Mr. Steve Cochrane reports

LITHIUM CHILE ANNOUNCES DUE DILIGENCE ON ARIZARO SALE NEARS COMPLETION, MOVES TO DEFINITIVE AGREEMENT STAGE

Lithium Chile Inc. in its commitment to keep their shareholders apprised on the progress of the Arizaro transaction, is providing an update on the proposed sale, announced on Dec. 19, 2024, of Lithium Chile's 80-per-cent interest in the Salar de Arizaro project for $180-million (U.S.) (approximately $250-million (Canadian)).

Due diligence completed to the point where definitive agreement now being drafted

The company reports that the due diligence is essentially completed by the buyer and its confidence in the successful completion of the acquisition has prompted them to begin drafting the final definitive agreement on the sale of the Arizaro project. A comprehensive review of financial, legal, operational and technical due diligence has been under way since early December, 2024. With this milestone achieved, both parties are now advancing into the definitive agreement stage, marking a critical step toward finalizing the transaction.

Next steps

Legal representatives from both parties are actively collaborating to finalize the contractual framework for the definitive agreement which will outline the final transaction terms, closing conditions and the expected closing date. This legally binding contract will govern the sale and ensure a smooth transition. The company will provide further updates as the process progresses.

Steve Cochrane, president and chief executive officer of Lithium Chile, commented: "The completion of due diligence and progress towards a definitive agreement is a major milestone in advancing this transaction. This has been an intensive in-depth review of the company's Arizaro project; we are now fully focused on finalizing the definitive agreement and ensuring that this deal maximizes value for our shareholders. Our team is working diligently alongside our advisers and stakeholders to bring this transaction to a successful close.

Lithium Chile remains committed to a seamless transition through this final phase and will continue working closely with regulatory bodies, legal teams and the buyer to meet all closing requirements.

While the company is confident in its advancement toward a successful completion of the transaction, there are still a number of conditions to be met.

About Lithium Chile Inc.

Lithium Chile is an exploration company with a portfolio of 11 properties spanning 107,936 hectares in Chile and 29,245 hectares on the Salar de Arizaro in Argentina. The company has successfully advanced its Arizaro project with the completion of an NI 43-101-compliant resource report followed by a preliminary economic assessment and then a prefeasibility study, all of which are accessible on Sedar+ under Lithium Chile's profile.

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