LIMA, Peru, July 5, 2011 /PRNewswire/ -- Li3 Energy, Inc., ("OTCBB: LIEG" – News) ("Li3", "Li3 Energy" or the "Company"), a US-listed and Peruvian-based global exploration company in the lithium and minerals sector is pleased to announce that it has mutually agreed to extend the expiration date and continue negotiating terms of a formal agreement with POSCO, (NYSE: PKX), a leading industrial company headquartered in the Republic of South Korea. The MOU originally set to expire on June 30th, 2011 has been extended until August 31st, 2011. POSCO is a diversified company, with operations in energy, chemicals and materials. POSCO is one of the largest steel manufacturers in the world with $56 billion in annual revenues, invests in numerous global resource development projects and has been actively evaluating and pursuing leading lithium projects globally. Luis Saenz, CEO of Li3 Energy, stated: "After concluding a week in Korea with POSCO's senior management team, advisors and legal counsel, I am extremely pleased that both companies have expressed a desire to continue working towards a mutually beneficial transaction. Our objective is to align the companies in a manner that provides Li3 with capital while minimizing dilution and still providing POSCO with a range of possible involvements including both financial and technological exchanges. Li3 is very proud to be considered as a potential strategic partner in lithium and other minerals and we look forward to exploring financial, technical and commercial opportunities with a global strategic partner of this magnitude". As Li3 has reported, the independent evaluation recently conducted by SignumBOX concluded that the Maricunga lithium project in its currents state is among the top eleven lithium projects in the world and has the potential to become the leading lithium based salar in brine-bearing deposits. Among other items, including securing additional financing and receiving the necessary Chilean government and environmental approvals, this report concluded that securing a multinational strategic off-take partner was one of the missing elements that could elevate the project even further.