Lithium South Enhances Production Well Drilling Program

Lithium South Development Corporation (referred to as "the Company" or "Lithium South") (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) is excited to report significant advancements at Well PW23-AS-02 within its flagship Hombre Muerto North Lithium Project ("HMN Li Project"). This marks the initiation of the first pumping well situated at the Alba Sabrina claim block. Encompassing an area of 2,089 hectares, Alba Sabrina stands as the largest claim block within the HMN Li Project portfolio, playing a pivotal role in the corporation's lithium development endeavors.

Recent activities conducted at Well PW23-AS-02 have effectively removed sediment buildup, resulting in the emergence of clear brine with robust artesian features. These advancements indicate the possibility of increased brine extraction rates. In order to capitalize on these prospects, the HMN Li Project has secured an 80-kilowatt pump, surpassing the initially intended 50-kilowatt capacity.

Adrian F. C. Hobkirk, President and CEO of Lithium South Development Corporation, comments, "The advancements made on the Alba Sabrina claim block have the potential to bolster our operational capabilities significantly. The forthcoming completion of this pumping test, expected by the end of May, will offer crucial technical insights into the capacity potential of this salar area. We are enthusiastic about the future and remain dedicated to delivering value to our shareholders while responsibly contributing to the global energy transition."

In light of these advancements, Lithium South has opted to considerably augment its well installation initiative. This expansion encompasses the installation of an extra well reaching up to 400 meters within the Alba Sabrina block, along with three additional wells situated in the adjacent Norma Edith and Viamonte blocks. These plans are contingent upon a 50/50 brine share agreement with neighboring company POSCO.

At the same time, the technical team is in the process of preparing the semiannual Environmental Impact Report, which will integrate the expanded drilling initiatives. This report, vital to Lithium South's strategic goals, is scheduled for submission by the end of April.

Lithium South possesses full ownership of the HMN Li Project situated in the Salta and Catamarca Provinces, Argentina, strategically positioned within the renowned lithium triangle. The Salar del Hombre Muerto boasts a rich history of lithium extraction, with Arcadium Lithium (following the Alkem and Livent merger) operating in the vicinity for over twenty-five years. Notably, the HMN Li Project is nestled amidst significant lithium developments, including a US$4 billion project by POSCO (Korea) and the Sal de Vida Project by Arcadium, currently in progress. Exploration endeavors thus far have delineated a National Instrument 43-101 compliant 1,583,200-tonne Lithium Carbonate Equivalent ("LCE") Resource across the Alba Sabrina, Natalia Maria, and Tramo claim blocks—three of the five non-contiguous blocks constituting the HMN Lithium Project. Furthermore, a recent Preliminary Economic Assessment unveiled on March 4, 2024, with a comprehensive report forthcoming, underscores the promising potential of the envisioned 15,600-tonne per year lithium carbonate project. With pumping well installation in progress, Lithium South is in the midst of a transition from a lithium exploration entity to a lithium development enterprise.