Mr. David Alexander reports

SOUTHERN LITHIUM CORP. EXECUTES FORMAL DEFINITIVE AGREEMENT TO EARN 100% INTEREST IN THE EAST FAULT PROPERTY, NEVADA

Further to the previous news releases dated July 11, 2016, and Nov. 1, 2016, Southern Lithium Corp. has entered into a formal definitive agreement with TY & Sons Explorations (Nevada) Inc. dated Jan. 16, 2016, to complete Southern's acquisition of TY & Sons option of the 100-per-cent interest in TY & Sons' rights, title and interest in the mineral claims known as the East Fault property, located in Esmeralda county, Nevada, United States of America.

Under the terms of the agreements, the option will be exercisable by the company making cash payments and by way of common shares in the capital of the company as follows:

1. Subject to a 2.5-per-cent net smelter return royalty on commercial production from the mineral claims in favour of the property owner;
2. $50,000 to the optionor, which amount has already been paid and of which the optionor acknowledges receipt;
3. Completing the issuance of three million fully paid and non-assessable common shares in the capital of the company, as follows:
   • 300,000 consideration shares to the property owner, on or before the date which is 30 days of the closing date;
   • 2.7 million consideration shares to the optionor on or before the date which is 30 days of the closing date.

The optionor acknowledges that the consideration shares will be subject to such resale restrictions and hold periods imposed by National Instrument 45-102 and the rules and policies of the TSX Venture Exchange.

The completion of the transaction and the issuance of the consideration shares are conditional upon receipt of TSX Venture Exchange approval. In the event the exchange approval is not received on or before June 30, 2017, this option will terminate.

About the East Fault property

The East Fault property is a 1,112-acre (450 hectares) property that is strategically positioned along 11 kilometres (seven miles) of the East Fault. The property lies to the south of Albemarle's lithium brine mine and adjoins the eastern border of Pure Energy's Clayton Valley property, which has an inferred resource of 816,000 metric tonnes of lithium carbonate equivalent (see Pure Energy NI 43-101 technical report, July 17, 2015). Note that this disclosure of Pure Energy's resource does not imply that the company could obtain similar results from its property.

About Southern Lithium

Southern Lithium is a resource exploration company engaged in the business of acquiring and exploring mineral properties. The company's main objective is to add shareholder value through exploration and development of high-quality resources through strategic acquisitions, joint ventures and marketing while maintaining a lower-risk profile through project diversification and sound, 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 technically superior lithium projects. The company is only focusing on projects of the highest technical merit in favourable geopolitical jurisdictions.

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 (standards of disclosure for mineral projects).

We seek Safe Harbor.