Corporate Update

January 7th, 2021 / Vancouver, BC / Lithium South Development Corporation (the “Company”) (TSX-V: LIS) (OTCQB: NRGMF) (Frankfurt: OGPQ). The Company is providing an update on test work announced September 29th, 2020, currently underway on the Hombre Muerto North Lithium project (HMN project), Argentina. Test work is being conducted by Sino Lithium Materials Pty. Ltd. and Chengdu Chemphys Chemical Industry Co. for the advancement and development to potential lithium production, of the Hombre Muerto North lithium project (HMN Li project), located in Salta and Catamarca provinces, Argentina.

Sino Li is developing a direct lithium extraction process which could represent an alternative to the conventional evaporation process currently used by the industry. The process under development would potentially shorten lithium recovery time and provide higher recovery of lithium. The on-site environmental footprint is projected to be significantly smaller than current industry methods which require the construction of large evaporation ponds. Work to date by an 11-member technical team has been conducted at Chemphys’s production and technology centre outside Chengdu, China, which is an ISO 9000 and ISO 14001 certified facility.

To validate test work completed to date by Sino Li and Chemphys, Hains Technology Associates of Toronto, Ont., Canada, has been retained to provide a technical review and qualified person validation. Check sampling has been completed and results are currently under review. The Company anticipates publishing the results within the next two weeks.

The HMN project is located on the Hombre Muerto salar, the premier lithium producing salar in Argentina. The property is adjacent to land under development by Korean multinational corporation POSCO, which acquired its ground from Galaxy Resources Ltd. for $280-million (U.S.). The company completed a preliminary economic assessment of the HMN Li project in 2019, using conventional extraction technology. The project is located in a mining-friendly province and has two pumping wells installed.

Chemphys was established in 1998 and has operated its ISO 9001:2000 certified facilities since 2000. The company is a leader in high-purity lithium carbonate and battery-grade lithium hydroxide for the manufacturing of cathode materials and electrolytes of lithium-ion batteries. Its products are recognized by all major lithium ion battery materials manufacturers and it is an integral part of the electric vehicle supply chain.

On behalf of the board of directors of Lithium South Development Corporation

Adrian F. C. Hobkirk
President and Chief Executive Officer

Investors / Shareholders: 855-415-8100 / ahobkirk@lithiumsouth.com
Website: www.lithiumsouth.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has not reviewed the content of this news release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this news release.

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements.

This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities.  Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.