Maricunga Lithium Brine Project Status

Lithium Power International Limited (ASX: LPI) (“LPI” or the “Company”) has become aware of recent media speculation pertaining to the status of its Maricunga Project tenements and the Company’s market disclosure. LPI refutes the information in the news articles (AFR online, Street Talk 16/7/23, reporting on a Chilean newspaper article) and confirms that the market has been fully informed, as repeated below.

On the evening of Thursday, 20 April 2023 (Chilean time), Chilean President Gabriel Boric formally announced the Chilean National Lithium Policy (“NLP” or “Policy”) on National Television. This initial speech outlined the Policy in relation to the Atacama Salar and the two producing lithium brine companies. A subsequent speech was given by President Boric on Friday, 21 April 2023 (Chilean time), discussed the other Chilean lithium brine projects, including the Company’s’ project on the Maricunga salar.

On Monday 24 April 2023, the Company, aware of its ASX Continuous Disclosure obligations, provided a comprehensive analysis of the Policy and the effect on its Maricunga project. Shareholders and Investors were also invited to attend an investor conference call, hosted by LPI’s Chief Executive Officer, Cristobal Garcia-Huidobro, on Monday 24 April 2023, at 12.00pm (Noon) AEST, to discuss the NLP further. This webinar was very well attended.

For ease of reference, the key points from this announcement are contained in an Appendix to this ASX release.

The Company also provided further information on NLP in the March 2023 Quarterly Activities Report, released to ASX on Friday 28 April 2023.

In response to the content of the latest article, LPI informs the following:

• The standing of its concessions and permitting according to Chilean law is solid and there are not, nor have there ever been, judicial processes that have had the purpose of questioning the aptitude, rights and capacity to exploit Lithium from Mining Properties constituted prior to the year 1979.
• In addition , all rights have been confirmed and published by various administrative bodies of the State of Chile, including the Environmental Approval RCA Nº 0094/2020 ratified by the Committee of Minister in January 2022, and the Chilean Nuclear Energy Commission permit (CCHEN) Resolution Nº 039/2018.
• These have also been ratified by resolutions of various superficial land easements rulings of different Ordinary Courts and the Illustrious Court of Appeals of Copiapó
• Furthermore, all the previous have been ratified in the recent ruling issued by the Hon. Supreme Court on April 5, 2023.
• This has been reinforced by Legal Opinions presented during the last three years from several large and specialist law firms in Chile.
• Notwithstanding the foregoing, the company has requested the legal opinion from the most experience and well known Chilean lawyers, who, having the respective background information, have not only confirmed the aptitude, rights and capacity of its Pre-79 Assets to exploit Lithium, but they have also carried out a solid analysis and interpretation of the current Organic Constitutional and legal norms, included in the recent ruling issued by the Hon. Supreme Court on April 5, 2023. Thus, it is worth noting for her career and professional prestige, the former Codelco Prosecutor and former Lawyer member of the Hon. Supreme Court, expert in mining law Mrs. Laura Novoa; the lawyer, professor and tenured academic of the PUC in Civil Law, the most prestigious Law School in Chile, Mr. Víctor Vial; the former lawyer member of the Constitutional Court and professor Mr. Enrique Navarro; the academic in civil law of the University of Concepción and former member of the Hon. Supreme Court Mr. Daniel Peñailillo; the current lawyer member of the Hon. Supreme Court and professor Ricardo Abuabuad and the prominent civil law professor and former member of the AC of Santiago, Iñigo de la Masa.

LPI has absolute confidence in the Chilean legal system and in its strict compliance by its authorities, including Ministers, where only the Courts have the jurisdiction to interpret laws. LPI confirms that there are not, nor have there ever been, judicial processes that have had the purpose of questioning the aptitude, rights and capacity to exploit Lithium from Mining Properties constituted prior to the year 1979.

Click here for the full ASX Release

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