Mr. Nikolaos Cacos reports

ARGENTINA LITHIUM ANNOUNCES US$90 MILLION INVESTMENT BY STELLANTIS IN ARS$ EQUIVALENT

Argentina Lithium & Energy Corp. entered into a definitive agreement on Sept. 26, 2023, for the Argentine-peso equivalent of a $90-million (U.S.) investment in Argentina Litio y Energia SA (ALE) by Stellantis NV, one of the world's leading automakers and mobility providers with iconic brands, including Abarth, Alfa Romeo, Chrysler, Citroen, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, RAM, Vauxhall, Free2Move and Leasys.

Pursuant to the transaction, Peugeot Citroen Argentina SA, a subsidiary of Stellantis, has agreed to invest the Argentine-peso equivalent of $90-million (U.S.) in Argentina to acquire shares of ALE. Further, the company has granted Stellantis the exchange right (as defined herein) to exchange all of the ALE shares for up to 19.9 per cent of the outstanding common shares of Argentina Lithium (on an undiluted basis) in the future, subject to certain conditions. The proceeds of the transaction will be used to advance development of the company's lithium projects held through its wholly owned subsidiary in Argentina and for general corporate purposes.

As a result of the transaction, Stellantis will own 19.9 per cent of the issued and outstanding ALE shares and Argentina Lithium will own 80.1 per cent.

Argentina Lithium president and chief executive officer Nikolaos Cacos said: "We are delighted to have Stellantis as a partner in the future development of our lithium projects in Argentina. Together, we share a vision to build a sustainable lithium mining operation for the future. We look forward to a strong and successful relationship with Stellantis and we are committed to delivering a sustainable lithium product that will contribute to the electrification of transportation and the protection of our atmosphere."

At closing of the transaction, Argentina Lithium and Stellantis will enter into an exchange agreement. Under the exchange agreement, Argentina Lithium will grant Stellantis an irrevocable right to exchange all of the ALE shares then held by Stellantis for such number of common shares equaling 24.844 per cent of: (i) the outstanding common shares (on an undiluted basis) as of the date of the exchange agreement; and (ii) common shares issued by Argentina Lithium (between the date of the exchange agreement and the date Stellantis exercises the exchange right) upon the exercise of warrants, stock options, or other securities convertible or exchangeable into common shares existing as of the date of the exchange agreement, subject to certain exchange conditions. Following the issuance of exchange shares, Stellantis will own at most 19.9 per cent of the common shares (on an undiluted basis). In addition, Argentina Lithium will grant Stellantis an irrevocable right (the top-up right) to subscribe for additional common shares if necessary for Stellantis to achieve a 19.9-per-cent interest in the common shares (on an undiluted basis). Any additional shares Stellantis elects to purchase pursuant to the top-up right will be issued at the maximum discounted market price permitted under the rules and policies of the TSX-V, unless the top-up right is exercised after an acquisition of Argentina Lithium, in which case the subscription price under the Top-Up right will be the preannouncement market price of shares of Argentina Lithium. Any issuance of additional shares will be subject to the prior approval of the TSX-V. Stellantis will not have the right under the exchange right and the top-up right to acquire more than 19.9 per cent of the outstanding common shares following the issuance of exchange shares and additional shares, if any. the exchange agreement also provides Stellantis with observer rights to attend board meetings of Argentina Lithium for as long as Stellantis owns at least 10 per cent of the issued and outstanding ALE shares. As of the date hereof, the company has 130,065,319 common shares, 11,341,000 stock options and 71,836,067 warrants issued and outstanding. Accordingly, subject to any adjustments under the exchange agreement, the maximum number of exchange shares that will be issued to Stellantis as consideration for its indirect investment in Argentina Lithium will be 53,011,137 common shares.

Argentina Lithium and Stellantis will enter into a lithium offtake agreement. Under the offtake agreement, ALE has agreed to sell to Stellantis and Stellantis has agreed to purchase from ALE up to 15,000 tonnes per annum of lithium produced by ALE over a seven-year period (the supply obligation) subject to the terms and conditions set out in the offtake agreement. After the initial seven-year term, the offtake agreement may be extended by mutual agreement for an additional number of years. The price of lithium products sold by ALE under the offtake agreement will be based on an agreed market-based price formula at the time of each shipment. The commencement of the supply obligation of ALE is conditional on the successful start of commercial production at one or more of its projects. The offtake agreement also contains certain product qualification, certification and reporting requirements and provides Stellantis with a right to acquire any production prior to the commencement of the supply obligation and a right of first refusal on the sale to third parties of any lithium products (in excess of the supply obligation) after the commencement of commercial production.

Argentina Lithium, ALE and Stellantis will enter into a shareholder agreement relating to ALE and Stellantis's ownership of ALE shares and provides for the following principal terms:

• Right of Stellantis to nominate one director to the board of directors of ALE for as long as Stellantis has an ownership position of not less than 10 per cent of the issued and outstanding ALE shares;
• Certain corporate decisions of ALE may not be undertaken without the affirmative vote of the Stellantis director or the approval by shareholders holding more than 90 per cent of the issued and outstanding ALE shares;
• Right of each shareholder to maintain its ownership percentage in any equity offerings by ALE;
• Transfer restrictions, including rights of first refusal and drag-along and tag-along rights;
• Right of first offer for Stellantis to provide project financing and any other borrowing by ALE;
• Other terms and conditions consistent with a transaction of this nature.

In addition, upon exercise of the exchange right, Argentina Lithium will enter into an investor rights agreement with Stellantis. The Stellantis IRA provides for the following principal terms in favour of Stellantis:

• A right to nominate one director to the board of directors of Argentina Lithium for as long as Stellantis has an ownership position of not less than 10 per cent of the issued and outstanding common shares;
• Pre-emptive right to maintain ownership percentage in certain follow-on issuances of common shares or securities convertible into common shares;
• Other terms and conditions consistent with a transaction of this nature.

Transaction conditions and timing

Closing of the transaction is subject to Argentina Lithium obtaining TSX-V approval, ALE completing certain corporate actions relating to the transaction and other closing conditions set out in the investment agreement.

The transaction is anticipated to close on or about Oct. 4, 2023.

Advisers and fairness opinions

PI Financial Corp. is acting as financial adviser to Argentina Lithium in connection with the transaction. The board of directors of Argentina Lithium has received a fairness opinion from PI Financial stating that, as of the date of such opinion and based upon and subject to the assumptions, limitations and qualifications stated in such opinion, the consideration to be received by the company pursuant to the transaction is fair, from a financial point of view, to Argentina Lithium shareholders. Blakes Cassels & Graydon LLP acted as Canadian legal counsel and Alfaro-Abogados SC acted as Argentine legal counsel to Argentina Lithium in connection with the transaction.

About Argentina Lithium & Energy Corp.

Argentina Lithium is focused on acquiring high-quality lithium projects in Argentina and advancing them toward production in order to meet the growing global demand from the battery sector. The management group has a long history of success in the resource sector of Argentina and has assembled a first-rate team of experts to acquire and advance the best lithium properties in the Lithium Triangle. The company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.

We seek Safe Harbor.