Lithium Chile Closes the Previously Announced $27,900,000 Private Placement at $0.95 with Chengxin Lithium Group

CALGARY, ALBERTA, May 16, 2022 – Lithium Chile Inc. (“Lithium Chile” or the “Company”) is pleased to announce that it has successfully closed the Company’s previously announced $0.95 Private Placement with Chengxin Lithium Group (“Chengxin”). The $27,900,000 added to the Company’s existing working capital of approximately $15,000,000, will give the Company an unprecedented $43,000,000 in cash. The Company is in a strong financial position to accelerate existing exploration projects and the financial flexibility to pursue other opportunities.

In light of the Company’s healthy working capital position and significant resource reported on its maiden well, Lithium Chile is also pleased to announce they are expanding the Company’s previously announced Phase 2 development program (see February 14, 2022, News Release) on the Company’s Arizaro property. The program has expanded from three exploration holes to four exploration holes and up to three additional production wells. This expanded program now budgeted at US $4,000,000, has the full support and participation of Chengxin Lithium Group. Chengxin’s goal is to advance the Company’s Salar de Arizaro property into production as soon as possible. Two rigs have been contracted and a temporary camp to house the drilling contractors and company technicians has been rented. The Company anticipates drilling to commence soon; delays are a result of the significant increase in activities throughout the lithium industry.

Figure #2 – Phase 2 Exploration Campaign - Proposed Well Locations, Arizaro, Argentina

Currently underway, Lithium Chile is completing a unique metallurgical testing program on its future production well to define the proper approach for direct lithium extraction. The Company is working with Chengxin on an innovative trial with the most advanced resin technology using a titanium oxide base.

Figure #2 - Brine samples taken to Alex Stewart International, Argentina

In addition to the Company’s planned development program on it’s central Salar de Arizaro Claims, the Company has also received a permit to drill an exploration water well on it’s southernmost claim on Arizaro. The well will be located in an area where approximately 70% of the freshwater flows into the basin. This will be the first fresh water well to be drilled on the Salar de Arizaro and will give the company a significant advantage when the property moves towards production.

About Lithium Chile

Lithium Chile is advancing a lithium property portfolio consisting of 80,938 hectares covering sections of 11 salars and 2 laguna complexes in Chile and 23,300 hectares in Argentina.

Lithium Chile also owns 5 properties, totaling 22,429 hectares that are prospective for gold, silver and copper. Exploration efforts are continuing on Lithium Chile’s Carmona gold/silver/copper property which lies in the heart of the Chilean mega porphyry gold/ silver/copper belt.  

Lithium Chile’s common shares are listed on the TSX-V under the symbol “LITH” and on the OTC-BB under the symbol “LTMCF”.

(This is an announcement prepared by Lithium Chile)