Lithium South partner Posco completes due diligence

Mr. Adrian Hobkirk reports DUE DILIGENCE CONCLUDED / COMMENCEMENT OF DEFINITIVE AGREEMENT Lithium South Development Corp. has provided an update to its news release of July 30, 2025, and Aug. 7, 2025, regarding the sale of the Hombre Muerto North lithium project property package to Posco Argentina SAU, which is the 100-per-cent-owned Argentine subsidiary of Posco Holdings Inc., referred to as the transaction. Due diligence by Posco Argentina SAU has now been substantially completed, with several minor items remaining outstanding. The parties are now moving forward with the negotiation of the definitive agreement. Matters under review prior to the completion of the transaction include closing costs, legal and accounting costs, and potential tax considerations. The company expects to complete this process within the time frame previously announced on Aug. 7, 2025. Once the definitive agreement is complete, the company will provide details about its annual general and special meeting date as well as provide further details on the issuer bid to purchase up to all of the issued and outstanding securities of the company. About Lithium South Development Corp. Lithium South owns 100 per cent of the Hombre Muerto North lithium project located in Salta and Catamarca provinces, Argentina, in the heart of the Lithium Triangle. The Salar del Hombre Muerto has a history of lithium production, with Rio Tinto Lithium (formerly Arcadium Lithium and recently purchased by Rio Tinto Corp. for $6.7-billion (U.S.) in March, 2025) in operation to the south of the Hombre Muerto North lithium project for over 25 years. The Hombre Muerto North lithium project is adjacent to the east with a billion-U.S.-dollar lithium development by Posco Argentina, now in lithium production. Exploration work to date has delineated a National Instrument 43-101-compliant 1,583,200-tonne lithium carbonate equivalent (LCE) resource at an average grade of 736 milligrams per litre lithium, with 1,463,000 tonnes in the measured category and 120,000 tonnes in the indicated category, at a cut-off grade of 500 milligrams per litre lithium on the Alba Sabrina, Natalia Maria and Tramo claim blocks, three of five non-contiguous blocks that make up the Hombre Muerto North lithium project. A recent preliminary economic assessment dated April 30, 2024, delineates potential to develop a 15,600-tonne-per-year lithium carbonate project. Lithium South is now moving the project forward to a feasibility study. The contents of this press release and the scientific information contained herein were reviewed by William Feyerabend, CPG, a consulting geologist and a qualified person under NI 43-101. Mr. Feyerabend participated in the writing of this press release and approves the content. We seek Safe Harbor.