Lithium Americas Corp.

Lithium Americas Corp.

July 22, 2015 09:23 ET

Lithium Americas Announces Extension of Co-operation Agreement With POSCO

TORONTO, ONTARIO--(Marketwired - July 22, 2015) - Lithium Americas Corp. (TSX:LAC) ("LAC") today announced that, at POSCO's request, it has agreed to extend until September 4, 2015, the Co-operation Agreement between POSCO, LAC, and LAC's Argentinian subsidiary, Minera Exar. The Co-operation Agreement was originally executed in January, 2014, with an eighteen month term.

In addition to the successful operation of the lithium extraction Demonstration Plant previously reported on, the Co-operation Agreement contemplates the construction and operation of a Potassium Demonstration Plant in Jujuy, Argentina, which POSCO is now in the final stages of completing. The extension has been granted to enable the operation and testing of this plant, in contemplation of continuing discussions related to a commercial scale lithium and potassium plant at LAC's Cauchari-Olaroz salar.

Cautionary Note and Forward-Looking Statements

This press release contains forward looking statements, which can be identified by the use of statements that include words such as "developing", "expect", "will", "continue", "implementing", or other similar words or phrases. Forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results. Forward-looking statements are based on certain assumptions, including the key assumptions and parameters on which such estimates are based, involve risks and uncertainties and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, possible variations in mineral resource and reserve estimates, grade/concentration or recovery rates, lithium or potash prices, operating or capital costs; changes in project parameters as plans continue to be refined; political, community relations, regulatory, environmental and other risks of the mining industry and other risks more fully described in the Company's Annual Information Form available on SEDAR. The Cauchari-Olaroz project has no operating history upon which to base estimates of future cash flow. The capital expenditures and time required to develop any new project is considerable and changes in capital and/or operating costs or construction schedules can affect project economics. It is possible that actual capital and/or operating costs may increase significantly and economic returns may differ materially from the Company's estimates or that prices of lithium and/or potash may decrease significantly. The Company could fail to obtain project financing on acceptable terms and conditions or at all, in which case, the project may not proceed at all. If financing is obtained, it is not unusual in the mining industry for new mining operations to experience unexpected problems during the construction phase, resulting in delays and requiring more capital than anticipated.
The Company could fail to enter into an agreement with POSCO to put the project into commercial production using POSCO's proprietary lithium and potash extraction technology. In addition, if the Company enters into a commercialization agreement with POSCO, it should be noted that POSCO's extraction technology tested at the Cauchari-Olaroz project is secret and proprietary to POSCO and not subject to any independent economic study. Historically, projects put into production without first completing a feasibility study, have a higher risk of economic or technical failure. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward looking statements, there may be other factors that cause results to be materially different from those planned, estimated, forecasted, projected or expected. The Company does not intend, and does not assume any obligations, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward looking statements.

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