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LSC Lithium Acquires Strategic Tenements from Orocobre and Option from Advantage Lithium and Consolidates Control of the Centre of the High Grade Lithium Salinas Grandes Salar

TORONTO, Jun 5, 2017 (Canada NewsWire via COMTEX) — All dollar
amounts are in U.S. dollars unless otherwise indicated.

LSC Lithium Corporation (the “Company” or “LSC”) (LSC) is
pleased to announce that it has completed the previously
announced acquisition of:

 -- the tenements and other mineral rights held by Orocobre Limited ("Orocobre"), South American Salars SA ("SAS") and Borax Argentina SA ("BA") (collectively, the "Orocobre Group") located in the Salinas Grandes Salar, in Salta and Jujuy provinces, Argentina, covering approximately 25,027 hectares; and -- the option from Advantage Lithium Corporation ("Advantage") over the 1,471 hectare Stella Marys Project located in the Salinas Grandes Salar, in Salta province, Argentina. 

These acquisitions increase LSC’s land package on the Salinas
Grandes Salar bringing LSC’s portfolio of lithium brine salars
to approximately 300,000 hectares, which represents extensive
lithium prospective salar holdings in Argentina, and which,
together with LSC’s existing tenements, cover 86% in the centre
of the Salar in Salta province and 45% of the centre of the
Salar in Jujuy province. In the Jujuy province, a large portion
of the Salar is also controlled by the cooperatives.

TERMS OF THE ACQUISITION OF THE SALINAS GRANDES TENEMENTS

Pursuant to the agreement made on March 28, 2017, as amended on
June 2, 2017 (the “LSC-Orocobre Agreement”) among LSC, its
Argentine subsidiary Lithium S Corporaiton S.A. (“LSCSA”), and
the Orocobre Group, LSC has (through LSCSA) acquired: (a) all
tenements held by the Orocobre Group located in the Salinas
Grandes Salar, in Salta and Jujuy provinces, Argentina, (the
“Salinas Grandes Tenements”); (b) interests in the portion of a
mining exploration application (cateo) that is in proximity to
the Salinas Grandes Tenements in Jujuy province; (c) a royalty
held by Orocobre in certain tenements located on the Salar de
Pozuelos in Salta province owned by LitheA Inc. (which company
is being acquired by LSC as disclosed in its news release dated
March 15, 2017); and (d) certain usufruct rights to extract
borates located in the Salinas Grandes Salar.

In connection with, and as consideration for, the acquisition,
LSCSA:

 (a) has transferred to Orocobre three tenements in the Salar de Olaroz located in Jujuy province covering approximately 3,821 hectares; (b) has paid to Orocobre $4 million at closing; (c) will pay to Orocobre $1 million on each of the 1st and 2nd anniversaries of closing and $944,630 on the 3rd anniversary of closing; and (d) has granted to an affilate of Orocobre a 2% royalty on the brine concentrate produced from the Salinas Grandes Tenements, calculated using the same methodology applied by Orocobre and its affiliates for the calculation of the royalties paid by Orocobre or its affiliates to the provincial government of Jujuy for Orocobre's last two fiscal years (the "Salinas Grandes Royalty") regardless of any retroactive or future changes to such methodology made after December 31, 2016. 

Payment of the deferred cash consideration may be postponed to
the 4(th) anniversary of closing and/or subject to reduction of
up to $1,222,712 at LSC’s option in the event that valid title
to certain mineral interests covering up to 4,503 hectares
cannot be transferred to LSCSA within three years of closing.
LSC has guaranteed the payment obligations of LSCSA for the
deferred cash consideration.

In addition, each of Orocobre and BA has agreed to: (a) a 10
year exclusion area covering the 10 km area from the external
perimeter of any of the Salinas Grandes Tenements, and (b) a 10
year non-interference zone respecting all properties held by
LSC located south of Río Las Burras.

TERMS OF THE ACQUISITION OF STELLA MARYS PROJECT

Pursuant to the agreement made on March 28, 2017 (the
“LSC-Advantage Agreement”) between LSC and Advantage, LSC has
acquired from Advantage its option over the 1,471 hectare
Stella Marys Project located in the Salinas Grandes Salar, in
Salta province, Argentina (the “MSR Option”). The MSR Option is
governed by an agreement with Minera Santa Rita SRL (“MSR”)
dated October 27, 2016 (the “MSR Option Agreement”) and the
LSC-Advantage Agreement.

On closing, Advantage assigned the MSR Option to LSC in
exchange for:

 (a) LSC making aggregate cash payments of approximately $690,000 to Advantage in reimbursement of option payments and related expenses previously paid by Advantage pursuant to the MSR Option Agreement and a commitment to pay up to an additional $48,000 in finder's fees payable by Advantage; (b) LSC issuing 256,520 LSC common shares to Advantage as reimbursement for the 600,000 Advantage shares previously issued by Advantage to MSR pursuant to the MSR Option Agreement. 

LSC has the right to acquire the Stella Marys Project pursuant
to the exercise of the MSR Option prior to Setpember 21, 2017
by:

 (a) making a cash payment of $650,000 to MSR; (b) issuing to Advantage a number of LSC common shares (calculated on the basis of the proportionate closing prices of the LSC common shares and Advantage common shares on the trading day preceding the date of closing of the MSR Option exercise), as reimbursement for the issuance by Advantage of the 900,000 Advantage common shares to MSR in connection with the exercise of the MSR Option; and (c) entering into a royalty agreement with Advantage with respect to a 2% royalty on the brine concentrate produced from the Stella Marys Project that will be granted by LSC to Advantage, calculated using the same methodology as used for the Salinas Grandes Royalty. 

Advantage has agreed to: (a) a 10 year exclusion area covering
the 10 km area from the external perimeter of any of the
Salinas Grandes Tenements, and (b) a 10 year non-interference
zone respecting all properties held by LSC located south of Rio
Las Barros, subject in each case to an exclusion in respect of
tenements held by Advantage in the Guayatayoc area.

The 256,520 LSC common shares issued to Advantage are subject
to a 4-month hold period until October 3, 2017.

Qualified Person/Data Verification

The scientific and technical information included in this press
release related to LSC tenements is based upon information
prepared and approved by Donald H. Hains, P.Geo. Donald H.
Hains is a qualified person, as defined in NI 43-101 and is
independent of LSC, Orocobre and Advantage. No Qualified Person
has reviewed or verified any information in this press release
related to the Orocobre tenements to be acquired by LSC.

ABOUT LSC LITHIUM CORPORATION:

LSC Lithium is an emerging lithium producer that has amassed a
large portfolio of prospective lithium rich salars. LSC is
focused on developing its tenements located in five salars:
Pozuelos, Pastos Grandes, Rio Grande, Salinas Grandes and Jama.
All LSC tenements are located in the “Lithium Triangle,” an
area at the intersection of Argentina, Bolivia and Chile where
the world’s most abundant lithium brine deposits are found. LSC
Lithium has a land package portfolio totaling approximately
300,000 hectares, which represents extensive lithium
prospective salar holdings in Argentina.

Forward-Looking Statements

Certain statements contained in this news release constitute
forward-looking information. These statements relate to future
events or future performance, including statements as to the
following: the timing, ability and right to acquire any
tenements or exploration applications from the Orocobre Group
after closing of the transaction; the timing or completion of
the acquisition of the Stella Marys Project through exercise of
the MSR Option; the amount of hectares and expected control by
LSC of the tenements on Salinas Grande after closing of the
acquisitions. The use of any of the words “could”, “intend”,
“expect”, “believe”, “will”, “projected”, “estimated” and
similar expressions and statements relating to matters that are
not historical facts are intended to identify forward-looking
information and are based on LSC’s current belief or
assumptions as to the outcome and timing of such future events.
Whether actual results and developments will conform with LSC’s
expectations is subject to a number of risks and uncertainties
including factors underlying management’s assumptions, such as
risks related to: title of the Orocobre and Advantage Lithium
tenements and their ability to be transferred post-closing;
title, permitting and regulatory risks; exploration and the
establishment of resources and reserves on the Salinas Grande
tenements or other LSC properties; volatility in lithium prices
and the market for lithium; exchange rate fluctuations;
volatility in LSC’s share price; the requirement for
significant additional funds for development that may not be
available; changes in national and local government
legislation, including permitting and licensing regimes and
taxation policies and the enforcement thereof; regulatory,
political or economic developments in Argentina or elsewhere;
litigation; title, permit or license disputes related to
interests on any of the properties in which the Company holds
an interest; excessive cost escalation as well as development,
permitting, infrastructure, operating or technical difficulties
on any of the Company’s properties; risks and hazards
associated with the business of development and mining on any
of the Company’s properties. Actual future results may differ
materially. The forward-looking information contained in this
release is made as of the date hereof and LSC is not obligated
to update or revise any forward-looking information, whether as
a result of new information, future events or otherwise, except
as required by applicable securities laws. Because of the
risks, uncertainties and assumptions contained herein,
investors should not place undue reliance on forward-looking
information. The foregoing statements expressly qualify any
forward-looking information contained herein. For more
information see the Company’s filing statement on SEDAR at
www.sedar.com.

Neither the TSX Venture Exchange Inc. 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 Inc. has neither approved nor
disapproved the contents of this press release.

SOURCE LSC Lithium Corporation

View original content with multimedia: http://www.newswire.ca/en/releases/archive/June2017/05/c6077.html

SOURCE: LSC Lithium Corporation

LSC Lithium Corporation, Jessica Helm, VP, Corporate Communications and Investor Relations, Suite 3001, 1 Adelaide Street East, Toronto, Ontario M5C 2V9, (416) 867 9298, Email: info@lsclithium.com, Web: lsclithium.com 

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