Mr. Steven Cochrane reports

LITHIUM CHILE PROVIDES AN UPDATE ON THE SALE OF THE SALAR DE ARIZARO PROJECT, ARGENTINA

Lithium Chile Inc. has provided an update on the proposed sale, announced on Dec. 19, 2024, of Lithium Chile's 80-per-cent interest in the Salar de Arizaro project for $180-million (U.S.) (approximately $250-million (Canadian)).

Due diligence progress

Technical due diligence was conducted in 2024 and completed in September, 2024.

Following the binding letter of intent executed on Dec. 16, 2024, the prospective buyer engaged global leaders Dentons LLP for legal due diligence and KPMG Inc. for financial due diligence on the Arizaro project. This due diligence process is focused on:

• Legal: verifying Lithium Chile's ownership and title of the claims;
• Financial: evaluating investments and liabilities related to Lithium Chile's 80-per-cent stake in the 20,800-hectare Arizaro project.

The buyer is responsible for all due diligence costs and aims to complete the process by the second week of February, 2025. Upon completion, the parties will finalize a definitive agreement expeditiously.

Retention of Block IV and future exploration

Following the proposed project sale, Lithium Chile will retain its 89-per-cent interest in Block IV on the Salar de Arizaro spanning approximately 8,445 hectares. The company has submitted an environmental impact assessment to the Ministry of Mining and Energy of Salta province, reflecting its commitment to responsible environmental practices and sustainable project development. Leveraging its extensive experience on the Arizaro salar, Lithium Chile plans to commence an exploration program on Block IV following the completion of the Arizaro sale.

Expansion and development of the Salar de Coipasa project, Chile

In September, 2024, the Chilean government announced that the Salar de Coipasa had been approved for commercial exploitation by the private sector under the new National Lithium Strategy. Recognizing the potential of this area, Lithium Chile has expanded its position by increasing its landholdings from 11,300 hectares to 13,100 hectares, with an additional 6,100 hectares pending court approval.

Strategically located on the Chile-Bolivia border, the Salar de Coipasa is a significant asset for Lithium Chile. Near-surface brine samples have returned lithium concentrations up to 1,410 milligrams per litre, comparable with production grades at leading facilities in the Salar de Atacama. Geophysical surveys, including transient electromagnetic methods, have identified a substantial high-conductivity anomaly within 150 metres of the surface. This anomaly spans at least 58 square kilometres, with a thickness ranging from 200 to 300 metres, and remains open at depth, indicating a potentially extensive brine-bearing formation.

Given its prime location and promising data, Coipasa is poised to play a pivotal role in Lithium Chile's exploration and development activities going forward. The company plans to file a special lithium operation contract for Coipasa by Jan. 18, 2025.

Michelle DeCecco, vice-president and chief operating officer, commented: "We are pleased to report that the sale process of our 80-per-cent interest in the Arizaro project is proceeding smoothly. This transaction will enable Lithium Chile to distribute the majority of cash from the sale to our shareholders, as well as pursue other compelling opportunities, with the aim of creating new value for our shareholders."

About Lithium Chile Inc.

Lithium Chile is an exploration company with a portfolio of 11 properties spanning 107,936 hectares in Chile and 29,245 hectares on the Salar de Arizaro in Argentina. The company has advanced its Arizaro project with the completion of a National Instrument 43-101-compliant resource report followed by a preliminary economic assessment and then a prefeasibility study, all of which are accessible on SEDAR+ under Lithium Chile's profile.

Lithium Chile's common shares are listed on the TSX Venture Exchange under the symbol LITH and on the OTCQB under the symbol LTMCF.

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