Mr. Steven Cochrane reports

CHINA UNION AND LITHIUM CHILE RECEIVE NOTICE UNDER THE INVESTMENT CANADA ACT

Lithium Chile Inc. and China Union Holdings Ltd. have received a notice pursuant to Subsection 25.2(1) of the Investment Canada Act (the ICA) in connection with the proposed sale by Lithium Chile to China Union of all of the outstanding shares of Argentum Lithium S.A.

The company originally announced the transaction on Dec. 22, 2025. Shortly thereafter, on Jan. 7, 2026, the company wrote to Innovation, Science and Economic Development Canada (ISED) setting out its position that Argentum is not a Canadian company, does not own Canadian assets, has no employees or place of business in Canada, and does not satisfy the criteria contemplated by Paragraph 25.1(c) of the ICA. The company did not receive a response to that letter prior to receipt of the Section 25.2 notice.

The notice states that the director of investments has reasonable grounds to believe that the transaction could be injurious to national security and that an order for further review of the transaction may be made under Subsection 25.3(1) of the ICA.

Lithium Chile and China Union are reviewing the notice with their respective legal advisers and considering the options available to them. Lithium Chile's position is that the sale of a foreign asset is outside the jurisdiction of ISED and intends to forcefully advance that position and seek all remedies available.

The company will provide further updates regarding the transaction and the ICA process as material developments occur.

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 a National Instrument 43-101-compliant resource report, a preliminary economic assessment and a prefeasibility study, which are all accessible on SEDAR+ under Lithium Chile's profile.

We seek Safe Harbor.