New World Resource Corp. (the "Company") (TSX VENTURE:NW) announces that it has signed a Letter of Intent (the "LOI") with Gonzalo Miranda Salles to acquire a 99% interest in the lithium-potash Pastos Grandes brine project, located in the southern Bolivian Altiplano.

The 119.5 square kilometre Pastos Grandes concession covers approximately 95% of "Lagunas Pastos Grandes". The Bolivian Altiplano is home to over 200 alkaline and saline lakes and salars, the largest of which, "Salar de Uyuni", hosts the world's largest known reserve of lithium. The country is estimated to contain 5.4 million tonnes of lithium, or nearly 50% of the global resource.

Lithium Supply and Demand

Demand for lithium-ion batteries is increasing dramatically along with the demand of hybrid electric vehicles and portable energy sources. That demand growth is projected to continue significantly as these lightweight and reliable batteries have become mainstays in a variety of new battery driven industrial applications. Electric vehicles, cell phones and handheld computers are just a few examples of the rapidly growing industry uses for the power generating capability of lithium. Though traded internationally, lithium is not currently traded on a public market but rather through a direct negotiated price per ton with end users. Rising prices are reflecting the tightening supply demand equation.

Pastos Grande Concession

Lagunas Pastos Grandes is located in the Sud Lipez Province, Department of Potosi, Bolivia, at an elevation of 4,000 metres. This hyper saline lake/salar basin is fed by several intermittent rivers and thermal springs which discharge into the salar. The Pastos Grandes concession is elliptical in shape, with the major axis trending NW – SE. The salar contains a thick sequence of sediments with a shallow water table. The central lake is fed by a surficial river from the north and at least 12 thermal springs originating on the western side of the basin. Chemical analysis indicate that Pastos Grandes has an alkaline makeup (sodium-calcium-sulfate-chlorine) with high concentrations of lithium, potassium and boron. Minerals identified in the crust include halite, gypsum, clay, ulexite and calcite. The following table contains results reported from sampling in 1991:

Historical Chemical Data of Lagunas Pastos Grandes

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            Lithium     Potassium      Boron   Calcium   Sodium  Magnesium

Sample          (Li)           (K)        (B)      (Ca)     (Na)       (Mg)

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Brine   1.64 g/l or   14.2 g/l or  0.945 g/l   3.1 g/l  101 g/l   3.48 g/l

          1,642 ppm    14,216 ppm            or 0.16%       or 1.4%       

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Crust       750 ppm           1.8%  1200 ppm       3.5%      15%       1.4%

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Spring

 (north)   0.78 ppm         7 ppm   1100 ppm   9.5 ppm   69 ppm    4.4 ppm

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Stream     0.08 ppm         6 ppm    0.6 ppm    41 ppm   18 ppm   14.5 ppm

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Ulexite     730 ppm      4600 ppm    

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While the Company has no reason to doubt the accuracy of the historical results, they should not be relied upon until they have been confirmed by the Company's own exploration. In addition, the historical results and the work that generated them pre-date the enactment of National Instrument 43-101, and accordingly may not meet the requirements of that policy.

Lithium – Potash Brine Deposits

There are two main types of lithium deposits currently in production, pegmatites and brines. The pegmatites contain the lithium bearing hard rock silicate mineral spodumene. Brines occur in closed basins in high evaporation environments. Lithium, potassium and boron may be concentrated in these subsurface brines or in specific clay minerals. Lithium generally occurs as lithium carbonate or lithium chloride in these brines. Exploitation involves pumping the brines into a series of evaporation ponds which concentrates lithium chloride, from which lithium carbonate is precipitated by the addition of soda ash. By-products include potash and/or boron. Generally potash is extracted by conventional underground mining methods, however a significant amount of potash is also derived from the evaporation of brines, usually as a by-product of lithium production.

Hard rock exploitation of lithium carbonate is a more costly and energy demanding process. Grinding, crushing and a flotation circuit are required, followed by a sulfuric acid process and then the addition of sodium carbonate.

The size of major brine deposits worldwide generally ranges from 200 million to 1.3 billion tonnes, and the grade ranges from 0.015 to 0.125 percent lithium. The historical sampling from Pastos Grandes returned 0.16%. Virtually all of the world's brine produced lithium comes from Chile and Argentina within the Altiplano basin. Major companies involved in lithium production include Sociedad Quimica y Minera de Chile – SQM.N and FMC Corp. – FMC.N in Argentina.

Terms of the Letter of Intent

Under the LOI, the Company has 45 days to complete due diligence on the project to its satisfaction, and negotiate a definitive joint venture agreement (the "Agreement") between Gonzalo Miranda Salles and the Company's subsidiary, New World Bolivia S.A. ("New World Bolivia"). The Agreement will provide for payments by New World Bolivia totaling US$446,000 over five years, US$10,000 of which is due upon execution of the Agreement. Upon completion of the payments, New World Bolivia will have a 99% interest in the project. The remaining 1% interest in the project will be held by Gonzalo Miranda Salles as a free carried interest, although Gonzalo Miranda Salles's share of the net proceeds from production may be purchased by New World Bolivia at any time for US$250,000.

New World Bolivia will be the sole manager and operator of the project, and will be responsible for all exploration and development costs. New World Bolivia will also be responsible for making the necessary payments to the Bolivian Government to keep the concession in good standing. New World Bolivia will be entitled to recover all costs before it distributes any proceeds from production.

The Agreement does not provide for any minimum work commitment, and will have a term of 20 years.

Quality Control and Assurance

Exploration work on the lithium-potash Pastos Grandes brine project will be under the supervision of Joan McCorquodale, P.Geo, the Company's Vice President, Exploration. Ms. McCorquodale is responsible for the preparation of the technical information contained in this news release.

About New World

New World Resource Corp. is a Canadian based mining exploration company focused on building a strong, diversified project portfolio within the Americas. – Press Release