Ms. Michelle DeCecco reports

LITHIUM CHILE AND GRUPO ERRAZURIZ APPLY FOR CEOL TO PRODUCE LITHIUM IN THE COIPASA SALT FLAT

Lithium Chile Inc. has taken a pivotal step taken toward advancing lithium production in Chile. Lithium Chile through its wholly owned subsidiary, Kairos Inversions SPA, together with Grupo Errazuriz through its subsidiary, Cosayach Caliche, jointly applied for a special lithium operation contract (CEOL) on a 50-per-cent-50-per-cent basis for the Coipasa salt flat, situated in the Tarapaca region.

Under the leadership of president Gabriel Boric and as part of Chile's comprehensive national lithium strategy, a simplified bidding process for CEOLs was launched in 2024 for six priority saline systems, which included the company's shared Coipasa salt flat claims. The simplified process is aimed at accelerating the prompt execution of viable projects which aligns with the government's goal to rapidly enhance Chile's standing in the global lithium market.

To qualify for the streamlined process, companies or consortia were required to demonstrate experience in any segment of the lithium industry value chain or in mining operations. They must also have the financial capability to develop the project and control mining concessions that cover at least 80 per cent of the area in any of the designated priority salars.

Francisco Javier Errazuriz, president of the Errazuriz Group which controls Cosayach Caliche, commented on the development: "This joint application meets, and indeed exceeds, the government's criteria in terms of industry experience, financial capability and control over mining concessions within the prioritized saline systems. For the Coipasa salt flat, our joint venture covers 89.83 per cent of the Salar de Coipasa polygon, encompassing both exploration and exploitation concessions which allows for the fast tracking of the CEOL permit."

The joint application, with both parties participating equally, was submitted on Jan. 31, 2025, by Lithium Chile and Grupo Errazuriz, seeks to enhance lithium production beyond the traditional confines of the Atacama salt flat, currently dominated by SQM and Albemarle. The Coipasa salt flat, elevated at 3,700 metres above sea level, lies within the commune of Colchane, a border area between Chile and Bolivia.

Coipasa salt flat, Chile

Steve Cochrane, president and chief executive officer, commented: "Collaboration is vital for advancing sustainable projects that boost Chile's position in the global lithium market. This strategic partnership extends beyond mutual gains for the involved parties; it supports job creation and economic growth, contributing to wider socioeconomic advantages throughout the region. Grupo Errazuriz is a prominent Chilean private corporation with holdings not only in a number of Chilean salars, but a proprietary DLE technology and plant established in Copiapo. Our co-operation with Grupo Errazuriz is set to deliver substantial benefits."

After confirming that the requirements of the CEOL applications have been met, the mining ministry will provide applicants with a CEOL model. If both parties agree, the CEOL will be executed following the completion of the indigenous consultation process and the issuance of the supreme decree that sets forth the CEOL's requirements and conditions. If an agreement is reached using the simplified procedure, there will not be a need for a public tender.

About Grupo Errazuriz

Grupo Errazuriz is an outstanding Chilean business conglomerate with a long history in the country and a significant presence in 15 economic sectors: mining, real estate, automotive, fishing, salmon, agriculture, forestry, livestock, wine, fruit and finance, among others. In mining, the group has interests in gold, nitrates, iodine, copper and lithium. It is recognized for its strategic leadership and investment promotion in Chile, with a strong vocation for innovative and sustainable projects.

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 successfully 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-V under the symbol LITH and on the OTCQB under the symbol LTMCF.

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