CALGARY, ALBERTA – TheNewswire – October 26, 2026 ( TSXV – “LITH” OTCQB – “LTMCF” ). Lithium Chile Inc. (“ Lithium Chile ” or the “ Company ”) provides its stakeholders with an update on recent developments affecting the Company.
Arizaro Project Proposed Sale
● Effective October 20, 2026, Lithium Chile entered into an amending and extension agreement with China Union Holdings Ltd. (“ CUH ”) pertaining to the proposed sale of the Arizaro Project in Argentina. The agreement extends the term of the previously announced definitive agreements for a period of 60 days and provides for an additional 60-day extension if the parties reasonably expect that 2 significant conditions precedent to closing are expected to be obtained: i) termination of the review by the Foreign Investment Review and Economic Security division of Investment Canada (“ FIRES ”); and ii) receipt of Offshore Direct Investment (“ ODI ”) approval from the government of the People’s Republic of China.
The amended agreement removes the previous exclusivity restrictions and associated fees relating to alternative transactions, providing Lithium Chile with greater flexibility to evaluate other opportunities while continuing to pursue completion of the proposed sale. The Company remains subject to certain notice and information obligations to CUH concerning alternative transactions, as described in the Company’s October 21, 2026 news release .
Credit Facility and Working Capital Deficit
● On October 20, 2026, Lithium Chile entered into an agreement for a CAD $2.5 million credit facility (the “ Credit Facility ”) with a company controlled by a director of Lithium Chile. The Credit Facility is intended to strengthen the Company’s near-term liquidity position and provide management with additional financial flexibility to advance its corporate objectives and evaluate opportunities to enhance shareholder value.
The Company’s current working capital deficit is estimated at approximately CAD $1.7 million. Subject to TSX Venture Exchange approval and the applicable terms of the Credit Facility, the financing is expected to support the Company’s ongoing corporate activities while management pursues strategic initiatives.
Joint Venture Terminations
● Eramet has notified the Company that it has chosen to terminate the previously announced joint venture pertaining to the Llamara/Molle Verde salar in Chile. Documentation finalizing the termination was completed on October 23, 2026.
● Effective December 31, 2025, Monumental Energy Corp. terminated its joint venture with the Company pertaining to the Laguna Blanca salar in Chile.
Going Forward and Future Updates
Lithium Chile remains focused on advancing the proposed Arizaro transaction with CUH while actively evaluating opportunities to strengthen its financial position and maximize value for shareholders.
The Company and CUH continue to engage directly with representatives of Canada’s Foreign Investment and Economic Security branch regarding the outstanding Canadian regulatory review, while CUH continues its efforts to secure ODI approval from the government of the People’s Republic of China.
The recent amendment to the CUH agreement provides Lithium Chile with greater strategic flexibility to consider alternative transactions and potential partnerships while the parties continue working toward closing the proposed sale. In parallel, it is management’s intention to evaluate financing opportunities and strategic partnerships in support of the advancement of the Company’s compelling lithium assets in Argentina and Chile.
Lithium Chile remains committed to protecting shareholder interests by pursuing strategic alternatives and opportunities that provide long-term value to the Company and its stakeholders.
Further updates will be provided as material developments occur.
MI 61-101 Considerations Clarification
● The Company advises that an incorrect exemption from the requirements of Multilateral Instrument 61-101 was included in its news release dated October 21, 2026. The contents of the October 21, 2026 news release titled “NI 61-101 Considerations” is replaced by the following:
“As an insider of the Company indirectly participated in this transaction, it is 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 ”). The Credit Facility is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 (pursuant to subsections 5.5(a) and 5.7(1)(a) ) as neither the fair market value of the Credit Facility nor the fair market value of the Common Shares to be issued to the Lender, exceeds 25% of the Company’s market capitalization. The Credit Facility was unanimously approved by the board of directors of the Company, excluding the director and officer of the Company who is related to the Lender, who abstained from voting. The Lender currently holds nil Common Shares and nil convertible securities of the Company”.
Issuer Contact
For more information, please contact:
Al Kroontje, interim CEO, via email: al@slgold.ca or telephone: +1 (403) 607 4009
FORWARD-LOOKING STATEMENTS AND RISK FACTORS
This news release contains certain forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively, “forward-looking statements”). Forward-looking statements include, but are not limited to, completion of the sale to CUH including approval of FIRES and ODI, regulatory approval of the Credit Facility and the ability of management to pursue other alternatives to create shareholder value. 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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