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

Details of the Transaction:

Readers may obtain further details regarding the Transaction via the following link to the Company's December 22, 2025, news release: Lithium Chile Executes the Formal Agreement for the Sale of its Argentine, Arizaro Project.

TRANSACTION PROGRESS

Receipt of Buyer Deposit:

• The Escrow Agreement related to the US$5,000,000 deposit from China Union Holdings Ltd. ("CUH"), as defined in the Definitive Agreement, has been finalized within the stipulated 20-day period, demonstrating continued advancement in accordance with the transaction timeline.

• The deposit will be held in escrow for the benefit of the seller as security for the purchaser's payment obligations under the Definitive Agreement.

AGM & Special Shareholders' Meeting:

• The Company intends to call an Annual General and Special Shareholder Meeting (the "Special Meeting") for May 15, 2026, where among other routine matters, shareholder approval for the Transaction will be sought.

• An information circular describing the Transaction in detail, including the Company's Board of Directors' recommendation in respect of the Transaction and an independent fairness opinion will be made available to shareholders within the timeframe required under applicable securities laws and TSX Venture Exchange policies such that shareholders can make an informed decision on the Transaction.

Potential Substantial Issuer Bid:

• The Company is evaluating the merits of the distribution of a portion of the net proceeds from the Transaction to its shareholders through a Substantial Issuer Bid (the or a SIB").

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

• Concluding a SIB would result in a meaningful reduction in the Company's issued and outstanding common shares as the common shares repurchased under the SIB would be cancelled.

• If a SIB can be completed, the Company would retain a residual cash balance sufficient to advance the development of its Chilean mineral interest portfolio.

• Assuming the Company determines that the SIB is the best course of action, the preliminary details of the proposed SIB will be summarized, and the final terms and details of the SIB will be fully described in a separate SIB bid circular post-closing of the Transaction.

• Readers are advised that the final terms, including the redemption price per common share, would be determined based on the final net proceeds received from the Transaction, after giving effect to closing costs, and the funds necessary to advance the development of the Company's Chilean mineral interest portfolio, and remain subject to applicable securities laws and TSX Venture Exchange policies.

NEXT STEPS

The Company continues to work diligently to satisfy all remaining closing conditions. In parallel, CUH, a company listed on the Shenzhen Stock Exchange, is advancing its regulatory approval process. CUH and Lithium Chile are aligned with the objective of closing the Transaction on an expeditious basis and in that regard are actively engaged in securing as all necessary approvals.

Lithium Chile will provide further updates as milestones are achieved.

ARIZARO OPERATIONS

Lithium Chile's project team continues to maintain the Arizaro asset throughout the Transaction process. All operational, environmental, and community-related obligations are being furthered in accordance with applicable regulations and established best practices.

MARKET AWARENESS

The Company announces that it will undertake measured, compliant market communications to ensure shareholders and the broader investment community are provided with clear, accurate, and timely information. Management and the Board of Directors believe that the Company's common shares have recently traded at levels that do not reflect the Company's underlying value and represent a discount to its net asset value, and these efforts are intended to improve market awareness and understanding of the Company's asset base and strategy.

In support of this initiative, the Company has entered into a services agreement dated October 15, 2025, with Departures Capital Inc. to provide digital marketing and investor awareness services. Under the agreement, Departures Capital will deliver strategic content creation, video production, and targeted digital distribution across financial media and online platforms for a total cost of CAD $100,000 over a 12-month term. Departures Capital is an arm's-length service provider, and to the Company's knowledge, neither the firm nor its principal holds any securities of the Company.

ABOUT LITHIUM CHILE

Lithium Chile Inc. is an exploration company with a portfolio of 11 properties spanning 106,136 hectares in Chile and 29,245 hectares on the Salar de Arizaro in Argentina. The Company has successfully advanced its Arizaro project with the completion of NI 43-101 compliant Resource Report, Preliminary Economic Assessment and Prefeasibility Study which are all accessible on SedarPlus.ca under Lithium Chile's profile.

Lithium Chile's common shares are listed on the TSX-V under the symbol "LITH" and on the OTCQB under the symbol "LTMCF".

To find out more about Lithium Chile, please contact:

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 REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

FORWARD LOOKING STATEMENTS AND RISK FACTORS:

This news release may contain certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). Generally, forward-looking statements can be identified using forward-looking terminology such as "expected", "anticipated", "aims to", "plans to" or "intends to" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements in this news release include, but are not limited to, statements regarding: the timing and completion of the Transaction; the satisfaction or waiver of closing conditions, including completion of pre-closing steps; the receipt of all necessary governmental, regulatory and stock exchange approvals, acceptances and clearances (including TSXV acceptance) and any required shareholder approvals; the anticipated release and application of escrowed funds and the guarantee deposit; the expected timing of closing; the intended date of the Special Meeting; the Company's ability to realize the anticipated transaction value; the Company's plans, including potential SIB and continued advancement of its Chilean portfolio; and the belief of management and Board of Directors that the common shares have recently traded in a price range that represents a discount to the Company's net asset value and does not reflect the underlying value of the Company.

Such forward-looking statements are based on various assumptions and factors that may prove to be incorrect, including, but not limited to, factors and assumptions with respect to: the ability of the parties to satisfy the conditions to closing in a timely manner; the completion of the pre-closing acquisition of additional equity in ARLI and the carve-out of the Arizaro 4 property and certain water rights; the timing and receipt of required approvals, acceptances and clearances, including TSXV acceptance, any required approvals and clearances from applicable governments, regulators and bodies in Canada, the People's Republic of China, Argentina and other relevant jurisdictions, and any required shareholder approvals; the absence of legal or regulatory impediments; the continued validity and enforceability of the underlying mining concessions and water rights; the accuracy of title opinions and due diligence; the Purchaser's ability to obtain necessary financing and regulatory clearances; the stability of the legal and regulatory framework in Argentina; the absence of material adverse changes affecting the Arizaro Project or ARLI; the accuracy of management's estimates and expectations; general business and economic conditions; commodity prices; geopolitical stability between relevant jurisdictions; foreign exchange rates; and the timing and terms of the escrow and deposit arrangements.

Although the Company believes that the assumptions and factors on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct or that any of the events anticipated by such forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. Actual results may vary from those currently anticipated due to a number of factors and risks including, but not limited to: the risk that the Transaction will 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 required shareholder approvals) are not obtained, are delayed or are obtained subject to conditions; the risk that required regulatory 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 to conditions or undertakings that materially alter the terms or anticipated benefits of the Transaction; the possibility that ministries or regulators, in connection with the ownership or transfer of critical mineral interests, may prohibit the Transaction or impose restrictions, additional conditions, or new regulatory requirements; the risk that changing governmental policies or geopolitical considerations relating to critical minerals, foreign investment, or national security may adversely impact the completion or terms of the Transaction; risks related to foreign investment review processes and potential national security assessments in multiple jurisdictions; the risk of trade restrictions or other measures affecting cross-border transactions between Canadian, Chinese, and Argentine entities; the risk of legal proceedings, disputes, or challenges to the Transaction by third parties, regulatory bodies, or other stakeholders; risks related to the validity, enforceability and scope of mining concessions and water rights underlying the Arizaro Project; the risk of title defects, encumbrances or third-party claims affecting the project assets; risks related to environmental liabilities, permits and compliance obligations; the Purchaser's ability 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 or delayed release of deposits; the inability to complete pre-closing steps in the manner and on the timelines contemplated; changes in laws, regulations, policies or enforcement priorities; political and regulatory risks in the jurisdictions in which the Company operates; legal proceedings; counterparty and escrow risks; currency exchange fluctuations; operational risks inherent in mineral exploration and development; commodity price volatility; and general business, economic, competitive, market and geopolitical conditions.

Readers are cautioned that the foregoing risk factors are not exhaustive. Undue reliance should not be placed on forward-looking statements because Lithium Chile can give no assurance that they will prove to be correct or that any of the events anticipated by forward-looking statements will transpire or occur, or if any of them do, what benefits Lithium Chile will derive therefrom. Additional risks and uncertainties not presently known to the Company or that the Company currently believes to be immaterial may also adversely affect the Company. The forward-looking statements included in this news release are made as of the date of this news release and Lithium Chile does not undertake to update any forward-looking statements herein, except as required by applicable securities laws. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement.