Government of Canada Advises Formal Review of Arizaro Transaction

Lithium Chile Inc. (LITH) announced on September 29, 2026, that the Government of Canada, through the Innovation, Science and Economic Development Ministry (ISED), has notified China Union Holdings Ltd. (CUH) that it will conduct a formal review of CUH's previously announced intention to acquire all outstanding shares of Argentum Lithium S.A. The release states the order was provided in accordance with section 25 of the Investment Canada Act (ICA).

CUH has advised Lithium Chile that it is reviewing the order and will advise the company on its intended course of action once determined. Lithium Chile stated it will provide updates as additional information becomes available.

The release contains no timeline, no stated grounds, and no indication of whether this is a prohibition-level order or a further-review order. There is no comment on the deal's drop-dead date, no statement on whether the parties will extend, litigate, or restructure, and no reaffirmation that CUH remains committed to closing. This contrasts with the explicit commitments found in the February 18, 2026, and June 18, 2026, releases.

The release contains no financial figures. The transaction terms of US$175M are unchanged and are not restated.

Lithium Chile Inc. maintains its company boilerplate description, listing 11 properties, 106,136 hectares in Chile and 29,245 hectares at Salar de Arizaro, Argentina, with an NI 43-101 Resource Report, PEA and PFS on SEDAR+.

Lithium Chile Inc. (TSX-V: LITH, OTCQB: LTMCF) is an explorer and developer with no revenue, headquartered in Calgary with operations in Salta Province, Argentina, and northern Chile. The company holds lithium brine properties across the Lithium Triangle. A September 29, 2026 release states the company holds 11 properties covering 106,136 hectares in Chile plus 29,245 hectares at Salar de Arizaro, Argentina. However, an April 2026 investor presentation lists 113,038 hectares across 12 salars in Chile, giving a total portfolio of 142,283 hectares. These figures do not reconcile; the materials do not explain the 6,902-hectare and one-property difference. The Q1 2026 MD&A notes the termination of the Monumental Energy option on Salar de Laguna Blanca, which covered 14,700 hectares in the presentation, but this does not arithmetically explain the gap.

The company’s flagship asset, Salar de Arizaro in Salta Province, is now under sale. The site has a resource of 4,122,000 tonnes LCE. Development activities include one fresh-water well with an initial usage permit, nine diamond exploration holes, and six rotary production holes. A prefeasibility study completed in Q3 2024 reported a pre-tax NPV(8%) of US$3.85B and an after-tax NPV(8%) of US$2.8B. The study projected a pre-tax IRR of 42.1% and an after-tax IRR of 36.3%, with a payback period of 2.5 years pre-tax and 2.7 years after-tax. Production was modeled at 25,000 t LCE per year over a 20-year life, with capex of US$1,055M and opex of US$5,457 per tonne LCE. The long-run Li2CO3 price assumption used in the study was US$30,513 per tonne.

Ownership of the Arizaro project is held by Argentum Lithium S.A., which holds 62.2% of ARLI S.A. as of August 19, 2026. ARLI S.A. owns and operates Arizaro. The transaction requires Argentum to acquire an additional 17.8% from LitiAr S.A. to reach 80% before closing, according to documents dated December 22, 2025, and the Q1 2026 MD&A.

In Chile, the company’s key asset is Coipasa, a 19,200-hectare property. It is one of six projects prioritized by the Chilean government for a Special Lithium Operation Contract (CEOL). Lithium Chile and Grupo Errazuriz together hold 97.8% of the salar and plan to advance it as a 50/50 joint venture. Brine samples assayed up to 1,410 mg/l near surface, and TEM geophysics identified a high-conductivity anomaly spanning at least 58 km² with an interpreted thickness of 200-300 metres. The project requires the CEOL grant and community approval. It is classified as a pre-resource exploration asset, not a development-stage project.

Block IV in Argentina covers 8,445 hectares and was awarded in January 2024 via competitive public tender by REMSa. It is the largest of five blocks awarded. An EIA has been submitted to the Salta Provincial Ministry. The company retained Block IV as a post-sale priority, although the Q1 2026 MD&A discloses a default status on the REMSa Block IV option payment.

Other Chilean properties listed in the presentation include Molle Verde (35,100 ha, Eramet JV), Helados (20,200 ha), Laguna Blanca (14,700 ha, option terminated), Turi (8,500 ha), Atacama (5,960 ha), Rio Salado (2,900 ha), Aquas Caliente (2,500 ha), Los Morros (1,700 ha), Mariposas (1,200 ha), and Aguilar (1,078 ha). The materials provided contain no disclosure of royalty burdens on any property, including Arizaro.

Management includes President and CEO Steve Cochrane, who has 36 years of investment industry experience and is cited as raising over $500M for small-cap public companies. COO Michelle DeCecco has an MBA and focuses on capital markets and corporate development. José de Castro Alem serves as President of South America Operations, bringing 20+ years of experience as a chemical engineer in Chilean mining. CFO Jana Lillies has 25+ years in mining and is a CPA/CGA. VP Exploration and Chief Geologist Terry Walker holds an M.Sc., is a P.Geo., and has 27+ years of experience in Chile. The team is weighted toward capital markets and South American operations rather than mine-building or project finance.