Mr. Sam Pigott reports

LITHIUM ARGENTINA FINALIZES PPG JOINT VENTURE; ANNOUNCES $180M STRATEGIC INVESTMENT FROM GANFENG

Lithium Argentina AG and Ganfeng Lithium Group Co. Ltd. have entered into definitive agreements to finalize the new joint venture (PPG JV) consolidating the Pozuelos-Pastos Grandes projects (PPG) in Salta province, Argentina.

Concurrently, Ganfeng has agreed to invest $180-million in Lithium Argentina through a six-year unsecured convertible note with a 4.0-per-cent coupon and convertible into Lithium Argentina's common shares at $12.50 per share. The conversion price represents a premium of approximately 96 per cent to the five-day volume-weighted average price (VWAP) of the company's common shares on the New York Stock Exchange for the period ending Aug. 21, 2026. Proceeds, together with cash on hand, are intended to be used to fully repay the company's $259-million convertible debt due January, 2027, extending the company's debt maturity profile on an unsecured basis and strengthening the balance sheet.

Sam Pigott, chief executive officer of Lithium Argentina, commented: "These transactions strengthen our balance sheet and minimize dilution for our shareholders, while positioning both Cauchari-Olaroz and PPG to deliver significant value. At Cauchari-Olaroz, with over $300-million of liquidity at the operation, access to low-cost financing and substantial free cash flow generation, we are strongly positioned to fund the stage 2 expansion organically and accelerate our growth plans. At PPG, the consolidated joint venture brings together three complementary projects into a single large-scale operation -- strengthening our joint financing process already under way and preserving every option to unlock its full value for shareholders."

Wang Xiaoshen, CEO of Ganfeng, commented: "The PPG JV and this strategic investment reflect the strength of a partnership built over nearly a decade and more than $2-billion of combined investment in Argentina's lithium sector. At Cauchari-Olaroz, the largest lithium brine operation in Argentina, we have demonstrated what our companies can achieve together, and this latest investment reflects the strong long-term value Ganfeng sees in Lithium Argentina and our confidence in the growth we are building. Together, we are advancing a shared vision to grow to over 200,000 tonnes per annum of LCE capacity -- bringing advanced processing technologies, jobs and investment to make Argentina the leading source of growth in low-cost, environmentally responsible lithium chemicals production."

PPG JV

Lithium Argentina and Ganfeng have entered into definitive agreements establishing the PPG JV, bringing together three adjacent projects in Salta province, Argentina -- Ganfeng's Pozuelos-Pastos Grandes project, Lithium Argentina's Pastos Grandes and Sal de la Puna projects -- as a single consolidated basin-wide development. The PPG JV is advancing an integrated development targeting 150,000 tonnes per annum (tpa) of lithium carbonate equivalent (LCE) across three phases, leveraging shared infrastructure and one of the largest consolidated lithium brine resource bases globally.

PPG JV key terms:

• Joint partnership: Ganfeng and Lithium Argentina hold 67 per cent and 33 per cent, respectively.
• Governance rights: Key decisions, including approval of the development plan, financings and budgets, require the approval of both PPG JV partners.
• Operatorship: Ganfeng's team in Salta will act as operator with a joint technical and financial committee providing oversight of all key decisions.
• Funding: Both partners finance the PPG JV in proportion to their ownership interests; annual funding in excess of $20-million requires joint approval until a project-level financing process is completed.
• Financing process: The company and Ganfeng continue to jointly advance the financing process for the PPG JV, including project-level debt and a potential minority strategic investor.
• Offtake rights: Both parties are entitled to offtake in proportion to their ownership interests.
• Investment to date: A combined historical investment, including property acquisition and development, of $1.8-billion.
• RIGI: Application submitted in Q1 2026, incorporating the full 150,000 tpa (tonnes per annum) of LCE development plan, with approval expected by the end of 2026.

PPG JV is expected to be completed in September, 2026. Upon completion, the PPG projects will be consolidated under Millennial Lithium B.V., a Dutch holding company owned 67 per cent by Ganfeng and 33 per cent by Lithium Argentina, which will indirectly own 100 per cent of the Argentine entities holding the projects consisting of PPG.

$180-million strategic investment

Lithium Argentina has agreed to issue a $180-million unsecured convertible note to Ganfeng with the following key terms:

• Offering: $180-million unsecured convertible note;
• Coupon: 4.0 per cent per annum, payable semi-annually;
• Conversion price: $12.50 per share, representing a premium of approximately 96 per cent to the five-day VWAP (volume-weighted average price) of the company's common shares on the NYSE;
• Maturity: six years from the date of issuance (2032), if not converted or redeemed earlier;
• Accelerated redemption: redeemable by the company at par after the first anniversary of issuance if the company's share price exceeds 130 per cent of the conversion price for 20 trading days within any 30 consecutive trading-day period;
• Change of control: upon a change of control, the note may be converted prior to closing or the note rolls into the consideration received by common shareholders (including securities of a publicly listed acquirer);
• Other terms: Unsecured, with no offtake rights or other commercial arrangements attached. The note is transferable only with the company's consent, is subject to hedging restrictions and includes customary anti-dilution adjustments and a 12-month participation right for Ganfeng to maintain its ownership level. Conversion is subject to a cap of 19.99 per cent of the company's issued and outstanding shares, with terms otherwise customary for a convertible offering;
• Use of proceeds: repayment in full of the company's existing convertible debt due January, 2027;
• Closing: the strategic investment is expected to close in September, 2026, subject to customary closing conditions, including approval of the Toronto Stock Exchange and NYSE.

Lithium Argentina ended Q2 2026 with $100-million in cash and equivalents and received an additional $27-million in distributions from Cauchari-Olaroz in Q3 2026. With the proceeds of the strategic investment and cash available, the company expects to fully repay the $259-million convertible debt due January, 2027. Concurrent with closing of the strategic investment, the company will terminate the existing $130-million debt facility, releasing the associated security and preferential offtake rights.

Ganfeng currently owns approximately 9.6 per cent of the company's issued and outstanding common shares. Assuming conversion of the note in full, Ganfeng would receive 14.4 million additional common shares and would own approximately 16.1 per cent of the company's common shares on a fully diluted basis.

About Lithium Argentina AG

Lithium Argentina is a producer of lithium carbonate for use primarily in lithium-ion batteries and electric vehicles. The company, in partnership with Ganfeng, operates the Cauchari-Olaroz lithium brine operation in the Jujuy province of Argentina and is advancing PPG in the Salta province of Argentina. Lithium Argentina currently trades on the TSX and on the NYSE under the ticker LAR.

Cauchari-Olaroz is 44.8 per cent owned by the company, 46.7 per cent by Ganfeng and 8.5 per cent by JEMSE, a mining investment company owned by the government of Jujuy province in Argentina.

We seek Safe Harbor.