Lithium Chile Provides Update ON Proposed “Spin-Out Transactions” Involving TWO Newly Formed Subsidiaries: Kairos GOLD Inc. and Lithium Chile 2.0 Inc.

LITHIUM CHILE PROVIDES UPDATE ON PROPOSED “SPIN-OUT

TRANSACTIONS” INVOLVING TWO NEWLY FORMED SUBSIDIARIES:

KAIROS GOLD INC. AND LITHIUM CHILE 2.0 INC.

TSX Venture Exchange: LITH For Immediate Release

OTC-QB: LTMCF

CALGARY, ALBERTA, August 7, 2024 – Lithium Chile Inc. (“ Lithium Chile” or the “Company”) is

pleased to provide an update on the proposed “spin-out transactions” involving two newly

formed subsidiaries: Lithium Chile 2.0 Inc. and Kairos Gold Inc. It is intended that Lithium Chile

will continue to hold its advanced Salar de Arizaro lithium project while the remaining lithium

salar properties will be transferred to Lithium Chile 2.0 Inc. and the properties that are

prospective for gold, copper and silver will be transferred to Kairos Gold Inc. The shares of both

Lithium Chile 2.0 Inc. and Kairos Gold Inc. are intended to be “spun-out” to the Company’s

shareholders after a special meeting of shareholders to approve the proposed transaction.

Materials enabling shareholders to make an informed decision on the merits of the “spin-out

transactions” have been filed with the TSX Venture Exchange (the “ Exchange”) with first

comments having been received on July 31, 2024.

The time required to complete NI 43-101 compliant technical reports together with independent

valuations of the Company’s properties - amongst numerous other documents and the need to

obtain Exchange approval - has required that the Company delay the special meeting of

shareholders until October 7, 2024.

Lithium Chile has applied to list the common shares of Kairos Gold Inc. on the Exchange with

that “spin-out transaction” occurring immediately after the October 7, 2024 special shareholder

meeting.

Completion of the transaction involving the “spin-out” of Lithium Chile 2.0 Inc. remains subject

to the Company having successfully concluded the strategic process involving its Arizaro

property. Negotiations in that respect are continuing and have been aided by the completion

of the prefeasibility study (“PFS”) announced by the Company on July 23, 2024, which confirmed

the robust economics of the Arizaro project.

ABOUT LITHIUM CHILE

Lithium Chile is an exploration company with a property portfolio consisting of 11 properties

encompassing 106,136 hectares in Chile together with 29,245 hectares on the Salar de Arizaro

in Argentina. The Company has completed and filed a NI 43 -101 compliant Resource Report as

well as a NI 43 - 101 compliant Preliminary Economic Assessment (“ PEA”) on the Company’s

profile at SedarPlus.ca. The Company recently completed a NI 43 - 101 compliant Prefeasibility

Study (“PFS”) which is expected to be filed on the Company’s profile at SedarPlus.ca within the

following 2 weeks.

Lithium Chile also owns 4 properties in Chile totaling 22,433 hectares that are prospective for

gold, silver and copper.

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]

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:

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. You are cautioned that the foregoing list of

material factors and assumptions is not exhaustive. Although Lithium Chile believes that the

assumptions and factors on which such forward-looking statements are based upon reasonable

assumptions, 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 such forward-looking statements will transpire or occur, or if any of them do,

what benefits Lithium Chile will derive therefrom. 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.