Mr. Steve Cochrane reports

LITHIUM CHILE INCREASES LITHIUM RESOURCE 24% WITH AVERAGE GRADES UP TO 538 MG/L AT SALAR DE ARIZARO, ARGENTINA

Lithium Chile Inc. has made a substantial increase of 24 per cent to the resource at its Salar de Arizaro project in Argentina from the results of an updated National Instrument 43-101 compliant resource report. The company reports a new, increased project total of 4,122,000 tonnes of lithium carbonate equivalent (LCE) from measured, indicated and inferred resource categories.

Highlights:

• Total LCE resource increased by 24 per cent since reporting the results of the preliminary economic assessment (see press release dated Aug. 8, 2023) for a new total of 4,122,000 tonnes LCE;
• The increased LCE resource related to the Salar de Arizaro project comprises:
  • 261,000 tonnes in the measured category;
  • 2,237,000 tonnes in the indicated category;
  • 1,624,000 tonnes in the inferred category.

Diamond drill hole ARDDH-08 contributed an increase of 559,518 tonnes of indicated LCE resource and 188,886 tonnes of inferred LCE resource. The resource increase at ARDDH-08 resulted from an average lithium grade of 538 milligrams per litre from well depths between approximately 200 metres and 300 metres and an average lithium grade of 343 milligrams per litre from well depths between approximately 300 metres and 570 metres such that a total sampled interval of 370 metres of the reservoir containing lithium brines has been established.

Over 260,000 tonnes LCE associated with the Argento-02 well were reclassified from the indicated category to the measured category due to the long-term pumping test and additional brine sampling that was conducted.

Steve Cochrane, president and chief executive officer of Lithium Chile, emphasized: "Increasing our lithium resource by 24 per cent marks substantial progress for our Arizaro project from just two additional wells. This yet again reinforces our belief that the Arizaro property is a world-class lithium project. Our team's relentless efforts in expanding the resource demonstrates their exceptional abilities, for which I extend my thanks." Mr. Cochrane continued, "With our strategic process proceeding, it is exceedingly exciting that the company is able to report such a significant resource increase."

Next steps in resource update:

• An updated analysis of the area around ARDDH-08 contained in the reserve model is under way and will be added to the NI 43-101 compliant report once completed.
• An update to the company's 2023 prefeasibility study report is expected by the end of the second quarter, which will confirm reserve volumes and a potential production profile.

Other Argentine developments

Block IV permitting

The baseline environmental impact study for the new block IV exploration program was completed and submitted to the Salta Mining Ministry at the end of February, 2024. This will allow for the company's exploration drill program on block IV, which is currently expected to begin in the second half of 2024.

Water wells

Drilling of hole ARDDH-09 is nearing completion, at which time the drilling rig will be moving to a number of locations on the company's southwestern claims with the objective of substantiating the freshwater aquifer characteristics needed for production. These locations surround and offset Lithium Chile's existing freshwater well that substantiated significant freshwater deliverability. Drilling is also continuing with a rotary rig on production well Argento-06. Those results will be released when they become available.

Qualified person, quality assurance/quality control statements

Michael Rosko, MS, PG, of Montgomery and Associates (M&A) of Santiago, Chile, is a registered geologist (CPG) in Arizona, California and Texas; a registered member of the Society for Mining, Metallurgy and Exploration (SME No. 4064687); and a qualified person as defined by NI 43-101. Mr. Rosko has extensive experience in salar environments and has been a qualified person on many lithium brine projects. Mr. Rosko and M&A are completely independent of Lithium Chile. Mr. Rosko 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 29,245 hectares in Argentina. The company has filed an NI 43-101 report and preliminary economic assessment. The revised reports will be filed shortly, which will be available for viewing on the company's profile on SEDAR+.

Lithium Chile also owns five properties totalling 22,529 hectares that are prospective for gold, silver and copper.

On Sept. 21, 2023, Lithium Chile announced the hiring of PI Financial as its financial adviser to seek strategic alternatives. That process is under way as the company continues to enhance the underlying value of its assets, including an increase related to the resource volume increases discussed in this press release.

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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