Lithium South Development Corporation (the Company) provided an update on the continued evaluation of Direct Lithium Extraction (DLE) technology for its Hombre Muerto North Lithium Project, located in Salta Province, Argentina. Lilac Solutions of Oakland California, a lithium extraction company providing technology and services to lithium brine developers, has advised the Company that they have completed their own testing using their patented Ion Exchange (IX) media on a synthetic sample of the HMN Li Project brine, identical in chemical composition to that contained within the projects NI 43-101 Preliminary Economic Assessment previously filed by the Company. The results produced a lithium chloride eluate solution recovering 99% of the lithium with very low reagent consumption. The eluate composition showed high purity and low total dissolved solids. This eluate would be concentrated using reverse osmosis and mechanical evaporation to feed a conventional plant for the production of lithium hydroxide or lithium carbonate. Both acid and base reagents used in the process can be produced on site using a chlor-alkali system. Conventional lithium extraction involves the construction of large evaporation ponds to concentrate the lithium contained in the raw brine. The costs of pond construction is significant, the environmental footprint is large, and the production lead time is approximately 18 months. These factors contribute to the challenges of applying the traditional evaporation process to meet increasing market demand. Prior Direct Lithium Extraction (DLE) technologies have also struggled due to high water and energy consumption. Lilac's new lithium extraction process enables rapid and low cost extraction of lithium from brine with minimal water and energy. The Company is evaluating both conventional evaporation and DLE to determine the optimal process method for the HMN Li Project. The next phase of test work will involve Lilac expanding test work with a natural brine sample sourced from the HMN project. The results will be analyzed under the supervision of a Qualified Person along with third party ISO Certified laboratory verification. This will provide confirmation of the results on synthetic brine as well as an indication of expected costs for a commercial scale process.