Lithium Power International Limited (ASX:LPI) entered into an agreement to acquire additional 17.14% stake in Maricunga Project from Bearing Lithium Corp. (TSXV:BRZ) on June 22, 2022. LPI will issue 0.70 fully paid ordinary shares in LPI per each Bearing common share.

Bearing has approximately 26 million Options and Warrants outstanding. Options and Warrants which are not exercised prior to completion of the Bearing Transaction will remain outstanding and will automatically become exercisable for LPI ordinary shares based on the Exchange Ratio, provided such Options or Warrants are exercised after completion of the Bearing Transaction. As consideration for the Bearing Transaction, LPI may issue up to approximately 76.3 million LPI shares for Bearing's common shares on issue, and up to a maximum approximately 18.2 million LPI shares for the Options and Warrants assuming all Options and Warrants are exercised prior to completion of the Bearing Transaction.

The board of directors of LPI unanimously approved the transaction. The Bearing Transaction is conditional upon Approval from Bearing securityholders of the Arrangement, Approval of the Arrangement from the Canadian court, Completion of the SBD Transaction, Bearing's dissenting shareholders shall have exercised dissent rights with respect to no more than 5% of total Bearing shares, Approval by LPI shareholders for purposes of ASX Listing Rule 7.1. In a separate transaction Lithium Power International Limited (ASX:LPI) entered into an agreement to acquire additiona 31.31% stake in Maricunga Project from Minera Salar Blanco SpA. Treadstone Resource Partners acted as strategic and financial advisor to LPI in relation to the Transactions.

Ashurst acted as Australian legal advisor, Stikeman Elliott LLP acted as Canadian legaladvisor, and Pillsbury Winthrop Shaw Pittman acted as US legal advisor to LPI in relation to the Transactions. EY acted as the Australian, US and Canadian tax advisor to LPI in relation to the Transactions. As of October 28, 2022, Shareholders of Lithium Power approved the transaction.

As on December 16, 2022, The transaction with Bearing for its 17.14% interest will be completed by way of a Canadian Plan of Arrangement which has been approved by Bearing Shareholders and the Canadian court. The final condition to the Bearing Transaction is the completion of the SBD Transaction. Now that the court has approved the scheme for the SBD Transaction, the completion process for the Bearing Transaction will commence.

It is expected this will complete by December 22, 2022, resulting in LPI taking ownership of 100% of Maricunga. As of December 20, 2022, SBD transaction has been completed which further completed LPI's first step of Maricunga Consolidation.