Mr. Clive Massey of Southern Lithium reports

SOUTHERN LITHIUM ANNOUNCES AMENDMENT TO DEFINITIVE AGREEMENT WITH MILLENNIAL LITHIUM

Southern Lithium Corp. has executed an amendment to the formal option agreement previously announced in a news release dated Nov. 17, 2016, with Proyecto Pastos Grandes SA (PPG SA), a wholly owned subsidiary of Millennial Lithium Corp. The amendment includes an extension to the definitive agreement on the payment of $1-million (U.S.) to PPG SA on or before Oct. 1, 2017, until, on or before Oct. 12, 2017.

The need for the amendment is a result of the company not having received drilling results for the recently completed two-hole program at its Cruz property in the Pocitos salar basin in Salta province, Argentina. The company expects to report assays from the two-hole program shortly.

Samples have been shipped to the lab for analyses. Sampling is being conducted in accordance with Canadian Institute of Mining, Metallurgy and Petroleum guidelines and an appropriate quality assurance/quality control program to ensuring accuracy and precision of the analytical process.

PPG SA, Millennial's lithium subsidiary, has engaged SGS Argentina SA of Buenos Aires, Argentina, as the primary analytical provider. The laboratory has extensive experience with lithium brine analyses and is certified under ISO/IEC 17025 and, in SGS's case, specifically for determination of lithium and potassium in liquid brines by use of ICP-OES.

About the Cruz property

The company has executed a formal option agreement with Proyecto Pastos Grandes SA, a wholly owned subsidiary of Millennial Lithium, through the option Southern Lithium can earn up to an 80-per-cent interest in the PPG SA's Cruz property in the Pocitos salar basin in Salta province, Argentina.

The Cruz property is located in South America's Lithium Triangle (northern Chile, northwestern Argentina and southwest Bolivia). The property encompasses 9,027 hectares (22,306 acres) in the Pocitos salar basin in Salta province, Argentina.

The Cruz property is contiguous to the southern limit of the Salar del Rincon basin, where ADY Resources Ltd. is extracting lithium brine, and the northern limit of the Pocitos salar basin, where the Cruz property is located. Both properties lie along the structural belt that hosts the important lithium resources of the region, and at the junction of a large north-south fault system and the northwest-southeast megastructure along which lies the Rincon volcano, the possible source of the lithium brine in both salar basins. The 60-kilometre-long Pocitos salar basin has previously only been drill tested with a shallow 12-hole program in the 1970s by an Argentine government agency, Direccion General de Fabricaciones Militares. To date, this is the only confirmed exploration drilling conducted in the Pocitos basin. The hole that produced the best results is near the southeast edge of the Cruz property boundary and averaged 417 parts per million lithium. Although these results are considered historical and have not been verified by the company's qualified person, the company considers these results relevant to the future exploration of the Cruz property.

About Southern Lithium Corp.

Southern Lithium is a resource exploration company engaged in the business of acquiring and exploring minerals properties. Southern Lithium has assembled an experienced management team with a strategy to develop a portfolio of technically superior lithium projects. The company's main objective is to add shareholder value through successful exploration and development of high-quality resources through strategic acquisitions, combined with cost-effective financial management. With the potential acquisition of the Cruz property, Southern Lithium intends to establish its presence in the Pocitos basin and further deliver on its mission to secure lithium projects.

Qualified persons

The scientific and technical information contained in this news release has been reviewed and approved by Larry Segerstrom, MSc (geology), PGeo, a director of the company, who is a qualified person as such term is defined under National Instrument 43-101.

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