Lithium Chile Provides Update on the Transaction for the Sale of Arizaro Project

(TheNewswire)

TSX Venture Exchange: LITH

OTC-QB: LTMCF

CALGARY, ALBERTA – TheNewswire - January 14, 2026 -Lithium Chile Inc. (“LithiumChile” or the “Company”) ispleased to provide an update, with reference to its prior news releasedated December 22, 2025, regarding the progress made by the Companyfollowing the execution of the definitive share purchase agreement(the “DefinitiveAgreement”), for the sale of its Arizaroproject through the disposition of its Argentinian subsidiary,Argentum Lithium S.A. (the “Transaction”), for US $175,000,000. TheCompany is continuing to advance the Transaction toward closing viathe steps described below.

Details of the Transaction:

Readers may obtain further details regarding theTransaction via the following link to the Company’s December 22,2025, news release: Lithium ChileExecutes the Formal Agreement for the Sale of its Argentine, ArizaroProject.

TRANSACTION PROGRESS

Receipt of Buyer Deposit:

• The Escrow Agreement related to the US$5,000,000 deposit from ChinaUnion Holdings Ltd. (“CUH”), as defined in the Definitive Agreement, has beenfinalized within the stipulated 20-day period, demonstrating continuedadvancement in accordance with the transaction timeline. 

• The deposit will be held in escrow for the benefit of the seller assecurity for the purchaser’s payment obligations under theDefinitive Agreement. 

AGM & Special Shareholders’ Meeting:

• The Company intends to call an Annual General and Special ShareholderMeeting (the “SpecialMeeting”) for May 15, 2026, where among other routinematters, shareholder approval for the Transaction will be sought.  

• An information circular describing the Transaction in detail,including the Company’s Board of Directors’ recommendation inrespect of the Transaction and an independent fairness opinion will bemade available to shareholders within the timeframe required underapplicable securities laws and TSX Venture Exchange policies such thatshareholders can make an informed decision on the Transaction.  

Potential Substantial Issuer Bid:

• The Company is evaluating the merits of thedistribution of a portion of the net proceeds from the Transaction toits shareholders through a Substantial Issuer Bid (the or aSIB”). 

• A SIB is a mechanism that, subject applicable securities laws and TSXVenture Exchange policies, would allow shareholders to tender theircommon shares for redemption by the Company at a specified price. 

• Concluding a SIB would result in a meaningful reduction in theCompany’s issued and outstanding common shares as the common sharesrepurchased under the SIB would be cancelled. 

• If a SIB can be completed, the Company would retain a residual cashbalance sufficient to advance the development of its Chilean mineralinterest portfolio. 

• Assuming the Company determines that the SIB is the best course ofaction, the preliminary details of the proposed SIB will besummarized, and the final terms and details of the SIB will be fullydescribed in a separate SIB bid circular post-closing of theTransaction. 

• Readers are advised that the final terms, including the redemptionprice per common share, would be determined based on the final netproceeds received from the Transaction, after giving effect to closingcosts, and the funds necessary to advance the development of theCompany’s Chilean mineral interest portfolio, and remain subject toapplicable securities laws and TSX Venture Exchange policies. 

NEXT STEPS

The Company continues to work diligently to satisfy all remainingclosing conditions. In parallel, CUH, a company listed on the ShenzhenStock Exchange, is advancing its regulatory approval process. CUH andLithium Chile are aligned with the objective of closing theTransaction on an expeditious basis and in that regard are activelyengaged in securing as all necessary approvals.

Lithium Chile will provide further updates asmilestones are achieved.

ARIZARO OPERATIONS

Lithium Chile’s project team continues to maintainthe Arizaro asset throughout the Transaction process. All operational,environmental, and community-related obligations are being furtheredin accordance with applicable regulations and established bestpractices.

MARKET AWARENESS

The Company announces that it will undertake measured,compliant market communications to ensure shareholders and the broaderinvestment community are provided with clear, accurate, and timelyinformation. Management and the Board of Directors believe that theCompany’s common shares have recently traded at levels that do notreflect the Company’s underlying value and represent a discount toits net asset value, and these efforts are intended to improve marketawareness and understanding of the Company’s asset base andstrategy.

In support of this initiative, the Company has enteredinto a services agreement dated October 15, 2025, with DeparturesCapital Inc. to provide digital marketing and investor awarenessservices. Under the agreement, Departures Capital will deliverstrategic content creation, video production, and targeted digitaldistribution across financial media and online platforms for a totalcost of CAD $100,000 over a 12-month term. Departures Capital is anarm’s-length service provider, and to the Company’s knowledge,neither the firm nor its principal holds any securities of theCompany.

ABOUT LITHIUM CHILE

Lithium Chile Inc. is an exploration company with aportfolio of 11 properties spanning 106,136 hectares in Chile and29,245 hectares on the Salar de Arizaro in Argentina. The Company hassuccessfully advanced its Arizaro project with the completion of NI43-101 compliant Resource Report, Preliminary Economic Assessment andPrefeasibility Study which are all accessible on SedarPlus.ca underLithium Chile’s profile.

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

To find out more about Lithium Chile, pleasecontact:

Steven Cochrane, President and CEO via email:steve@lithiumchile.ca  

Or

Michelle DeCecco, COO via email:michelle@lithiumchile.ca or phone: 403-393-1990.

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.

FORWARD LOOKING STATEMENTS AND RISKFACTORS:

This news release may contain certain forward-lookinginformation and forward-looking statements within the meaning ofapplicable securities legislation (collectively "forward-looking statements"). Generally, forward-looking statements can beidentified using 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. Forward-looking statements in thisnews release include, but are not limited to, statements regarding:the timing and completion of the Transaction; the satisfaction orwaiver of closing conditions, including completion of pre-closingsteps; the receipt of all necessary governmental, regulatory and stockexchange approvals, acceptances and clearances (including TSXVacceptance) and any required shareholder approvals; the anticipatedrelease and application of escrowed funds and the guarantee deposit;the expected timing of closing; the intended date of the SpecialMeeting; the Company's ability to realize the anticipatedtransaction value; the Company’s plans, including potential SIB andcontinued advancement of its Chilean portfolio; and the belief ofmanagement and Board of Directors that thecommon shares have recently traded in a price range that represents adiscount to the Company's net asset value and does not reflectthe underlying value of the Company.

Such forward-looking statements are based on variousassumptions and factors that may prove to be incorrect, including, butnot limited to, factors and assumptions with respect to: the abilityof the parties to satisfy the conditions to closing in a timelymanner; the completion of the pre-closing acquisition of additionalequity in ARLI and the carve-out of the Arizaro 4 property and certainwater rights; the timing and receipt of required approvals,acceptances and clearances, including TSXV acceptance, any requiredapprovals and clearances from applicable governments, regulators andbodies in Canada, the People’s Republic of China, Argentina andother relevant jurisdictions, and any required shareholder approvals;the absence of legal or regulatory impediments; the continued validityand enforceability of the underlying mining concessions and waterrights; the accuracy of title opinions and due diligence; thePurchaser's ability to obtain necessary financing and regulatoryclearances; the stability of the legal and regulatory framework inArgentina; the absence of material adverse changes affecting theArizaro Project or ARLI; the accuracy ofmanagement’s estimates and expectations; general business andeconomic conditions; commodity prices; geopolitical stability betweenrelevant jurisdictions; foreign exchange rates; and the timing andterms of the escrow and deposit arrangements.

Although the Company believes that the assumptions andfactors on which such forward-looking statements are based arereasonable, undue reliance should not be placed on the forward-lookingstatements because the Company can give no assurance that they willprove to 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 Company will derive therefrom. Actual resultsmay vary from those currently anticipated due to a number of factorsand risks including, but not limited to: the risk that the Transactionwill not be completed on the terms or timing currently contemplated,or at all; the risk that required approvals, acceptances or clearances(including governmental approvals, TSXV acceptance and any requiredshareholder approvals) are not obtained, are delayed or are obtainedsubject to conditions;  the risk that requiredregulatory or governmental approvals, acceptances and clearances,including from Argentinian, Canadian, Chinese or other authorities,may not be obtained, may be delayed, or may be obtained subject toconditions or undertakings that materially alter the terms oranticipated benefits of the Transaction; the possibility thatministries or regulators, in connection with the ownership or transferof critical mineral interests, may prohibit the Transaction or imposerestrictions, additional conditions, or new regulatory requirements;the risk that changing governmental policies or geopoliticalconsiderations relating to critical minerals, foreign investment, or national security may adversely impactthe completion or terms of the Transaction; risks related to foreigninvestment review processes and potential national securityassessments in multiple jurisdictions; the risk of trade restrictionsor other measures affecting cross-border transactions betweenCanadian, Chinese, and Argentine entities; the risk of legalproceedings, disputes, or challenges to the Transaction by thirdparties, regulatory bodies, or other stakeholders; risks related to the validity, enforceability and scope ofmining concessions and water rights underlying the Arizaro Project;the risk of title defects, encumbrances or third-party claimsaffecting the project assets; risks related to environmentalliabilities, permits and compliance obligations; the Purchaser'sability to secure necessary financing to complete the Transaction;counterparty credit risk and the Purchaser's financial capacity;risks related to escrow arrangements and the potential forfeiture ordelayed release of deposits; the inability to complete pre-closingsteps in the manner and on the timelines contemplated; changes inlaws, regulations, policies or enforcement priorities; political andregulatory risks in the jurisdictions in which the Company operates;legal proceedings; counterparty and escrow risks; currency exchangefluctuations; operational risks inherent in mineral exploration anddevelopment; commodity price volatility; and general business,economic, competitive, market and geopolitical conditions.

Readers are cautioned that the foregoing risk factorsare not exhaustive. Undue reliance should not be placed onforward-looking statements because Lithium Chile can give no assurancethat they will prove to be correct or that any of the eventsanticipated by forward-looking statements will transpire or occur, orif any of them do, what benefits Lithium Chile will derive therefrom.Additional risks and uncertainties not presently known to the Companyor that the Company currently believes to be immaterial may alsoadversely affect the Company. Theforward-looking statements included in this news release are made asof the date of this news release and LithiumChile does not undertake to update any forward-looking statementsherein, except as required by applicable securities laws. Allforward-looking statements contained in this news release areexpressly qualified by this cautionary statement.

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