Mr. Steven Cochrane reports

LITHIUM CHILE BEGINS DRILLING THE FIRST EXPLORATION HOLE ON ITS SALAR DE LLAMARA, CHILE PROJECT AND REPORTS INCREASED GRADES AFTER RESAMPLING WELLS ON ARIZARO, ARGENTINA

Lithium Chile Inc. has commenced drilling on the Salar de Llamara in Chile. The drilling program is an exciting opportunity for Lithium Chile to advance its lithium projects in Chile and is designed to capitalize on the renewed interest in Chile's lithium projects by some of the major global lithium companies.

Llamara, Chile, highlights:

• The initial hole, POZO LL-01, is currently at approximately 150 metres of the planned 500-metre depth on the company's 100-per-cent-owned Salar de Llamara in Chile.
• POZO LL-01 is the first of a four-well program designed to explore targets identified by a 74-kilometre TEM (transient electromagnetic) geophysical program on the Salar de Llamara in Chile.
• The Salar de Llamara prospect comprises 35,500 hectares where historical drilling identified an underground brine aquifer with lithium grades of 343 milligrams per litre.
• The drilling of each well is anticipated to take between two and three weeks.

Arizaro, Argentina, highlights:

The company also reports a significant increase in the lithium grades following a resampling program on the Salar de Arizaro in Argentina. Resampling of diamond drill holes ARDDH-01, ARDDH-04 and ARDDH-05, along with production wells Argento-01, Argento-02 and Argento-03, was completed by Aminco SA using GeoVista's fluid sampler tool and reported by a certified laboratory. Work is under way to understand the impact and reasoning for these improved grades and what it means for the project as a whole. The resampling values will need to be subsequently validated by an independent, certified laboratory in order to be included in a mineral resource update:

• During the retesting, ARDDH-04 increased from an average grade of 264 milligrams per litre lithium to an average grade of 683 milligrams per litre lithium over five samples.
• On ARDDH-05, the average lithium grade increased from 430 milligrams per litre lithium to an average grade of 1,118 milligrams per litre lithium, over four samples, with the highest-grade sample reported at 1,269 milligrams per litre lithium.

• Drilling on ARDDH-07 (re-entry of ARDDH-03) has been completed and packer-plus sampling has begun. The initial hole, ARDDH-03, was only drilled to 400 metres, with operations halted due to the rig capacity. Hole ARDDH-07 was completed to 601 metres and a brine aquifer was encountered below the 400-metre level. Initial well site sampling with Turbospec's analyzer indicated brine samples up to 271 milligrams per litre lithium.
• Hole AADDH-07 was drilled due north of ARDDH-05 on the northern extension of the Arizaro claims. This is new territory on the company's Arizaro drill program, which could significantly increase the overall mineral resource.

Michelle DeCecco, vice-president and chief operating officer, commented: "With the new drill program under way in Chile and continued exploration ongoing in Argentina, Lithium Chile is the only lithium company with active exploration programs in two of the three countries within the Lithium Triangle. Our team is not only advancing our assets rapidly, but they are also proving the value and the quality of our assets -- something our shareholders should be very excited about."

Qualified person and quality assurance/quality control statements

Leandro Sastre is a geology professional with over 20 years of experience in the international mining sector. He has worked extensively throughout Latin America with a focus on Argentina, Chile and Peru. Mr. Sastre has reviewed and approved the scientific and technical content of this news release.

About Lithium Chile Inc.

Lithium Chile is an exploration and lithium resource company with a property portfolio consisting of 111,978 hectares in Chile and 20,800 hectares in Argentina.

The company will be filing an updated National Instrument 43-101 report with an indicated and inferred resource of 3,323,000 tonnes of LCE (lithium carbonate equivalent) from its Salar de Arizaro project in Argentina. The phase 2 development program on the Salar de Arizaro is under way, with results to be included in an updated NI 43-101 report, which will be filed on SEDAR when completed.

Lithium Chile also owns four properties totalling 21,329 hectares that are prospective for gold, silver and copper. Exploration efforts are continuing on Lithium Chile's Carmona gold/silver/copper property, which lies in the heart of the Chilean megaporphyry gold/silver/copper belt.

Lithium Chile's common shares are listed on the TSX Venture Exchange under the symbol LITH and on the OTCQB under the symbol LTMCF.

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