Lithium Chile Inc. announced that drilling has commenced on the Salar de Llamara, Chile. The drilling program is an exciting opportunity for Lithium Chile to advance its lithium projects in Chile and is designed to capitalize on the renewed interest in Chile's lithium projects by some of the major global lithium companies. The initial hole, POZO LL-01, is currently at approximately 150-metres of the planned 500-metre depth on the Company's 100% owned Salar De Llamara, Chile.

POZO LL-01 is the first of a four well program designed to explore targets identified by a 74 km TEM Geophysical program on the Salar de LLlamara, Chile. The Salar de Llamara prospect is comprised of 35,500 hectares where historical drilling identified an underground brine aquifer with lithium grades of 343 mg/l. The drilling of each well is anticipated to take between two to three weeks. ARIZARO, ARGENTINA HIGHLIGHTS: The Company also reports a significant increase in the lithium grades following a resampling program on the Salar de Arizaro, Argentina.

Resampling of diamond drill holes ARDDH-01, 04 and 05, along with production wells ARGENTO-01, 02 and 03 were completed by AMINCO S.A. using a GeoVista's Fluid Sampler Tool and reported by a certified laboratory. Work is underway to understand the impact and reasoning for these improved grades and what it means for the project as a whole. The resampling values will need to be subsequently validated by an independent, certified laboratory in order to be included in a Mineral Resource update.

During the retesting, ARDDH-04 increased from an average grade of 264 mg/l lithium to an average grade of 683 mg/l lithium, over five samples. On ARDDH-05, the average lithium grade increased from 430 mg/l lithium to a average grade of 1,118 mg/l lithium, over four samples, with the highest-grade sample reported at 1,269 mg/l lithium. Drilling on ARDDH-07 (re-entry of ARDDH-03) has been completed and packer plus sampling has begun.

The ini al hole, ARDDH-03 was only drilled to 400-metres with opera ons halted due to the rig capacity. Hole ARDDH-07 was completed to 601-metres and a brine aquifer was encountered below the 400-metre level. Ini al well site sampling with Turbospec Analyser indicated brine samples up to 271 mg/l lithium.

Hole AADDH-07 was drilled due north of ARDDH-05 on the northern extension of the Arizaro claims. This is new territory on the Company's Arizaro drill program which could significantly increase the overall mineral resource.