Lithium South Announces Closing of $3.9M: Non-Brokered Private Placement

June 12, 2024 / Vancouver, BC / Lithium South Development Corporation (the “Company” or “Lithium South”) (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) is pleased to announce that, further to its news releases of May 22, 2024, May 29, 2024 and June 5, 2024, it has closed its non-brokered private placement (the “Private Placement”) raising gross proceeds $3,952,747.80 through the issuance of 13,175,826 units (the “Units”) at $0.30 per Unit. 

Each Unit is comprised of one common share of the Company (the “Shares”) and one transferable common share purchase warrant (the “Warrants”). Each Warrant allowing the holder to purchase an additional Share of the Company at a price of $0.40 for a period of five years from the date of closing of the Private Placement.  

The net proceeds from the Private Placement will be used for the continued development of the Company’s flagship HMN Lithium Project, located in Salta, Argentina, and for general working capital purposes.  

The Company paid finder’s fees in the aggregate of $252,219.84 cash and 840,733 finder’s warrants (the “Finder’s Warrants”) to Leede Jones Gable Inc., Research Capital Corporation, Ventum Financial Corp., Canaccord Genuity Corp. and RCI Capital Group.  The Finder’s Warrants are non-transferable and exercisable at $0.40 per Share for a period of five years from the closing date of the Private Placement. 

Additionally, the Company paid Canaccord Genuity Corp., as lead finder for the Private Placement, a corporate Advisory Fee in the amount of $45,000.  The Advisory Fee was paid through the issuance of 150,000 Units, consisting of 150,000 Shares and 150,000 Warrants.  The Warrants are exercisable on the same terms as the Finder’s Warrants.

The Private Placement remains subject to the final approval of the TSX Venture Exchange (the “Exchange”).

All securities issued in connection with the Private Placement are subject to a mandatory hold period of four months and one day from the issue date and the Exchange Hold Period expiring on October 8, 2024.

About Lithium South

Lithium South owns 100% of the HMN Li Project located in Salta and Catamarca Provinces, Argentina, in the heart of the lithium triangle.  The Salar del Hombre Muerto has a history of lithium production, with Arcadium Lithium (as a result of the Alkem and Livent merger) in operation for over twenty-five years, in an area just south of the HMN Li Project.  The HMN Li Project is surrounded by a US$4 billion lithium development under construction by POSCO (Korea) and the Sal de Vida Project under development by Arcadium. Exploration work to date has delineated a National Instrument 43-101 compliant 1,583,200 tonne Lithium Carbonate Equivalent (“LCE”) Resource (See Note 1 below) on the Alba Sabrina, Natalia Maria, and Tramo claim blocks, three of five non-contiguous blocks that make up the HMN Lithium Project.  A recent Preliminary Economic Assessment announced on March 04, 2024, and with report to follow, delineates the exciting potential of the 15,600 tonne per year lithium carbonate project. With pumping well installation underway, Lithium South is transitioning from being a lithium explorer to becoming a lithium developer.

On behalf of the Board of Directors

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

The technical and scientific information in this press release was reviewed and approved by Mr. William Feyerabend, CPG, a consulting geologist, and a Qualified Person under National Instrument 43-101, who also participated in its production.

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.

Note 1: A report titled Updated Mineral Resource Estimate – Hombre Muerto North Project, NI 43-101 Technical Report Catamarca and Salta, Argentina, Mark King, PhD, PGeo, Peter Ehren, M.Sc, MAusIMM, September 5th, 2023.

This news release contains certain “forward-looking statements” within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitute forward-looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward-looking statements.  The reader is cautioned not to place undue reliance on forward- looking statements.  We seek safe harbor.