Mr. Steven Cochrane reports

AS PART OF THE STRATEGIC PROCESS, LITHIUM CHILE CREATES TWO 100% WHOLLY OWNED SUBSIDIARIES FOR ITS CHILEAN GOLD AND LITHIUM PROPERTIES

Lithium Chile Inc. has created two, 100-per-cent wholly owned Canadian subsidiaries and has transferred Chilean projects as part of its spinout proposal aimed at segregating its Chilean and Argentinian assets.

Guided by the strategic process undertaken by PI Financial Corp. (news release of Feb. 15, 2024), the spinout is designed to allow Lithium Chile to pursue a transaction pertaining to its assets for both acquisition and capital opportunities in Argentina. Through this deliberate approach, the spinout initiative underscores Lithium Chile's commitment to delivering shareholder value and leveraging strategic opportunities in pursuit of its long-term objectives.

Highlights:

• 22,629 hectares of Chilean gold properties are to be transferred to Kairos Gold Inc.;
• 111,978 hectares of Chilean lithium properties are to be transferred to Lithium Chile 2.0 Inc.

Steve Cochrane, president and chief executive officer, comments, "We believe this is the best course of action to pursue the development of our Chilean projects while creating a restriction-free path to enhance value for shareholders via our Argentina assets."

Chilean gold properties highlights

Lithium Chile possesses a robust portfolio of gold properties in Chile, encompassing five strategically located projects totalling over 22,000 hectares. Among these assets, one project is Las Garillas, distinguished by its promising geological features and exploration potential.

Las Garillas:

• A property that consists of nine exploration concessions and one exploitation concession totalling 2,000 hectares.
• Part of the Oro Brillante mining district, Las Garillas lies within the Vicuna fault system on the eastern edge of the Central porphyry copper-gold belt.
• Recent exploration endeavors have yielded encouraging results, indicating the presence of significant gold mineralization. Assays sampled from 0.3- to one-metre veins on the property returned grades as high as 61 g/t Au and 329 g/t Ag.
• To further delineate the extent and grade of mineralization, an exploration drill program is scheduled to commence in mid-April, 2024.

Chilean lithium property highlights

Consisting of 12 projects in Chile, the company holds over 110,000 hectares of claims that have the potential to host significant grades of lithium. Among these assets, several flagship projects stand out. Showcasing its commitment to enhancing value, the company has already entered strategic partnerships on two of those projects that will employ innovative exploration approaches. They include:

Llamara, Aguilar, Rio Salado and Aquas Caliente:

• The company recently announced a joint venture with Eramet, a renowned European mining company recognized as a global leader in metal extraction and transformation.
• Eramet will undertake an exploration program, carried out in three separate phases.
• The total projected exploration program is in the order of about $20-million (U.S.).
• Upon completion of each phase, Eramet will earn interests in the joint venture holding the mining claims, totalling up to 70 per cent at the end of phase 3.

Turi:

• The company is in a joint venture with Summit Nanotech, a pioneering technology company based in Calgary that specializes in innovative lithium extraction methodologies from salar brines -- principally DLE or direct lithium extraction.
• Summit Nanotech will undertake an exploration program with an option to earn a 50.01-per-cent interest by completing certain obligations contained in an original option agreement between Monumental Energy and Lithium Chile that was assumed by Summit Nanotech.

Spinout particulars

In anticipation of the spinout, the company is transferring all its rights of the Chilean projects to Kairos and Lith 2.0, newly established subsidiaries of the company. The company will then consider distributing the shares of both subsidiaries on a pro rata basis to shareholders of the company. Based on management's plans and the current share capital of the company, it is anticipated that this will result in existing shareholders receiving approximately one share of Kairos for every 10 shares of the company, and one share of Lith 2.0 for every four shares of the company, that is held as of the record date for the spinout.

The board of directors has not yet determined a record date for the potential distribution of Kairos or Lith 2.0 shares to the shareholders of Lithium Chile, which if proceeded with is expected to occur upon the completion of the spinout. Further details regarding completion of the spinout will be provided in a subsequent news release.

If the spinout is completed, Kairos and Lith 2.0 are anticipated to become reporting issuers in accordance with applicable Canadian securities laws.

Qualified person

Eric L. Hanson, PGeo, a qualified person within the meaning of National Instrument 43-101, has reviewed the contents of this news release. Mr. Hanson has been involved with exploration efforts on the Las Garillas project since October of 2022.

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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