Mr. Adrian Hobkirk reports

LITHIUM SOUTH DEVELOPMENT CORPORATION: PRELIMINARY ECONOMIC ASSESSMENT FILED ON SEDAR

Lithium South Development Corp. today filed on SEDAR+ its preliminary economic assessment (PEA) following the summary results previously announced March 3, 2024. The report, titled, "NI 43-101 Preliminary Economic Assessment Hombre Muerto North Lithium Project, Salta, Argentina," was completed by Knight Piesold Consulting and JDS Energy and Mining Inc., both industry-leading independent engineering consulting firms.

The PEA report provides support for Lithium South to proceed with development plans for a 15,600-tonne-per-year lithium carbonate plant, located at its wholly owned Hombre Muerto North lithium project (HMN Li project) in Salta, Argentina. The extraction and recovery process for the project is based on conventional solar evaporation of the well brine, magnesium removal with slaked lime and lithium carbonate precipitation using soda ash, which is an industrial proven method of lithium production.

The financial model shows a net present value after tax of $938-million (U.S.), an after-tax internal rate of return of 31.6 per cent and a 2.5-year payback.

Company founder, president and chief executive officer Adrian F. C. Hobkirk is quoted: "We are very pleased to have achieved this important milestone for the HMN Li project. The robust economics and room for expansion indicate a promising future for Lithium South."

About Lithium South Development Corp.

Lithium South owns 100 per cent of the HMN Li project, located in Salta and Catamarca provinces, Argentina, in the heart of the lithium triangle. The Salar del Hombre Muerto has a history of lithium production, with Arcadium Lithium (as a result of the Alkem and Livent merger) in operation for over 25 years, in an area just south of the HMN Li project. The HMN Li project is surrounded by a $4-billion (U.S.) lithium development under construction by POSCO (Korea) and the Sal de Vida project under development by Arcadium. Exploration work to date has delineated a National Instrument 43-101-compliant 1,583,200-tonne lithium carbonate equivalent (LCE) resource (1) on the Alba Sabrina, Natalia Maria and Tramo claim blocks, three of five non-contiguous blocks that make up the HMN lithium project. With pumping well installation under way, Lithium South is transitioning from being a lithium explorer to becoming a lithium developer.

Qualified person (QP) statements

Peter Ehren is an independent lithium consultant. He has more than two decades of experience in the industry. He started his interest in the lithium business during his master's thesis at Technical University of the Delft, where he investigated for BHP Minerals the recovery of lithium from geothermal brine (Salton Sea), applying a direct lithium extraction (DLE) technology. After his thesis, he worked for SQM as a process engineer and R&D (research and development) manager until 2007. Since 2007, he started to work as independent consultant in the lithium, boron and potassium industry. He is a world expert in solar evaporation systems, phase chemistry and process developments. Additionally, his experience covers product applications, opex (operating expenses) and capex (capital expenses) estimation, process simulations, engineering, R&D, and product development. He has worked in lithium basins and production facilities worldwide. He is a chartered professional (AusIMM) and QP for NI 43-101 and JORC.

Dr. Mark King, PhD, FGC, PGeo, of Groundwater Insight Inc., is the QP for resource estimation components of the PEA, as such term is defined by NI 43-101. Dr. King has extensive experience in salar environments and has been a QP on numerous lithium brine projects, ranging from early exploration to production. Dr. King is independent from the company and has reviewed and approved the technical information mentioned in this news release.

Richard Goodwin, PEng, project manager for JDS Energy and Mining Inc., is independent of Lithium South and a QP as defined under Canadian NI 43-101. Mr. Goodwin is a mining engineer and study manager with over 30 years of experience managing mining operation and projects in various commodities, such as base metals, precious metals, PGMs (platinum group metals) and diamonds, in various domestic and international locations. Mr. Goodwin is responsible for the PEA results, participated directly in the production of this news release and directly related information in this news release, and approves of the technical and scientific disclosure contained herein.

(1) A report titled, "Updated Mineral Resource Estimate -- Hombre Muerto North Project, NI 43-101 Technical Report Catamarca and Salta, Argentina, Mark King, PhD, PGeo, Peter Ehren, MSc, MAusIMM, Sept. 5, 2023."

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