<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 11pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

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

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

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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">000-54303</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: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Av. Pardo y Aliaga 699 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Of. 802</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(51) 1-212-1880</B></P>

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

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

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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: 0">&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: 9%; font-family: Wingdings">&uml;</TD>
    <TD STYLE="width: 91%">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Wingdings">&uml;</TD>
    <TD>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Wingdings">&uml;</TD>
    <TD>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Wingdings">&uml;</TD>
    <TD>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

<!-- Field: Page; Sequence: 1; Options: NewSection -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt ridge"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 the risks we face, see &ldquo;Risk Factors&rdquo; in Amendment No. 3 to our Registration
Statement on Form S-1/A, filed with the Securities and Exchange Commission on January 6, 2012.</I></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -1in"><B>Item 1.01&#9;Entry
into a Material Definitive Agreement</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 13, 2012, we entered into an Agreement,
dated as of January 12, 2012 (the &ldquo;Agreement&rdquo;), with R3 Fusion, Inc. (&ldquo;R3&rdquo;) to apply R3&rsquo;s intensified
evaporative technology (&ldquo;SPaCeR&trade;&rdquo;) in processing brine from our properties. Pursuant to the Agreement, R3 will
provide us with a demonstration plant consisting of two units having a design flow capacity of at least 1.6 liters per second each,
and on-site training. We will pay R3 equipment use fees of $37,500 per month for the first twelve months following successful installation
and commissioning of the system, and, if we elect to keep the equipment on site thereafter, $12,500 per month for up to an additional
thirty-six months. The Agreement requires us to make a $100,000 deposit (the &ldquo;Deposit&rdquo;) which Deposit shall be refunded
upon our return of the equipment after twelve months of use. The Agreement also provides that we will be given the exclusive license
(the &ldquo;Exclusive Rights&rdquo;) to exploit R3&rsquo;s SPaCeR&trade; technology throughout the world for the processing of
lithium-containing brine for so long as we are using such systems in the processing of brine at our facilities in South America.
The Agreement provides that we and R3 shall negotiate the terms and conditions of such license in good faith within sixty days
of the execution of the Agreement.</P>

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

<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt ridge"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Agreement provides that R3 shall develop
and deliver to us a proposal to deliver up to sixty-five additional SPaCeR&trade; systems as soon as practical following successful
demonstration of the SPaCeR&trade; at our property.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We may elect to terminate the agreement at
any time after June 30, 2012; provided that if we do so prior to January 12, 2013, we will forfeit our Exclusive Rights and $50,000
of the Deposit.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The foregoing is a summary of the principal
terms of the Agreement and is qualified in its entirety by the detailed provisions thereof, a copy of which is filed as an exhibit
to this Current Report and is incorporated herein by reference.<FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"> </FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>Item 9.01&nbsp;&nbsp;&#9;Financial
Statements and Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">(d)&nbsp;&nbsp;Exhibits</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">The following Exhibits are being filed with this Report.</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 13%; vertical-align: top; border-bottom: black 1.5pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: center"><B>Exhibit</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.8pt 0 0; text-align: center"><B>Number</B></P></TD>
    <TD STYLE="width: 2%; vertical-align: top; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 85%; vertical-align: bottom; border-bottom: black 1.5pt solid; padding-right: 0.8pt; font-weight: bold; text-align: center">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; padding-right: 0.7pt; padding-bottom: 12pt">99.1</TD>
    <TD STYLE="padding-right: 0.8pt; padding-bottom: 12pt">&nbsp;</TD>
    <TD STYLE="padding-top: 3pt; padding-right: 0.7pt; padding-bottom: 12pt; text-align: justify">Agreement Between R3 Fusion and Li3 Energy, dated as of January 12, 2012.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

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

<!-- Field: Page; Sequence: 3 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt ridge"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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: 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>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">Li3 Energy, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 45%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 50%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Dated:&nbsp;&nbsp;January 20, 2012</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">/s/ Luis Saenz</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Name:&nbsp;&nbsp;Luis Saenz</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Title:&nbsp;&nbsp;Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 8.5pt 0 0; text-align: right">&nbsp;</P>



<P STYLE="margin: 0"></P>

<!-- Field: Page; Sequence: 4; Options: Last -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt ridge"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="margin: 0"></P>

</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "v300036_8-k.htm", "description": "CURRENT REPORT", "secsgml_size_bytes": 18584}]
{"company-data": {"conformed-name": "Li3 Energy, Inc.", "cik": "0001334699", "assigned-sic": "3990", "irs-number": "203061907", "state-of-incorporation": "NV", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-54303", "film-number": "12537078"}, "business-address": {"street1": "AV. PARDO Y ALIAGA", "street2": "699 OF. 802", "city": "LIMA 27", "state": "R5", "zip": "00000", "phone": "011 (511) 212-1880"}, "mail-address": {"street1": "AV. PARDO Y ALIAGA", "street2": "699 OF. 802", "city": "LIMA 27", "state": "R5", "zip": "00000"}, "former-company": [{"former-conformed-name": "NanoDynamics Holdings, Inc.", "date-changed": "20080729"}, {"former-conformed-name": "Mystica Candle Corp.", "date-changed": "20050729"}]}
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):
January
13, 2012
Li3 Energy, Inc.
(Exact name of registrant as specified in its
charter)
Nevada
000-54303
20-3061907
(State or Other Jurisdiction
(Commission File
(I.R.S. Employer
of Incorporation)
Number)
Identification Number)
Av. Pardo y Aliaga 699
Of. 802
San Isidro, Lima, Peru
(Address of principal executive offices, including
zip code)
(51) 1-212-1880
(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))
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 the risks we face, see "Risk Factors" in Amendment No. 3 to our Registration
Statement on Form S-1/A, filed with the Securities and Exchange Commission on January 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 1.01	Entry
into a Material Definitive Agreement
On January 13, 2012, we entered into an Agreement,
dated as of January 12, 2012 (the "Agreement"), with R3 Fusion, Inc. ("R3") to apply R3's intensified
evaporative technology ("SPaCeR™") in processing brine from our properties. Pursuant to the Agreement, R3 will
provide us with a demonstration plant consisting of two units having a design flow capacity of at least 1.6 liters per second each,
and on-site training. We will pay R3 equipment use fees of $37,500 per month for the first twelve months following successful installation
and commissioning of the system, and, if we elect to keep the equipment on site thereafter, $12,500 per month for up to an additional
thirty-six months. The Agreement requires us to make a $100,000 deposit (the "Deposit") which Deposit shall be refunded
upon our return of the equipment after twelve months of use. The Agreement also provides that we will be given the exclusive license
(the "Exclusive Rights") to exploit R3's SPaCeR™ technology throughout the world for the processing of
lithium-containing brine for so long as we are using such systems in the processing of brine at our facilities in South America.
The Agreement provides that we and R3 shall negotiate the terms and conditions of such license in good faith within sixty days
of the execution of the Agreement.
The Agreement provides that R3 shall develop
and deliver to us a proposal to deliver up to sixty-five additional SPaCeR™ systems as soon as practical following successful
demonstration of the SPaCeR™ at our property.
We may elect to terminate the agreement at
any time after June 30, 2012; provided that if we do so prior to January 12, 2013, we will forfeit our Exclusive Rights and $50,000
of the Deposit.
The foregoing is a summary of the principal
terms of the Agreement and is qualified in its entirety by the detailed provisions thereof, a copy of which is filed as an exhibit
to this Current Report and is incorporated herein by reference.
Item 9.01  	Financial
Statements and Exhibits.
(d)  Exhibits
The following Exhibits are being filed with this Report.
Exhibit
Number
Description
99.1
Agreement Between R3 Fusion and Li3 Energy, dated as of January 12, 2012.
[Signature page follows.]
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:  January 20, 2012
By:
/s/ Luis Saenz
Name:  Luis Saenz
Title:  Chief Executive Officer