Mr. Adrian Hobkirk reports

LITHIUM SOUTH ANNOUNCES PAY OUT OF COMMON SHARES AND CLOSING OF PLAN OF ARRANGEMENT

Lithium South Development Corp. has received funds from Posco Argentina S.A.U. and the effective date of May 15, 2026, has been set for the cash payout of 50.5 cents per common share by the company to the company's shareholders. The company will be completing the plan of arrangement on May 15, 2026, subject to the final approval of the TSX Venture Exchange.

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 website.

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

In addition, the company has applied to the exchange to delist its common shares from trading and immediately prior to receiving the exchange bulletin, the company will arrange to concurrently delist from the OTCQB market and will make an application to cease being a reporting issuer. Dates will be finalized shortly.

We seek Safe Harbor.