Lithium Americas : Q4 2023 Quarterly Filing

(FORMERLY LITHIUM AMERICAS CORP.)

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

BACKGROUND

This Management's Discussion and Analysis ("MD&A") of Lithium Americas (Argentina) Corp. ("Lithium Argentina" or the "Company"), prepared as of March 20, 2024, should be read in conjunction with the Company's audited consolidated financial statements and the notes thereto for the year ended December 31, 2023 ("YE 2023 financial statements"). Refer to Notes 2 and 3 of the YE 2023 financial statements for disclosure of the Company's material accounting policies. All amounts are expressed in United States dollars, unless otherwise stated. References to CDN$ are in Canadian dollars. This MD&A includes certain statements that may be deemed "forward- looking statements", "forward-looking information", "future-oriented financial information" and/or "financial outlook". and readers should read the cautionary note contained in the section titled "Forward-Looking Statements" of this MD&A. Information contained on the Company's website or in other documents referred to in this MD&A is not incorporated by reference herein and does not form part of this MD&A unless otherwise specifically stated.

The Company's head office and principal address is Suite 300, 900 West Hastings Street, Vancouver, British Columbia, Canada, V6C 1E5. The Company trades in Canada on the Toronto Stock Exchange ("TSX") and in the United States on the New York Stock Exchange ("NYSE") under the symbol "LAAC". Additional information relating to the Company, including key risk factors which may impact the Company's business and financial condition and other information, is contained in the Company's Annual Information Form ("AIF"), Form 40-F and other filings, which are available on the Company's website at www.lithium-argentina.com and on SEDAR+ at www.sedarplus.ca.

Highlights

• On March 18, 2024, Sam Pigott commenced as President and CEO of the Company. John Kanellitsas will remain Executive Chairman of the Company.
• On March 19, 2024, Sam Pigott and Monica Moretto were appointed to the Board of Directors.
• On March 5, 2024, Ganfeng Lithium Co. Ltd. ("Ganfeng") agreed to invest $70M for an expected 15% stake in the Pastos Grandes project through a subscription of newly-issued shares of the Company's Argentine subsidiary, Proyecto Pastos Grandes S.A. (the "Pastos Grandes Transaction").
  o Ganfeng, with support of Lithium Argentina, will undertake preparation of a regional development plan for the Pastos Grandes basin and surrounding properties, expected to be finalized by the end of 2024.
  o The transaction is expected to close in Q2 2024 with proceeds available to support the Company's
  Argentine operations.
• Operational Highlights

1. Production commenced in June 2023 at Caucharí-Olaroz, the largest new greenfield lithium brine project.
2. • In 2023, approximately 6,000 tonnes of lithium carbonate were produced, achieving 99.5% lithium carbonate content and technical-quality specifications.

1. Caucharí-Olarozis producing at approximately 50% of the 40,000 tonnes per annum ("tpa") capacity.

• The operation is targeting to reach nameplate capacity on a limited basis by mid-2024 and maintain a level near capacity on a steady state basis by the end of the year.

1. 2024 targeted production at Caucharí-Olaroz of 20,000 - 25,000 tonnes of lithium carbonate.
2. • In the current price environment, the project is expected to generate positive cash flow from operations in 2024.

1. While planning for Stage 2 expansion in production capacity continues to advance, the Company has not committed material capital to growth capex at this time.

MD&A - Period ended December 31, 2023	2

• Financial Highlights

1. As of December 31, 2023, the Company had $122M in cash and cash equivalents.

• The Company has $259M in convertible debt at 1.75% due in early 2027 and has not drawn on its $75M credit facility with Ganfeng.

1. As of December 31, 2023, Minera Exar S.A. ("Minera Exar"), the Argentine joint venture company owned by the Company (44.8%), Ganfeng (46.7%) and Jujuy Energia y Mineria Sociedad del Estado ("JEMSE") (8.5%) had approximately $234M (on a 100% basis, less cash collateral) of local debt tied to funding working capital and startup costs.
2. • The Company and Ganfeng are in the process of finalizing new credit facilities to refinance a substantial portion of this local debt with longer maturity credit facilities typical of an operating business.

1. Cognizant of market conditions in the lithium market, the Company has commenced proactive measures to reduce discretionary exploration and evaluation and general and administrative spending at the corporate level by 25%.

MD&A - Period ended December 31, 2023	3

LITHIUM OPERATIONS AND PROJECTS

The Caucharí-Olaroz lithium brine project ("Caucharí-Olaroz") is located in Jujuy province in the northwestern region of Argentina. Caucharí-Olaroz is operating and ramping up to full capacity. The Company owns 44.8% of Caucharí-Olaroz through its ownership interest in Minera Exar, a company incorporated under the laws of Argentina. The Company also has a pipeline of development and exploration stage projects, including the Pastos Grandes

project ("Pastos Grandes") and the Sal de la Puna project ("Sal de la Puna"), both of which are located in Salta

Province in northwestern Argentina adjacent to Jujuy province. Pastos Grandes is a 100% owned (which interest

is subject to change upon completion of the Pastos Grandes Transaction, see "Recent Highlights" above)

development stage project, while Sal de la Puna is an exploration stage project in which the Company holds a 65% interest. The Company is advancing development plans for these assets, including evaluating opportunities to achieve synergies through joint development of the projects.

The Company's operations concerning Caucharí-Olaroz are conducted in Argentina and the Netherlands through

equity investees, Minera Exar and Exar Capital B.V. ("Exar Capital") respectively, which are governed by a

shareholders' agreement between the Company and Ganfeng. The Company and Ganfeng collectively own 91.5% of Minera Exar (and Caucharí-Olaroz; with the remaining 8.5% owned by JEMSE) and 100% of Exar Capital (a Netherlands entity that provides funding to Minera Exar). For Pastos Grandes, the Company conducts operations through its indirectly wholly-owned subsidiary, Proyecto Pastos Grandes S.A. ("PPG") in Argentina. Operations concerning Sal de la Puna are conducted by the Company through its recently acquired 65% ownership interests in Sal de la Puna Holdings Ltd. in Canada (with Ganfeng owning the remaining 35%), which owns Puna Argentina S.A.S. in Argentina which holds the project.

Health and Safety

The Total Recordable Injury Frequency rate for Caucharí-Olaroz as of December 31, 2023 was 0.87 per 200,000 hours worked (including contractors at site).

Operational Performance and Project Development

Caucharí-Olaroz

During 2023, Caucharí-Olaroz reached several important milestones, including the achievement of first lithium carbonate production in June. Between commencement of production and the end of the year, Caucharí-Olaroz exceeded production guidance expectations and produced approximately 6,000 tonnes of lithium carbonate. Since the production of first lithium, the project has achieved 99.5% lithium carbonate content with technical quality specifications that approach battery quality in most specifications. The lithium carbonate plant is producing lithium carbonate at approximately 50% capacity. In March 2024, the project has been able to reach 75% capacity for a limited time. Production levels have been impacted by power disruptions tied in part to adverse weather conditions. There is a mitigation plan being implemented to minimize the effect of unscheduled power outages on the production in the future.

The team is working through the ramp up process, including the integration of the potassium chloride ("KCl") plant. During mid-2024, it is expected that Caucharí-Olaroz will complete at capacity check to review the functionality of all systems at the facility. Steady state operations close to nameplate capacity of 40,000 tpa should be met by the end of this year.

During the fourth quarter of 2023, the Company's portion of the sales volumes from Caucharí-Olaroz were sold to Ganfeng, Lithium Argentina's partner in the project. The pricing of the product reflects the product quality that was produced during the fourth quarter, a discount compared to battery-quality market prices. We expect the lithium carbonate price for product produced at Caucharí-Olaroz to increase as the quality of product increases and achieves battery-quality consistently.

MD&A - Period ended December 31, 2023	4

It is estimated that Caucharí-Olaroz will produce between 20,000-25,000 tonnes of lithium carbonate during 2024. In the current price environment, the project is expected to generate positive cash flow from operations in 2024.

While the current focus at Caucharí-Olaroz remains on the Stage 1 ramp up in production to 40,000 tpa of battery quality lithium carbonate, planning for Stage 2 expansion in targeted production capacity of at least 20,000 tpa continues to advance.

Pastos Grandes

In connection with the Pastos Grandes Transaction (which is expected to close in Q2 2024 subject to satisfaction of certain conditions), Ganfeng, with support of Lithium Argentina, will undertake preparation of a regional development plan for the Pastos Grandes basin, including Pastos Grandes, Sal de la Puna and Ganfeng's adjacent Pozuelos Pastos Grandes ("Pozuelos") project in Argentina. This is a potentially lucrative opportunity to organize the development of these assets in a logical way while maintaining optionality for offtake. Lithium Argentina and Ganfeng have conducted significant early works studies at the Pastos Grandes and Pozuelos project sites, respectively. As a result, there is a rich data set that can be used by Ganfeng, with the support of Lithium Argentina, to produce a comprehensive development plan. The development plan is expected to be completed by the end of 2024 and will include significant technical collaboration to explore the best technologies, including direct lithium extraction ("DLE") technology to complement the existing conventional solar evaporation process at Pastos Grandes. The offtake rights for Pastos Grandes remain uncommitted, which will allow Lithium Argentina to explore opportunities to bring in new customers and financing to accelerate and support development of the global lithium chemical supply chain.

Balance Sheet and Liquidity

As of December 31, 2023, the Company had $122 million in cash and cash equivalents and a $75 million undrawn subordinate debt facility for total liquidity of $197 million. The Company's current liabilities as of December 31, 2023 were $15 million.

On March 5, 2024, the Company announced the execution of a definitive agreement with a subsidiary of Ganfeng whereby Ganfeng agrees to acquire $70 million in newly issued shares of PPG, the Company's indirect wholly- owned Argentine subsidiary holding Pastos Grandes. Completion of the Pastos Grandes Transaction is expected to occur in the second quarter of 2024 subject to satisfaction of certain conditions including regulatory approvals of the People's Republic of China and settlement of applicable transaction agreements. The proceeds of the $70 million investment can be used to support the Company's funding needs in Argentina, including the Caucharí-Olaroz project.

At current prices, the Company's and Ganfeng's jointly owned project in Argentina, Caucharí-Olaroz is anticipated to generate sufficient cash flow to cover operational costs and capex.

To support working capital, startup costs and manage foreign exchange risks, Minera Exar obtained local loans and credit facilities collateralized with cash held at Exar Capital and not included in the Company's balance sheet. The loans are repayable in Argentine pesos and linked to US dollars. As of December 31, 2023, Minera Exar had $235 million in local loans and credit facilities due, adjusted for the associated cash collateral, with $199 million due in 2024 and $36 million due in 2025 (at current foreign exchange rates, the loans would require approximately $164 million). The Company's portion of this debt is $131 million based on its proportion of collateral ($97 million at current exchange rates).

The Company and Ganfeng are in the process of finalizing a new unsecured line of credit to refinance a substantial portion of this local debt with longer maturity credit facilities typical of an operating business. In addition, in response

MD&A - Period ended December 31, 2023	5

to changes in foreign exchange rates and regulations, the Company and Ganfeng have decided to collapse the portion of collateralized loans and repay the remaining balance.

The Company expects the existing cash balance, proceeds from operations and other sources of financing to provide sufficient financial resources to fund the planned expenditures at Pastos Grandes, Sal de la Puna and its share of Caucharí-Olaroz planned expenditures, general and administrative and other expenditures.

Cognizant of market conditions and the cyclical pressure in the lithium market, the Company has prudently commenced proactive measures to reduce discretionary spending at the corporate level, as well as at Caucharí- Olaroz and Pastos Grandes. These efforts are aimed at allowing Lithium Argentina to operate and develop its projects more efficiently and reduce cash spend. The Company remains steadfast in its unwavering commitment to neighboring communities and provinces in which it operates.

The timing and the amount of expenditures for Pastos Grandes are within the control of the Company due to its ownership interests in the projects. Pursuant to the agreements governing Caucharí-Olaroz and Sal de la Puna, decisions regarding capital budgets for these projects require agreement between Lithium Argentina and the projects' co-owner, Ganfeng.

The Company continues to support the ramp up of Caucharí-Olaroz and develop its other projects. The Company's capital resources are driven by the status of its projects, ramp up at Caucharí-Olaroz and its ability to compete for investor support of its projects.

Over the long-term, the Company expects to meet its obligations and fund the development of its projects through its financing plans described above; however, due to the conditions associated with such financing, there can be no assurance that the Company will successfully complete all of its contemplated financing plans. Except as disclosed, the Company does not know of any trends, demands, commitments, events or uncertainties that will result in, or that are reasonably likely to result in, its liquidity and capital resources either materially increasing or decreasing at present or in the foreseeable future. The Company does not engage in currency hedging to offset any risk of currency fluctuations.

Environmental and Social Responsibility

The joint venture company, Minera Exar that operates Caucharí-Olaroz, signed an agreement with the aboriginal community of Catua which will provide local farmers with access to drinking water for domestic and animal consumption.

For the second year in a row, Minera Exar received the Great Place to Work certification, which recognizes work environments where trust, inclusion and respect prevail.

During 2023, the Company's percentage of female participation in the workforce was higher than the 11% average in the mining industry in Argentina at both Caucharí-Olaroz and Pastos Grandes, 16% and 20% respectively. Additionally, it is estimated that approximately 27% of the staffing needs at Caucharí-Olaroz came from neighboring communities during 2023, while Pastos Grandes estimates about 30% of staffing needs from neighboring communities during the same period.

Technical Studies

A NI 43-101 (defined below) feasibility study was completed (Worley 2019) for Pastos Grandes by Millennial Lithium Inc. ("Millennial") in 2019 and prior to the acquisition of Millennial by the Company in 2022. The feasibility study contemplated a 24,000 tpa battery-grade lithium carbonate production plant with a 40-yearmine-life using conventional lithium processing technology. The Company is not treating the feasibility study mineral reserve estimate as a current mineral reserve estimate and no qualified person has done sufficient work to classify this historical mineral reserve estimate as a current mineral reserve. Following the Company's acquisition of Millennial in January 2022, the Company retained Atacama Water, a hydrogeology consultancy specializing in brine, to prepare a technical report for Pastos Grandes with the objective of updating the mineral resource estimate for

MD&A - Period ended December 31, 2023	6

lithium contained in the brine in the Salar de Pastos Grandes Basin, based on the consolidation and integration of available information.

On June 26, 2023, the Company announced a NI 43-101 technical report for Pastos Grandes has been completed and filed on SEDAR+ in connection with a mineral resource update for the project. The Technical Report is titled "NI 43-101 Technical Report, Lithium Resources Update, Pastos Grandes Project, Salta Province, Argentina," and was prepared by Frederik Reidel, CPG, who is a qualified person independent of the Company under NI 43-101, with an effective date of April 30, 2023.

CORPORATE DEVELOPMENT

Separation Process

On July 31, 2023, at the annual general and special meeting of the Company, shareholders approved the separation (the "Separation") of the Company into Lithium Americas (Argentina) Corp. and a new company renamed "Lithium Americas Corp." ("Lithium Americas (NewCo)"). The Separation was completed on October 3, 2023, pursuant to a final order dated August 4, 2023 from the Supreme Court of British Columbia approving the plan of arrangement. As a result of the transaction (among other things):

• The Company separated its previously-held North American business unit, comprised of 100%-owned Thacker Pass project ("Thacker Pass"), as well as investments in Green Technology Metals Ltd. and
  Ascend Elements, Inc., into an independent public company named "Lithium Americas Corp."
• The Company transferred $275 million in cash to Lithium Americas (NewCo).
• The Company changed its name to "Lithium Americas (Argentina) Corp."
• The Company retained its Argentine business unit, comprised of the 44.8% interest in Caucharí-Olaroz, the 100% interest in Pastos Grandes (which interest is subject to change upon completion of the Pastos Grandes Transaction, see "Recent Highlights" above) and the 65% interest in Sal de la Puna.
• Holders of the Company's common shares prior to the Separation received one common share of the Company and one common share of Lithium Americas (NewCo) for each common share held immediately before the effective time of the Separation.
• The Company's common shares concluded regular-way trading on the TSX and the NYSE under the symbol "LAC" and following the Separation, commenced trading on the TSX and the NYSE under the ticker symbol "LAAC".
• The Company's board of directors was reconstituted following the Separation and was comprised of John Kanellitsas, George Ireland, Franco Mignacco, Robert Doyle, Calum Morrison and Diego Lopez Casanello. On March 19, 2024, Sam Pigott and Monica Moretto were appointed to the board of directors of the Company.
• GM's Offtake Agreement (each as defined below) was assigned to Lithium Americas (NewCo), and the GM Tranche 2 Agreements (defined below) ceased to have effect with respect to the Company, in accordance with their terms.
• The Convertible Notes (defined below) remained obligations of the Company. The Separation constituted a Make-Whole Fundamental Change as defined in the Indenture (defined below). In addition, the Separation resulted in an adjustment to the conversion rate of the Convertible Notes. No Convertible Notes were surrendered for conversion into Common Shares in connection with the Separation Transaction.
• Holders of all DSUs, RSUs and PSUs (each defined below) of the Company received, in lieu thereof, equivalent incentive securities of the Company and of Lithium Americas (NewCo). Each old unit of the

MD&A - Period ended December 31, 2023	7

Company was replaced with one equivalent unit of Lithium Americas (NewCo) and 0.87 of a new unit of the Company.

For additional information with respect to the Separation please refer to the Company's management information circular dated June 16, 2023 available under its profile on SEDAR+ at www.sedarplus.com.

SELECTED FINANCIAL INFORMATION

Selected Annual Financial Information

The following table provides a summary of the Company's financial operations for the years ended December 31, 2023 ("FY 2023"), December 31, 2022 ("FY 2022"), and December 31, 2021 ("FY 2021").

For more detailed information, refer to the audited consolidated financial statements for FY 2023, FY 2022, and FY 2021 which can be found on SEDAR+.

		Years Ended December 31,
	(in US$ thousands)	2023		2022	2021
		$		$	$
	Expenses of continuing operations	(36,346	)	(105,309)	(1,806)
	Income/(loss) from continuing operations after taxes	17,581		(32,527)	6,027
	Income/(loss) from discontinued operations	1,270,788		(61,041)	(44,515)
	Net income/(loss)	1,288,369		(93,568)	(38,488)
	Net income/(loss) per share - basic	8.29		(0.70)	(0.32)
	Net income/(loss) per share - diluted	8.02		(0.70)	(0.32)
	Cash and cash equivalents and short-term bank deposits	122,293		352,102	510,607
	Total assets	1,055,026		1,016,548	817,342
	Total long-term liabilities	(211,516	)	(212,901)	(272,771)

The Separation was accounted for as a distribution of assets to shareholders pursuant to IFRIC 17, Distribution of Non-Cash Assets to Owners, whereby a dividend was recognized in deficit measured at the fair value of the net assets distributed with a corresponding dividend payable. The dividend payable was then settled through the distribution of the net assets. In accordance with IFRS 5, Non-Current Assets Held for Sales and Discontinued Operations, the operations of Lithium Americas (NewCo) have been classified as discontinued operations for the years ended December 31, 2023, December 31, 2022, and December 31, 2021.

Expenses of continuing operations decreased from 2022 to 2023, primarily due to share of gain of the Caucharí- Olaroz project versus loss in the comparative period mainly as a result of foreign exchange revaluation of intercompany loans; offset by an increase in exploration and evaluation expenditures as result of the timing of the Pastos Grandes project development activities and general and administrative expenses due to an increase in salaries, professional fees and office and administration expenses.

In 2023, total assets increased primarily due to the acquisition of Arena Minerals Inc. ("Arena Minerals"), loans advanced to Exar Capital, offset by the distribution of assets to the shareholders upon the Separation. Total long- term liabilities decreased due to a decrease in the fair value of the Convertible Notes derivative liability, offset by accrued interest on the Convertible Notes, the recognition of a deferred income tax liability due to the weakening of the Argentine Pesos against the US dollar and the distribution of liabilities to the shareholders upon the Separation.

MD&A - Period ended December 31, 2023	8

Quarterly Information

Selected consolidated financial information is as follows:

				2023			2022
	(in US$ millions)	Q4		Q3	Q2	Q1	Q4	Q3	Q2	Q1
		$		$	$	$	$	$	$	$
	Total assets of continuing operations	1,055.0		1,063.4	1,501.9	1,328.4	1,016.5	1,023.9	1,043.5	1,136.2
	Property, plant and equipment	9.2		8.0	90.9	35.6	9.0	8.8	9.2	8.7
	Current assets	133.6		173.5	529.4	608.4	356.1	396.2	445.5	498.4
	Current liabilities	(14.6	)	(25.5)	(52.2 )	(60.8)	(19.6)	(7.6)	(10.1)	(9.7)
	Total liabilities of continuing operations	(226.1	)	(221.6 )	(255.8 )	(274.5 )	(232.5)	(251.3)	(231.5 )	(308.5)
	Expenses - continuing operations	(5.6	)	(9.0)	(12.0 )	(9.7)	(11.7)	(13.5)	(75.8)	(4.3)
	(Loss)/income from continuing operations	(1.1	)	6.8	14.9	(3.1)	29.4	(29.8)	2.3	(34.4)
	Income/(loss) from discontinued operations	1,263.4		(0.2)	10.9	(3.3)	(19.3)	(11.2)	(18.9)	(11.7)
	Net income/(loss)	1,262.3		6.6	25.8	(6.4)	10.1	(41.0)	(16.6)	(46.1)

Notes:

1. Quarterly amounts added together may not equal to the total reported for the period due to rounding or reclassifications.
2. The operations of Lithium Americas (NewCo) have been presented in prior periods as a discontinued operation.

Changes in the Company's total assets, liabilities and net income (loss) were driven mainly by the distribution of assets and liabilities to the shareholders upon the Separation, increases in loans and contributions to Caucharí- Olaroz, expenses in the period, changes in the fair value of financial instruments and the Company's share of gain/loss of Caucharí-Olaroz.

In Q4 2023, total assets, and total liabilities decreased primarily due to the distribution of assets to the shareholders upon the Separation. Net income increased mainly due to the recognition of gain on distribution of assets to the shareholders upon the Separation, partially offset by expenses in the period and deferred tax expense of $10.7 million due to the weakening of the Argentine Pesos against the US dollar. The fair value of the net assets distributed was $1,680.5 million determined based on the share price of Lithium Americas (NewCo) on October 4, 2023, its first date of trading. The difference of $1,267.5 million between the fair value of the dividend and the carrying value of the net assets was recognized as a gain on distribution of assets on the statement of comprehensive income (loss).

In Q2 2023, total assets increased primarily due to the acquisition of Arena Minerals and property, plant and equipment increased due to the capitalization of Thacker Pass construction costs. Total liabilities decreased primarily due to a decrease in fair value of the Convertible Notes derivative liability by $14.8 million and GM (defined below) warrant agreement and a subscription agreement ("GM Tranche 2 Agreements") derivative liability by $19.0 million, partially offset by accrued interest on the Convertible Notes of $5.6 million.

In Q1 2023, total assets increased primarily due to cash proceeds from the first tranche investment by GM ("GM Tranche 1 Investment") of $320 million and property, plant and equipment increased due to commencement of construction of the Thacker Pass project and, as a result, capitalization of the related project construction costs. Total liabilities increased primarily due to the GM Tranche 2 Agreements derivative liability of $24.1 million, an increase in accrued liabilities for $16.8 million in financial advisory fees to be paid in connection with the closing of GM Tranche 1 Investment and accrued interest on the Convertible Notes of $5.4 million.

In Q4 2022, total assets decreased primarily due to a decrease in cash and cash equivalents which were used to fund the Company's operations. Total liabilities decreased primarily due to a decrease in fair value of the Convertible Notes derivative liability by $34.9 million, partially offset by accrued interest on the Convertible Notes of $5.4 million.

In Q3 2022, total assets decreased primarily due to the expenses in the period, the Company's share of loss of Caucharí-Olaroz of $8.3 million and a loss on the fair value of warrants of Arena Minerals of $1.4 million. Total liabilities increased primarily due to a $18.4 million increase in fair value of the Convertible Notes derivative liability since Q2 2022, partially offset by an interest payment of $2.8 million on the Convertible Notes in July 2022.

MD&A - Period ended December 31, 2023	9

In Q2 2022, total assets decreased primarily due to the Company's share of loss of Caucharí-Olaroz of $71.5 million, a loss on fair value of Arena Minerals warrants of $3.8 million and a loss on the fair value of common shares of Green Technology Metals of $4.2 million. Total liabilities decreased primarily due to a decrease in fair value of the Convertible Notes derivative liability by $81.6 million, offset by accrued interest on the Convertible Notes of $2.5 million.

In Q1 2022, total assets and total liabilities increased primarily due to the acquisition of Millennial, a $50.3 million increase in fair value of the Convertible Notes derivative liability, offset by a repayment of $24.7 million on limited recourse loan facility balance and accumulated interest.

Results of Operations - Net income/(loss) analysis

Year Ended December 31, 2023, versus Year Ended December 31, 2022

The following table summarizes the items that resulted in an increase in net income for the year ended December 31, 2023, versus the year ended December 31, 2022, as well as certain offsetting items:

Financial results	Years Ended December 31,	Change
(in US$ million)	2023		2022
	$		$		$
EXPENSES
Exploration and evaluation expenditures	(21.2	)	(4.7)	(16.5)
General and administrative	(21.4	)	(13.3)	(8.1)
Equity compensation	(8.4	)	(2.6)	(5.8)
Share of gain/(loss) of Caucharí-Olaroz Project	16.2		(83.3)	99.5
Share of loss of Arena Minerals	(0.7	)	(1.4)	0.7
Share of loss of Sal de la Puna Project	(0.9	)	-		(0.9)
	(36.4	)	(105.3)	68.9
OTHER ITEMS
Transaction costs	(7.6	)	-		(7.6)
Gain on financial instruments measured at fair value	22.4		44.6		(22.2)
Gain on modification of the loans to Exar Capital	-		20.4		(20.4)
Finance costs	(22.7	)	(20.9)	(1.8)
Foreign exchange gain	19.6		3.4		16.2
Finance and other income	52.9		25.3		27.6
	64.6		72.8		(8.2)

INCOME/(LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES		28.2		(32.5)	60.7
Tax expense		(10.7	)	-		(10.7)
INCOME/(LOSS) FROM CONTINUING OPERATION		17.5		(32.5)	50.0
INCOME/(LOSS) FROM DISCONTINUED OPERATIONS		1,270.8		(61.1)	1,331.9
NET INCOME/(LOSS)		1,288.3		(93.6)	1,381.9

Higher net income during the year ended December 31, 2023, is primarily attributable to:

• share of gain of the Caucharí-Olaroz project of $16.2 million during the year ended December 31, 2023, versus $83.3 million loss in the comparative period mainly as a result of foreign exchange revaluation of intercompany loans (see Note 8 of the Company's FY 2023 financial statements filed on SEDAR+);
• higher foreign exchange gain of $19.6 million during the year ended December 31, 2023, versus gain of $3.4 million in the comparative period primarily due to blue chip swap transactions. The Company used blue chip swaps transactions to transfer funds to Argentina which resulted in foreign exchange gain as a

MD&A - Period ended December 31, 2023	10