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Lithium South Development Corporation Update

On August 7, 2025, Lithium South Development Corporation (trading on TSX-V as LIS, OTCQB as LISMF, and Frankfurt as OGPQ) announced a significant update regarding its Hombre Muerto North Lithium Project, originally mentioned in their news release dated July 30, 2025. This update pertains to the sale of the project to POSCO Argentina SAU, the Argentine subsidiary of the renowned POSCO Holdings Inc.

The management of Lithium South aims to keep stakeholders informed of the necessary milestones associated with the transaction, which is critical for the company as it holds this project as its only recorded asset. They are in the midst of a 60-day due diligence period leading into a subsequent 60-day timeframe for finalizing a definitive agreement on the sale. If this process stretches the full duration, the final agreement could arrive by November 19, 2025.

Upon signing the definitive agreement, Lithium South will convene an Annual General and Special Meeting. This meeting will give shareholders a chance to vote on pressing matters, including the ongoing sale and the initiation of a share buyback program intended to repurchase all outstanding shares for the net proceeds obtained after the closing of the transaction. Specific valuation figures will be disclosed in a future announcement, assuring transparent communication with stakeholders.

Working closely with Canaccord Genuity Corp. as their financial advisor, the company aims to ensure all due diligence processes align with the stipulated timelines. As the transaction progresses, Lithium South commits to providing ongoing updates to maintain clear communication with its investors and shareholders.

About Lithium South Development Corporation

Lithium South holds complete ownership (100%) of the Hombre Muerto North Lithium Project located in the Salta and Catamarca provinces of Argentina, within the globally recognized lithium triangle. The region, especially the Salar del Hombre Muerto, has a storied history of lithium extraction, most notably with Rio Tinto Lithium's operations that have been active for over 25 years.

Adjacent to its operations, POSCO Argentina S.A.U. is ramping up its own lithium production efforts, further enhancing the geographical significance of Lithium South’s asset. Exploration undertaken so far at the HMN Li Project has mapped out a substantial resource of approximately 1,583,200 tonnes of Lithium Carbonate Equivalent (LCE) at an average lithium grade of 736 mg/L. This includes 1,463,000 tonnes classified under the measured category and 120,000 tonnes under the indicated category, highlighting the project's solid potential for future development.

The preliminary economic assessment conducted as of April 30, 2024, indicates promising prospects for establishing a lithium carbonate project with an annual production potential of around 15,600 tonnes. Additionally, the company is moving forward towards a feasibility study.

As lithium markets increasingly focus on sustainable energy innovations, the project and the ongoing strategic decisions made by Lithium South can have substantial implications both for the company and its investors.

For further inquiries, stakeholders can access more information about Lithium South through their official website or reach out directly to their investor relations team at 855-415-8100.

Closing Thoughts

This update is a testament to Lithium South's proactive approach amidst a rapidly evolving lithium market landscape. Their commitment to transparency and stakeholder engagement remains a top priority as they navigate the complexities of this pivotal transaction.

Note: This article is based on the latest press release and forward-looking statements may involve risks and uncertainties.