LITH:CC - As Part of the Strategic Process Lithium Chile Creates Two 100% Wholly Owned Subsidiaries for its Chilean Gold and Lithium Properties

(TheNewswire)

CALGARY, ALBERTA – TheNewswire - April 18, 2024 – Lithium Chile Inc. (“ Lithium Chile ” orthe “ Company ”) (TSXV:LITH) (OTC:LTMCF) announces the creation of two, 100% wholly ownedCanadian subsidiaries and the transfer of Chilean projects as part ofits spinout proposal (the “ Spinout” ) aimed atsegregating its Chilean and Argentinian assets.

Guided by the strategic process undertaken by PIFinancial Corp. (news release of February 15,2024) , the Spinout is designed to allow LithiumChile to pursue a transaction pertaining to its assets for bothacquisition and capital opportunities inArgentina. Through this deliberate approach, the Spinout initiativeunderscores Lithium Chile's commitment to delivering shareholder valueand leveraging strategic opportunities in pursuit of its long-termobjectives.

HIGHLIGHTS:

• 22,629 hectares of Chilean gold properties are to betransferred to Kairos Gold Inc. ( Kairos ”)

• 111,978 hectares of Chilean lithium properties are tobe transferred to Lithium Chile 2.0 Inc. ( Lith 2.0 ”)

Steve Cochrane, President & CEO comments,“ We believe this is thebest course of action to pursue the development of our Chileanprojects while creating a restriction-free path to enhance value forshareholders via our Argentina assets .”

CHILEAN GOLD PROPERTIESHIGHLIGHTS:

Lithium Chile possesses a robust portfolio of goldproperties in Chile, encompassing five strategically located projectstotaling over 22,000 hectares. Among these assets, one project is LasGarillas, distinguished by its promising geological features andexploration potential.

Las Garillas :

• A property that consists of 9 exploration concessionsand 1 exploitation concession totaling 2,000 hectares.

• Part of the Oro Brillante mining district, Las Garillaslies within the Vicuña Fault system on the eastern edge of theCentral Porphyry Copper-Gold Belt.

• Recent exploration endeavors have yielded encouragingresults, indicating the presence of significant gold mineralization.Assays sampled from 0.3 to 1 metre veins on the property returnedgrades as high as 61 g/t Au and 329 g/t Ag.

• To further delineate the extent and grade ofmineralization, an exploration drill program is scheduled to commencein mid-April 2024.

CHILEAN LITHIUM PROPERTYHIGHLIGHTS:

Consisting of 12 projects in Chile, the Company holdsover 110,000 hectares of claims that have the potential to hostsignificant grades of lithium. Among these assets, several flagshipprojects stand out.   Showcasing its commitment to enhancing value,the Company has already entered strategic partnerships on two of thoseprojects that will employ innovative exploration approaches. Theyinclude:

Llamara, Aguilar, Rio Salado andAquas Caliente :

• The Company recently announced a joint venture withEramet, a renowned European mining companyrecognized as a global leader in metal extraction and transformation.

• Eramet will undertake an exploration program, carriedout in three separate phases.

• The total projected exploration program is in the orderof ~USD $20 million.

• Upon completion of each phase, Eramet will earninterests in the joint venture holding the mining claims, totaling upto 70% at the end of phase 3.

Turi:

• The Company is in a joint venture with Summit Nanotech,a pioneering technology company based in Calgary that specializes ininnovative lithium extraction methodologies from salar brines –principally “DLE” or “Direct Lithium Extraction”.

• Summit Nanotech will undertake an exploration programwith an option to earn a 50.01% interest by completing certainobligations contained in an original option agreement betweenMonumental Energy, and Lithium Chile that was assumed by SummitNanotech.

SPINOUT PARTICULARS:

In anticipation of the Spinout, the Company istransferring all its rights of the Chilean projects to Kairos and Lith2.0, newly established subsidiaries of the Company.  The Company willthen consider distributing the shares of both subsidiaries on apro-rata basis to shareholders of the Company.  Based on management'splans and the current share capital of the Company, it is anticipatedthat this will result in existing shareholders receiving approximately1 share of Kairos for every 10 shares of the Company, and 1 share ofLith 2.0 for every 4 shares of the Company, that is held as of therecord date for the Spinout.

The Board of Directors has not yet determined a recorddate for the potential distribution of Kairos or Lith 2.0 shares tothe shareholders of Lithium Chile, which if proceeded with is expected to occur upon the completion of theSpinout. Further details regarding completion of the Spinout will beprovided in a subsequent news release.

If the Spinout is completed, Kairos and Lith 2.0 areanticipated to become reporting issuers in accordance with applicableCanadian securities laws.

QUALIFIED PERSON:

Mr. Eric L. Hanson, P. Geo., a qualified person withinthe meaning of National Instrument 43-101, has reviewed the contentsof this news release. Mr. Hanson has been involved with explorationefforts on the Las Garillas Project since October of 2022.

ABOUT LITHIUM CHILE:

Lithium Chile is an exploration and lithium resourcecompany with a property portfolio consisting of 111,978 hectares in Chile and 29,245 hectares in Argentina. The Company hasfiled a NI 43-101 Report and Preliminary Economic Assessment. Therevised reports will be filed shortly which will be available forviewing on the Company’s profile at SedarPlus.ca

Lithium Chile also owns 5 properties totaling 22,629hectares that are prospective for gold, silver and copper.

On September 21, 2023, Lithium Chile announced thehiring of PI Financial Corp. as its financial advisor to seekstrategic alternatives.  That process is underway as the Companycontinues to enhance the underlying value of its assets including anincrease related to the resource volume increases discussed in thisnews release.

Lithium Chile’s common shares are listed on the TSX-Vunder the symbol “LITH” and on the OTC-QB under the symbol“LTMCF”.

To find out more about Lithium Chile, please contactSteven Cochrane, President and CEO via email: steve@lithiumchile.ca orMichelle DeCecco, Vice President and COO via email: michelle@lithiumchile.ca or (587)393-1990.

NEITHER THE TSX VENTURE EXCHANGE NORITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THEPOLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THEADEQUACY OR ACCURACY OF THIS RELEASE.

FORWARD LOOKING STATEMENTS:

This news release may contain certain forward-lookinginformation and forward-looking statements within the meaning ofapplicable securities legislation (collectively "forward-lookingstatements"), including without limitationthe successful completion of the strategic process, the completion ofthe Spinout, and Kairos and Lith 2.0 being reporting issuers andCanadian securities legislation. Generally, forward-looking statementscan be identified by the use of forward-looking terminology such as"expected", "anticipated", "aims to","plans to" or "intends to" or variations of suchwords and phrases or statements that certain actions, events orresults "will" occur. Such forward-looking statements arebased on various assumptions and factors that may prove to beincorrect, including, but not limited to, factors and assumptions withrespect to: the general stability of the economic and politicalenvironment in which the Company operates and the timely receipt ofrequired regulatory approvals if required.  You are cautioned thatthe foregoing list of material factors and assumptions is notexhaustive. Although Lithium Chile believes that the assumptions andfactors on which such forward-looking statements are based uponreasonable assumptions, undue reliance should not be placed on theforward-looking statements because Lithium Chile can give no assurancethat they will prove to be correct or that any of the eventsanticipated by such forward-looking statements will transpire oroccur, or if any of them do, what benefits Lithium Chile  will derivetherefrom. Lithium Chile does not undertake to update anyforward-looking statements herein, except as required by applicablesecurities laws. All forward-looking statements contained in this newsrelease are expressly qualified by this cautionary statement.

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