UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    Form 10-Q

(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

    For the quarterly period ended June 30, 2010

                                       or

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

    For the transition period from _____________ to _____________

                       Commission File Number 333-148266


                               LITHIUM CORPORATION
             (Exact name of registrant as specified in its charter)

            Nevada                                                  N/A
(State or Other Jurisdiction Of                               (IRS Employer
 Incorporation or Organization)                           Identification Number)

200 S Virginia St - 8th Floor, Reno, Nevada                         89501
 (Address of Principal Executive Offices)                        (Zip Code)

                                 (775) 322-0626
              (Registrant's Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes [X]  No [ ]

Indicate by check mark whether the registrant has submitted  electronically  and
posted on its corporate Web site, if any, every  Interactive  Data File required
to be submitted and posted pursuant to Rule 405 of Regulation S-T (ss.232.405 of
this chapter)  during the  preceding 12 months (or for such shorter  period that
the registrant was required to submit and post such files). Yes [ ] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a small reporting company. See
the definitions of "large accelerated filer", "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act

Large accelerated filer  [ ]                       Accelerated filer [ ]
Non-accelerated filer  [ ]                         Smaller reporting company [X]
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act [ ] YES [X] NO

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant has filed all documents and reports required to be
filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. [ ] YES [ ] NO

                      APPLICABLE ONLY TO CORPORATE ISSUERS

As of August 16, 2010, there were 62,641,553  shares of the registrant's  $0.001
par value common stock issued and outstanding.

                               LITHIUM CORPORATION

                                 FORM 10-Q INDEX

                                TABLE OF CONTENTS


PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements                                                  3

Item 2.  Management's Discussion and Analysis of Financial Condition
         and Results of Operations                                            15

Item 3.  Quantitative and Qualitative Disclosures About Market Risk           21

Item 4.  Controls and Procedures                                              21

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings                                                    22

Item 1A. Risk Factors                                                         22

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds          22

Item 3.  Defaults Upon Senior Securities                                      22

Item 4.  [Removed and Reserved]                                               22

Item 5.  Other Information                                                    22

Item 6.  Exhibits                                                             23

Signature Page                                                                24

                                       2

                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS
                               Lithium Corporation
                         (An Exploration Stage Company)
                           Consolidated Balance Sheets
                    As of June 30, 2010 and December 31, 2009



                                                                            June 30,            December 31,
                                                                              2010                 2009
                                                                           ----------           ----------
                                                                           (unaudited)
                                                                                          
                                ASSETS

CURRENT ASSETS
  Cash                                                                     $1,660,332           $  360,511
  Prepaid expenses                                                              3,885               26,550
  Due from director                                                               985                   --
                                                                           ----------           ----------
Total Current Assets                                                        1,665,202              387,061
                                                                           ----------           ----------
OTHER ASSETS
  Computer equipment, net of amortization                                         998                1,498
  Mineral properties                                                          407,411              262,421
                                                                           ----------           ----------
Total Other Assets                                                            408,409              263,919
                                                                           ----------           ----------

TOTAL ASSETS                                                               $2,073,611           $  650,980
                                                                           ==========           ==========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
  Current Liabilities
    Accounts payable and accrued liabilities                               $   18,490           $   99,308
    Due to director                                                             6,335                6,234
    Loans payable                                                                  --              169,463
                                                                           ----------           ----------
Total Current Liabilities                                                      24,825              275,005
                                                                           ----------           ----------
TOTAL LIABILITIES                                                              24,825              275,005
                                                                           ----------           ----------
STOCKHOLDERS' EQUITY
  Common stock,  3,000,000,000 shares authorized, par value $0.001;
   62,603,484 common shares issued and outstanding (2009 - 60,550,000)         62,642               60,550
  Additional paid in capital                                                1,195,938              556,155
  Additional paid in capital - warrants                                     1,445,625                   --
  Deficit accumulated during the exploration stage                           (655,419)            (240,730)
                                                                           ----------           ----------

TOTAL STOCKHOLDERS' EQUITY                                                  2,048,786              375,975
                                                                           ----------           ----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                 $2,073,611           $  650,980
                                                                           ==========           ==========


                 The accompanying notes are an integral part of
                    these consolidated financial statements

                                       3

                               Lithium Corporation
                         (An Exploration Stage Company)
                Consolidated Statements of Operations (unaudited)
            For the Three and Six Months Ended June 30, 2010 and 2009
       For the Period from January 30, 2007 (Inception) to June 30, 2010



                                                                                                                  From
                                         Three Months      Three Months      Six Months       Six Months     January 30, 2007
                                            Ended             Ended            Ended            Ended         (Inception) to
                                           June 30,          June 30,         June 30,         June 30,          June 30,
                                             2010              2009             2010             2009              2010
                                         ------------      ------------     ------------     ------------      -----------
                                                                                                
REVENUE                                  $         --      $         --     $         --     $         --      $        --
                                         ------------      ------------     ------------     ------------      -----------
EXPENSES
  Professional fees                            29,961             4,750           37,424            4,750          103,734
  Amortization                                    250                --              500               --            1,004
  Exploration expenses                         35,055                --           70,743               --          137,007
  Consulting fees                             175,000                --          175,000               --          175,000
  Investor relations                           17,580                --           56,235               --           73,110
  Interest                                      1,183                --            5,252               --           12,168
  Management fees                              32,600                --           41,800               --           53,800
  Rent                                             --                --             (243)              --            1,420
  Transfer agent and filing fees                2,590                --            3,192               --           19,327
  Travel                                        9,556                --           11,755               --           17,875
  Website development costs                        --                --               --              412            3,912
  Write-down of website costs                      --                --               --               --           12,000
  General and administrative                    5,277             5,964           13,031           10,011           45,062
                                         ------------      ------------     ------------     ------------      -----------

TOTAL EXPENSES                                309,052            10,714          414,689           15,173          655,419
                                         ------------      ------------     ------------     ------------      -----------

LOSS BEFORE INCOME TAXES                     (309,052)          (10,714)        (414,689)         (15,173)        (655,419)

PROVISION FOR INCOME TAXES                         --                --               --               --               --
                                         ------------      ------------     ------------     ------------      -----------

NET LOSS                                 $   (309,052)     $    (10,714)    $   (414,689)    $    (15,173)     $  (655,419)
                                         ============      ============     ============     ============      ===========

NET LOSS PER SHARE: BASIC AND DILUTED    $      (0.00)     $      (0.00)    $      (0.00)    $      (0.00)
                                         ============      ============     ============     ============
WEIGHTED AVERAGE NUMBER OF SHARES
 OUTSTANDING: BASIC AND DILUTED            62,603,484       268,200,000       61,683,402      268,200,000
                                         ============      ============     ============     ============


                 The accompanying notes are an integral part of
                    these consolidated financial statements

                                       4

                               Lithium Corporation
                         (An Exploration Stage Company)
                 Consolidated Statement of Stockholders' Equity
        For the Period From January 30, 2007 (Inception) to June 30, 2010



                                                                                                     Deficit
                                                                                       Additional   Accumulated
                                                   Common Stock          Additional     Paid in     during the
                                               --------------------       Paid in       Capital -   Exploration
                                               Shares        Amount       Capital       Warrants       Stage         Total
                                               ------        ------       -------       --------       -----         -----
                                                                                                
Balance, January 30, 2007 (date of
 inception)                                          --     $      --    $       --    $       --   $      --     $       --

Shares issued to founder on January 30,
 2007 @ $0.001 per share (par value
 $0.001 per share)                          240,000,000       240,000      (220,000)           --          --         20,000

Net loss for the period ended
 December 31, 2007                                   --            --            --            --     (23,448)       (23,448)
                                           ------------     ---------    ----------    ----------   ---------     ----------

Balance, December 31, 2007                  240,000,000       240,000      (220,000)           --     (23,448)        (3,448)

Common stock issued for cash @ $0.10
 per share                                   28,200,000        28,200        18,800            --          --         47,000

Net loss for the year ended
 December 31, 2008                                   --            --            --            --     (26,868)       (26,868)
                                           ------------     ---------    ----------    ----------   ---------     ----------

Balance, December 31, 2008                  268,200,000       268,200      (201,200)           --     (50,316)        16,684

Shares issued in conjunction with merger     12,350,000        12,350       537,355            --          --        549,705

Shares cancelled                           (220,000,000)     (220,000)      220,000            --          --             --

Net loss for the year ended
 December 31, 2009                                   --            --            --            --    (190,414)      (190,414)
                                           ------------     ---------    ----------    ----------   ---------     ----------

Balance, December 31, 2009                   60,550,000        60,550       556,155            --    (240,730)       375,975

Shares issued with respect to Fish Lake          91,553            92        87,408            --          --         87,500

Common stock issued for cash @ $1.00
 per share                                    2,000,000         2,000       552,375     1,445,625          --      2,000,000

Net loss for the period ended June 30,
 2010                                                --            --            --            --    (414,689)      (414,689)
                                           ------------     ---------    ----------    ----------   ---------     ----------

Balance, June 30, 2010                       62,641,553     $  62,642    $1,195,938    $1,445,625   $(655,419)    $2,048,786
                                           ============     =========    ==========    ==========   =========     ==========


                 The accompanying notes are an integral part of
                     these consolidated financial statements

                                       5

                               Lithium Corporation
                         (An Exploration Stage Company)
                Consolidated Statements of Cash Flows (unaudited)
                 For the Six Months Ended June 30, 2010 and 2009
       For the Period from January 30, 2007 (Inception) to June 30, 2010



                                                                                                       From
                                                           Six Months           Six Months        January 30, 2007
                                                             Ended                Ended            (Inception) to
                                                            June 30,             June 30,             June 30,
                                                              2010                 2009                 2010
                                                           ----------           ----------           ----------
                                                                                            
Cash Flows from Operating Activities:
  Net loss for the period                                  $ (414,689)          $  (15,173)          $ (655,419)
  Adjustment for non-cash items:
    Write-down of software development                             --                   --               12,000
    Depreciation                                                  500                   --                1,004
  Changes in assets and liabilities:
    (Increase) in prepaid expenses                             22,665                5,000               (3,885)
    Increase (decrease) in accounts payable and accrued
    liabilities                                               (80,818)                (352)              18,490
                                                           ----------           ----------           ----------
Cash used in operating activities                            (472,342)             (10,525)            (627,810)
                                                           ----------           ----------           ----------
Cash Flows from Investing Activities:
  Purchase of equipment                                            --                   --               (2,002)
  Purchase of software development                                 --                   --              (12,000)
  Interest in mineral properties                             (144,990)                  --             (407,411)
                                                           ----------           ----------           ----------
Cash used in investing activities                            (144,990)                  --             (421,413)
                                                           ----------           ----------           ----------
Cash Flows from Financing Activities:
  Repayment of loan payable                                  (169,463)                  --                   --
  Proceeds from director                                         (884)               5,000                5,350
  Proceeds from sale of stock                               2,087,500                   --            2,704,205
                                                           ----------           ----------           ----------
Cash provided by financing activities                       1,917,153                5,000            2,709,555
                                                           ----------           ----------           ----------

Increase (decrease) in cash                                 1,299,821               (5,525)           2,161,612
Cash, opening                                                 360,511                7,084                   --
                                                           ----------           ----------           ----------

Cash, closing                                              $1,660,332           $    1,559           $1,660,332
                                                           ==========           ==========           ==========

Supplemental Cash Flow Information:
  Cash paid for interest                                   $        0           $        0           $        0
                                                           ==========           ==========           ==========
  Cash paid for income taxes                               $        0           $        0           $        0
                                                           ==========           ==========           ==========


                 The accompanying notes are an integral part of
                     these consolidated financial statements

                                       6

                               Lithium Corporation
                         (An Exploration Stage Company)
                   Notes to Consolidated Financial Statements
                                  June 30, 2010


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Lithium  Corporation  (formerly Utalk  Communications  Inc.) was incorporated on
January  30,  2007  under the laws of  Nevada.  On  September  30,  2009,  Utalk
Communications Inc. changed its name to Lithium Corporation.

Nevada Lithium Corp. was incorporated on March 16, 2009 under the laws of Nevada
under the name Lithium  Corp.  On September  10, 2009,  the Company  amended its
articles of  incorporation  to change its name to Nevada  Lithium Corp.  Lithium
intends to engage in the exploration of certain  lithium  interests in the state
of Nevada. The Company is in the exploration stage. These consolidated financial
statements  have  been  prepared  in  accordance  with U.S.  generally  accepted
accounting principles.

Use of Estimates
The  preparation  of  consolidated   financial  statements  in  conformity  with
generally accepted  accounting  principles requires management to make estimates
and assumptions  that affect the reported  amounts of assets and liabilities and
disclosure of contingent  assets and liabilities at the date of the consolidated
financial statements and the reported amount of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

The accompanying  unaudited interim financial  statements of Lithium Corp., have
been prepared in accordance with accounting principles generally accepted in the
United  States  of  America  and  the  rules  of  the  Securities  and  Exchange
Commission,  and  should  be read in  conjunction  with  the  audited  financial
statements  and notes thereto  contained in Lithium  Corp.'s Annual Report filed
with the SEC on Form  10-K.  In the  opinion  of  management,  all  adjustments,
consisting of normal recurring adjustments, necessary for a fair presentation of
financial  position  and the  results  of  operations  for the  interim  periods
presented  have been  reflected  herein.  The results of operations  for interim
periods are not  necessarily  indicative  of the results to be expected  for the
full year. Notes to the financial statements which would substantially duplicate
the disclosure  contained in the audited financial statements for fiscal 2009 as
reported in the form 10-K have been omitted.

Loss per Share
Basic  loss  per  share  is  computed  by  dividing  loss  available  to  common
shareholders by the weighted average number of common shares  outstanding during
the year. The computation of diluted  earnings per share assumes the conversion,
exercise  or  contingent  issuance  of  securities  only when  such  conversion,
exercise or issuance  would have a dilutive  effect on earnings  per share.  The
dilutive effect of convertible  securities is reflected in diluted  earnings per
share by  application of the "if  converted"  method.  In the periods in which a
loss is incurred,  the effect of potential issuances of shares under options and
warrants  would be  anti-dilutive,  and therefore  basic and diluted  losses per
share are the same.

Cash and Cash Equivalents
Cash includes cash on account,  demand deposits, and short-term instruments with
maturities of three months or less.

Computer Equipment
Computer  equipment is stated on the basis of historical  cost less  accumulated
depreciation.  Depreciation is provided using the straight-line  method over the
estimated  useful  lives of the  assets  which  has been  estimated  as 2 years.
Impairment  losses are recorded on computer  equipment  used in operations  when
indicators of impairment are present and the  undiscounted  cash flows estimated
to be generated by those assets are less than the assets' carrying amount.

Income Taxes
The  asset  and  liability  approach  is used to  account  for  income  taxes by
recognizing  deferred tax assets and  liabilities  for the  expected  future tax
consequences of temporary  differences  between the carrying amounts and the tax
basis of assets and liabilities.

                                       7

                               Lithium Corporation
                         (An Exploration Stage Company)
                   Notes to Consolidated Financial Statements
                                  June 30, 2010


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Financial Instruments
The  Company's  financial  instruments  consist of cash,  accounts  payable  and
accrued  liabilities,  interest  payable,  and loans payable.  Unless  otherwise
noted, it is management's opinion that the Company is not exposed to significant
interest,  currency or credit risks  arising from these  financial  instruments.
Because of the short maturity and capacity of prompt  liquidation of such assets
and liabilities, the fair value of these financial instruments approximate their
carrying values, unless otherwise noted.

Mineral Properties
Costs of exploration,  carrying and retaining  unproven mineral lease properties
are expensed as incurred.  Mineral  property  acquisition  costs are capitalized
including  licenses and lease payments.  Although the Company has taken steps to
verify title to mineral properties in which it has an interest, these procedures
do not guarantee the Company's  title.  Such  properties may be subject to prior
agreements or transfers and title may be affected by undetected defects.

Impairment  losses are recorded on mineral  properties  used in operations  when
indicators of impairment are present and the  undiscounted  cash flows estimated
to be generated by those assets are less than the assets' carrying amount.

Recently Adopted Pronouncements

VARIABLE INTEREST ENTITIES
In June 2009,  the FASB issued  changes to require an  enterprise  to perform an
analysis to determine  whether the enterprise's  variable  interest or interests
give it a  controlling  financial  interest in a variable  interest  entity;  to
require  ongoing   reassessments   of  whether  an  enterprise  is  the  primary
beneficiary  of a  variable  interest  entity;  to  eliminate  the  quantitative
approach  previously  required  for  determining  the primary  beneficiary  of a
variable  interest  entity;  to  add an  additional  reconsideration  event  for
determining  whether an entity is a variable interest entity when any changes in
facts and  circumstances  occur such that  holders of the equity  investment  at
risk, as a group,  lose the power from voting rights or similar  rights of those
investments  to direct  the  activities  of the entity  that most  significantly
impact the entity's economic  performance;  and to require enhanced  disclosures
that  will  provide  users  of  financial   statements  with  more   transparent
information about an enterprise's involvement in a variable interest entity. The
guidance  became  effective for the Company on February 1, 2010. The adoption of
the  guidance  did not have an impact on the  Company's  consolidated  financial
statements.

CODIFICATION OF GAAP
In June 2009,  the FASB issued  guidance to establish the  Accounting  Standards
Codification  TM  ("Codification")  as the  source of  authoritative  accounting
principles  recognized by the FASB to be applied by nongovernmental  entities in
the  preparation  of financial  statements  in conformity  with GAAP.  Rules and
interpretive  releases of the SEC under authority of federal securities laws are
also sources of authoritative GAAP for SEC registrants.  The FASB will no longer
issue new standards in the form of Statements, FASB Staff Positions, or Emerging
Issues Task Force Abstracts;  instead,  the FASB will issue Accounting Standards
Updates ("ASU").  ASUs will not be authoritative in their own right as they will
only  serve  to  update  the  Codification.  The  issuance  of SFAS  168 and the
Codification does not change GAAP. The guidance became effective for the Company
for the period  ending  October 31,  2009.  The adoption of the guidance did not
have an impact on the Company's consolidated financial statements.

                                       8

                               Lithium Corporation
                         (An Exploration Stage Company)
                   Notes to Consolidated Financial Statements
                                  June 30, 2010


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

SUBSEQUENT EVENTS
On  July  31,  2009,  the  Company  adopted  changes  issued  by the  FASB  that
establishes  general  standards of accounting  for and disclosure of events that
occur after the balance sheet date but before financial statements are issued or
are  available to be issued.  Specifically,  the guidance  sets forth the period
after the  balance  sheet date during  which  management  of a reporting  entity
should evaluate events or transactions that may occur for potential  recognition
or disclosure  in the financial  statements,  the  circumstances  under which an
entity should recognize events or transactions occurring after the balance sheet
date in its financial statements, and the disclosures that an entity should make
about events or  transactions  that occurred  after the balance sheet date.  The
Company  has  evaluated   subsequent  events  through  the  date  the  financial
statements were issued.

BUSINESS COMBINATIONS
The Company  adopted the changes  issued by the FASB that requires the acquiring
entity in a business combination to recognize all (and only) the assets acquired
and liabilities  assumed in the  transaction;  establishes the  acquisition-date
fair value as the measurement  objective for all assets acquired and liabilities
assumed; and requires the acquirer to disclose additional  information needed to
evaluate  and  understand  the  nature  and  financial  effect  of the  business
combination.

The Company also adopted the changes  issued by the FASB which  requires  assets
and liabilities assumed in a business  combination that arise from contingencies
be  recognized on the  acquisition  date at fair value if it is more likely than
not that they meet the  definition of an asset or  liability;  and requires that
contingent  consideration  arrangements of the target assumed by the acquirer be
initially measured at fair value.

The guidance is effective for the Company's  acquisitions  occurring on or after
February 1, 2009. The Company  applied these new provisions to two  acquisitions
that occurred  during the year,  Rock Coast Media,  Inc. and Pixel Bridge,  Inc.
These  acquisitions  are  more  fully  disclosed  in Note 5 in our  Consolidated
Financial Statements.

NON-CONTROLLING INTERESTS
In December 2007, the FASB issued changes to establish  accounting and reporting
standards for all entities that prepare  consolidated  financial statements that
have outstanding non-controlling interests,  sometimes called minority interest.
These standards require that ownership interests in subsidiaries held by outside
parties be clearly  identified,  labelled and presented in equity  separate from
the parent's equity; the amount of net income attributable to the parent and the
non-controlling  interest be separately presented on the consolidated  statement
of income;  accounting  standards  applied to changes in a parent's  interest be
consistently   applied;   fair  value  measurement  upon  deconsolidation  of  a
non-controlling  interest  be used;  and the  interests  of the  non-controlling
owners be already  identified and  distinguished.  The adoption of this guidance
had no impact on the Company's consolidated financial statements.

INTANGIBLE ASSETS
In April 2008,  the FASB adopted  changes to require  companies  estimating  the
useful  life of a  recognized  intangible  asset to  consider  their  historical
experience in renewing or extending  similar  arrangements or, in the absence of
historical  experience,  to consider  assumptions that market participants would
use about  renewal or  extension as adjusted for  entity-specific  factors.  The
guidance is effective for fiscal years  beginning after December 15, 2008 and is
to be applied  prospectively  to intangible  assets whether  acquired  before or
after the effective  date. The Company adopted the guidance on February 1, 2009.
The adoption had no impact on the Company's consolidated financial statements.

                                       9

                               Lithium Corporation
                         (An Exploration Stage Company)
                   Notes to Consolidated Financial Statements
                                  June 30, 2010


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

HIERARCHY OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("GAAP")
In May 2008,  the FASB  issued  changes to identify  the  sources of  accounting
principles  and  the  framework  for  selecting  the  principles   used  in  the
preparation  of  financial  statements  of  nongovernmental  entities  that  are
presented  in  conformity  with GAAP  (the  GAAP  hierarchy).  The  guidance  is
effective 60 days following the SEC's approval of the Public Company  Accounting
Oversight  Board  amendments to AU section 411, THE MEANING OF PRESENT FAIRLY IN
CONFORMITY  WITH  GENERALLY  ACCEPTED  ACCOUNTING   PRINCIPLES.   Management  is
currently  evaluating  the guidance  and  assessing  the impact,  if any, on the
Company's consolidated financial statements.

REVENUE RECOGNITION
In September 2009, the FASB issued new revenue recognition  guidance on multiple
deliverable  arrangements.  It updates  the  existing  multiple-element  revenue
arrangements   guidance  currently  included  under  the  Accounting   Standards
Codification  ("ASC")  605-25.  The  revised  guidance  primarily  provides  two
significant  changes: 1) eliminates the need for objective and reliable evidence
of the fair value for the  undelivered  element in order for a delivered item to
be treated as a separate  unit of  accounting,  and 2)  requires  the use of the
relative selling price method to allocate the entire arrangement  consideration.
In addition,  the guidance also expands the disclosure  requirements for revenue
recognition. ASU 2009-13 will be effective for the first annual reporting period
beginning on or after fiscal 2011, with early adoption  permitted  provided that
the revised  guidance is  retroactively  applied to the beginning of the year of
adoption.  Management  is  currently  evaluating  the  impact of  adopting  this
guidance on the Company's consolidated financial statements.

NOTE 2 - GOING CONCERN

Lithium's financial  statements are prepared using generally accepted accounting
principles  applicable to a going concern,  which  contemplates that the Company
will  continue in  operation  for the  foreseeable  future and will  realize its
assets and liquidate its liabilities in the normal course of business.  However,
Lithium has no current source of revenue,  recurring losses,  working capital of
$1,948,011 and a deficit accumulated during the exploration stage of $346,367 as
of March 31, 2010. These factors,  among others, raise,  substantial doubt about
the Company's ability to continue as a going concern. Lithium's management plans
on raising cash from public or private debt or equity financing, on an as-needed
basis and in the longer term,  revenues from the  acquisition,  exploration  and
development of mineral interests,  if found.  Lithium's ability to continue as a
going concern is dependent on these additional cash financings and,  ultimately,
upon  achieving  profitable   operations  through  the  development  of  mineral
interests.  The successful  outcome of future activities cannot be determined at
this time. The accompanying  financial statements do not include any adjustments
that might result from the outcome of this uncertainty.

                                       10

                               Lithium Corporation
                         (An Exploration Stage Company)
                   Notes to Consolidated Financial Statements
                                  June 30, 2010


On October 9, 2009, the Lithium Corporation  completed the acquisition of Nevada
Lithium Corp. whereby it issued 12,350,000 common shares in exchange for 100% of
the  issued  and  outstanding   common  shares  of  Nevada  Lithium  Corp.  This
acquisition has been accounted for using the acquisition method .

The deemed value of the  acquisition  was $549,705  based upon the fair value of
consideration received.

      Assets Purchased:
        Cash                                        $ 506,213
        Prepaid expenses                               25,000
        Equipment                                       1,514
        Mineral Properties                            197,775
      Liabilities Assumed:
        Accounts payable                                 (750)
        Due to related parties                         (6,628)
        Loans payable                                (169,463)
                                                    ---------
       Consideration Paid                           $ 549,705
                                                    =========

Consideration paid through the issuance of 12,350,000.

NOTE 4 - COMPUTER EQUIPMENT

                                                Accumulated
                                     Cost       Amortization      Net Book Value
                                     ----       ------------      --------------
     Computer Equipment             $2,002        $1,004               $ 998
                                    ======        ======               =====

NOTE 5 - MINERAL PROPERTIES

FISH CREEK PROPERTY

On March 16,  2009,  the  Company  entered  into a lease  agreement  whereby  it
optioned 100% interest in the property by making the following payments:

        Payment                              Amount                Date
        -------                              ------                ----
Upon signature                              $ 20,000       March 16, 2009 (paid)
1st anniversary                             $ 25,000       March 16, 2010 (paid)
2nd anniversary                             $ 30,000       March 16, 2011
3rd through 10th anniversary                $ 50,000       March 16, 2012 - 2019
11th through 20th anniversary               $ 75,000       March 16, 2010 - 2029
At any time upon commercial production      $250,000

The lessor  reserves a 3% NSR.  The Company may  purchase 1% of the NSR within 5
years for $500,000,  an additional 1% of the NSR within 10 years for  $1,000,000
and the remaining 1% of the NSR within 15 years for $2,000,000.

                                       11

                               Lithium Corporation
                         (An Exploration Stage Company)
                   Notes to Consolidated Financial Statements
                                  June 30, 2010


NOTE 5 - MINERAL PROPERTIES (CONTINUED)

FISH LAKE PROPERTY

The Company has  purchased a 100%  interest in the Fish Lake  property  $350,000
worth of equity whereby title shall be  transferred to the Company  through quit
claim deed upon the final stock disbursement.  Stock disbursements shall be made
quarterly upon the following schedule:

       1st Disbursement:   Within 10 days of signing agreement (paid)
       2nd Disbursement:   within 10 days of June 30, 2009 (paid)
       3rd Disbursement:   within 10 days of December 30, 2009 (paid)
       4th Disbursement:   within 10 days of March 31, 2010 (paid)
       5th Disbursement:   within 10 days of June 30, 2010 (paid)
       6th Disbursement:   within 10 days of September 30, 2010
       7th Disbursement:   within 10 days of December 31, 2010
       8th Disbursement:   within 10 days of March 31, 2011

In  addition,  the Company  will be required to expend  $250,000 on the property
over the term of the lease.

STAKED PROPERTIES

The Company has staked claims with various registries as summarized below:

          Name              Claims (Area in Acres)           Amount
          ----              ----------------------           ------
     West Big Smoky              34 (2,720)                 $ 9,915
     Salt Wells                 156 (12,480)                $58,198
     Cortez                      62 (4,960)                 $23,349
     Beowawe                     16 (1,280)                 $ 5,481

                                       12

                               Lithium Corporation
                         (An Exploration Stage Company)
                   Notes to Consolidated Financial Statements
                                  June 30, 2010


NOTE 6 - CAPITAL STOCK

The Company is  authorized  to issue  300,000,000  shares of it $0.001 par value
common stock.  On September 30, 2009,  the Company  effected a 60-for-1  forward
stock split of its $0.001 par value common stock.

All share and per share amounts have been retroactively  restated to reflect the
splits discussed above.

COMMON STOCK

On January 30, 2007, the Company issued  240,000,000  shares of its common stock
to founders for proceeds of $20,000.

During the year-ended December 31, 2008, the Company issued 28,200,000 shares of
its common stock for total proceeds of 47,000.

On October 9,  2009,  the  Company  cancelled  220,000,000  shares of its common
stock.  Also on October 9, 2009,  the Company  issued  12,350,000  shares of its
common  stock for 100  percent  of the issued  and  outstanding  stock of Nevada
Lithium Corp. Refer to Note 3.

On January 10, 2010,  the Company  issued  53,484  shares of its common stock as
part of the Fish Lake Property acquisition.

On March 24, 2010, the Company issued  2,000,000  units in a private  placement,
raising gross proceeds of $2,000,000,  or $1.00 per unit.  Each unit consists of
one common share in the capital of our company and one  non-transferable  common
share   purchase   warrant.   Each   whole   common   share   purchase   warrant
non-transferable  entitles  the holder  thereof to purchase  one share of common
stock in the capital of our company,  for a period of twelve  months  commencing
the closing,  at a purchase  price of $1.20 per warrant  share and at a purchase
price of $1.35 per warrant share for a period of twenty-four months thereafter.

On April 30, 2010, the Company issued 104,168 shares of its common stock as part
of the Fish Lake Property acquisition.

                                       13

                               Lithium Corporation
                         (An Exploration Stage Company)
                   Notes to Consolidated Financial Statements
                                  June 30, 2010


NOTE 7 - INCOME TAXES

The Company did not provide any current or deferred United States federal, state
or foreign income tax provision or benefit for the period  presented  because it
has experienced  operation  losses since  inception.  The Company has provided a
full valuation allowance on the deferred tax asset,  consisting primarily of net
operating loss carry-forwards, because of uncertainty regarding its realization.

Deferred  income  taxes  reflect  the net tax  effect of  temporary  differences
between the carrying  amounts of assets and liabilities for financial  reporting
purposes and the amounts used for income tax purposes. Significant components of
the net deferred taxes at June 30, 2010 are as follows:

                                                        2010
                                                     ---------
     Deferred tax asset attributable to:
       Net operating losses carried forward          $ 144,168
       Valuation allowance                            (144,168)
                                                     ---------
     Total net deferred tax asset                    $      --
                                                     =========

Lithium follows  Statement of Financial  Accounting  Standards  Number 109 (SFAS
109) (ASC  740-10),  "Accounting  for Income  Taxes."  SFAS No. 109 (ASC 740-10)
requires  a  valuation  allowance,  if any,  to reduce the  deferred  tax assets
reported  if,  based on the weight of the  evidence,  it is more likely than not
that some  portion  or all of the  deferred  tax  assets  will not be  realized.
Management  has  determined  that a valuation  allowance of $144,000 at June 30,
2010 is necessary to reduce the deferred tax assets to the amount that will more
likely than not be realized.

At June 30, 2010, the Company had net operating loss carry-forwards amounting to
approximately  $655,419 that expire in various amounts  beginning in 2029 in the
U.S.

NOTE 8 - SUBSEQUENT EVENTS

On July 10, 2010,  the Company issued 104,168 shares of its common stock as part
of the Fish Lake Property acquisition.

The Company has analyzed its operations  subsequent to June 30, 2010 and through
August 12,  2010,  the date these  financial  statements  were  issued,  and has
determined  that it does  not have  any  other  material  subsequent  events  to
disclose

                                       14

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

FORWARD LOOKING STATEMENTS

Except for historical  information,  the following  Management's  Discussion and
Analysis  contains  forward-looking  statements based upon current  expectations
that involve certain risks and uncertainties.  Such  forward-looking  statements
include statements regarding,  among other things, (a) discussions about mineral
resources and mineralized  material,  (b) our projected sales and profitability,
(c) our growth  strategies,  (d)  anticipated  trends in our  industry,  (e) our
future financing plans, (f) our anticipated  needs for working capital,  (g) our
lack of operational  experience and (h) the benefits related to ownership of our
common stock. Forward-looking statements, which involve assumptions and describe
our future plans,  strategies,  and expectations,  are generally identifiable by
use of the words "may," "will," "should,"  "expect,"  "anticipate,"  "estimate,"
"believe,"  "intend,"  or  "project"  or the  negative  of these  words or other
variations  on these  words or  comparable  terminology.  This  information  may
involve known and unknown risks, uncertainties, and other factors that may cause
our actual results, performance, or achievements to be materially different from
the future results,  performance,  or  achievements  expressed or implied by any
forward-looking  statements.  These statements may be found under  "Management's
Discussion and Analysis of Financial  Condition and Results of  Operations"  and
"Description of Business," as well as in this Report generally. Actual events or
results may differ materially from those discussed in forward-looking statements
as a result  of  various  factors,  including,  without  limitation,  the  risks
outlined under "Risk Factors" and matters described in this Report generally. In
light of these  risks  and  uncertainties,  there can be no  assurance  that the
forward-looking  statements  contained  in this  Report  will in fact  occur  as
projected.

In this quarterly  report,  unless otherwise  specified,  all dollar amounts are
expressed in United States  dollars.  All references to "common shares" refer to
the common shares in our capital stock.  As used in this quarterly  report,  the
terms "we," "us," and "our" mean Lithium Corporation, unless otherwise indicated
and the term "Nevada Lithium" means our wholly owned subsidiary,  Nevada Lithium
Corporation, a Nevada corporation.

GENERAL OVERVIEW

We were  incorporated  under the laws of the State of Nevada on January 30, 2007
under the name "Utalk  Communications Inc." At inception,  we were a development
stage  corporation  engaged  in the  business  of  developing  and  marketing  a
call-back service using a call-back platform.  Because we were not successful in
implementing our business plan, we considered various alternatives to ensure the
viability and solvency of our company.

On August 31,  2009,  we entered  into a letter of intent  with  Nevada  Lithium
Corporation  regarding  a business  combination  which may be effected in one of
several different ways,  including an asset  acquisition,  merger of our company
and Nevada Lithium  Corporation,  or a share exchange  whereby we would purchase
the shares of Nevada Lithium  Corporation  from its shareholders in exchange for
restricted shares of our common stock.

Effective September 30, 2009, we effected a one (1) old for 60 new forward stock
split of our issued and outstanding  common stock.  As a result,  our authorized
capital  increased  from  50,000,000  shares of common stock with a par value of
$0.001 to  3,000,000,000  shares of common  stock with a par value of $0.001 and
our issued and  outstanding  shares  increased from  4,470,000  shares of common
stock to 268,200,000 shares of common stock.

Also   effective   September   30,  2009,   we  changed  our  name  from  "Utalk
Communications,  Inc." to  "Lithium  Corporation",  by way of a merger  with our
wholly owned  subsidiary  Lithium  Corporation,  which was formed solely for the
change of name.  The name change and forward stock split became  effective  with
the  Over-the-Counter  Bulletin  Board at the  opening for trading on October 1,
2009 under the new stock symbol "LTUM". Our CUSIP number is 536804 107.

On October 9, 2009,  we entered  into a share  exchange  agreement  with  Nevada
Lithium  Corporation,  a Nevada  corporation,  and the  shareholders  of  Nevada
Lithium Corporation.  The closing of the transactions  contemplated in the share
exchange  agreement  and the  acquisition  of all of the issued and  outstanding

                                       15

common stock in the capital of Nevada  Lithium  Corporation  occurred on October
19, 2009. In accordance  with the closing of the share  exchange  agreement,  we
issued  12,350,000  shares of our  common  stock to the former  shareholders  of
Nevada Lithium  Corporation in exchange for the acquisition,  by our company, of
all  of  the  12,350,000  issued  and  outstanding   shares  of  Nevada  Lithium
Corporation.  Also,  pursuant to the terms of the share  exchange  agreement,  a
director of our company  cancelled  220,000,000  restricted shares of our common
stock.

We are an  exploration  stage  mining  company  engaged  in the  identification,
acquisition,  and  exploration  of metals and  minerals  with a focus on lithium
mineralization on properties located in Nevada.

OUR CURRENT BUSINESS

We are an  exploration  stage  mining  company  engaged  in the  identification,
acquisition,  and  exploration  of metals and  minerals  with a focus on lithium
mineralization on properties located in Nevada.

Our current operational focus is to conduct exploration  activities on our newly
acquired  properties in Nevada,  known as the Fish Lake Valley  property and the
Fish Creek Caldera property.

FISH LAKE VALLEY PROPERTY

Fish Lake Valley is a lithium  enriched salar (also known as a Playa,  dry lake,
or Salt Pan),  which is located in west  central  Nevada in  northern  Esmeralda
county, and the property is roughly centered at 417050E 4195350N (NAD 27 CONUS).
We  currently  hold  eighty  (80) acre  Association  Placer  claims  that  cover
approximately  6400 acres.  Lithium-enriched  Tertiary-era  Fish Lake  formation
Rhyolitic  tuffs or ash flow  tuffs  have  accumulated  in a valley  or  basinal
environment.  Over time  interstitial  formational  waters in contact with these
tuffs, have become enriched in lithium,  which could possibly be amenable to the
extraction by  evaporative  methods.  Additionally  evaporative  brine mining is
environmentally  benign,  and is achieved with a minimal carbon  footprint.  The
geological  setting  at Fish Lake  Valley is highly  analogous  to the salars of
Chile, Bolivia, & Peru. Access is excellent in Fish Lake Valley with all weather
gravel  roads  leading to the  property  from State  Highways  264, and 265, and
maintained  gravel  roads ring the Playa.  Power is available  approximately  15
kilometers  from the  property,  and the  village  of Dyer is  approximately  20
kilometers to the south,  while the town of Tonopah Nevada is  approximately  75
kilometers  to the East.  Further  sediment  and  brine  sampling  studies  were
conducted  on the  property  in early  September,  and the  company is  awaiting
further assay information.  The company anticipates additional sampling programs
in Fall 2009,  followed by a geophysical survey, and eventual drilling in Spring
2010. The property is held under mining lease purchase  agreement  dated June 1,
2009 between  Nevada  Lithium  Corporation,  and Nevada  Alaska Mining Co. Inc.,
Robert Craig, Barbara Craig, and Elizabeth Dickman. Nevada Lithium has agreed to
issue the vendors $350,000 worth of common stock of the company in eight regular
disbursements,  the last of which is slated to occur on March 31st  2011.  As at
June 30, 2010 two disbursements have been made of stock worth $87,500.

FISH CREEK CALDERA

The Fish  Creek  Caldera  prospect  is  located in  west-central  Lander  County
approximately  55  kilometers  south of the  county  seat at the town of  Battle
Mountain  in  northern  Nevada.  The  property  is roughly  centered  at 473052E
4453013N  (NAD 27 CONUS),  and is  comprised  of 117  conventional  20 acre Lode
Mining Claims which cover an area of approximately  2340 acres.  Unlike the Fish
Lake Valley prospect it is a more traditional bulk mining target which covers an
area of clay altered Caetano,  and Fish Creek formation Tertiary volcanic tuffs.
Both formations  originally contained relatively high concentrations of lithium,
and locally,  through a possible  combination  of weathering,  and  hydrothermal
processes,  these volcanic rocks have been altered to clays.  It is thought that
the alteration process may have contributed to further lithium enrichment of the
clays.  During the conduct of uranium  exploratory  drilling  operations here in
1978 by Phillips Uranium Corporation, lithium mineralization of up to 20,000 ppm
was discovered.  Access is good to the property with an all weather road leading
up from  Buffalo  Valley to the west of the  property,  and a county  maintained
track  leading  up from  Highway  305,  some 15  kilometers  to the  east of the
property.  A low voltage  powerline does terminate at the west edge of the claim
block,  and higher  tension  power  lines can be found in the general  area.  We
intend  to  begin  preliminary  work  this  fall to  outline  areas  of  lithium
enrichment in an effort to define drill targets,  for more precise evaluation of
the economic potential of the property in 2010.

                                       16

Our wholly owned subsidiary,  Nevada Lithium  Corporation,  entered into a lease
agreement  with  Cerro  Rico  Ventures  LLC on  March  16,  2009.  The  lease is
maintained by an initial payment,  and continuing lease payments as set forth in
the table  below.  Cerro Rico  reserves a 3% NSR. We may  purchase 1% of the NSR
within 5 years for a payment of $500,000.  We can purchase an  additional  1% of
the NSR by paying  $1,000,000  within 10 years.  The remainder of the NSR can be
purchased within 15 years by paying $2,000,000.

     Payment                                    Amount            Timing
     -------                                    ------            ------
     Upon signature                            $ 20,000    March 16, 2009 (paid)
     Upon 1st anniversary                      $ 25,000    March 16, 2010
     Upon 2nd  anniversary                     $ 30,000    March 16, 2011
     Upon 3rd -10th anniversary                $ 50,000    March 16, 2012 - 2019
     Upon 11th - 20th anniversary              $ 75,000    March 16, 2020 - 2029
     At any time upon commercial production    $250,000

Any commercial production and payment therefore shall supersede the annual lease
payment  requirements,  which cease so long as  production is  maintained.  Upon
cessation of production  for any period in excess of 6 months,  the annual lease
payments shall resume.

STAKED PROPERTIES

Our company has staked claims with various registries as summarized below:

        Name                    Claims (Area in Acres)                 Amount
        ----                    ----------------------                 ------
     West Big Smoky                  34 (2,720)                       $ 9,915
     Salt Wells                     156 (12,480)                      $59,912
     Cortez                          62 (4,960)                       $22,801
     Beowawe                         16 (1,280)                       $ 5,481

COMPETITION

The  mining  industry  is  intensely  competitive.   We  compete  with  numerous
individuals  and companies,  including many major mining  companies,  which have
substantially greater technical, financial and operational resources and staffs.
Accordingly,  there is a high degree of competition  for access to funds.  There
are other competitors that have operations in the area and the presence of these
competitors  could  adversely  affect our ability to compete for  financing  and
obtain the service providers,  staff or equipment  necessary for the exploration
and exploitation of our properties.

COMPLIANCE WITH GOVERNMENT REGULATION

Mining  operations and exploration  activities are subject to various  national,
state,  provincial and local laws and  regulations in United States,  as well as
other jurisdictions, which govern prospecting,  development, mining, production,
exports, taxes, labor standards, occupational health, waste disposal, protection
of the environment, mine safety, hazardous substances and other matters.

We believe  that we are and will  continue to be in  compliance  in all material
respects  with  applicable  statutes  and the  regulations  passed in the United
States.  There are no current orders or directions  relating to our company with
respect to the foregoing laws and regulations.

GOING CONCERN

Our registered  independent auditors included an explanatory  paragraph in their
report on our financial  statements  as of and for the years ended  December 31,
2009 and 2008,  regarding  concerns  about our  ability to  continue  as a going
concern.

                                       17

Due to this doubt about our ability to continue as a going  concern,  management
is open to new business  opportunities,  which may prove more  profitable to our
shareholders.  Historically,  we have  been  able to raise a  limited  amount of
capital  through  private  placements of our equity stock,  but we are uncertain
about our continued ability to raise funds privately. If we are unable to secure
adequate  capital to continue  our  acquisition  and  exploration  efforts,  our
business may fail and our stockholders may lose some or all of their investment.

RESULTS OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2010 COMPARED TO THE THREE MONTHS ENDED JUNE, 2009

We had a net loss of $309,052  for the quarter  ended June 30,  2010,  which was
$298,388  greater  than the net loss of $10,714 for the  quarter  ended June 30,
2009.  The  significant  change in our results over the two periods is primarily
the  result  of  increases  in   exploration   expenses,   investor   relations,
professional fees, management fees, amortization,  interest,  travel and general
and administrative fees.

The  following  table  summarizes  key items of  comparison  and  their  related
increase (decrease) for the quarters ended June 30, 2010 and 2009:

                                    Three Months     Three Months
                                       Ended            Ended
                                      June 30,         June 30,       Increase
                                        2010             2009        (Decrease)
                                      --------         --------      ----------
REVENUE                               $     --         $     --       $     --
                                      --------         --------       --------
EXPENSES
  Professional fees                     29,961            4,750         25,211
  Amortization                             250               --            250
   Exploration expenses                 35,055               --         35,055
  Consulting expenses                  175,000               --        175,000
  Investor relations                    17,580               --         17,580
  Interest                               1,183               --          1,183
  Management fees                       32,600               --         32,600
  Transfer agent and filing fees         2,590               --          2,590
  Travel                                 9,556               --          9,556
  General and administrative             5,277            5,964           (687)
                                      --------         --------       --------
TOTAL EXPENSES                        $309,052         $  4,459       $304,593
                                      ========         ========       ========

REVENUE

We have not earned any revenues  since our  inception  and we do not  anticipate
earning revenues in the upcoming quarter.

EQUITY COMPENSATION

We  currently  do not have any  stock  option or  equity  compensation  plans or
arrangements.

SIX MONTHS ENDED JUNE 30, 2010 COMPARED TO THE SIX MONTHS ENDED JUNE, 2009

We had a net loss of $414,689 for the six months ended June 30, 2010,  which was
$399,516  greater than the net loss of $15,173 for the six months ended June 30,
2009.  The  significant  change in our results over the two periods is primarily
the  result  of  increases  in   exploration   expenses,   investor   relations,
professional fees, management fees, amortization,  interest,  travel and general
and administrative fees.

                                       18


The  following  table  summarizes  key items of  comparison  and  their  related
increase (decrease) for the six month periods ended June 30, 2010 and 2009:

                                     Six Months       Six Months
                                       Ended            Ended
                                      June 30,         June 30,       Increase
                                        2010             2009        (Decrease)
                                      --------         --------      ----------
REVENUE                               $     --         $     --       $     --
                                      --------         --------       --------
EXPENSES
  Professional fees                     37,424            4,750         32,674
  Amortization                             500               --            500
  Exploration expenses                  70,743               --         70,743
  Consulting expenses                  175,000               --        175,000
  Investor relations                    56,235               --         56,235
  Interest                               5,252               --          5,252
  Management fees                       41,800               --         41,800
  Rent                                    (243)              --           (243)
  Transfer agent and filing fees         3,192               --          3,192
  Travel                                11,755               --         11,755
  Website development costs                 --              412           (412)
  General and administrative            13,031           10,011          3,020
                                      --------         --------       --------
TOTAL EXPENSES                        $414,689         $ 15,173       $399,516
                                      ========         ========       ========

REVENUE

We have not earned any revenues  since our  inception  and we do not  anticipate
earning revenues in the upcoming quarter.

EQUITY COMPENSATION

We  currently  do not have any  stock  option or  equity  compensation  plans or
arrangements.

PURCHASE OR SALE OF EQUIPMENT

We do not expect to purchase or sell any plant or significant equipment.

LIQUIDITY AND CAPITAL RESOURCES

Our balance sheet as of June 30, 2010,  reflects  assets of  $2,073,611.  We had
cash in the  amount  of  $1,660,332  and a  working  capital  in the  amount  of
$1,640,377 as of June 30, 2010. We have sufficient  working capital to enable us
to carry out our stated plan of operation for the next twelve months.

                                                  At                    At
                                               June 30,            December 31,
                                                 2010                 2009
                                              ----------           ----------
Current assets                                $1,665,202           $  387,061
Current liabilities                               24,825              275,005
Working capital                               $1,640,377           $  112,056

We  anticipate  generating  losses  and,  therefore,  may be unable to  continue
operations in the future.  If we require  additional  capital,  we would have to
issue debt or equity or enter into a strategic arrangement with a third party.

                                       19

CASH FLOWS

                                              Six months            Six months
                                                Ended                 Ended
                                               June 30,              June 30,
                                                 2010                  2009
                                              -----------           -----------
Net Cash Used in Operating Activities         $  (472,342)          $   (10,525)
Net Cash Used in Investing Activities         $  (144,990)          $       Nil
Net Cash Provided by Financing Activities     $ 1,917,153           $     5,000
Net Increase in Cash During the Period        $ 1,299,821           $    (5,525)

OPERATING ACTIVITIES

Net cash flow used in operating  activities during the six-months ended June 30,
2010 was  $472,342 - an increase of $461,817  from the $10,525 net cash  outflow
during the six-months ended June 30, 2009.

INVESTING ACTIVITIES

The primary driver of cash used in investing  activities was capital spending in
the acquisition of lithium properties.

Cash used in investing  activities during the six-months ended June 30, 2010 was
$114,990,  which  was an  increase  of  $144,990  from  the $0 of  cash  used in
investing activities during the six-months ended June 30, 2009. This increase in
the cash used in investing activities was primarily due to scheduled payments on
the Fish Creek and Fish Lake Properties.

FINANCING ACTIVITIES

Cash from financing  activities  during the  six-months  ended June 30, 2010 was
$1,917,153,  which  was an  increase  of  $1,912,153  from  the $0 of cash  from
financing activities during the six-months ended June 30, 2009. This increase in
the cash from financing  activities was primarily due a private placement offset
by the repayment of loans.

We  estimate  that  we  will  spend   approximately   $350,000  on  general  and
administrative expenses,  $675,000 on exploration and $20,000 on travel over the
next 12 months.

Specifically,   we  estimate  our   operating   expenses  and  working   capital
requirements for the next 12 months to be as follows:

              Estimated Funding Required During the Next 12 Months

                       Expense                              Amount
                       -------                            ----------
             General and administrative                   $  350,000
             Exploration                                  $  675,000
             Mineral Property Costs                       $  117,000
             Travel                                       $   20,000
             TOTAL                                        $1,162,000

             CASH ON HAND, JUNE 30, 2010                  $1,660,332

                                       20

We  are  not  aware  of  any  known  trends,  demands,  commitments,  events  or
uncertainties that will result in or that are reasonably likely to result in our
liquidity increasing or decreasing in any material way.

FUTURE FINANCINGS

We anticipate continuing to rely on equity sales of our common stock in order to
continue to fund our business  operations.  Issuances of additional  shares will
result in dilution to our existing  stockholders.  There is no assurance that we
will achieve any additional  sales of our equity  securities or arrange for debt
or other financing to fund our planned business activities.

We presently  do not have any  arrangements  for  additional  financing  for the
expansion of our  exploration  operations,  and no potential  lines of credit or
sources of financing are currently  available for the purpose of proceeding with
our plan of operations.

CONTRACTUAL OBLIGATIONS

As a  "smaller  reporting  company",  we are not  required  to  provide  tabular
disclosure obligations.

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet  arrangements that have or are reasonably likely to
have a current or future effect on our financial condition, changes in financial
condition,  revenues or  expenses,  results of  operations,  liquidity,  capital
expenditures or capital resources that is material to stockholders.

RECENT ACCOUNTING PRONOUNCEMENTS

For recent accounting pronouncements, please refer to the notes to the financial
statements section of this Quarterly Report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a "smaller reporting company", we are not required to provide the information
required by this Item.

ITEM 4. CONTROLS AND PROCEDURES

MANAGEMENT'S REPORT ON DISCLOSURE CONTROLS AND PROCEDURES

We maintain  disclosure controls and procedures that are designed to ensure that
information  required to be disclosed in our reports filed under the  SECURITIES
EXCHANGE  ACT OF 1934,  as  amended,  is  recorded,  processed,  summarized  and
reported  within the time  periods  specified  in the  Securities  and  Exchange
Commission's  rules and forms,  and that such  information  is  accumulated  and
communicated  to our  management,  including our president (who is acting as our
principal   executive  officer,   principal   financial  officer  and  principle
accounting officer) to allow for timely decisions regarding required disclosure.

As of June 30, 2010, the end of our quarter  covered by this report,  we carried
out an  evaluation,  under the  supervision  and with the  participation  of our
president (who is acting as our principal executive officer, principal financial
officer and principle  accounting  officer),  of the effectiveness of the design
and operation of our disclosure controls and procedures. Based on the foregoing,
our  president  (who is acting as our  principal  executive  officer,  principal
financial  officer  and  principle   accounting   officer)  concluded  that  our
disclosure  controls and  procedures  were effective as of the end of the period
covered by this quarterly report.

                                       21

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There have been no changes in our internal  controls  over  financial  reporting
that occurred during our quarter ended June 30, 2010 that have materially or are
reasonably  likely to materially  affect,  our internal  controls over financial
reporting.

                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We may be involved  from time to time in ordinary  litigation,  negotiation  and
settlement  matters that will not have a material  effect on our  operations  or
finances. We are not aware of any pending or threatened litigation against us or
our officers and directors in their  capacity as such that could have a material
impact on our operations or finances.

ITEM 1A. RISK FACTORS

As a "smaller reporting company", we are not required to provide the information
required by this Item.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

There were no unregistered  sales of equity securities in the three months ended
March 31, 2010.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. [REMOVED AND RESERVED]

ITEM 5. OTHER INFORMATION

None.

                                       22

ITEM 6. EXHIBITS

Exhibit No.                         Description
-----------                         -----------

(3)       ARTICLES OF INCORPORATION AND BYLAWS
3.1       Articles of Incorporation  (Attached as an exhibit to our Registration
          Statement on Form SB-2  originally  filed with the SEC on December 21,
          2007 and incorporated herein by reference).
3.2       Bylaws (Attached as an exhibit to our  Registration  Statement on Form
          SB-2  originally   filed  with  the  SEC  on  December  21,  2007  and
          incorporated herein by reference).
3.3       Articles of Merger  (Incorporated by reference from our Current Report
          on Form 8-K filed on October 2, 2009).
3.4       Certificate  of Change  (Incorporated  by  reference  from our Current
          Report on Form 8-K filed on October 2, 2009).

(4)       INSTRUMENTS  DEFINING  THE  RIGHTS  OF  SECURITY  HOLDERS,   INCLUDING
          INDENTURES
4.1       2009 Stock Option Plan  (Incorporated  by  reference  from our Current
          Report on Form 8-K filed on December 30, 2009).

(10)      MATERIAL CONTRACTS
10.1      Share exchange  agreement  dated October 9, 2009,  amount our company,
          Nevada  Lithium  Corporation  and the selling  shareholders  of Nevada
          Lithium  Corporation  as  set  out  in the  share  exchange  agreement
          (incorporated  by reference  from our Current Report on Form 8-K filed
          on October 26, 2009).
10.2      Lease  Purchase  Agreement  dated June 1, 2009 between  Nevada Lithium
          Corporation  as purchaser and Nevada Mining Co.,  Inc.,  Robert Craig,
          Barbara  Craig and  Elizabeth  Dickman  as  vendors  (Incorporated  by
          reference  from our  current  Report on Form 8-K filed on October  26,
          2009).
10.3      Lease  Agreement  dated on  March  16,  2009  between  Nevada  Lithium
          Corporation   as  Lessee  and  Cerro  Rico   ventures  LLC  as  Lessor
          (incorporated  by reference  from our Current Report on Form 8-K filed
          on October 26, 2009).

(21)      SUBSIDIARIES OF THE REGISTRANT
21.1      Nevada Lithium Corporation

(31)      RULE 13A-14 (D)/15D-14D) CERTIFICATIONS
31.1*     Section  302  Certification  by the  Principal  Executive  Officer and
          Principal Financial Officer

(32)      SECTION 1350 CERTIFICATIONS
32.1*     Section  906  Certification  by the  Principal  Executive  Officer and
          Principal Financial Officer

----------
* Filed herewith

                                       23

                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                             LITHIUM CORPORATION


Date: August 16, 2010        By: /s/ Tom Lewis
                                ------------------------------------------------
                             Name:  Tom Lewis
                             Title: President, Treasurer, Secretary and Director
                                    (Principal Executive Officer, Principal
                                    Financial Officer and Principal Accounting
                                    Officer)


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