Lithium Argentina AG

Caucharí-Olaroz

During 2023, Caucharí-Olaroz reached several important milestones, including the achievement of first lithium carbonate production in June. Between commencement of production and the end of the year, Caucharí-Olaroz exceeded production guidance expectations and produced approximately 6,000 tonnes of lithium carbonate. Since the production of first lithium, the project has achieved 99.5% lithium carbonate content with technical quality specifications that approach battery quality in most specifications. The lithium carbonate plant is producing lithium carbonate at approximately 50% capacity. In March 2024, the project has been able to reach 75% capacity for a limited time. Production levels have been impacted by power disruptions tied in part to adverse weather conditions. There is a mitigation plan being implemented to minimize the effect of unscheduled power outages on the production in the future.

The team is working through the ramp up process, including the integration of the potassium chloride (“KCl”) plant. During mid-2024, it is expected that Caucharí-Olaroz will complete at capacity check to review the functionality of all systems at the facility. Steady state operations close to nameplate capacity of 40,000 tpa should be met by the end of this year.

During the fourth quarter of 2023, the Company’s portion of the sales volumes from Caucharí-Olaroz were sold to Ganfeng, Lithium Argentina’s partner in the project. The pricing of the product reflects the product quality that was produced during the fourth quarter, a discount compared to battery-quality market prices. We expect the lithium

carbonate price for product produced at Caucharí-Olaroz to increase as the quality of product increases and achieves battery-quality consistently.

It is estimated that Caucharí-Olaroz will produce between 20,000-25,000 tonnes of lithium carbonate during 2024. In the current price environment, the project is expected to generate positive cash flow from operations in 2024.

While the current focus at Caucharí-Olaroz remains on the Stage 1 ramp up in production to 40,000 tpa of battery quality lithium carbonate, planning for Stage 2 expansion in targeted production capacity of at least 20,000 tpa continues to advance.