Cape Town, South Africa--(Newsfile Corp. - October 20, 2026) - Lithium Africa Corp. (TSXV: LAF) (FSE: 6MQ) (OTCQB: LTAFF) ("Lithium Africa" or the "Company") is pleased to announce that it has received two non-binding offers to finance the development of the Springbok Project in the Northern Cape Province, South Africa ("Springbok" or the "Project"): (i) a prepayment facility with offtake from a major international commodity trading house for 100% of the Project's spodumene concentrate in its first three years of production, and (ii) a US$60 million investment from a lithium processing company backed by a Fortune Global 500 group for a 55% interest in the Company's holding in the Project. The Project is held outside the Company's 50/50 joint venture with GFL International Co., Ltd., an affiliate of Ganfeng Lithium. The Company is in competitive discussions with more than 20 potential counterparties to identify the best partner to advance Springbok toward production, with first production of spodumene concentrate targeted for H2 2027 (see news release dated October 7, 2026). The two offers address different stages of the Project: the prepayment facility and offtake would support near-term production, while the investment would fund district-wide drilling followed by a larger processing plant.

Highlights

• US$60 million investment proposal implies a pre-money valuation of approximately US$70 million for Springbok. The proposal contemplates US$60 million in cash for a 55% interest in a new holding company that would hold the Company's 70% interest in the Project, implying a pre-money valuation of approximately US$70 million for 100% of the Project.
• Lithium Africa's retained 45% interest valued at approximately US$49 million. The Company would retain 45% of the holding company, valued at approximately US$49 million based on the implied post-money valuation of the holding company of approximately US$109 million, without contributing to the US$60 million program.
• Prepayment facility with offtake. A major international commodity trading house has proposed a prepayment facility for the Project, together with an offtake of 100% of the Project's spodumene concentrate for its first three years of production.
• Competitive process with more than 20 counterparties. Both offers are non-binding, and the Company continues discussions with more than 20 potential counterparties across offtake, prepayment, vendor financing, and project-level equity.
• First production targeted for H2 2027. The Company continues to target a Project financing decision in H1 2027 and first production of spodumene concentrate in H2 2027.

Thomas Benson, Ph.D., Chief Executive Officer of Lithium Africa, commented: "Receiving offers from both a major trading house and a lithium processing company shows the strength of interest in Springbok, a permitted mine with a path to production in 2027. With more than 20 counterparties engaged, we are running a competitive process, and our job now is to select the partner and the structure that deliver the most value for Lithium Africa shareholders, so that small-scale production at Springbok can fund large-scale exploration across the district."

US$60 Million Investment Proposal

Under the proposal, the investor would subscribe US$60 million in cash for new shares in a holding company to be established to hold the Company's 70% interest in Namli Exploration & Mining (Pty) Ltd ("Namli"), which holds the Project. On completion, the investor would hold 55% of the holding company and the Company would hold 45%, giving the Company an indirect 31.5% interest in Namli. The remaining 30% interest in Namli, held by the Company's Broad-Based Black Economic Empowerment ("B-BBEE") partner, would be unaffected. The proposal implies a pre-money valuation of US$70.1 million for 100% of Namli. The proceeds would fund approximately US$10 million of drilling across the Springbok district and approximately US$50 million for a processing plant. The proposal is non-binding and is subject to, among other things, due diligence, including confirmatory drilling, the negotiation and execution of definitive agreements, board approvals, acceptance of the TSX Venture Exchange, approval of the Company's shareholders and required regulatory approvals.

Competitive Process

The Company is in competitive discussions with more than 20 potential counterparties regarding financing at the Project level, with structures under discussion including offtake, prepayment, vendor financing and project-level equity. The Company continues to target a Project financing decision in H1 2027, followed by the start of construction, subject to approvals and completion of financing, and first production of spodumene concentrate in H2 2027 (see news release dated October 7, 2026). There can be no assurance that any financing will be completed on acceptable terms, or at all.

About Lithium Africa Corp.

Lithium Africa Corp. is a lithium exploration and development company building a portfolio of hard-rock lithium assets across Africa. The Company holds the Springbok Project in South Africa directly and its exploration interests in West and Southern Africa, including the Adzopé District in Côte d'Ivoire, through a 50/50 joint venture with GFL International Co., Ltd., an affiliate of Ganfeng Lithium. For more information, please visit https://li-africa.com.

ON BEHALF OF THE BOARD OF DIRECTORS OF LITHIUM AFRICA CORP.

Thomas Benson, Ph.D., Chief Executive Officer & Director

Cautionary Statement Regarding the Offers

Both offers are non-binding. No definitive agreement has been signed, the terms described in this news release may change materially, and there can be no assurance that either transaction will be completed. Readers are cautioned not to place undue reliance on the offers or on the amounts of funding they contemplate.

Cautionary Statement Regarding Production Decision

The Company's decision to advance Springbok toward production is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, and there are no current Mineral Resources or Mineral Reserves at the Project. As a result, there is increased uncertainty, and there are multiple technical and economic risks of failure associated with this decision, including risks that production may not be achieved on the timeline described, or at all, and that the Project may not be economic. Historically, projects that have proceeded without a feasibility study have a much higher risk of economic or technical failure. For the specific risks associated with the production decision, see "Cautionary Statement Regarding Production Decision" in the Company's news release dated October 7, 2026.

Cautionary Note Regarding Forward-Looking Statements

Statements contained in this news release that are not historical facts may be forward-looking statements within the meaning of applicable securities laws, including statements regarding: the offers, their terms, the amount, form and timing of any investment or prepayment, and the completion of due diligence and confirmatory drilling; the establishment of a holding company and the Company's resulting interest in the Project; the use of proceeds; the negotiation and completion of any transaction; the receipt of required board, shareholder, stock exchange and regulatory approvals; the Company's discussions with other potential counterparties; the timing, structure and completion of Project-level financing; and the Company's plans to advance Springbok to production and the timing of first production. Forward-looking statements are based on assumptions, including that the parties will complete due diligence and agree definitive terms, that required approvals are received, that financing is available on acceptable terms, and regarding lithium prices, costs and exchange rates. They are subject to risks, including that the offers are non-binding and may not result in a transaction, that the terms of any transaction may differ materially from those described, that the Company's interest in the Project would be reduced if the investment proposal is completed, that the production decision is not based on a feasibility study, the absence of current Mineral Resources and Mineral Reserves, permitting and regulatory risk in South Africa, financing risk, commodity price volatility, and the other risks described in the Company's public filings under its SEDAR+ profile at www.sedarplus.ca. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. The Company undertakes no obligation to update forward-looking statements except as required by applicable law.

Neither the TSX Venture Exchange 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/319921