China Union and Lithium Chile receive Investment Canada Act notice

TSX Venture Exchange: LITH

OTC-QB: LTMCF

CALGARY, ALBERTA – TheNewswire - August 17, 2026 - Lithium Chile Inc. (“ Lithium Chile ” or the “ Company ”) and China Union Holdings Ltd. (“ China Union ” or “ CUH ”) have received a notice pursuant to subsection 25.2(1) of the Investment Canada Act (the “ ICA ”) in connection with the proposed sale by Lithium Chile to China Union of all of the outstanding shares of Argentum Lithium S.A. (“ Argentum ”) (the “ Transaction ”).

The Company originally announced the Transaction on December 22, 2025. Shortly thereafter, on January 7, 2026, the Company wrote to Innovation, Science and Economic Development Canada (“ISED”) setting out its position that Argentum is not a Canadian company, does not own Canadian assets, has no employees or place of business in Canada, and does not satisfy the criteria contemplated by paragraph 25.1(c) of the ICA. The Company did not receive a response to that letter prior to receipt of the section 25.2 notice.

The notice states that the Director of Investments has reasonable grounds to believe that the Transaction could be injurious to national security and that an order for further review of the Transaction may be made under subsection 25.3(1) of the ICA.

Lithium Chile and China Union are reviewing the notice with their respective legal advisors and considering the options available to them. Lithium Chile’s position is that the sale of a foreign asset is outside the jurisdiction of ISED and intends to forcefully advance that position and seek all remedies available.

The Company will provide further updates regarding the Transaction and the ICA process as material developments occur.

ABOUT LITHIUM CHILE

Lithium Chile Inc. is an exploration company with a portfolio of 11 properties spanning 106,136 hectares in Chile and 29,245 hectares on the Salar de Arizaro in Argentina. The Company has successfully advanced its Arizaro project with the completion of an NI 43-101 compliant Resource Report, a Preliminary Economic Assessment and a Prefeasibility Study which are all accessible on Sedar+.ca under Lithium Chile’s profile.

ISSUER CONTACT

To find out more about Lithium Chile, please contact:

Steven Cochrane, President and CEO via email: steve@lithiumchile.ca , or

Michelle DeCecco, COO via email: michelle@lithiumchile.ca or phone: +1 587-287-9355

FORWARD LOOKING STATEMENTS AND RISK FACTORS:

This news release contains certain statements that may constitute “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking information in this news release includes, but is not limited to, statements regarding the proposed sale of the shares of Argentum to China Union; the process under the ICA; the possibility of an order for further review being made under subsection 25.3(1) of the ICA; the parties’ engagement with ISED; the options available to the parties in response to the notice; and the ability of the parties to complete the Transaction on the terms contemplated, or at all.

Forward-looking information is based on management’s current expectations, estimates, assumptions and projections and is subject to known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. Such risks and uncertainties include, without limitation, the possibility that an order for further review may be made under the ICA; the timing and outcome of the ICA process; the possibility that conditions, undertakings or other requirements may be imposed in connection with the Transaction; the possibility that the Transaction may be delayed, modified or not completed; and other risks described in the Company’s continuous disclosure filings available under its profile on SEDAR+.

Although the Company believes that the expectations and assumptions reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because the Company can give no assurance that such expectations will prove to be correct. The forward-looking information contained in this news release is provided as of the date hereof, and the Company undertakes no obligation to update or revise such information to reflect new events or circumstances, except as required by applicable securities laws.

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TheNewsWire

August 17, 2026 - 5:10 AM PDT

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