Lithium South Development Corporation announced it is moving ahead with plans to potentially expand the current lithium resource at the Hombre Muerto North Lithium Project (HMN Li Project), located in Salta Province, Argentina. The 3,287-hectare project is comprised of five separate areas located in the northern portion of the salar. The current resource of 571,000 tonnes of lithium carbonate equivalent is located on the 383-hectare Tramo Claim. After technical review, management believes the current identified resource has excellent potential to be expanded. To accomplish this, the Gaston Enrique, Natalia Maria and Alba Sabrina claims will be sited for drill programs. The Company has located a service provider who has a drill rig located on the salar near the Alba Sabrina claim block and is negotiating a drill contract. The Gaston Enrique claim block is located on the Catamarca side of the Hombre Muerto salar, and is the oldest claim located within the dual jurisdiction area. Management believes an Environmental Impact Report and drill permits can be obtained for this project area, which is located approximately 100 meters north of a drill hole recently completed by POSCO. The project area under purchase option to the Company is situated contiguous to significant lithium development. Korean giant POSCO are moving ahead with plans to construct a 25,000 tonne per year conventional lithium extraction operation contiguous to the Company area. The recently announced 4-billion-dollar merger between Galaxy Resources and Orocobre will likely see further development of the Galaxy owned portion further to the south.