Company Information for Lithic Metals and Energy

AIM-LMY

www.lithicme.com

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AIM; LMY

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Company Statement

Lithic Metals and Energy (“Lithic”) is a highly motivated mineral exploration and development company focused on Nickel and Uranium in Zambia, Mozambique and Togo.

Lithic Metals and Energy’s objective is to create shareholder value through the discovery and exploitation of nickel and uranium deposits, principally in Zambia and other SADC countries.

In 2006/7 the Company signed a Memorandum of Understanding with BHP Billiton Plc for the acquisition of the Mavita Nickel Project in Mozambique and in Q2 2007 diversified its portfolio signing a Heads of Agreement with Zambezi Resources Limited for a 51% stake of the uranium rights over the Oryx prospect and additional radiometric anomalies over four granted Zambian Prospecting Licences. Lithic must subscribe for US$5 million in shares in the entity holding the uranium rights to earn 51%, and can increase this interest to 75% by funding definitive feasibility studies on Oryx and any other uranium deposit. Zambezi Resources can elect to contribute or dilute to a 2.5% NSR.

Lithic is actively exploring for Nickel and Uranium in Zambia and Mozambique, as well as actively pursuing new business opportunities within Africa.

Lithic is following up encouraging nickel saprolite leach test results from its Mitaba project in Zambia and pursuing growth opportunities across Africa.

Current Operations

Zambia Uranium
Chumbwe and the Oryx prospect
The most advanced project within the Zambian uranium assets is the Oryx project, located within the Chumbwe license approximately 80km from the capital city of Lusaka.

Initial exploration activities included mapping, trenching, soil sampling, a ground radiometric survey and rock chip sampling. The majority of this work focused the north eastern corner of the radiometric anomaly over peak values.

Trenching identified significant uranium grades over widths of up to 50m, with peak value of 1527ppm U3O8 (0.15% U3O8). Selected sampling of surface accumulations of davidite returned peak assays of up to 6.44% U3O8.

Surface mineralisation in the form of davidite over a wide area prompted the completion of a high resolution helicopter radiometric survey over the Oryx prospect, which identified an untested peak uranium anomaly several kilometers long to the west of where exploration activity was conducted.

Exploration will focus on defining the extent and tenor of mineralisation across the entire radiometric anomaly through mapping, trenching and drilling.

Oryx Metallurgy
Davidite-bearing material was collected and submitted to MINTEK Laboratories of South Africa to confirm the likely metallurgical characteristics of the Oryx mineralisation. Test work on a sample grading 4.44% U3O8 extracted 68% of the uranium over a 6 hour period under pressure acid leaching conditions.

The Mpande Project
The Mpande license has partial radiometric and magnetic survey coverage, which has delineated a number of high order radiometric uranium anomalies of various geometries.

An 8km long elongated uranium radiometric anomaly (eight times background uranium levels) at Mvula has received limited field investigation in the form of mapping, rock chip sampling and spectrometer profile surveys.

This work has confirmed high uranium readings in hand held spectrometry, with a “hot spot” some 2km in strike length. Mapping has identified a dolomitic schist as the host lithology, which has an apparent width of up to 150m. Lithic will complete mapping and surface sampling of the Mvula anomaly in preparation for drill testing in the 2008 field season.
A number of other high priority radiometric uranium anomalies occur within the license area, which will be ranked for evaluation after the completion of a major airborne radiometric and magnetic survey over the untested portions of the Mpande license.

Mulungushi
Approximately 1/3 of the Mulungushi license is covered by airborne radiometric survey data, with five high-order uranium radiometric anomalies defined. Lithic has commissioned a major aeromagnetic and radiometric survey over the remaining untested portion of the license area and on completion will rank targets and commence on-ground exploration.

Rufunsa
This license remains relatively unexplored and will be covered by airborne geophysical survey as soon as is practical.

Zambia Nickel
Mitaba Hills Project
The Mitaba Project occupies a total strike length of 11 kilometres, within which occur two main complexes of successive ultramafic units 3.3 kilometres apart.

At Mitaba Hill, the easternmost Prospect, detailed mapping and trenching of the area has demonstrated the presence of ultramafic units over 2,000m in strike length and up to 300m in width.

Sampling results from 25 trenches at Mitaba Hill and 11 at Mitaba West, reveal numerous wide intervals in only mildly weathered ultramafic lithology including: 88.4 metres assaying 1.23% Ni (nickel) and 53.3 metres assaying 1.77% Ni at Mitaba Hill; and 52.4 metres assaying 0.71% Ni, and 50.3 metres assaying 0.76% Ni at Mitaba West.

A 50kg bulk saprolite sample having a calculated head assay of 0.95% nickel and 266ppm Cobalt was collected from trenching within the central portion of the Mitaba Hills project and submitted to AMMTEC laboratories of Perth, Western Australia for bottle roll leach test work and size assay analysis.

Test results showed 90% recovery of nickel and 63% recovery of cobalt after just four days resident leach time, indicating the potential for rapid recovery of metals. Peak recoveries of 96% nickel and 84% cobalt appear to occur after 35 day’s resident leach time.

Lithic intends to follow up this result with additional and more detailed test work on samples derived from a wider area, in conjunction with field activities designed to define a nickel resource.

Mozambique Nickel
The Mavita project
The project comprises two granted exploration licenses covering 354km² on the eastern edge of the Achaean Zimbabwe craton, in the Manica province of Mozambique.

Initial reconnaissance mapping, stream sediment sampling and geophysical surveys have identified two nickel-prospective ultramafic sequences.

Early rock chip sampling identified the presence of the nickel sulphide polydimite in association with elevated nickel values.

Current exploration activities are concentrating on defining drill targets within the ultramafic sequences through the completion of detailed geological mapping, rock chip and soil sampling, IP and EM ground geophysical surveys.

Lithic is planning to fly a VTEM geophysical survey over the ultramafic sequences in late 2008 as a prelude to drill testing nickel sulphide targets.

Togo: Lithic is actively exploring or nickel, chromite, zinc and uranium in Togo.
Togo is a small, Francophone West African nation of approximately 5 million people, with a modest mining culture centred on phosphate production. The country boasts excellent infrastructure in the form of sealed highways, railway networks and a deep water port. Togo is a democratic nation with a modern, pro investment legislative environment.

Lithic, through its 100%-owned subsidiary RRCC Ltd, holds a 90% interest in 19 granted exploration licences covering approximately 3,700km². The government of Togo holds the remaining 10% as a free carried interest.

Projects:

Haito Project; Nickel and Chromite
Pagala Project; Zinc
Niamtougou – Kara; Uranium

Geographical Spread

The Company's nickel projects lie within the East African Nickel Belt, which is interpreted to extend for over 2,000 kilometres from Botswana through Zambia, Malawi, Tanzania, and Congo to Burundi. Recent nickel discoveries along this belt highlight the nickel and platinum potential of the region.

Board of Directors and Key Management

James (Jim) Gavin Kerr	Managing Director

David Ian Rawlinson	Chairman

Julian Ford	Non-Executive Director

David John Lunt	Non-Executive Director

Company Address

UK Ryder Court
14 Ryder Street
London, SW1Y 6QB


Telephone:	+61 8 9322 5804
Facsimile:	+61 8 9322 5821
Email:	info[at]lithicme.com
Website:	http://www.lithicme.com

Additional Address/Key Contact

Australia
19 Richardson Street
West Perth, WA 6005
Australia
Telephone Number: +61 8 9322 5804
Fax Number: +61 8 9322 5821

Zambia
53 Joseph Mwilwa Road
Rhodespark, Lusaka, Zambia
Telephone number +260 (0) 211 229 373
Fax number +260 (0) 211 229 376

Togo
Regent Resources Capital Corporation S.A.U.
Rue 213 Agbalépédogan
05 BP574 Lomé, Togo
Phone / Fax Number +228 225 0486

Annual General Meeting

7 September

Year End

31 March

Nominated Brokers

WH Ireland Limited
5th Floor
85-89 Colmore Row
Birmingham, B3 2BB
United Kingdom
Telephone Number: +44 121 265 6300
Fax Number: +44 121 265 6301
http://www.wh-ireland.co.uk/

Nominated Advisors