Lithium South Environmental Impact Assessment

Rhea-AI Summary

Lithium South Development (OTCQB: LISMF) has received feedback from the Mining Secretariat of Salta Province, Argentina, regarding their Environmental Impact Assessment (EIA) for the Hombre Muerto North Lithium Project. The company is preparing a comprehensive response to obtain final approval, which is crucial for constructing a Pilot Plant for their planned Definitive Feasibility Study.

The response will include a Standard Penetration Test for camp site stability, hydrogeological verification with new monitoring protocols, enhanced mitigation plans, and community engagement initiatives. The company plans to submit the technical dossier within ten business days and will soon release a work plan for its Feasibility Study.

Positive

• Progress towards EIA approval for the HMN Li Project
• Comprehensive environmental and technical assessment approach
• 100% ownership of the Hombre Muerto North Lithium Project
• Planned implementation of enhanced monitoring and mitigation protocols

Negative

• Additional regulatory requirements before final EIA approval
• Potential delays in project timeline due to regulatory process
• Construction of Pilot Plant contingent on EIA approval

VANCOUVER, BC, June 25, 2025 /PRNewswire/ -- Lithium South Development Corporation (the "Company" or "Lithium South") (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) is pleased to announce it has received a response from the Mining Secretariat of Salta Province, Argentina, regarding the  Environmental Impact Assessment (E.I.A.) for the Hombre Muerto North Lithium Project (HMN Li Project), filed in September 2024. The Company is now completing a response back to the Mining Secretariat to obtain final approval. 

The E.I.A is an important part of the further development of the HMN Li Project as it will permit the construction of a Pilot Plant for a planned Definitive Feasibility Study. The response is being completed by Lithium South's multidisciplinary team of geotechnical, hydrogeology, environmental and community relations engineers and consultants. The work will include:

• Targeted Field Campaign: a Standard Penetration Test (SPT) will confirm camp site stability while providing key data for foundation design.
• Hydro-geological verification: fresh groundwater-level readings will be collected across the entire piezometer network, with new protocols for monthly monitoring to ensure continuous oversight of the salar's water balance.
• Data integration and rapid reporting: Field results will feed directly into an expanded hydro-geological model, updated impact matrices, and an enhanced mitigation plan that addresses soil integrity, surface stability, erosion control, and ecosystem safeguards.
• Community transparency: summary findings will be shared with local stakeholders, reinforcing the Company's commitment to open dialogue and socio-environmental responsibility.
• Formal submission within ten business days: the Secretariat will receive a comprehensive technical dossier, including QA/QC logs, trend analyses, and a proactive engagement schedule for ongoing compliance reviews.

Building on this regulatory momentum, Lithium South will release a concise work plan for its Feasibility Study in the near future, outlining the project's optimized flowsheet, updated resource model, and expanded ESG framework designed to fast-track value creation for shareholders and the Province of Salta.

"Every request from the Mining Secretariat is an opportunity to demonstrate the rigor of our environmental stewardship and the professionalism of our team. We are proud to deliver best-in-class technical responses on an accelerated schedule as we advance the 100% owned Hombre Muerto North Lithium Project," said Fernando Villarroel, Chief Operating Officer and Director.

About Lithium South Development Corp.

Lithium South owns 100% of the HMN Li Project located in Salta and Catamarca Provinces, Argentina, in the heart of the lithium triangle.  The Salar del Hombre Muerto has a history of lithium production, with Rio Tinto Lithium (Formerly Arcadium Lithium and recently purchased by Rio Tinto Corporation for US$6.7 billion in March 2025) in operation to the south of the HMN Li Project for over twenty-five years.  The HMN Li Project is adjacent to the east with a U.S. billion-dollar lithium development by POSCO (Korea), now in lithium production. Exploration work to date has delineated a NI 43-101 compliant 1,583,200 tonne Lithium Carbonate Equivalent ("LCE") Resource at an average grade of 736 miligrams per liter lithium (mg/L Li ) , with 1,463,000 tonnes in the measured category  and 120,000 tonnes in the indicated category, at a cutoff grade of 500 mg/l Li (Note 1 below) on the Alba Sabrina, Natalia Maria, and Tramo claim blocks, three of five non-contiguous blocks that make up the HMN Li Project (View Report: www.lithiumsouth.com/wp-content/uploads/2023-technical-report-NI43-101.pdf).  A recent Preliminary Economic Assessment (Note 2 below) April 30, 2024, delineates potential to develop a 15,600 tonne per year lithium carbonate project.  LIS is now moving the project forward to a Feasibility Study.

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

The contents of this press release and the scientific information contained herein was reviewed by Mr. William Feyerabend, a Consulting Geologist and a Qualified Person under N.I. 43-101. Mr. Feyerabend participated in the writing of this press release and approves the content.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the 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.

Note 1: A report titled, Updated Mineral Resource Estimate – Hombre Muerto North Project, NI 43-101 Technical Report Catamarca and Salta, Argentina, Mark King, PhD, PGeo, Peter Ehren, M.Sc, MAusIMM, September 5th, 2023.

Note 2: The report titled, N.I. 43-101 Preliminary Economic Assessment Hombre Muerto North Lithium Project, Salta, Argentina, was completed by Knight Piesold Consulting and JDS Energy and Mining Inc., and on SEDAR April 30, 2024

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.

Logo: https://mma.prnewswire.com/media/1815015/5387198/Lithium_South_Development_Corporation_Logo.jpg 

View original content to download multimedia:https://www.prnewswire.com/news-releases/lithium-south-environmental-impact-assessment-302490734.html

SOURCE Lithium South Development Corporation

FAQ

What is the current status of LISMF's Environmental Impact Assessment for the HMN Li Project?

LISMF has received feedback from the Mining Secretariat of Salta Province and is preparing a comprehensive response to obtain final approval, with submission planned within 10 business days.

What key components are included in Lithium South's EIA response for the HMN Li Project?

The response includes Standard Penetration Testing for camp stability, hydrogeological verification, enhanced mitigation plans, and community engagement initiatives.

Why is the Environmental Impact Assessment important for Lithium South's HMN Li Project?

The EIA approval is crucial as it will permit the construction of a Pilot Plant necessary for the planned Definitive Feasibility Study.

What are the next steps for LISMF after submitting the EIA response?

After submission, the company plans to release a work plan for its Feasibility Study, including an optimized flowsheet, updated resource model, and expanded ESG framework.

Who owns the Hombre Muerto North Lithium Project?

The HMN Li Project is 100% owned by Lithium South Development Corporation.