LBSR Liberty Star Uranium and Metals Corporation (QB)

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On June 20, 2017, we closed on a securities purchase agreement (“Securities Purchase Agreement”), whereby we issued a convertible note (the “Note”) to one lender in the principal amount of $53,000. The Note is payable in full on June 20, 2018 and bears interest at the rate of 8.00% per annum.

The Note may not be prepaid in whole or in part except as set forth in the Note. Any amount of principal or interest on the Note which is not paid when due shall bear interest at the rate of 22% per annum from the due date until paid.

The Note may be convertible into shares of common stock of our company at any time from 180 days after the execution date of the Note and ending on the later of the maturity date, or the date of payment of the Default Amount (as defined in the Securities Purchase Agreement) at a price per share of 65% (representing a 35% discount) of the average of the lowest five (5) VWAP’s (as defined in the Securities Purchase Agreement) for our common stock during the 10-trading day period ending on the latest completed trading day prior to the date of conversion.

The foregoing descriptions of the Securities Purchase Agreement and the Note and of all of the parties’ rights and obligations under the Securities Purchase Agreement and the Note are qualified in its entirety by reference to the Securities Purchase Agreement and the Note, copies of which are filed as Exhibits 10.1 and 10.2, respectively, to this Current Report on Form 8-K, and of which are incorporated herein by reference.