Mr. Adrian Hobkirk reports

LITHIUM SOUTH ANNOUNCES CLOSING OF THE SALE OF ITS HOMBRE MUERTO NORTH LITHIUM PROJECT

Lithium South Development Corp. has successfully completed the arm's-length sale of all of the issued and outstanding shares of its wholly owned subsidiary, NRG Metals Argentina SA, which holds a 100-per-cent-ownership interest and title in the company's Hombre Muerto North Lithium property located in Salta province, Argentina, pursuant to the share purchase agreement dated Dec. 5, 2025, entered into with Posco Argentina SAU (99 per cent) and Posco Holdings Inc. (1 per cent). A formal closing ceremony was held in Buenos Aires, Argentina, on April 7, where senior management from both companies concluded the arrangement.

Adrian F.C. Hobkirk, president and chief executive officer, stated: "We congratulate Posco on the purchase of our subsidiary and the Hombre Muerto North lithium project. We wish them continued success on the Hombre Muerto salar."

Further details regarding the date of the payout of the cash consideration pursuant to the plan of arrangement will be provided in the immediate future.

Registered shareholders are the only shareholders required to complete and return a letter of transmittal to the company's transfer agent, Computershare Investor Services Inc., in order to receive the cash consideration for their common shares pursuant to the plan of arrangement. The letter of transmittal may be found at the company's website.

All other shareholders will receive the cash consideration through the intermediary with which their shares are held (brokerage or bank).

The company is in the process of receiving approval from the TSX Venture Exchange to delist its common share from trading and immediately prior to receiving the TSX-V bulletin, the company will arrange to concurrently delist from the OTCQB market and will make an application to cease being a reporting issuer.

We seek Safe Harbor.