American Lithium Minerals Inc. (OTCBB: AMLM) valuation insight; chart analysis.

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) June 29, 2010 -- In our last report (http://timelesswealth.net/alerts/amlm-american-lithium.html), we introduced readers to American Lithium Minerals Inc. (OTCBB: AMLM), a junior mining and exploration company holding rights to the largest lithium deposit in North America (reserves estimated at 700M kg of lithium). This report will attempt to discover a 'fair value' or valuation to shares of American Lithium Minerals Inc. (OTCBB: AMLM) by means of a comparison with the external environment (competitors), and break down the stock's chart into easily identifiable components.

Intrinsic Components

A scan of the external environment will show that AMLM's competitors are few and far between. The surrounding area to the company's lithium deposits is home to the only operating lithium mine in North America. As we discussed in our prior report, the United States has a keen interest in securing lithium mineral for future considerations and projects (i.e. energy movement with lithium-ion batteries), in order to avoid dependency on foreign resources.

Another junior lithium company, Canada Lithium Corp. (TSX: CLQ), one with relatively unimpressive deposits when compared to American Lithium Minerals Inc. (OTCBB: AMLM), boasts a $78M market cap. American Lithium Minerals Inc. is capitalized just shy of $52M. The justification? There isn't any. An adjustment in share price that would reflect a conservative $78M market cap in AMLM's market would represent a 51% ROI. The good news for investors is that demand, market trends, and other circumstances may justify an even higher valuation for shares of American Lithium Minerals Inc. (OTCBB: AMLM) in the future.

One interesting fact discovered in the midst of our intrinsic analysis was a catalyst behind CLQ's market valuation.

Fact: Judy Baker, formally President, CEO and a director of Canada Lithium Corp., was instrumental in restructuring and strategically aligning CLQ for success, while growing the market cap six-fold.

Fact: Judy Baker is now with American Lithium Minerals Inc. (OTCBB: AMLM) as a member of management, responsible for property development, production and acquisitions.

Chart Analysis

The share price of American Lithium Minerals Inc. (OTCBB: AMLM) has consolidated for the past four trading sessions after posting significant gains in the price and volume departments amid a technical breakout on June 21st. The technical breakout points to the end of a six-month downtrend (as indicated on the chart), and similarly, parabolic SAR indicates what may be the beginning of an uptrend to the stock price.

view annotated chart at http://timelesswealth.net/upload/amlmchart.png

The Full Stochastic Oscillator is shown to disagree with the price downtrend in the past few months of trading. This discrepancy is known as 'divergence' and suggests trend reversal depending on the direction that the indicator points. Full Stochastics has formed an uptrend in the past five months, signaling positive divergence, an end to the price downtrend, and conversely, the beginning of an uptrend. Chaikin Money Flow shows strength in the 'long-term' chart; bullish accumulation taking place in the market.

More information can be found online at http://timelesswealth.net

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