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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Washington, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported):&nbsp;&nbsp;<B>September
13, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Li3 Energy, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%; padding-right: 0.8pt; font-weight: bold; text-align: center">Nevada</TD>
    <TD STYLE="width: 40%; padding-right: 0.8pt; font-weight: bold; text-align: center">333-127703</TD>
    <TD STYLE="width: 30%; padding-right: 0.8pt; font-weight: bold; text-align: center">20-3061907</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; text-align: center">(State or Other Jurisdiction</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center">(Commission File</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center">(I.R.S. Employer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; text-align: center">of Incorporation)</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center">Number)</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center">Identification Number)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Marchant Pereira 150</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Of. 803</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Providencia, Santiago de Chile</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Chile</B><FONT STYLE="font-size: 10pt">
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of principal executive offices,
including zip code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>+56 (2) 896-9100</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">(Registrant&rsquo;s
telephone number, including area code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Copy to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Adam S. Gottbetter, Esq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Gottbetter &amp; Partners, LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">488 Madison Avenue, 12th Floor</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">New York, NY&nbsp;&nbsp;10022</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Phone:&nbsp;&nbsp;(212) 400-6900</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Not applicable</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Former name or former address, if changed
since last report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(see General Instruction A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>This report and its exhibits contain
&ldquo;forward-looking statements.&rdquo; All statements other than statements of historical facts included in this report and
its exhibits, including without limitation, statements regarding our financial position, estimated working capital, business strategy,
the plans and objectives of our management for future operations and those statements preceded by, followed by or that otherwise
include the words &ldquo;believe,&rdquo; &ldquo;expects,&rdquo; &ldquo;anticipates,&rdquo; &ldquo;intends,&rdquo; &ldquo;estimates,&rdquo;
&ldquo;projects,&rdquo; &ldquo;target,&rdquo; &ldquo;goal,&rdquo; &ldquo;plans,&rdquo; &ldquo;objective,&rdquo; &ldquo;should,&rdquo;
or similar expressions or variations on such expressions are forward-looking statements. We can give no assurances that the assumptions
upon which the forward-looking statements are based will prove to be correct. 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 our actual results to differ materially
from the forward-looking statements, including, but not limited to: the results of initial exploration, and the determination by
us and POSCAN of whether to pursue any of the contemplated transactions; our ability to raise additional capital to complete exploration,
development and commercialization of the Maricunga Project and other opportunities; future findings and economic assessment reports;
our ability to obtain the necessary operating permits and environmental approvals; our 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 raise the required capital to take advantage of, and successfully participate in, such opportunities; future economic conditions;
political stability; and lithium prices. For further information about certain risks we face, see &ldquo;Risk Factors&rdquo; in
Amendment No. 7 to our Registration Statement on Form S-1/A, filed with the Securities and Exchange Commission on March 6, 2012.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Except as otherwise required by the
federal securities laws, we disclaim any obligations or undertaking to publicly release any updates or revisions to any forward-looking
statement contained in this Report to reflect any change in our expectations with regard thereto or any change in events, conditions
or circumstances on which any such statement is based.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 3.02</B></TD><TD STYLE="text-align: justify"><B>Unregistered Sales of Equity Securities</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Commencing September
7, 2012, we have entered into several Stock Settlement Agreements (the &ldquo;Settlement Agreements&rdquo;) with certain qualified
parties to whom we owed payments (&ldquo;Receivable Holders&rdquo;). However, to date, the number of shares we have sold since
our last report filed under this Item 3.02, including those shares issued pursuant to the Settlement Agreements, is less than 5%
of the number of shares of our common stock outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Board of Directors
has authorized our entering into Settlement Agreements with respect to an aggregate of up to $1,000,000 of obligations, and our
issuance of up to 20,000,000 shares of our common stock pursuant thereto. Through September 13, 2012, we have entered into Settlement
Agreements with respect to an aggregate of $390,326 of obligations, and have issued an aggregate of 5,825,761 shares of our common
stock (the &ldquo;Settlement Shares&rdquo;) pursuant thereto. Each Settlement Agreement we have entered into to date has provided
for us to issue one share of our common stock for every $0.067 of obligations released by the Receivable Holder executing the same.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The foregoing is a
summary of the principal terms of the Settlement Agreements and is qualified in its entirety by the detailed provisions of the
actual documents, the form of which is filed as an exhibit to this Current Report and is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Several of our Directors
and Executive Officers entered into Settlement Agreements with us, pursuant to which we issued Settlement Shares in exchange for
the release of obligations in the respective amounts set forth below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; border: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 33%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left-color: windowtext; border-left-width: 1pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Obligations Released</TD>
    <TD STYLE="width: 33%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left-color: windowtext; border-left-width: 1pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Settlement Shares Issued</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; border-top-color: windowtext; border-top-width: 1pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Patrick Cussen</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">$57,825</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">863,060</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; border-top-color: windowtext; border-top-width: 1pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Harvey McKenzie</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">$33,130</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">494,478</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; border-top-color: windowtext; border-top-width: 1pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Alan Fraser</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">$24,000</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">358,209</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; border-top-color: windowtext; border-top-width: 1pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">David Wahl</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">$24,000</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">358,209</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; border-top-color: windowtext; border-top-width: 1pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Patricio Campos</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">$29,707</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">443,388</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; border-top-color: windowtext; border-top-width: 1pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Eduardo de Aguirre</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">$29,707</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">443,388</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; border-top-color: windowtext; border-top-width: 1pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Luis Saenz</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">$120,000</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">1,791,045</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; border-top-color: windowtext; border-top-width: 1pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Luis Santillana</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">$20,000</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">298,507</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The offer and sale
of the Settlement Shares pursuant to the Settlement Agreements were exempt from the registration requirements of the Securities
Act of 1933, as amended, by virtue of Section 4(2) thereof and Regulation D and/or Regulation S promulgated thereunder, as transactions
by an issuer not involving a public offering. Each Receivable Holder with which we entered into a Settlement Agreement represented
its intention to acquire the securities for investment only and not with a view to or for sale in connection with any distribution
thereof, and appropriate legends shall be affixed to the certificates issued therefor. Each Receivable Holder with which we entered
into a Settlement Agreement represented and warranted, among other things, that it is an accredited investor within the meaning
of Regulation D and/or a non-U.S. person within the meaning of Regulation S, that it has the knowledge and experience in financial
and business matters necessary to evaluate the merits and risks of an investment in our common stock and has the ability to bear
the economic risks of the investment, and that it has adequate access to information about us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 9.01</B></TD><TD><B>Exhibits</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following exhibits are filed or furnished with this Report.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B><U>Exhibit</U></B></TD><TD><B><U>Description</U></B></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in">10.1</TD><TD>Form of Stock Settlement Agreement, between Li3 Energy, Inc. and a Receivable Holder</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[Signature page follows.]</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">Li3 Energy, Inc.</TD>
    <TD>&nbsp;</TD></TR>
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    <TD>Dated:&nbsp;&nbsp;September 13, 2012</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-style: normal; font-weight: normal">/s/ Luis Saenz</TD>
    <TD>&nbsp;</TD></TR>
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    <TD>Name:&nbsp;&nbsp;Luis Saenz</TD>
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    <TD>&nbsp;</TD>
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    <TD>Title:&nbsp;&nbsp;Chief Executive Officer</TD>
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[{"type": "8-K", "sequence": "1", "filename": "v323769_8-k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 26697}]
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
September
13, 2012
Li3 Energy, Inc.
(Exact name of registrant as specified in
its charter)
Nevada
333-127703
20-3061907
(State or Other Jurisdiction
(Commission File
(I.R.S. Employer
of Incorporation)
Number)
Identification Number)
Marchant Pereira 150
Of. 803
Providencia, Santiago de Chile
Chile
(Address of principal executive offices,
including zip code)
+56 (2) 896-9100
(Registrant's
telephone number, including area code)
Copy to:
Adam S. Gottbetter, Esq.
Gottbetter & Partners, LLP
488 Madison Avenue, 12th Floor
New York, NY  10022
Phone:  (212) 400-6900
Not applicable
(Former name or former address, if changed
since last report)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
1
This report and its exhibits contain
"forward-looking statements." All statements other than statements of historical facts included in this report and
its exhibits, including without limitation, statements regarding our financial position, estimated working capital, business strategy,
the plans and objectives of our management for future operations and those statements preceded by, followed by or that otherwise
include the words "believe," "expects," "anticipates," "intends," "estimates,"
"projects," "target," "goal," "plans," "objective," "should,"
or similar expressions or variations on such expressions are forward-looking statements. We can give no assurances that the assumptions
upon which the forward-looking statements are based will prove to be correct. 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 our actual results to differ materially
from the forward-looking statements, including, but not limited to: the results of initial exploration, and the determination by
us and POSCAN of whether to pursue any of the contemplated transactions; our ability to raise additional capital to complete exploration,
development and commercialization of the Maricunga Project and other opportunities; future findings and economic assessment reports;
our ability to obtain the necessary operating permits and environmental approvals; our 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 raise the required capital to take advantage of, and successfully participate in, such opportunities; future economic conditions;
political stability; and lithium prices. For further information about certain risks we face, see "Risk Factors" in
Amendment No. 7 to our Registration Statement on Form S-1/A, filed with the Securities and Exchange Commission on March 6, 2012.
Except as otherwise required by the
federal securities laws, we disclaim any obligations or undertaking to publicly release any updates or revisions to any forward-looking
statement contained in this Report to reflect any change in our expectations with regard thereto or any change in events, conditions
or circumstances on which any such statement is based.
Item 3.02
Unregistered Sales of Equity Securities
Commencing September
7, 2012, we have entered into several Stock Settlement Agreements (the "Settlement Agreements") with certain qualified
parties to whom we owed payments ("Receivable Holders"). However, to date, the number of shares we have sold since
our last report filed under this Item 3.02, including those shares issued pursuant to the Settlement Agreements, is less than 5%
of the number of shares of our common stock outstanding.
Our Board of Directors
has authorized our entering into Settlement Agreements with respect to an aggregate of up to $1,000,000 of obligations, and our
issuance of up to 20,000,000 shares of our common stock pursuant thereto. Through September 13, 2012, we have entered into Settlement
Agreements with respect to an aggregate of $390,326 of obligations, and have issued an aggregate of 5,825,761 shares of our common
stock (the "Settlement Shares") pursuant thereto. Each Settlement Agreement we have entered into to date has provided
for us to issue one share of our common stock for every $0.067 of obligations released by the Receivable Holder executing the same.
2
The foregoing is a
summary of the principal terms of the Settlement Agreements and is qualified in its entirety by the detailed provisions of the
actual documents, the form of which is filed as an exhibit to this Current Report and is incorporated herein by reference.
Several of our Directors
and Executive Officers entered into Settlement Agreements with us, pursuant to which we issued Settlement Shares in exchange for
the release of obligations in the respective amounts set forth below.
Obligations Released
Settlement Shares Issued
Patrick Cussen
$57,825
863,060
Harvey McKenzie
$33,130
494,478
Alan Fraser
$24,000
358,209
David Wahl
$24,000
358,209
Patricio Campos
$29,707
443,388
Eduardo de Aguirre
$29,707
443,388
Luis Saenz
$120,000
1,791,045
Luis Santillana
$20,000
298,507
The offer and sale
of the Settlement Shares pursuant to the Settlement Agreements were exempt from the registration requirements of the Securities
Act of 1933, as amended, by virtue of Section 4(2) thereof and Regulation D and/or Regulation S promulgated thereunder, as transactions
by an issuer not involving a public offering. Each Receivable Holder with which we entered into a Settlement Agreement represented
its intention to acquire the securities for investment only and not with a view to or for sale in connection with any distribution
thereof, and appropriate legends shall be affixed to the certificates issued therefor. Each Receivable Holder with which we entered
into a Settlement Agreement represented and warranted, among other things, that it is an accredited investor within the meaning
of Regulation D and/or a non-U.S. person within the meaning of Regulation S, that it has the knowledge and experience in financial
and business matters necessary to evaluate the merits and risks of an investment in our common stock and has the ability to bear
the economic risks of the investment, and that it has adequate access to information about us.
Item 9.01
Exhibits
The following exhibits are filed or furnished with this Report.
Exhibit
Description
10.1
Form of Stock Settlement Agreement, between Li3 Energy, Inc. and a Receivable Holder
[Signature page follows.]
3
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Li3 Energy, Inc.
Dated:  September 13, 2012
By:
/s/ Luis Saenz
Name:  Luis Saenz
Title:  Chief Executive Officer
4