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) October 7, 2010


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

         Nevada                         333-148266                98-0530295
(State or other jurisdiction     (Commission File Number)       (IRS Employer
     of incorporation)                                       Identification No.)

200 S. Virginia Street - 8th Floor, Reno, NV                        89501
(Address of principal executive offices)                         (Zip Code)

       Registrant's telephone number, including area code (775) 322-0626

                                 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:

[ ] 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))

ITEM 1.01 ENTRY INTO MATERIAL DEFINITIVE AGREEMENT

ITEM 3.02 UNREGISTERED SALES OF EQUITY SECURITIES

On October 7,  2009,  we granted  stock  options  to  directors,  officers,  and
consultants  pursuant to our 2009 Stock Plan, to purchase up to 1,300,000 shares
of our common stock. The options are exercisable at prices ranging from $0.24 to
$0.28 per share and  expire  five  years  from the date of grant.  We issued the
stock  options  to  seven  (7)  persons,  to  certain  persons  in  an  offshore
transaction relying on Regulation S and/or Section 4(2) of the Securities Act of
1933,  and to  certain  persons  relying on Rule 506 under  Regulation  D and/or
Section 4(2) of the Securities Act of 1933.

                                   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.

LITHIUM CORPORATION


/s/ Tom Lewis
---------------------------------
Tom Lewis
President and Director

Date: October 13, 2010


                                       2