cavitation, in which we become their boots on the ground in Canada and assist in the market research, testing, and deployment of their products. None of them are conflicting products; they all have complementary functions and are used by the same end user.

We have invested several years and millions of dollars into developing the ultrasonic technology for deployment in Canada. Those efforts have lead us to be one of the most knowledgeable companies about the water and oil treatment needs throughout Canada. This makes us an ideal partner for these US companies that are looking to take their products north of the border.

Tero is a business that not only deals with all types of wastewater from oilfield operations, but it is also a company that collects and treats oil that comes from those waste streams. It is the perfect incubator for field testing of all types of oil and water treatment technologies. Without the operations at Tero and our years of market research, we would not even be considered as a partner with either of the companies I mentioned above.

Conclusion

The acquisitions of Tero and Morinville, coupled with the successful testing of the ultrasonic generator in February of this year, should have lead to significant growth in our market cap and allowed for sustained investment and growth of the company at better terms. Instead our market cap and stock price have only seen decline. As a company, we have taken this as a lesson learned, and realize that we need to continue to execute and trim our expansion efforts on capital-intensive projects and focus on technologies that can lead to greater near-term opportunities.

We have not given up on our disposal activities because they are critical to the development and deployment of these technologies; but we are going to be smarter and more conservative as we raise and spend company funds to allow our balance sheet and cash flows to improve. That is how we will get our market cap to where it belongs and sustain continued shareholder value and success.

Sincerely,

Alex Walsh

CEO

Lithium Exploration Group

About Lithium Exploration Group

Lithium Exploration Group is a US-based exploration and development company focused on the acquisition and development potential of lithium brines and other precious metals that demonstrate high probability for near-term production. Currently the company is focused on its Western Canada lithium assets, testing its Ultrasonic Generator Technology and the acquisition of oil and gas related assets in Western Canada. Lithium Exploration Group is a fully reporting company traded on the OTCQB under the symbol LEXG. Website: www.lithiumexplorationgroup.com.

Safe Harbor Statement

This news release contains "forward-looking statements". Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future testing of the ultrasonic technology.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of lithium prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.

Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

CONTACT:

Shanon Chilson

480-641-4790

info

SOURCE: Lithium Exploration Group Inc.

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