CALGARY, ALBERTA – TheNewswire – October 21, 2026 – Lithium Chile Inc. ( TSX Venture Exchange: LITH, OTC-QB: LTMCF ) (“ Lithium Chile ” or the “ Company ”) provides the following update to its stakeholders.
HIGHLIGHTS
Effective October 20, 2026, Lithium Chile and China Union Holdings (“ CUH ”) entered into an agreement that amends and extends the definitive agreements (the “ Definitive Agreements ”) with CUH pertaining to the proposed sale of Lithium Chile’s project on the Arizaro salar in Argentina (the “ Arizaro Project ”).
Lithium Chile has entered into a credit facility agreement with a company controlled by a director that provides for loan advances of up to CAD $2,500,000 .
Definitive Agreements Amendments and Extension
The agreement dated effective October 20, 2026 (the “ Amending Agreement ”) amends the Definitive Agreements as follows:
1. The drop-dead date has been extended to December 22, 2026. (the “ New Drop-Dead Date ”). If, on such date, closing of the transaction (“ Closing ”) has not occurred, and neither party has notified the other party in writing that it reasonably believes that the relevant regulatory approvals, including the outbound direct investment ODI filing/approval and the Canadian national security-related review, cannot be obtained within a further extension period, then the drop-dead date will be further extended to February 22, 2027 (the “ Further Drop-Dead Date ”).
2. If, upon the expiry of the New Drop-Dead Date or the Further Drop-Dead Date, any key regulatory approval required in connection with Closing, or any approval or clearance required under the Investment Canada Act, has not been obtained for reasons not attributable to the Purchaser, the US$ 5,000,000 (equivalent) guarantee deposit will be returned to the Purchaser.
3. The exclusivity and termination fee provisions contained in the Definitive Agreements have been modified such that:
i) Lithium Chile and/or its subsidiaries shall be permitted to contact, communicate and negotiate with third parties in relation to potential alternative transaction(s). Lithium Chile has agreed to provide CUH, on a confidential basis, basic information pertaining to any potential alternative transactions including the principal terms, proposed timetable and the identity of the alternative transaction counterparty.
ii) Prior to the satisfaction, waiver or completion of the closing conditions under the Definitive Agreements, the Sellers may terminate the Share Purchase Agreement for the purpose of pursuing or consummating an alternative transaction by giving CUH twenty (20) business days’ prior notice. Upon such termination, neither party shall incur any termination fee or other liability as a result thereof, except where the Sellers fail to provide the notifications described above.
All other terms of the Share Purchase Agreement remain unchanged.
Credit Facility
The Company has entered into a credit facility agreement with a company controlled by a director (the “Lender”) which provides the Company the ability to draw advances totaling up to CDN$ 2,500,000 (the “ Credit Facility ”). The Credit Facility matures on December 31, 2027 and bears interest at a rate of ten percent (10%) per annum. An origination fee for providing the Credit Facility will be paid in accordance with the policies of the TSX Venture Exchange via the issuance of common shares of the Company in an amount equal to 20% of the maximum loan amount at a price of $0.28 per common share, being closing price on the October 20, 2026 Credit Facility implementation date.
No commissions or finders’ fees were paid in respect of the Credit Facility.
NI 61-101 Considerations
As a company related to an insider of the Company participated in the transaction, it was deemed to be a “related party transaction” as defined under Multilateral Instrument 61-101-Protection of Minority Security Holders in Special Transactions (“ MI 61-101 ”). Neither the Company, nor to the knowledge of the Company after reasonable inquiry, a related party had had knowledge of any material information concerning the Company or its securities that has not been generally disclosed. The Credit Facility is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 (pursuant to subsections 5.5(c) and 5.7(1)(b)) as it was a distribution of securities for cash and neither the fair market value of the Credit Facility, nor the consideration received from related parties, exceeded $2,500,000. The Credit Facility was unanimously approved by the board of directors of the Company, excluding the director who is related to the company providing the Credit Facility, who abstained from voting. The Lender currently holds nil common shares of the Company and holds nil options.
Issuer Contact
For more information, please contact:
Al Kroontje, Interim CEO vía email: al@slgold.ca ph: +1 (403) 607 4009
FORWARD LOOKING STATEMENTS AND RISK FACTORS
This news release may contain certain forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively, “forward-looking statements”). All statements contained herein that are not historical facts are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “intends”, “plans”, “may”, “will”, “should”, “continue”, “remain” and similar expressions.
Forward-looking statements are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements.
Readers are cautioned not to place undue reliance on forward-looking statements. Any forward-looking statements contained in this news release are made as of the date hereof, and the Company undertakes no obligation to update or revise any forward-looking statements, except as required by applicable securities laws.
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 news release.
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