Lithium Chile Inc. reported the results of its Preliminary Economic Assessment ("PEA") for the production of lithium carbonate from its Salar de Arizaro lithium brine project in the Salta Province of Argentina ("Arizaro"). The PEA provides an independent economic assessment of the potential of Arizaro, based upon the lithium resources outlined in the July 2023 Resource Estimate. The PEA was completed by Ausenco Chile Limitada ("Ausenco") in accordance with National Instrument 43-101 Standards of disclosure for Mineral Projects (NI 43-101).

The assessment includes and demonstrates that the Arizaro project has the potential of a 25,000 tonnes per annum ("tpa") commercial-scale operation to produce battery-grade lithium carbonate ("LCE" or "Li2CO3"). UNIQUE PROJECT ADVANTAGES: The Arizaro Project enjoys certain unique advantages, which support a rapid development schedule, and low capital and operating costs: · The process selection considers the incorporation of a Direct Lithium Extraction (DLE) stage. DLE processes have shorter start-up and ramp-up times, mainly due to their smaller infrastructure requirements and the ability to be designed with a modular concept.

This modularity allows for incremental expansion, enabling a faster ramp-up to meet increasing demand. Additionally, the crucial aspect of brine's chemical composition homogeneity further enhances the efficiency and effectiveness of the process. With consistent brine composition, DLE operations achieve more predictable and reliable lithium recovery rates, enabling better production capacity planning and meeting demand requirements with confidence.

Overall, integrating DLE into the process proves to be a strategic choice, streamlining operations and ensuring a reliable supply of lithium. Multiple opportunities to enhance project economics through optimization and further engineering have already been identified. More than 60 technologies combination were studied during PEA and trade off permits to optimize main sustainability variables, water and energy usage, water basin balance, reagent usage and Capex and Opex.

Major discovery of lithium brines in the basin and major metallurgical testing including best possibilities for water and energy usage. Unique Technical team with operation, projects and production experience. Initial production water aquifer identified and permitting underway.