Hal2p is an enzyme that converts pAp (adenosine 3',5' bisphosphate), a
product of sulfate assimilation, into 5' AMP and P-i. Overexpression
of Hal2p confers lithium resistance in yeast, and its activity is inhi
bited by submillimolar amounts of Li+ in vitro. Here we report that pA
p accumulation in HAL2 mutants inhibits the 5'-->3' exoribonucleases X
rn1p and Rat1p. Li+ treatment of a wild-type yeast strain also inhibit
s the exonucleases, as a result of pAp accumulation due to inhibition
of Hal2p; 5' processing of the 5.8S rRNA and snoRNAs, degradation of p
re-rRNA spacer fragments and mRNA turnover are inhibited, Lithium also
inhibits the activity of RNase MRP by a mechanism which is not mediat
ed by pAp, A mutation in the RNase MRP RNA confers Li+ hypersensitivit
y and is synthetically lethal with mutations in either HAL2 or XRN1. W
e propose that Li+ toxicity in yeast is due to synthetic lethality evo
ked between Xrn1p and RNase MRP. Similar mechanisms may contribute to
the effects of Li+ on development and in human neurobiology.