Lithium Chile Provides Update ON the Transaction FOR the Sale of Arizaro Project
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LITHIUM CHILE PROVIDES UPDATE ON THE TRANSACTION
FOR THE SALE OF ARIZARO PROJECT
TSX Venture Exchange: LITH For Immediate Release
OTC-QB: LTMCF
CALGARY, ALBERTA, January 14, 2026 - Lithium Chile Inc. (“Lithium Chile” or the “Company”)
is pleased to provide an update, with reference to its prior news release dated December 22,
2025, regarding the progress made by the Company following the execution of the definitive
share purchase agreement (the “ Definitive Agreement ”), for the sale of its Arizaro project
through the disposition of its Argentinian subsidiary, Argentum Lithium S.A. (the “Transaction”),
for US $175,000,000. 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 following link to the
Company’s December 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 US$5,000,000 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 & Special Shareholders’ Meeting:
• The Company intends to call an Annual General and Special Shareholder Meeting (the
“Special 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 timeframe required
under applicable securities laws and TSX Venture Exchange policies such that
shareholders can make an informed decision on the Transaction.
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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 (the
or a “SIB”).
• A 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 a 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 a 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 post-closing 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 the 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.
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In support of this initiative, the Company has entered into a services agreement dated October
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 onli ne platforms for a
total cost of CAD $100,000 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
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 C ompany has
successfully advanced its Arizaro project with the completion of NI 43 -101 compliant Resource
Report, Preliminary Economic Assessment and Prefeasibility Study which are all 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: 403-393-1990.
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" occ ur. Forward-looking statements in this news
release include, but are not limited to, statements regarding: the timing and comple tion of the
Transaction; the satisfaction or waiver of closing conditions, including completion of pre-closing steps; the
receipt of all necessary governmental, regulatory and stock exchange approvals , acceptances and
clearances (including TSXV acceptance) and any required shareholder approvals; the anticipated release
and application of escrowed funds and the guarantee deposit; the expected timing of closing; the
intended date of the Special Meeting; the Company's ability to realize the anticipated transaction value;
the Company’s plans, including potential SIB and continued advancement of its Chilean portfolio; and the
belief of management and Board of Directors that the common shares have recently traded in a price
range that represents a discount to the Company's net asset value and does not reflect the underlying
value of the Company.
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 ability of the parties
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to satisfy the conditions to closing in a timely manner; the completion of the pre -closing acquisition of
additional equity in ARLI and the carve-out of the Arizaro 4 property and certain water rights; the timing
and receipt of required approvals, acceptances and clearances, including TSXV acceptance, any required
approvals and clearances from applicable governments, regulators and bodies in Canada, the People’s
Republic of China, Argentina and other relevant jurisdictions, and any required shareholder approvals; the
absence of legal or regulatory impediments; the continued validity and enforceability of the underlying
mining concessions and water rights; the accuracy of title opinions and due diligence; the P urchaser's
ability to obtain necessary financing and regulatory clearances; the stability of the legal and regulatory
framework in Argentina; the absence of material adverse changes affecting the Arizaro Project or ARLI;
the accuracy of management’s estimates and expectations; general business and economic conditions;
commodity prices; geopolitical stability between relevant jurisdictions; foreign exchange rates; and the
timing and terms of the escrow and deposit arrangements.
Although the Company believes that the assumptions and factors on which such forward -looking
statements are based are reasonable, undue reliance should not be placed on the forward -looking
statements because the Company 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 so,
what benefits the Company will derive therefrom. Actual results may vary from those currently
anticipated due to a number of factors and risks including, but not limited to: the risk that the Transaction
will not be completed on the terms or timing currently contemplated, or at all; the risk that required
approvals, acceptances or clearances (including governmental approvals, TSXV acceptance and any
required shareholder approvals) are not obtained, are delayed or are obtained subject to conditions; the
risk that required regulatory or governmental approvals , acceptances and clearances , including from
Argentinian, Canadian, Chinese or other authorities, may not be obtained, may be delayed, or may be
obtained subject to conditions or undertakings that materially alter the terms or anticipated benefits of
the Transaction; the possibility that ministries or regulators, in connection with the ownership or transfer
of critical mineral interests, may prohibit the Transaction or impose restrictions, additional conditions, or
new regulatory requirements; the risk that changing governmental policies or geopolitical considerations
relating to critical minerals, foreign investment, or national security may adversely impact the completion
or terms of the Transaction; risks related to foreign investment review processes and potential national
security assessments in multiple jurisdictions; the risk of trade restrictions or other measures affecting
cross-border transactions between Canadian, Chinese, and Argentine entit ies; the risk of legal
proceedings, disputes, or challenges to the Transaction by third parties, regulatory bodies, or other
stakeholders; risks related to the validity, enforceability and scope of mining concessions and water rights
underlying the Arizaro Project; the risk of title defects , encumbrances or third-party claims affecting the
project assets; risks related to environmental liabilities, permits and compliance obligations; the
Purchaser's ability to secure necessary financing to complete the Transaction; counterparty credit risk and
the Purchaser's financial capacity; risks related to escrow arrangements and the potential forfeiture or
delayed release of deposits; the inability to complete pre-closing steps in the manner and on the timelines
contemplated; changes in laws, regulations, policies o r enforcement priorities; political and regulatory
risks in the jurisdictions in which the Company operates; legal proceedings; counterparty and escrow risks;
currency exchange fluctuations; operational risks inherent in mineral exploration and development;
commodity price volatility; and general business, economic, competitive, market and geopolitical
conditions.
Readers are cautioned that the foregoing risk factors are not exhaustive. Undue reliance should not be
placed on 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 therefrom. Additional risks and uncertainties
not presently known to the Company or that the Company currently believes to be immaterial m ay also
adversely affect the Company. The forward-looking statements included in this news release are made as
of the date of this news release and 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.