Lithium Chile Inc. provided an update on its operations in Argentina and Chile. ARDDH-02-8 has been drilled to 538 metres with a very brine-rich, sandy formation encountered
at 487 metres. Onsite sampling with the field Turbospec analyzer on six samples collected over 51 metres, returned lithium grades between 297 mg/l and 319 mg/l. Samples sent to the laboratory reported the following grades: 505-metres to 506.5-metres 282 mg/l Li, 524.7-metres to 526.2-metres 300 mg/l Li, More sample results from the lower section of the well are pending. ARDDH-03-7 has been drilled to 600 metres. A 120-metre brine bearing formation of sands and gravels was encountered from 480 metres to end of hole at 600 metres. Prior to testing, a clay band at 170-metres swelled, restricting access of the sampling and logging tools intended to test the brine formation for lithium grades. The hole will be re-entered, opening the clay bottle neck to allow for casing to be installed, followed by sampling. This week a newly contracted rotary rig will begin drilling two additional water production wells on the Company's 100% owned, Chascha Sur freshwater concession where Lithium Chiles first water well was drilled. The intention of these two additional water wells is to collect the necessary data to apply for further water usage permits and secure water production for the Company's proposed Direct Lithium Extraction ("DLE") production facility. After completion of the two water production wells, the rig will move back to the main Arizaro property and drill two new production wells, AR-04 and AR-05. The wells are being drilled to provide additional data for the Pre-feasibility Study (PFS) as well as to provide future production wells on the salar. The two additional production wells, along with three new diamond drill holes will provide the supplementary data analysis required to better understand the reason behind the significantly improved lithium grades from the resampling program recently announced. Once drilled, data and test results from AR-04, AR-05 and three additional diamond drill holes will be used by Montgomery and Associates to interpret the impact of these improved grades on the overall resource calculation of Arizaro. The 43-101 resource update is expected by late November. Ausenco Engineering was contracted in early September and has commenced work on the Company's Pre-feasibility Study ("PFS") further advancing the economics and engineering on the Arizaro project. It is anticipated that the PFS will be completed by April 2024. Lithium Chile's wholly owned Argentinian subsidiary, Argentum Lithium, has been shortlisted on Block 4, one of five properties on the northern section of the Salar de Arizaro, released for bid by the Salta Provincial Mining Corporation, REMSA. It is anticipated the final winners of the bids for
the REMSA properties will be announced after the Argentina Federal election on October 22nd, 2023. Drilling at Molle Verde (Llamara) has just finished with the completion of the third hole. The rig is now moving to the last pad to drill the fourth hole. The first three wells encountered brine, with holes one and three exhibiting exceptional porosity, with hole 3 flowing brine up the drill pipe naturally. Sampling is underway and once completed, samples from all exploration holes will be batched and sent together for assay. Results will be announced when received. While sampling is being completed at Molle Verde, Lithium Chile will commence exploration work at its Aguilar property. This work will include sampling grid and TEM geophysics to define the position of three exploratory holes. Drilling on Aguilar to commence before year end. Interest continues to build amongst the major mining companies in Chile's lithium potential. The National Lithium Strategy introduced by the Chilean Government earlier this year has stimulated new interest in Chilean partnerships. Lithium Chile continues to explore various opportunities and potential joint ventures.