China Union and Lithium Chile Receive Notice Under the Investment Canada Act
081420261
CHINA UNION AND LITHIUM CHILE RECEIVE
NOTICE UNDER THE INVESTMENT CANADA ACT
TSX Venture Exchange: LITH For Immediate Release
OTC-QB: LTMCF
CALGARY, ALBERTA, August 17, 2026 - Lithium Chile Inc. (“Lithium Chile” or the “Company”) and
China Union Holdings Ltd. (“ China Union ” or “ CUH”) have received a notice pursuant to
subsection 25.2(1) of the Investment Canada Act (the “ICA”) in connection with the proposed
sale by Lithium Chile to China Union of all of the outstanding shares of Argentum Lithium S.A.
(“Argentum”) (the “Transaction”).
The Company originally announced the Transaction on December 22, 2025. Shortly thereafter,
on January 7, 2026, the Company wrote to Innovation, Science and Economic Development
Canada (“ISED”) setting out its position that Argentum is not a Canadian company, does not own
Canadian assets, has no employees or place of business in Canada, and does not satisfy the
criteria contemplated by paragraph 25.1(c) of the ICA. The Company did not receive a response
to that letter prior to receipt of the section 25.2 notice.
The notice states that the Director of Investments has reasonable grounds to believe that the
Transaction could be injurious to national security and that an order for further review of the
Transaction may be made under subsection 25.3(1) of the ICA.
Lithium Chile and China Union are reviewing the notice with their respective legal advisors and
considering the options available to them. Lithium Chile’s position is that the sale of a foreign
asset is outside the jurisdiction of ISED and intends to force fully advance that position and seek
all remedies available.
The Company will provide further updates regarding the Transaction and the ICA process as
material developments occur.
ABOUT LITHIUM CHILE
Lithium Chile Inc. 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 an NI 43-101 compliant Resource
2
081726M
Report, a Preliminary Economic Assessment and a Prefeasibility Study which are all accessible on
Sedar+.ca under Lithium Chile’s profile.
ISSUER CONTACT
To find out more about Lithium Chile, please contact:
Steven Cochrane, President and CEO via email: [email protected], or
Michelle DeCecco, COO via email: [email protected] or phone: +1 587-287-9355
FORWARD LOOKING STATEMENTS AND RISK FACTORS:
This news release contains certain statements that may constitute “forward -looking information” within
the meaning of applicable Canadian securities laws. Forward -looking information in this news release
includes, but is not limited to, statements regarding the proposed sale of the shares of Argentum to China
Union; the process under the ICA; the possibility of an order for further review being made under
subsection 25.3(1) of the ICA; the parties’ engagement with ISED; the options available to the parties in
response to the notice; and the ability of the parties to complete the Transaction on the terms
contemplated, or at all.
Forward-looking information is based on management’s current expectations, estimates, assumptions
and projections and is subject to known and unknown risks, uncertainties and other factors that may
cause actual results or events to differ materially from those expressed or implied by such forward-looking
information. Such risks and uncertainties include, without limitation, the possibility that an order for
further review may be made under the ICA; the timing and outcome of the ICA process; the possibility
that conditions, undertakings or other requirements may be imposed in connection with the Transaction;
the possibility that the Transaction may be delayed, modified or not completed; and other risks described
in the Company’s continuous disclosure filings available under its profile on SEDAR+.
Although the Company believes that the expectations and assumptions reflected in such forward-looking
information are reasonable, undue reliance should not be placed on forward-looking information because
the Company can give no assurance that such expecta tions will prove to be correct. The forward -looking
information contained in this news release is provided as of the date hereof, and the Company undertakes
no obligation to update or revise such information to reflect new events or circumstances, except a s
required by applicable securities laws.