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Lithium Chile Announces Due Diligence ON Arizaro Sale Nears Completion, Moves to Definitive Agreement Stage

Mergers & Acquisitions

LITHIUM CHILE ANNOUNCES DUE DILIGENCE ON ARIZARO SALE NEARS

COMPLETION, MOVES TO DEFINITIVE AGREEMENT STAGE

TSX Venture Exchange: LITH For Immediate Release

OTC-QB: LTMCF

CALGARY, ALBERTA, February 20, 2025 – Lithium Chile Inc. (“Lithium Chile” or the “Company”)

in its commitment to keep their shareholders apprised on the progress of the Arizaro

transaction, are pleased to provide an update on the proposed sale, announced on December

19, 2024, of Lithium Chile's 80% interest in the Salar de Arizaro project (the “ Project”) for USD

$180 million (approximately CAD $250 million).

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 their

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 underway 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 CEO 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 advisors 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 towards a successful

completion of the transaction, there are still a number of conditions to be met.

ABOUT LITHIUM CHILE

Lithium Chile Inc. 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 SedarPlus.ca 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”.

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: 587-393-1990.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT

TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY

FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

FORWARD LOOKING STATEMENTS AND RISK FACTORS:

This news release may contain certain forward -looking information and forward -looking statements

within the meaning of applicable securities legislation (collectively "forward -looking statements").

Generally, forward -looking statements can be identified using forward -looking terminology such as

"expected", "anticipated", "aims to", "plans to" or "intends to" or variations of such words and phrases or

statements that certain actions, events or results "will" occur. Such forward-looking statements are based

on various assumptions and factors that may prove to be incorrect, including, but not limited to, factors

and assumptions with respect to the general stability of the economic and political environment in which

the Company operates and the timely receipt of required regulatory approvals.

Closing of the proposed sale remains subject to significant risks including obtaining necessary regulatory

body approvals including that of the TSX Venture Exchange. Closing also remains subject to the

completion of Definitive Agreements in form satisfactory to the parties to th e transaction and remains

subject to final completion of due diligence by the Buyer.

Readers are cautioned that the foregoing risk factors are not exhaustive. Undue reliance should not be

placed on the forward -looking statements because Lithium Chile can give no assurance that they will

prove to be correct or that any of the events anticipated by forward -looking statements will transpire or

occur, or if any of them do, what benefits Lithium Chile will derive th erefrom. Similarly, the risk factors

listed above are not exhaustive and other risk factors that have not been anticipated may become

apparent as Lithium Chile proceeds to Closing. Lithium Chile does not undertake to update any forward-

looking statements herein, except as required by applicable securities laws. All forward -looking

statements contained in this news release are expressly qualified by this cautionary statement.