Lithium South partner Posco approves HMN transaction

Mr. Adrian Hobkirk reports LITHIUM SOUTH RECEIVES GREEN LIGHT FROM POSCO FOR TRANSACTION COMPLETION Lithium South Development Corp. has been advised by Posco Argentina SAU that the proposed acquisition of the Hombre Muerto North lithium (HMN Li) project through the purchase of NRG Metals Argentina SA (the wholly owned subsidiary of Lithium South) has been fully approved and the investment has been scheduled. Funds have been allocated to Posco Argentina for completion of the transaction. The two companies are currently working for the completion of the share purchase agreement (SPA) as announced July 30, 2025, Aug. 7, 2025, and Sept. 22, 2025. The final acquisition price has been agreed and adjusted to $65-million (U.S.) to account for tax burdens, closing costs and property payments. All major issues have been resolved, and a formal signing is anticipated in the immediate future. In light of clearance of the investment decision by Posco, the company is scheduling an annual general and special meeting date of Jan. 9, 2026. The purpose of the meeting is to obtain shareholder approval for the sale of NRG Metals (the owner of the HMN Li project), the repurchase of all of the issued and outstanding securities of the company, as well as other business matters. The transaction is subject to regulatory approval and the approval of the TSX Venture Exchange. Further details will be announced once the SPA has been signed. We seek Safe Harbor.