#Canada #Vancouver #Lithium South #HMN Project #Claudio Zalewski

Lithium South Revamps Development Team to Expedite HMN Project Feasibility Assessment

Lithium South Development Corporation, known for its commitment to advancing lithium extraction technologies, has announced a significant enhancement to its development team. Claudio C. Zalewski has been appointed as the Director of Development and Construction for the Hombre Muerto North Lithium Project in Argentina's Salta basin. Mr. Zalewski brings extensive expertise, having over 40 years of experience in project execution within the lithium sector.

A Background of Success

Based in Salta, Mr. Zalewski is a bilingual civil engineer with a strong track record of overseeing major lithium projects, including the Pastos Grandes Lithium Project valued at $450 million and the Centenario Lithium Project at $550 million. His previous consultancy role with ADY Resources on the Rincon Lithium Project further solidifies his expertise in navigating the complexities of lithium brine projects.

Reflecting upon his new role, Zalewski stated, "Joining Lithium South at this pivotal moment lets me bring decades of lithium-brine experience to unlock the full value of the Hombre Muerto North Lithium Project. With the groundwork already in place, I'm confident we can reach feasibility swiftly and move toward construction alongside committed funding partners."

Fast-Track Work Plan in Motion

To streamline development, Zalewski and the COO have identified four priority workstreams outlined in the project register. The completion stages include:

• - DFS Tender Package: The draft is ready to be issued to bidders.
• - Design Criteria: Consolidation of design bases across multiple disciplines.
• - CAPEX/OPEX Financial Models: The templates are now 70% populated, providing a solid financial framework.
• - Project Execution Plan: Revision A of the procedures is currently undergoing internal review.

With these structures in place, Lithium South is working diligently to finalize a comprehensive development schedule that encompasses all stages from the awarding of the Feasibility Study to construction and commissioning. The goal is to initiate the Feasibility Study tendering by the end of Q3 2025, leading to a full feasibility completion by late Q1 2026.

Positive Regulatory Changes

Recent adjustments to Argentina’s tax and import regulations have brought optimism to Lithium South's operations. The Régimen de Incentivo a las Grandes Inversiones (RIGI), established under Law 27.742 in July 2024, provides an array of incentives for eligible projects exceeding $200 million. These incentives include a stable 30-year tax regime, a fixed 25% corporate income tax rate, accelerated depreciation, relief from VAT, and phased reductions in export duties. This regulatory environment is expected to significantly enhance the financial viability of the HMN Lithium Project.

Expansion of Project Holdings

In another strategic move, Lithium South has secured a Purchase Option for the Hydra X 1 and Hydra X 2 claim blocks, which are in proximity to its current holdings on the Hombre Muerto Salar. This expansion totals around 5,555 hectares, boosting the Company's claim area to over 10,000 hectares. The acquisition terms stipulate a purchase price of $2 million, payable upon the inception of construction or in the event of the sale of the project or company.

Ongoing Project Funding Discussions

The Company is actively engaged in discussions with various original equipment manufacturers (O.E.M.), mining entities, and financial groups to secure funding and support for the HMN Lithium Project. While the market remains challenging, interest from investors in this high-quality lithium project continues to be robust. These talks, initiated in January 2025, are still ongoing, and the exclusivity period with the noted party has now concluded.

About Lithium South Development Corporation

Lithium South owns 100% of the HMN Lithium Project, located in the lithium triangle of Argentina. The project area has a historical background in lithium production, with the nearby Rio Tinto Lithium operations for over 25 years. The HMN project has a compliant resource of 1,583,200 tonnes of Lithium Carbonate Equivalent (LCE) with a remarkable grade of 736 mg/L lithium, and ongoing exploration aims to further delineate its potential.

As the company gears up for a crucial phase in its operations, it emphasizes its commitment to developing sustainable and economically viable lithium sources to meet the growing demand in various sectors globally.