LIMA, Peru, May 3, 2011 /PRNewswire/ — Li3 Energy, Inc. (OTC.BB: LIEG) (“Li3”, “Li3 Energy” or the “Company”) is pleased to announce that it has closed a $1.5 million bridge loan agreement with three private investors introduced by LW Securities. &nbspThe zero-coupon OID notes are due February 2, 2012, and are convertible into common stock of Li3 Energy at the lender’s option at a price of U.S.$0.40 per share. &nbspThe aggregate face amount of the notes at maturity is U.S.$1,677,438. &nbspThe notes may be prepaid at Li3 Energy’s option, and must be prepaid first out of the net proceeds of any future capital raising transaction by Li3 Energy. &nbspLi3 Energy will issue to the lenders warrants to purchase an aggregate of 1,500,000 shares of Li3 common stock, exercisable for five years at an exercise price of U.S.$0.50 per share.

The Company is also pleased to announce that it has received additional subscriptions for approximately $2.8 million in its equity offering. &nbsp(However, there can be no assurance that Li3 will close on any of these subscriptions.) &nbspLi3 previously announced that, on April 7, 2011, it had closed on a private placement offering of an aggregate of 7,406,666 units of its securities (the “Units”) to institutional and accredited investors and non-U.S. persons, for aggregate gross proceeds of approximately $1,999,800, at an offering price of $0.27 per Unit. &nbspEach Unit consists of (i) one share of Li3 common stock and (ii) a warrant to purchase one-half of a share of Li3 common stock, at an exercise price of $0.40 per whole share, exercisable for a period of three years. &nbspLi3 had also previously announced its closing of a warrant exercise solicitation that yielded aggregate gross cash exercise proceeds of $1,121,000 on April 7, 2011.

Li3 previously announced its planned transaction with Sociedades Legales de Minerales de LITIO 1 a 6 de la Sierra Hoyada de Maricunga, a group of private companies (the “Companies”), which would give Li3 Energy a 60% ownership in the Companies, which collectively own the Maricunga Project in northern Chile. &nbspThe acquisition is in the final stages of documentation and, along with the additional Unit subscriptions, is expected to close within one week.

An independent evaluation conducted by SignumBOX concluded that the Maricunga lithium project in its current state is among the top ten lithium projects in the world and has the potential to become the leading lithium based salar in brine-bearing deposits. &nbsp

Luis Saenz, CEO of Li3 Energy, stated: “We are pleased that numerous existing long-term shareholders, including LW Securities, participated in the Offering and continue to support the Company.”

About Li3 Energy, Inc.

Li3 Energy, Inc. is a developmental stage public company in the lithium mining and energy sector focused on the identification and acquisition of properties in Peru, Argentina and Chile and the United States. &nbspLi3 Energy aims to acquire a significant portfolio of lithium brine deposits in the Americas for the purpose of development and production in order to meet growing market demand and to support the clean energy and green energy initiatives being implemented globally. &nbspAdditional information regarding the company can be found in our recent current filings (Forms 8-K, 10-Q and 10-K with the SEC as well as the information maintained on our website www.li3energy.com) &nbsp

Forward-Looking Statements

All statements other than statements of historical facts included in this news release including, without limitation, statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “estimates,” “projects,” “potential,” “target,” “goal,” “plans,” “objective,” “should” or similar expressions or variations on such expressions are forward-looking statements. The Company can give no assurances that the assumptions upon which the forward-looking statements are based will prove to be correct.&nbsp Because forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements. There are a number of risks, uncertainties and other important factors that could cause the Company’s actual results to differ materially from the forward-looking statements, including, but not limited to: &nbspthe Company’s ability to successfully receive committed funds and close on the additional subscription agreements that have been executed in the Offering; the Company’s ability to timely close on the acquisition of interests in the Maricunga Project; the Company’s ability to identify appropriate corporate acquisition and/or joint venture opportunities in the lithium mining sector and to establish the technical and managerial infrastructure, and to raise the required capital, to take advantage of, and successfully participate in such opportunities; future economic conditions; political stability; and lithium prices.&nbsp For further information about certain risks faced by the Company, see “Risk Factors” in Part I, Item 1A of Amendment No. 1 to our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on November 5, 2010. The Company disclaims any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained in this news release to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

SOURCE Li3 Energy, Inc.