Lilac Solutions Achieves 99% Lithium Recovery with Ion Exchange Process

April 13, 2021 / Vancouver, BC / Lithium South Development Corporation (the “Company”) (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt OGPQ) is pleased to provide an update on the continued evaluation of Direct Lithium Extraction (DLE) technology for its Hombre Muerto North Lithium Project (HMN Li Project), located in Salta Province, Argentina.

Lilac Solutions of Oakland California, a lithium extraction company providing technology and services to lithium brine developers, has advised the Company that they have completed their own testing using their patented Ion Exchange (IX) media on a synthetic sample of the HMN Li Project brine, identical in chemical composition to that contained within the projects NI 43-101 Preliminary Economic Assessment previously filed by the Company. The results produced a lithium chloride eluate solution recovering 99% of the lithium with very low reagent consumption. The eluate composition showed high purity and low total dissolved solids. This eluate would be concentrated using reverse osmosis and mechanical evaporation to feed a conventional plant for the production of lithium hydroxide or lithium carbonate. Both acid and base reagents used in the process can be produced on site using a chlor-alkali system. Water consumption was 18 metric tonnes for each tonne of Lithium Carbonate Equivalent produced. The results and values reported were provided by Lilac Solutions and were not conducted in an ISO Certified Laboratory under the supervision of a Qualified Person, and the results presented have not been verified by a Qualified Person.

Conventional lithium extraction involves the construction of large evaporation ponds to concentrate the lithium contained in the raw brine. The costs of pond construction is significant, the environmental footprint is large, and the production lead time is approximately 18 months. These factors contribute to the challenges of applying the traditional evaporation process to meet increasing market demand. Prior Direct Lithium Extraction (DLE) technologies have also struggled due to high water and energy consumption. Lilac’s new lithium extraction process enables rapid and low-cost extraction of lithium from brine with minimal water and energy. The Company is evaluating both conventional evaporation and DLE to determine the optimal process method for the HMN Li Project.

The next phase of test work will involve Lilac expanding test work with a natural brine sample sourced from the HMN Li Project. The results will be analyzed under the supervision of a Qualified Person along with third party ISO Certified laboratory verification. This will provide confirmation of the results on synthetic brine as well as an indication of expected
costs for a commercial scale process.

About Lithium South

Lithium South is focused on developing the HMN Li Project, located on the Hombre Muerto Salar, the premier lithium-producing salar in Argentina. The property is adjacent to land under development by the Korean multinational corporation POSCO, which acquired the ground from Galaxy Resources Ltd. for U.S. $280 million. The Company completed a Preliminary Economic Assessment of the HMN Li Project in 2019, utilizing conventional evaporation extraction. The Company is focused on evaluating alternative extraction methods for the HMN Li Project and plans to become a leader in the application of Direct Lithium Extraction technology at the project level.

About Lilac Solutions

Lilac Solutions is a lithium extraction company located in Oakland, California. It provides lithium developers an alternative to conventional extraction methods utilizing its patented Ion Exchange IX media. Lilac was recently awarded Early Stage Company of the Year 2021 on the Global Cleantech 100 List, and was listed in the American Chemical Society’s C&EN 2020 list of Startups to Watch.

The technical and scientific information contained in this news release was reviewed by Mr. William Feyerabend, a Consulting Geologist and Qualified Person under NI 43-101. Mr. Feyerabend participated in the production of this news release.

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

Adrian F. C. Hobkirk
President and Chief Executive Officer
Investors / Shareholders call 855-415-8100 / website: www.lithiumsouth.com

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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.

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