Lithium Argentina AG

Caucharí-Olaroz Construction and Ramp-up Risk

Construction and ramp-up at the Caucharí-Olaroz Project continue to progress towards completion. Construction and ramp-up timelines and costs are subject to variance due to a number of different factors, including, but not limited to, the availability of labour, supplies and equipment, the performance of suppliers and contractors, changes to designs or construction plans, weather conditions, any workforce accommodations, shipping delays, and the timing for permitting and other government approvals. Many of these risks are described in further detail in other risk factors in this AIF. Minera Exar has experienced delays in the scheduled construction completion date of the Caucharí-Olaroz Project and there is a risk that it may do so again. In addition, costs of construction and ramp-up are dependent on the accuracy of prior estimates, and are prone to cost overruns and inflation. Minera Exar has increased the capital expenditure estimate for construction of the Caucharí-Olaroz Project and there is a risk of future increases in capital costs as Minera Exar nears the completion of construction and ramp-up. Changes to construction and ramp-up timelines and costs could have a significant effect on the financial prospects of the Caucharí-Olaroz Project and the Company. Given the inherent risks and uncertainties associated with the development of a new mine, there can be no assurance that construction and ramp-up will continue in accordance with current expectations or that related costs will be consistent with the budget, nor can there be any assurance that the ramp-up in production quality and quantity at the Caucharí-Olaroz Project will take place in accordance with current expectations, or that the Caucharí-Olaroz Project will operate as planned.