Lithium Chile Provides Corporate Update on Arizaro Transaction and Strategic Initiatives

Lithium Chile Inc. (LITH) has extended the definitive agreement to sell its Arizaro Project to China Union Holdings (CUH) by 60 days, establishing a new drop-dead date of December 22, 2026. A potential extension to February 22, 2027, remains pending Canadian and Chinese regulatory approvals. The amendment removes previous exclusivity restrictions, allowing the company to evaluate alternative transactions while continuing to pursue the sale to CUH.

To address a working capital deficit of approximately CAD $1.7 million, the company secured a CAD $2.5 million credit facility from a director-controlled entity. The facility carries a 10% annual interest rate, matures on December 31, 2027, and includes an origination fee paid via the issuance of common shares at $0.28 per share.

Additionally, Lithium Chile terminated its joint ventures with Eramet for the Llamara/Molle Verde salar project and Monumental Energy Corp. for the Laguna Blanca salar project. The terminations are effective December 31, 2025, and October 23, 2026, respectively.

Lithium Chile Inc. (LITH) faces a regulatory delay on the $175 million Arizaro sale, a development that continues a trend initiated in August 2026 with the Canadian national security review. While the extension offers some breathing room, it indefinitely postpones the primary catalyst for shareholder value realization and the planned Substantial Issuer Bid (SIB).

To address an immediate working capital deficit, the company has secured a CAD $2.5 million related-party credit facility. This stop-gap measure introduces a 10% interest cost and requires dilutive share issuance equivalent to 20% of the loan amount at the current depressed share price, highlighting underlying liquidity pressure.

Strategically, the removal of exclusivity grants management flexibility to shop the Arizaro asset or pursue other partnerships if CUH fails to secure approvals. Simultaneously, the termination of the Eramet and Monumental joint ventures eliminates non-core assets and removes potential future value or operational partnerships, narrowing the company's strategic focus entirely to the Arizaro sale and its remaining Chilean portfolio.

Lithium Chile Inc. is a mineral exploration and development company focused on the Lithium Triangle, holding a portfolio of 142,283 hectares across Chile and Argentina.

The company’s flagship project is the Salar de Arizaro in Salta Province, Argentina, where it holds an 80% interest via its subsidiary Argentum Lithium S.A. The project features a NI 43-101 resource of 4.12 million tonnes LCE and a Pre-Feasibility Study indicating a $3.85 billion pre-tax NPV at an 8% discount rate. The project is currently under definitive sale agreement to China Union Holdings Ltd. for $175 million USD.

The Chilean portfolio includes Coipasa (19,200 hectares), Molle Verde (35,100 hectares), Helados, Laguna Blanca, Turi, and others. Coipasa is a priority project awaiting a Special Lithium Operation Contract (CEOL) grant.