#Canada #Vancouver #Lithium South #Hombre Muerto #POSCO Argentina

Progress on the Hombre Muerto North Lithium Project

On September 22, 2025, Lithium South Development Corporation (referred to as "the Company" or "Lithium South") announced positive developments regarding the sale of its Hombre Muerto North Lithium Project to POSCO Argentina SAU. This entity is the wholly-owned subsidiary of POSCO Holdings Inc. Based in Argentina, POSCO has shown a keen interest in lithium resources, which are essential for the production of electric vehicle batteries and energy storage solutions.

Due Diligence Completed

The due diligence process conducted by POSCO Argentina S.A.U. has now reached a substantial completion phase. Although some minor aspects still require resolution, both parties are now progressing towards negotiating the Definitive Agreement. Key areas under review include closing costs and legal fees, alongside potential tax implications related to the transaction. The company remains optimistic that the process will adhere to the timeline established in its previous announcements.

Once the Definitive Agreement is executed, Lithium South plans to share details about its Annual General and Special Meeting date and provide additional insights into its plans, including a potential issuer bid to repurchase all outstanding securities of the Company.

Lithium South Development: A Quick Overview

Lithium South owns 100% of the Hombre Muerto North Lithium Project located in the rich lithium-producing regions of Salta and Catamarca Provinces, Argentina. This geographic area is known as the "lithium triangle", which features some of the highest lithium concentrations globally.

Historically, the Salar del Hombre Muerto, where the project is situated, has generated lithium for over 25 years. Recently acquired by Rio Tinto Corporation for an impressive US$6.7 billion in March 2025, the neighboring operations further underscore the region's significance in the lithium supply chain. As of now, the Hombre Muerto North Lithium Project is adjacent to POSCO's billion-dollar lithium development, which has already started production.

According to reports, the exploration conducted at the site has shown the presence of a NI 43-101 compliant resource estimate of approximately 1,583,200 tonnes of Lithium Carbonate Equivalent (LCE). This estimate features an average lithium grade of 736 mg/L, with specific tonnages categorized as measured and indicated. The significant volume of resources indicates a growing potential for future lithium production.

Future Developments

On April 30, 2024, a Preliminary Economic Assessment outlined the feasibility of developing a lithium carbonate project capable of producing 15,600 tonnes annually. Following this positive assessment, Lithium South is preparing to advance the project into the Feasibility Study phase, a crucial step before any construction and production can commence.

Under the leadership of President and CEO Adrian F.C. Hobkirk, Lithium South is poised for continued growth in the lithium sector. Investors and shareholders are encouraged to reach out for more information and remain updated on further developments.

Conclusion

Lithium South Development Corporation's strides in finalizing its agreement with POSCO Argentina SAU reflect the dynamic nature of the lithium market and the increasing demand fueled by the renewable energy transition. As the company progresses in securing its future with the Hombre Muerto North Lithium Project, both stakeholders and the broader industry will be watching closely. With lithium becoming increasingly indispensable in the global push for cleaner energy, Lithium South's efforts are of significant interest for investors and communities alike.