Mr. Steven Cochrane reports

LITHIUM CHILE PROVIDES UPDATE ON THE SALE OF ITS ARIZARO, ARGENTINA PROJECT

Lithium Chile Inc. has provided an update regarding the proposed sale of its Arizaro project located in Salta province, Argentina.

Due diligence and progress toward definitive agreement

Following the signing of a binding letter of intent (the LOI) on Dec. 16, 2024, the company and the buyer have advanced steadily toward execution of a definitive agreement.

Operational due diligence was completed in February, 2025, followed by delivery of the first draft of the definitive agreement to Lithium Chile. In June, internationally recognized advisers to the buyer completed the financial and legal due diligence. With this extensive review complete, legal counsel for both parties began addressing the final terms of the definitive agreement.

The negotiations have focused on finalizing specific legal clauses and conditions precedent required for closing. The process is well advanced, with only a few items remaining under consideration. Legal teams from both groups continue to work diligently to complete the agreement as expeditiously as possible. Lithium Chile and the buyer have reaffirmed their commitment to successfully concluding this transaction.

Special committee review

A committee comprising independent directors, established to provide oversight of the proposed transaction, has been involved in continuous reviews of the definitive agreement. The special committee approved submission of the draft agreement to the TSX Venture Exchange for regulatory comments and feedback. This milestone represents an important advancement, bringing the company and the buyer closer to finalizing the definitive agreement.

Steve Cochrane, president and chief executive officer of Lithium Chile, commented: "The majority of the key commercial terms have been agreed upon, and we are now progressing into the final stages of the transaction. Before execution, the buyer will submit the definitive agreement to its regulatory body to obtain approval in accordance with its local requirements. With both the special committee and the TSX-V review processes under way, we are steadily advancing toward signing this important agreement."

About Lithium Chile Inc.

Lithium Chile is an exploration company with a portfolio of 11 properties spanning 106,136 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 National Instrument 43-101-compliant resource report, preliminary economic assessment and prefeasibility study which are all 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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