Lithium South Announces Closing of Final Tranche of Non-Brokered Private Placement

February 17, 2021 / Vancouver, BC / Lithium South Development Corporation (the “Company”) (TSX-V: LIS) (OTCQB: NRGMF) (Frankfurt: OGPQ), announces that, further to its news release dated January 19, 2021, it has closed its second and final tranche of its non-brokered private placement (the “Private Placement”) issuing an aggregate of 6,910,000 units (the “Units”) at a price of $0.34125 per Unit raising gross proceeds of $2,358,037.50. The Company issued a total of 10,000,000 Units for total gross proceeds of $3,412,500 in both tranches.

Each Unit is comprised of one common share (a “Share”) and one transferable common share purchase warrant (a “Warrant”). Each Warrant will allow the holder to purchase one Share of the Company at a price of $0.455 per Share for a period of five years from the date of closing of the Private Placement.

Proceeds of the Private Placement will be used for general working capital purposes and to advance the Company’s HMN Lithium Project, located in Salta Province, Argentina. The 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, who acquired their ground from Galaxy Resources Ltd. for US$280 million. The Company completed a Preliminary Economic Assessment of the HMN Li Project in 2019, and the property has two pumping wells installed. The next phase of development will include moving the project to a pre-feasibility. In addition, the Company is evaluating several new extraction technologies for lithium production which may be applicable to the project.

All securities issued will be subject to a four month hold period.

Due to high demand, the subscribers were pro-rated equally to accommodate all investors. The Company will be issuing refunds to investors who remitted the full subscription amount and expects to have the refunds issued by end of February 2021.

The Company paid finder’s fees of $162,234.81 and 575,472 finder’s warrants (the “Finder’s Warrants”) to Public Eye Consulting Busche, Nathan Rotstein, Canaccord Genuity Corp., Haywood Securities Inc., PI Financial Corp. and Richard Savage. The Finder’s Warrants are non-transferable and exercisable at $0.455 per Finder’s Warrant for a period of 5 years.

In addition, the Company is pleased to announce that it has entered into consulting agreements with Market IQ Media Group Incorporated (“Market”), Axe Communications Inc. (“Axe”), Maynard Communication, Limited (“Maynard”) and HE Capital Markets (“HE”) (each, a “Consulting Agreement”), for media consulting, digital media campaigns, and multimedia services.

Market, Axe and Maynard consulting agreements have a twelve-month term which commenced on February 1, 2021. Pursuant to these Consulting Agreements, the Company paid in advance fees totaling $52,500 to Market and Axe as well as $407,088 to Maynard. The consulting agreement with HE is month to month at USD$60,000 per month.

On behalf of the board of directors of NRG Metals Inc.:

Adrian F. C. Hobkirk
President and Chief Executive Officer

Investors / Shareholders Call 855-415-8100 / ahobkirk@nrgmetalsinc.com
W: www.nrgmetalsinc.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.