Mr. Adrian Hobkirk reports

LITHIUM SOUTH RE-SCHEDULES PLAN OF ARRANGEMENT CLOSING AS A RESULT OF CEASE TRADE ORDER

In a press release on May 11, 2026, Lithium South Development Corp. provided additional information regarding the closing date of the company's previously announced plan of arrangement and noted that funds had been received to complete the plan of arrangement. Prior to the close of business on the same day, the British Columbia Securities Commission issued a cease trade order (CTO) against the company effective May 11, 2026, as the company has been unable to file its audited annual financial statements, management discussion and analysis, and related certifications for the financial year ended Dec. 31, 2025. As a result of the CTO, the TSX Venture Exchange (the "Exchange") suspended trading in the company's securities on May 12, 2026. As a result of this suspension, the company is unable to close the plan of arrangement on the date previously announced.

The failure to file the required filings was due to receiving certain foreign documents late to complete the 2025 audit. Those documents have since been received and management is diligently working to resolve the CTO and anticipates filing the required filings in the immediate future.

The closing date for the plan of arrangement has been rescheduled to on or about May 22, 2026, subject to the CTO being lifted.

We seek Safe Harbor.