LITH:CC - Lithium Chile Increases Resource by 81% - Bringing Total Indicated Resource to 1337000 and Inferred Resource to 1250000 Metric Tonnes of Lithium Carbonate Equivalent. Lithium Chile also Awarded Lithium Company of The Year at 2022 Mines and Money Lon

(TheNewswire)

CALGARY, ALBERTA – TheNewswire - December 5, 2022 – Lithium Chile Inc.(“Lithium Chile” )(TSX:LITH), (OTC:LTMCF) is pleased to announcethe results of an updated resource report at the Salar de Arizaro. The update resulted in a significant increase to Lithium Chile’slithium carbonate equivalent resource.  The increase is a result ofthe success of its second production well. That second well, drilled3.6 kilometers away from the initial production test well, encounteredsignificantly increased thickness in the brine reservoir between 343meters and 598 meters of depth.

HIGHLIGHTS:

• Total  Indicated and Inferred resource from secondwell of 1,167,000 metric tonnes of lithium carbonateequivalent.

• Total Indicated resource from the first two wells is1,337,000 metric tonnes and Inferred resource is 1,250,000 metrictonnes for a total of 2,587,000 metric tonnes of lithium carbonateequivalent an 81% increase over the first well.

• The third production test well is expected to startdrilling within a week.

The updated resource estimate was prepared byMontgomery and Associates, an independent engineering firm that hassupervised the drilling program such that all parameters necessary tomeet the requirements of NI 43-101 are fulfilled.

CONTINUED DRILLING

Lithium Chile is proceeding with a production test wellprogram that involves a total of 4 production test wells.  Drillingof the third production test well slated to begin within the nextweek.  It is noteworthy that Lithium Chile has designed the drillingprogram to include four production test wells in total.  While eachindividual test well has a radius of investigation for resourceestimate calculations, it is intended that upon completion of thefourth production test well, if successful, the area between the wellswill thereafter be included in resource estimate calculations - all inaccordance with the requirements of NI 43-101.

Steve Cochrane, President, and CEO commented, “Thisis a significant resource increase as a result of just one additionalwell - almost doubling the size of the initial resource.  Thissuccess gives us great confidence in the areal extend of the Salar deArizaro – one of the largest in Argentina.  What is important tonote is that should our next two test wells be successful inestablishing a continuation of the brine reservoir, the resourcesattributable to Lithium Chile may be even more significantly increasedas a result of filling in the area between the test wells.  We lookforward to reporting the results of the third production well in thenear future - and those of the fourth test wellthereafter”.

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Figure 1 – Areaof Resource Estimates, Salar de Arizaro, Argentina

Figure 2 –Summary of Indicated and Inferred Resource, Salar de Arizaro,Argentina

WATER WELL:

Lithium Chile is also pleased to announce thecompletion of a successful fresh water well on the southern flank ofthe Salar de Arizaro. In June 2022, Lithium Chile identified apotential freshwater aquifer and drilled the target during July andAugust.  A 100-meter-thick freshwater aquifer was encountered andduring September, the well was completed, and equipment was installedto determine the productivity of the well.  Based on data collectedover September and October, a water usage application was submitted tothe Salta Environmental Ministry for a permit allowing Lithium Chileto use up to 75 cubic meters of fresh water per hour. This productionrate is more then sufficient to support Lithium Chile’s plans for a15,000 tonne a year production facility - using either DLE orevaporation production methods.

AWARD:

Lithium Chile is honoured to announce it was awarded“Lithium Company of the Year” at the 2022, Mines and Money,International Event in London.

Michelle DeCecco, Vice President & CCO comments,“This award belongs to the entire Lithium Chile team. 2022 has beena transformational year for the Company; that has been a result of thededication and talents shown by our incredible group across the globe.Being recognized as “Lithium Company of the Year” is foretellingto the exciting plans, and goals we have for 2023”.

QUALIFIED PERSON, QA/QCSTATEMENTS:

Michael Rosko, MS, PG, of Montgomery and Associates(M&A) of Santiago, Chile, is a registered geologist (CPG) inArizona, California and Texas, a registered member of the Society forMining, Metallurgy and Exploration (SME No. 4064687), and a qualifiedperson as defined by National Instrument 43-101. Mr. Rosko hasextensive experience in salar environments and has been a qualifiedperson on many lithium brine projects. Mr. Rosko and M&A arecompletely independent of Lithium Chile.  Mr. Rosko has reviewed andapproved the scientific and technical content of this newsrelease.

ABOUT LITHIUM CHILE:

Lithium Chile is advancing a lithium property portfolioconsisting of 84,478 hectares covering sections of 11 salars and 2laguna complexes in Chile and 23,300 hectares in Argentina.

The Company has a NI 43-101 report with an indicatedand inferred resource of 2,587,000 tonnes of lithium carbonateequivalent (LCE) from its Salar de Arizaro, Argentina. The Phase 2development program on the Salar de Arizaro is currently underway withits results to be included in an updated NI 43-101 report which isexpected to be completed during the first quarter of 2023.

Lithium Chile also owns 5 properties, totaling 21,329hectares that are prospective for gold, silver and copper. Explorationefforts are continuing on Lithium Chile’s Carmona gold/silver/copperproperty which 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 or Michelle DeCecco, Vice President and COO, viaemail michelle@lithiumchile.ca or at 403-390-9095.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATIONSERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSXVENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACYOF THIS RELEASE.

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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 statements can beidentified 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; the timely receipt ofrequired regulatory approvals; the ability of the Company to obtainfuture financing on acceptable terms; currency, exchange and interestrates; operating costs; the success the Company will have in exploringits prospects and the results from such prospects and the COVID-19pandemic.  You are cautioned that the foregoing list of materialfactors and assumptions is not exhaustive. Although the Lithium Chilebelieves that the assumptions and factors on which suchforward-looking statements are based upon are reasonable, unduereliance should not be placed on the forward-looking statementsbecause the Lithium Chile can give no assurance that they will proveto be correct or that any of the events anticipated by suchforward-looking statements will transpire or occur, or if any of themdo so, what benefits the Lithium Chile  will derive there from.Lithium Chile does not undertake to update any forward-lookingstatements herein, except as required by applicable securities laws.All forward-looking statements contained in this news release areexpressly qualified by this cautionary statement.

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