LTMCF - Lithium Chile Expands into Argentina with 850 Mg/l+ Lithium Property with Agreement to Earn into the 233 Sq Km Salar De Arizaro

(TheNewswire)

C algary, Alberta – TheNewswire - M ay 17,2021 – Lithium Chile Inc. (“ Lithium Chile ” orthe “ Company ”) (TSXV:LITH)(OTC:LTMCF) is pleased to announce that it hasadded an Argentinian lithium salar property to its portfolio byentering into a binding Letter of Intent (“ LOI ”) with SMGS.R.L. of Jujuy, Argentina.  The LOI enables Lithium Chile to earn upto an 80% interest in the 233 Sq Km Salar De Arizaro located in SaltaProvince, Argentina.  The LOI gives Lithium Chile the opportunity toearn a large and dominant land position in the center of the largestundeveloped salar in Argentina.

HIGHLIGHTS

• - 850 mg/l lithium grades alreadyestablished from a three-hole drill program conducted in 2019;

  - Arizaro exploration target covers233 Sq Km;

  - Surface area of Arizaro prospectlarger than the Salar de Pastos Grande (Millennial Lithium) and theSalar de Pozuelos (Litica Project);

  - Lithium Chile will be one of theonly junior companies with active programs in two of the lithiumtriangle countries.

The 2019 three-hole exploration program identified ahigh-grade lithium zone in the aquifer.  The size and potential ofthe Salar De Arizaro is well known. Major players Eramine (Eramet SA)and LITICA (formerly LSC Lithium) are neighbors in the salar.

Lithium Chile views the Arizaro project astransformational for the Company.  Management believes that becausesuch strong assay results have already been returned, the project willenable Lithium Chile to rapidly transition from an exploration stagecompany to a production stage company.

The LOI contemplates that Lithium Chile will earn a 60%interest in the Arizaro prospect over a term of three years in stages. The first stage involves the drilling and production testing of awell to be completed in the first six months at an estimated cost ofup to US $800,000, and includes payments to the vendors totaling US$300,000. Lithium Chile will be able to analyze the results of theproduction test, including flow rates and lithium grades, andthereafter have a 180-day period to exercise its option to proceed tothe second stage involving further property expenditures totaling US$6,000,000 over 2.5 years which will earn Lithium Chile a 60% interestin the entire project.

Lithium Chile will be entitled to acquire an additional20% interest in the entire project by completing a bankable feasibility study after thesecond stage such that total earning will be 80 percent.

Jose de Castro Alem, a Lithium Chile Director and aresident of Salta, Argentina, will oversee the project on LithiumChile’s behalf.

Mr. Castro Alem is a Chemical Engineer with over 25years of experience in lithium brine projects, primarily in Argentina.Jose began his career with Livent in Argentina and was one of theearly founders of Orocobre. With Orocobre he was involved from theearly exploration phases through to the construction of bothevaporation ponds and the lithium production facility. He was alsoinstrumental in the early exploration efforts by NRG Metals Inc. whichculminated in a discovery and preliminary resource estimate of over500,000 tons of lithium

Steve Cochrane, President and CEO of Lithium Chilecommented, “We are extremely pleased to have entered into thisagreement because it affords us the opportunity to potentiallytransition from a pure exploration company to that of a producingcompany. We believe that this opportunity has the realistic potentialto be commercially viable for production and enhances our Chileanopportunities by advancing our plans by a number of years. Thisopportunity exposes our shareholders to an expanding, geographicallydiverse portfolio in two of the prominent countries that form theprolific “Lithium Triangle.”

Formal agreements are expected to be completed within60 days and are subject to regulatory approval including, but notlimited to, the approval of the TSX Venture Exchange.

Qualified Person

Mr. Gabriel Paganini, Mining Eng., qualifiedperson registered in AusIMM under Lic.317013 within the meaning of JORC 2012, hasreviewed the contents of this news release.

About Lithium Chile

Lithium Chile is advancing a lithium property portfolioconsisting of 71,900 hectares covering sections of 10 salars and twolaguna complexes in Chile and now, 23,300 hectares in Argentina.

Lithium Chile also owns 5 properties that areprospective for gold, silver and copper. Exploration efforts arecontinuing on Lithium Chile’s Carmona gold/silver/copper propertywhich lies in the heart of the Chilean mega porphyry gold/silver/copper belt.

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

To find out more about Lithium Chile Inc., pleasecontact Steven Cochrane, President and CEO via email: steve@lithiumchile.ca oralternately, Jose de Castro Alem Manager of Lithium Operations email jdecastroalem@gmail.com .

NEITHER THE TSXVENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM ISDEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTSRESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

NOT FOR RELEASE INTHE UNITED STATES OF AMERICA

Forward Looking Statements

This news release may contain certain forward-lookinginformation and forward-looking statements within the meaning ofapplicable securities legislation (collectively "forward-lookingstatements"). Generally, forward-looking information can beidentified by the use of forward-looking terminology such as"expects", "believes", "aims to","plans to" or "intends to" or variations of suchwords and phrases or statements that certain actions, events orresults "will" occur. In particular, this news releasecontains forward-looking statements relating to entering into formalagreements, the Company earning an interest in the Arizaro prospect,the drilling of a production well.

You are cautioned that the following list of materialfactors and assumptions is not exhaustive. Specific material factorsand assumptions include, but are not limited to: the general stabilityof the economic and political environment in which the Companyoperates; the timely receipt of required regulatory approvals; theability of the Company to obtain future financing on acceptable terms;currency, exchange and interest rates; operating costs; the successthe Company will have in exploring its prospects and the results fromsuch prospects. Accordingly, readers should not place undue relianceon forward-looking statements. The Company does not undertake toupdate any forward-looking statements herein, except as required byapplicable securities laws. All forward-looking statements containedin this news release are expressly qualified by this cautionarystatement.

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