Lithium Chile Inc. Updates Shareholders on Proposed Argentum Sale and Investment Canada Act Review

CALGARY, ALBERTA — August 19, 2026 — Leads & Copy — Lithium Chile Inc. is providing an update on its proposed sale of Argentum Lithium S.A. to China Union Holdings Ltd. following a notice received under the Investment Canada Act (ICA). Both Lithium Chile and China Union remain committed to closing the transaction.

The Company continues to challenge the jurisdictional basis for the review, maintaining that the proposed sale of Argentum, an Argentine corporation whose sole asset is an interest in an Argentine mineral project, does not constitute an investment in a Canadian business contemplated by the ICA. Argentum does not operate, maintain a place of operations, employ individuals in Canada, or own assets in Canada related to its operations.

Lithium Chile believes the timing of the notice raises concerns regarding regulatory certainty and procedural fairness. The Company proactively notified Innovation, Science and Economic Development Canada (ISED) on January 7, 2026, outlining its position that the sale fell outside the ICA's applicable provisions. Over seven months passed without a response or indication of a review, during which Lithium Chile continued to provide public updates.

The Company asserts that this regulatory silence created uncertainty for shareholders who were making investment decisions based on the public record. Lithium Chile argues that there should be a reasonable point at which a Canadian public company and its shareholders can rely on the absence of regulatory action, especially after proactive notification and continuous disclosure.

While Lithium Chile and China Union are focused on completing the current transaction, Lithium Chile is also evaluating alternative structures to monetize its interest in the Arizaro Project in compliance with all applicable laws. The regulatory uncertainty also affects Lithium Chile's broader business plans, including the reinvestment of transaction proceeds into its Chilean projects.

“Our message to shareholders is straightforward: China Union remains committed to this Transaction, Lithium Chile remains committed to this Transaction, and we are working together to determine the most effective path forward,” said Steve Cochrane, President and CEO of Lithium Chile. “We were transparent from the beginning. We publicly disclosed the Transaction, proactively notified the federal government, clearly explained our jurisdictional position and continued to keep our shareholders fully informed as the Transaction progressed. After receiving no response for more than seven months, we are understandably concerned by the timing of this notice and the uncertainty it creates for our shareholders. We intend to vigorously defend our position while at the same time evaluating every lawful alternative available to us to complete the transaction.”

Lithium Chile Inc. is an exploration company with properties in Chile and Argentina. The Company has advanced its Arizaro project, with a Resource Report, Preliminary Economic Assessment, and Prefeasibility Study completed and accessible on Sedar+.

Source: Lithium Chile Inc.