LTMCF - Lithium Chile Uniquely Well Positioned to Take Advantage of New Chilean Lithium Tender Process and Upsizes the Previously Announced $0.60 Unit Financing (TSXV:LITH) (OTCBB:LTMCF)

(TheNewswire)

CALGARY, ALBERTA – TheNewswire- October 26, 2021 –Lithium Chile Inc. (“ LithiumChile ” or the “ Company ”) discusses its 12 properties –over 68,000 hectares – that make up its Chile Lithium Portfolio andwhy they are uniquely placed to take advantage of Chile’s newlithium exploration tender process.

Steve Cochrane, President and CEO of Lithium Chilecommented: “ The newlyannounced initiative promoting new domestic and foreign investment inLithium exploration and production announced last week by the ChileanGovernment is incredibly positive news for Chile and Lithium Chile. Wealready have an excellent portfolio of properties and thisannouncement has already created interest from companies in thebidding process for potential joint ventures with us. This newparticipation in developing Chile’s lithium assets is anticipated todrive prices for existing and new lithium properties. Any companywanting to take advantage of the initiative will have to eitherpurchase land or joint venture with an existing property owner and weare ready to take advantage of that.”

Highlights

• - Chilean Government announcesinitiative to encourage new domestic and foreign investment to exploreand develop lithium properties in Chile.

  - Tender process for specialoperating contracts – covering the development of lithium propertiesand the production and exportation of lithium carbonate,

  - For companies who already holdlithium properties in Chile – this is expected to dramatically cutred tape and timing to allow exploitation and more importantlyproduction,

  - Lithium Chile already hold aChilean lithium property portfolio of 12 properties – totalling68,800 hectares,

  - Companies like Lithium Chile withexisting prospective lithium properties are anticipated to definitelybenefit from the new rules.

The Chilean Government last week announced aninitiative to encourage and actively promote new domestic and foreigninvestment to explore and develop lithium properties in Chile. Until2012, Chile was the world’s leading lithium producer, was thenovertaken by Australia and – on current projections – may even bepushed into 3 rd place by China by 2030.  Clearly anattempt to put themselves back at the top of the lithium producingcountries – they will be awarding special operating contracts –covering exploration, studies and development to production.

This tender process maintains lithium’s status as astrategic material but seeks to loosen the strings of bureaucracy byissuing special lithium operation contracts (CEOLs) by quotas.  Thegranting of the CEOL is only a first step since companies will have tolook for the place to develop their projects.  They will also have todefine the technologies they will use to comply with all theregulatory and environmental requirements -as well as complying withany indigenous community regulations.

For companies who already own lithium properties inChile – this will cut application times and make it significantlyeasier to develop their properties. Interest in potential explorationproperties has already picked up significantly and prices for theseare expected to increase as well.

As part of this initiative, Chile has also indicatedthat they will be supporting and investing in new lithium extractiontechnologies.

Lithium Chile is also pleased to announce that, due tostrong investor demand for its recently announced non-brokered privateplacement of units of the Company(“ Units ”) at a price of $0.60 per Unit, ithas increased the maximum size of the offering from 4,166,667 Unitsfor aggregate gross proceeds of $2,500,000 to 5,416,000 Units forgross proceeds of $3,249,600 (the " Offering "). Each Unit will be comprised of one (1) commonshare of the Company (“ Common Share ”) and one (1) Common Sharepurchase warrant (“ Warrant ”). Each Warrant shall be exercisableat $0.75 per Common Share for a period of 24 months from the date ofclosing of the Offering. Lithium Chile may pay a cash commission orfinder's fee to qualified non-related parties of up to 5% of the grossproceeds of the Offering. The proceeds of theupsized Offering will be used for working capital and to pay theexpenses of the Offering. Unless the Companydetermines to further increase the gross proceeds of the Offering, ifsubscriptions received for the Offering based on all availableexemptions exceed the maximum Offering amount of $ 3,249,600 , Unitswill be allocated on a first come, first served basis.

The Company confirms that thereis no material fact or material change about the Company which has notbeen generally disclosed. Completion of theOffering is subject to regulatory approval including, but not limitedto, the approval of the TSX Venture Exchange. The Common Shares andWarrants issued under the Offering will be subject to a four monthhold period from the date of the closing of the Offering.

About Lithium Chile

Lithium Chile is advancing a lithium property portfolioconsisting of 68,800 hectares covering sections of 10 salars and twolaguna complexes in Chile and 1 property of 23,300 hectares inArgentina.

Lithium Chile also owns 5 properties, totaling 22,429hectares, that are prospective for gold, silver and copper.Exploration efforts are continuing on Lithium Chile’s Carmonagold/silver/copper property which lies in the heart of the Chileanmega 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 alternately, Jose de Castro Alem, Argentina Manager viaemail 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

This news release does not constitute an offer to sellor the solicitation of an offer to buy any securities in the UnitedStates. Any securities referred to herein have not been and will notbe registered under the United States Securities Act of 1933 (the" 1933 Act ") and may not be offered or sold in the United Statesor to or for the account or benefit of a U.S. person in the absence ofsuch registration or an exemption from the registration requirementsof the 1933 Act and applicable U.S. state securities laws.

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. In particular, this news releasecontains forward-looking statements relating to, among other things:that the new participation in developing Chile's assets is anticipatedto drive prices for existing and new lithium properties; that the newprocess is expected to dramatically cut red tape and timing to allowexploitation and more production; that companies like Lithium Chilewith existing prospective lithium properties are anticipated tobenefit from the new rules, including that this will cut applicationtimes and make it significantly easier to develop their properties;that prices for exploration properties are expected to increase; theuse of proceeds from the Offering; and the Company's ability to obtainnecessary approvals from the TSX Venture Exchange. Suchforward-looking statements are based on various assumptions andfactors that may prove to be incorrect, including, but not limited to,factors and assumptions with respect to: the general stability of theeconomic and political environment in which the Company operates; thetimely receipt of required regulatory approvals; the ability of theCompany to obtain future financing on acceptable terms; currency,exchange and interest rates; operating costs; the success the Companywill have in exploring its prospects and the results from suchprospects. You are cautioned that the foregoing list of materialfactors and assumptions is not exhaustive. Although the Companybelieves that the assumptions and factors on which suchforward-looking statements are based are reasonable, undue relianceshould not be placed on the forward-looking statements because theCompany can give no assurance that they will prove to be correct orthat any of the events anticipated by such forward-looking statementswill transpire or occur, or if any of them do so, what benefits theCompany will derive there from. Actual results could differ materiallyfrom those currently anticipated due to a number of factors and risksincluding, but not limited to: fluctuations in market conditions,including securities markets; economic factors; the risk that the newlithium exploration tender process does not yield the anticipatedbenefits to the Company, if at all; the risk that the Offering willnot be completed as anticipated or at all, including the risk that theCompany will not receive the approvals necessary in connection withthe Offering; and the impact of general economic conditions and theCOVID-19 pandemic. The Company 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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