An anonymous director reports

LITHIUM AMERICAS REPORTS SECOND QUARTER 2023 RESULTS

Lithium Americas Corp. has released financial and operating results for the quarter ended June 30, 2023.

Highlights

Argentina

Cauchari-Olaroz:

• In June, 2023, Cauchari-Olaroz achieved first lithium production as the project advances commissioning and ramp-up to Stage 1 capacity of 40,000 tonnes per year of battery-quality lithium carbonate, which is scheduled to be completed in mid-2024.
• Since start-up, production quality has exceeded expectations with critical equipment required to achieve battery-quality lithium carbonate in the process of testing and commissioning.
• Cauchari-Olaroz is expected to produce approximately 5,000 tonnes of lithium carbonate in 2023.
• First lithium product from Cauchari-Olaroz has left the site and is being prepared for shipment at the port.
• As of June 30, 2023, $895-million of the $979-million total expected capital expenditures has been spent (on a 100-per-cent basis). As of June 30, 2023, the company expects its remaining financing requirement to be less than $25-million for capital costs, value-added taxes and working capital to reach positive cash flow.
• Preparation for Cauchari-Olaroz Stage 2 expansion targeting additional production capacity of at least 20,000 tpy is under way.

Pastos Grandes basin:

• On June 26, 2023, the company announced the SEDAR filing of a National Instrument 43-101 technical report and resource update for the Pastos Grandes project titled, "NI 43-101 Technical Report, Lithium Resources Update, Pastos Grandes Project, Salta Province, Argentina," with an effective date of April 30, 2023.
• The company continues to advance the Pastos Grandes $30-million development plan, including engineering and evaluation work, which is expected to be completed by the end of the year. Simultaneously, the company is working to complete a project review and an updated feasibility study:
  • A geophysics program to map the basin and brine geological units has been completed, and drilling has commenced. This will allow the company to deepen its understanding of the brine reserves and provide key inputs to design the brine production system.
• On April 20, 2023, the company completed its acquisition of Arena Minerals and its 65-per-cent ownership interest in the Sal de la Puna project, adjacent to the Pastos Grandes project in Salta, Argentina.

United States

Thacker Pass:

• In mid-June, 2023, major earthworks construction commenced at Thacker Pass to support the target of initial production in the second half of 2026.
• Deposits on long-lead items are expected to start in third quarter 2023 and will continue through fourth quarter 2024.
• The company continues to work closely with the U.S. Department of Energy (DOE) Loans Program Office to advance confirmatory due diligence and term sheet negotiations for the advanced technology vehicles manufacturing loan program following the receipt of a letter of substantial completion on Feb. 22, 2023:
  • The company expects the DOE ATVM loan program conditional approval process to be completed in 2023 and, if approved, to finance up to 75 per cent of capital costs for construction of phase 1. Development costs incurred by the project may qualify as eligible costs under the ATVM loan program as of Jan. 31, 2023.
  • The company has approved a 2023 construction budget of $125-million with $48-million cash spent in second quarter 2023 for construction of water pipelines and ponds, infrastructure improvements, and the start of major earthworks.
• On Feb. 6, 2023, the U.S. District Court, District of Nevada, ruled favourably for the company in the appeal filed against the Bureau of Land Management by declining to vacate the record of decision. The U.S. Court of Appeals for the Ninth Circuit affirmed the District Court's decision on July 17, 2023.

Corporate:

• As at June 30, 2023, the company had $502.0-million in cash and cash equivalents and short-term bank deposits, with an additional $75-million in available credit.
• On July 31, 2023, at the annual general and special meeting of Lithium Americas shareholders, 98.85 per cent of the votes cast by shareholders present in person or by proxy at the meeting voted in favour of the separation of the company into Lithium Americas (Argentina) Corp. and a new Lithium Americas Corp., pursuant to a statutory plan of arrangement. The separation is targeted to become effective in early October, 2023:
  • Additionally, in connection with the second tranche of the previously announced $650-million investment by General Motors Holdings LLC, the company's shareholders passed two resolutions approving: (a) the ownership by GM and its affiliates of more than 20 per cent of the issued and outstanding shares of the company (or following the separation, Lithium Americas (NewCo)); and (b) $27.74 per share (as adjusted for the separation) as the maximum subscription price at which tranche 2 of GM's investment would be made.
• On Aug. 4, 2023, the company obtained a final order from the Supreme Court of British Columbia approving the plan of arrangement to effect the separation.

Technical information

The technical information in this news release has been reviewed and approved by Rene LeBlanc, PhD, SME, chief technical officer of Lithium Americas, and a qualified person as defined by National Instrument 43-101.

Financial results

Selected consolidated financial information is presented herein.

                          FINANCIAL HIGHLIGHTS 
        (in millions of U.S. dollars except per-share information) 

                                                      Quarters ended June 30,    
                                                      2023              2022 
                   
Expenses                                            ($17.1)           ($90.3) 
Net income/(loss)                                     25.8             (16.6) 
Income/(loss) per share -- basic                      0.16             (0.12) 
Income/(loss) per share -- diluted                    0.16             (0.12) 
                                                 ---------         --------- 

                         ADDITIONAL HIGHLIGHTS
                     (in millions of U.S. dollars)
 
                             As at June 30, 2023        As at Dec. 31, 2022  
                            
Cash, cash equivalents and  
short-term bank deposits                  $502.0                     $352.1  
Total assets                             1,501.9                    1,016.5  
Total long-term liabilities               (203.5)                    (212.9)
                                       ---------                  ---------

Net income in Q2 2023 versus loss in Q2 2022 is primarily due to a lower share of loss of Cauchari-Olaroz project partially offset by a lower gain on change in fair value of the GM agreement derivative liability and convertible note derivative liability.

In first half 2023, total assets increased primarily due to acquisition of Arena Minerals and cash proceeds from the first tranche investment by GM of $320-million.

This news release should be read in conjunction with Lithium Americas' condensed consolidated interim financial statements and management's discussion and analysis for the quarter ended June 30, 2023, which are available on SEDAR+. All amounts are in U.S. dollars unless otherwise indicated.

About Lithium Americas Corp.

Lithium Americas is advancing a separation of its U.S. and Argentine business units into two public independent companies. Lithium Argentina will retain Cauchari-Olaroz (44.8-per-cent interest), focused on advancing toward full production capacity, and regional growth opportunities in the Pastos Grandes basin with Pastos Grandes and Sal de la Puna projects (100 per cent owned and 65-per-cent interest, respectively). Lithium Americas (NewCo) will retain the 100-per-cent-owned Thacker Pass, focused on advancing construction with the target to commence production in the second half of 2026. The company currently trades on the Toronto Stock Exchange and on the New York Stock Exchange under the ticker symbol LAC.

We seek Safe Harbor.