Cape Town, South Africa--(Newsfile Corp. - July 15, 2026) - Lithium Africa Corp. (TSXV: LAF) (FSE: 6MQ) (OTCQB: LTAFF) (formerly named Lombard Street Capital Corp.) ("Lithium Africa" or the "Company") announces that it has provided US$250,000 to a subsidiary (the "Target") of a CSE-listed company (the "Parent") in order to support a contemplated transaction (the "Proposed Transaction") pursuant to a unsecured convertible promissory note issued by the Target (the "Promissory Note"). The Promissory Note is non-interest-bearing and has a stated maturity date on December 3, 2027 (the "Maturity Date"). Subject to the terms of the Promissory Note, the Company may elect at any time after the closing of the Transaction and prior to the Maturity Date, to convert the outstanding principal amount of its Promissory Note into a number of common shares of the Target representing an aggregate value equal to 135% of such outstanding principal amount (the "Conversion Amount"). If the Company does not elect to convert all the outstanding principal amount on or prior to the Maturity date, the outstanding principal amount will be payable in cash on the Maturity Date in an amount equal to the Conversion Amount. The Parent has also agreed to guarantee the obligations of the Target under the Promissory Note. The guarantee is intended to be a continuing guarantee of payment and performance and is subject to the receipt of applicable regulatory approvals. The advance was made without prior approval of the TSX Venture Exchange (the "TSXV") and remains subject to TSXV approval. The Proposed Transaction remains subject to TSXV approval. The Company will provide more details of the Proposed Transaction once a definitive agreement is entered into.
On July 13, 2026, the Company approved certain amendments (the "Omnibus Plan Amendment") to the Company's omnibus long-term incentive plan dated February 11, 2026, including increasing the maximum number of common shares available under the Omnibus Plan from 3,979,702 common shares to 4,995,663 common shares. The Company also approved the cancellation of an aggregate of 1,931,835 outstanding stock options (the "Cancelled Options") that were issued to certain insiders, consultants and employees and replaced them with an aggregate of 997,909 restricted share units (the "Replacement RSUs"). The Company also approved the amendment of the vesting terms of an aggregate of 1,075,000 restricted share units (the "RSU Amendment") issued to certain directors, officers and consultants of the Company. The Omnibus Plan Amendment, the grant of the Replacement RSUs and the RSU Amendment are subject to disinterested shareholder approval at the upcoming AGM to be held on August 21, 2026 and acceptance by the TSXV.