TSX-V: LIS | OTCQB: LISMF | Frankfurt: OGPQ

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Lithium South Closes Non-Brokered Private Placement

December 6, 2021 / Vancouver, BC / Lithium South Development Corporation (the “Company”) (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ). Subject to the approval of the TSX Venture Exchange and further to the news release of Nov. 24, 2021, Lithium South Development Corp. has closed its non-brokered private placement, issuing 7.7 million units at a price of 60 cents per unit for gross proceeds of CDN $4.62million. 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 $0.75 per Share for a period of three (3) years (the “Expiry Date”) from the date of closing of the Private Placement.

The Company also announces that, subject to the approval of the Exchange, it has closed its Private Placement issuing 2,300,000 Units at a price of $0.65 per Unit for gross proceeds of $1,495,000. Each Unit consists of one Share and one Warrant. Each Warrant will allow the holder to purchase one Share of the Company at a price of $0.82 per Share until the Expiry Date.
Proceeds of the Private Placements will be used to advance the Company’s HMN Lithium Project, located in Salta Province, Argentina. A drill program is currently being designed to potentially increase the present lithium resource, and process test work is underway. In addition, the funding will be used to undertake an advertising campaign as announced November 24, 2021, and for general working capital purposes.

The Company paid finder’s fees of CDN $421,600 and 696,000 finder’s warrants (the “Finder’s Warrants”) to Canaccord Genuity Corp. and PI Financial Corp. The Finder’s Warrants are non-transferable and exercisable until the Expiry Date at prices of $0.75 to $0.82 per Share.

All securities issued will be subject to a four month hold period and the Exchange Hold Period.

The Company confirms that the price of the Units in the Private Placements was determined based on the closing market price of the Shares of the Company on the dates the Company announced the Private Placement and/or obtained Exchange acceptance to the pricing, in accordance with the policies of the Exchange. Subscription agreements received following the increase to the trading price of the Company’s Shares were priced at $0.65 per Unit.

About Lithium South

Lithium South is focused on developing the Hombre Muerto North Lithium Project (HMN Li Project), located on the Hombre Muerto Salar, a major 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 US $280 million. The Company completed a Preliminary Economic Assessment of the HMN Li Project in 2019, utilizing conventional evaporation extraction.

The Company is evaluating conventional evaporation as a process method, and Direct Lithium Extraction (DLE) as an alternative method. Three candidates for DLE are currently being evaluated. Two, 2,000-gallon bulk brine samples are in transit; one sample is heading to Oakland California for testing by Lilac Solutions, and the second sample is heading to Chengdu China for testing by Chemphys. DLE test work is also currently underway in Salta, Argentina by Eon Minerals.

In addition, the Company is planning to potentially expand the known resource by drilling various areas of interest identified in a recent TEM survey. The Company is awaiting approval of drill permits currently under review by the Mining Secretariat in Salta, Argentina.

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

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.

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 constitutes 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.