Mr. Steven Cochrane reports

LITHIUM CHILE PROVIDES UPDATE ON THE TRANSACTION FOR THE SALE OF ARIZARO PROJECT

Lithium Chile Inc. has provided an update, with reference to its prior news release dated Dec. 22, 2025, regarding the progress made by the company following the execution of the definitive share purchase agreement, for the sale of its Arizaro project through the disposition of its Argentinian subsidiary, Argentum Lithium S.A., for $175-million (U.S.). The company is continuing to advance the transaction toward closing via the steps described below.

Details of the transaction

Readers may obtain further details regarding the transaction via the company's Dec. 22, 2025, news release, "Lithium Chile Executes the Formal Agreement for the Sale of its Argentine, Arizaro Project."

Transaction progress

Receipt of buyer deposit:

• The escrow agreement related to the $5-million (U.S.) deposit from China Union Holdings Ltd. (CUH), as defined in the definitive agreement, has been finalized within the stipulated 20-day period, demonstrating continued advancement in accordance with the transaction timeline.
• The deposit will be held in escrow for the benefit of the seller as security for the purchaser's payment obligations under the definitive agreement.

AGM (annual general meeting) and special shareholders meeting:

• The company intends to call an annual general and special shareholder meeting for May 15, 2026, where, among other routine matters, shareholder approval for the transaction will be sought.
• An information circular describing the transaction in detail, including the company's board of directors' recommendation in respect of the transaction and an independent fairness opinion, will be made available to shareholders within the time frame required under applicable securities laws and TSX Venture Exchange policies, such that shareholders can make an informed decision on the transaction.

Potential substantial issuer bid:

• The company is evaluating the merits of the distribution of a portion of the net proceeds from the transaction to its shareholders through a substantial issuer bid (SIB).
• An SIB is a mechanism that, subject applicable securities laws and TSX Venture Exchange policies, would allow shareholders to tender their common shares for redemption by the company at a specified price.
• Concluding an SIB would result in a meaningful reduction in the company's issued and outstanding common shares as the common shares repurchased under the SIB would be cancelled.
• If an SIB can be completed, the company would retain a residual cash balance sufficient to advance the development of its Chilean mineral interest portfolio.
• Assuming the company determines that the SIB is the best course of action, the preliminary details of the proposed SIB will be summarized and the final terms and details of the SIB will be fully described in a separate SIB bid circular postclosing of the transaction.
• Readers are advised that the final terms, including the redemption price per common share, would be determined based on the final net proceeds received from the transaction, after giving effect to closing costs, and the funds necessary to advance the development of the company's Chilean mineral interest portfolio, and remain subject to applicable securities laws and TSX Venture Exchange policies.

Next steps

The company continues to work diligently to satisfy all remaining closing conditions. In parallel, CUH, a company listed on the Shenzhen Stock Exchange, is advancing its regulatory approval process. CUH and Lithium Chile are aligned with the objective of closing the transaction on an expeditious basis and, in that regard, are actively engaged in securing as all necessary approvals.

Lithium Chile will provide further updates as milestones are achieved.

Arizaro operations

Lithium Chile's project team continues to maintain the Arizaro asset throughout the transaction process. All operational, environmental and community-related obligations are being furthered in accordance with applicable regulations and established best practices.

Market awareness

The company announces that it will undertake measured, compliant market communications to ensure shareholders and the broader investment community are provided with clear, accurate and timely information. Management and the board of directors believe that che Company's common shares have recently traded at levels that do not reflect the company's underlying value and represent a discount to its net asset value, and these efforts are intended to improve market awareness and understanding of the company's asset base and strategy.

In support of this initiative, the company has entered into a services agreement dated Oct. 15, 2025, with Departures Capital Inc., to provide digital marketing and investor awareness services. Under the agreement, Departures Capital will deliver strategic content creation, video production and targeted digital distribution across financial media and on-line platforms for a total cost of $100,000 (Canadian) over a 12-month term. Departures Capital is an arm's-length service provider, and, to the company's knowledge, neither the firm nor its principal holds any securities of the company.

About Lithium Chile Inc.

Lithium Chile is an exploration company with a portfolio of 11 properties spanning 106,136 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 National Instrument 43-101-compliant resource report, preliminary economic assessment and prefeasibility study, which are all accessible on SEDAR+ under Lithium Chile's profile.

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

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