Mr. Nikolaos Cacos reports

ARGENTINA LITHIUM COMPLETES EARLY EXERCISE OF PROPERTY OPTION AT RINCON WEST AND ANTOFALLA NORTH PROJECTS

Argentina Lithium & Energy Corp. has exercised two option agreements to obtain a 100-per-cent interest in key properties at its Rincon West, Antofalla North and Pocitos lithium projects, all located in Salta province, northwest Argentina, within the Lithium Triangle.

The Rincon West/Pocitos option, now exercised, encompasses 2,390.5 hectares of properties at the company's Rincon West project, including those on which the successful phase 1 drill program was completed earlier this year. The exercised option also includes 15,857 hectares of properties at the company's Pocitos project, which is currently undergoing a 170-line-kilometre transmission electron microscopy geophysical survey program to map the subsurface for potential future drill targeting.

The exercised Pipo/Alcalina option encompasses 5,380.5 hectares of properties at the company's Antofalla North project, for which the company recently announced accelerated exploration plans for 2024.

Nikolaos Cacos, chief executive officer of Argentina Lithium, stated: "Exercising the options at Rincon West and Antofalla North is a key step to advance planning and development of our two core projects. Drilling on the optioned property at Rincon West has verified the grade potential of the concentrated lithium aquifer. Drilling is pending at Antofalla North, however our geophysics demonstrates a deep salar basin and we are confident in the prospectivity for lithium brines, so we have set ambitious plans to advance the project. We have funding secured to fully explore these two projects, and our partner, Stellantis, is entirely supportive of our approach."

The early exercise of both options was completed through the company's Argentine subsidiary, Argentina Litio y Energia S.A. (ALE). Argentina Lithium owns 80.1 per cent of ALE, with 19.9-per-cent ownership held by Peugeot Citroen Argentina S.A., a subsidiary of Stellantis N.V., following the transaction announced on Sept. 27, 2023.

Rincon West/Pocitos option details

The Rincon West/Pocitos option agreement was announced on Sept. 28, 2021. The option was conditional on cash payments of $4.2-million (U.S.) and payment of shares in the company equivalent to $700,000 at the time of issuance, payable over 36 months. The company had previously made $1.3-million (U.S.) in payments toward the option and completed its share issuance requirements and has now paid the remaining balance of $2.9-million (U.S.). The exercise of the Rincon West/Pocitos option grants 100-per-cent ownership of the Villanoveno II property as originally announced (2,370 hectares) as well as the subsequently awarded Demasia Villanoveno II (20.5 hectares), both located at the Salar de Rincon, and the 11 properties designated as Pocitos 200, 201, 202, 203, 204, 205, 206, 207, 208, 209 and 211, totalling 15,857 hectares located at the Salar de Pocitos.

Pipo/Alcalina option details

The Pipo/Alcalina option was announced on Aug. 4, 2021, encompassing three mining concessions totalling 5,380.5 hectares, conditional on $4-million (U.S.) in cash payments payable over 42 months and on $7-million (U.S.) in work expenditure commitments. The company had previously completed $800,000 (U.S.) in option payments and has now paid the remaining balance of $3.2-million (U.S.). The work commitment conditions have been waived, and the cash exercise of the Pipo/Alcalina option grants 100-per-cent ownership of Alcalina V, Pipo I and Pipo II, which are considered core properties at the company's Antofalla North project. The option exercise was finalized by completing the outstanding cash payments specified in the option agreement. The prior property holders have accepted the full option exercise and have agreed to waive any outstanding work commitment specified in the original agreement. The original property holder group retains a 2-per-cent net smelter return on the properties, which the company has the further option to purchase at any time for a cash payment of $5-million (U.S.).

Qualified person

Frits Reidel, CPG, is a qualified person as defined in National Instrument 43-101, and the principal of Atacama Water, and is independent of Argentina Lithium. The disclosure in this news release has been reviewed and approved by Mr. Reidel.

About Argentina Lithium & Energy Corp.

Argentina Lithium & Energy 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 company's recent strategic investment by Peugeot Citroen Argentina S.A., a subsidiary of Stellantis N.V., one of the world's leading automakers, places Argentina Lithium in a unique position to explore, develop and advance its four key projects. Management has a long history of success in the resource sector of Argentina and has assembled some of the most prospective lithium properties in the world-renowned Lithium Triangle. The company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.

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