Lithium South Development Corporation is providing an update on test work announced September 29th, 2020, currently underway on the Hombre Muerto North Lithium project (HMN project), Argentina. Test work is being conducted by Sino Lithium Materials Pty. Ltd. and Chengdu Chemphys Chemical Industry Co. for the advancement and development to potential lithium production, of the Hombre Muerto North lithium project (HMN Li project), located in Salta and Catamarca provinces, Argentina. Sino Li is developing a direct lithium extraction process which could represent an alternative to the conventional evaporation process currently used by the industry. The process under development would potentially shorten lithium recovery time and provide higher recovery of lithium. The on-site environmental footprint is projected to be significantly smaller than current industry methods which require the construction of large evaporation ponds. Work to date by an 11-member technical team has been conducted at Chemphys's production and technology centre outside Chengdu, China, which is an ISO 9000 and ISO 14001 certified facility. To validate test work completed to date by Sino Li and Chemphys, Hains Technology Associates of Toronto, Ont., Canada, has been retained to provide a technical review and qualified person validation. Check sampling has been completed and results are currently under review. The Company anticipates publishing the results within the next two weeks. The HMN project is located on the Hombre Muerto salar, the premier lithium producing salar in Argentina. The property is adjacent to land under development by Korean multinational corporation POSCO, which acquired its ground from Galaxy Resources Ltd. for $280 million (U.S.). The company completed a preliminary economic assessment of the HMN Li project in 2019, using conventional extraction technology. The project is located in a mining-friendly province and has two pumping wells installed.