Lithium Americas Corp.

Lithium Americas Corp.

November 04, 2014 07:00 ET

Lithium Americas Provides Update on the Development of Its Cauchari-Olaroz Lithium Project

Arrival of POSCO Pilot Plant at Cauchari Salar

TORONTO, ONTARIO--(Marketwired - Nov. 4, 2014) - Lithium Americas Corp. (TSX:LAC) ("LAC" or the "Company") is pleased to provide an update on the development schedule of its Cauchari-Olaroz lithium project in Jujuy Province, Argentina.

Pursuant to the previously announced Co-operation Agreement with POSCO, Korea's largest steel company, POSCO's final stage lithium extraction pilot plant arrived at port in Antofagasta, Chile last week, and has now been delivered for final assembly to LAC's Cauchari salar in the Jujuy province of northern Argentina. It is expected to be operational in late November, 2014, and then be subject to a short confirmatory test period. Following determination by POSCO that the pilot plant is operating to expectations, LAC and POSCO will enter into a 90-day exclusivity period for the negotiation of an agreement for commercial stage production.

LAC Chief Executive Officer John Kanellitsas commented: "We remain focused on creating value by matching our world-class resource at Cauchari with a technology partner committed to sustainable, scalable, energy-efficient and environmentally-sensitive lithium production. Our Cauchari-Olaroz project is the third largest known lithium brine resource in the world. We expect the POSCO final stage pilot plant to demonstrate that such a process, located on such a resource, is feasible on a commercial scale, and we are incredibly excited to be part of these industry changing efforts."

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 or that the Company could fail to enter into a commercialization agreement for the project, extraction technologies may not function as expected or at all, or may fail to obtain further project financing on acceptable terms and conditions or at all, in which case, the project may not proceed either on its original timing or at all. It is not unusual in the mining industry for new mining operations to experience unexpected problems during the start-up phase, resulting in delays and requiring more capital than anticipated. 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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