Lithium Chile to seek shareholder OK for Arizaro sale

Executive Summary

• Lithium Chile Inc. provides an update on the sale of its Arizaro project (via its subsidiary Argentum Lithium S.A.) to China Union Holdings Ltd. (CUH) for $175 million USD.
• The $5 million USD buyer deposit has been finalized and held in escrow within the required 20-day period.
• The company plans to hold an Annual General and Special Shareholder Meeting on May 15, 2026, to seek shareholder approval for the transaction.

Key Details

• Transaction Value: $175 million USD for the sale of the Arizaro project through the disposition of the Argentinian subsidiary, Argentum Lithium S.A.
• Buyer: China Union Holdings Ltd. (CUH), a company listed on the Shenzhen Stock Exchange.
• Deposit Status: A $5 million USD deposit from CUH has been finalized and placed in escrow for the benefit of the seller as security for payment obligations. This was completed within the stipulated 20-day period.
• Shareholder Approval: An Annual General and Special Shareholder Meeting is scheduled for May 15, 2026. An information circular containing the board's recommendation and an independent fairness opinion will be distributed to shareholders prior to the meeting.
• Potential Substantial Issuer Bid (SIB): The company is evaluating distributing a portion of net proceeds to shareholders via an SIB.
  • If completed, this would result in a meaningful reduction of issued and outstanding common shares, which would be cancelled.
  • The company would retain a residual cash balance sufficient to advance the development of its Chilean mineral interest portfolio.
  • Final terms, including redemption price, will be determined based on final net proceeds after closing costs and development funds, and will be detailed in a separate SIB bid circular post-closing.
• Regulatory Approvals: CUH is advancing its regulatory approval process. Both parties are aligned on closing expeditiously.
• Operations: The project team continues to maintain the Arizaro asset, fulfilling all operational, environmental, and community-related obligations.
• Market Awareness Initiative: Lithium Chile entered into a services agreement with Departures Capital Inc. (dated Oct. 15, 2025) for digital marketing and investor awareness services.
  • Cost: $100,000 CAD over a 12-month term.
  • Provider: Departures Capital Inc. is an arm's-length service provider; neither the firm nor its principals hold securities of Lithium Chile.
  • Purpose: To address the company's belief that shares are trading at a discount to net asset value and to improve market understanding of the asset base and strategy.

Notable Quotes

• "Management and the board of directors believe that the Company's common shares have recently traded at levels that do not reflect the company's underlying value and represent a discount to its net asset value, and these efforts are intended to improve market awareness and understanding of the company's asset base and strategy."