Strategy - What happens next!!, page-2

EXAMPLE OF STRATEGIC INVESTMENT (PLACEMENT +DEBT+OFFTAKE)

January 17, 2017 Lithium Americas Announces US$174 Million Strategic Investment by Ganfeng Lithium Vancouver, Canada: Lithium Americas Corp. (TSX: LAC) (OTCQX: LACDF) ("Lithium Americas" or the "Company") is pleased to announce it has signed an investment agreement (the “Investment Agreement”) with GFL International Co., Ltd. (“Ganfeng”) for funding to advance the construction of the Cauchari-Olaroz lithium project in Jujuy, Argentina.

Pursuant to the Investment Agreement, Ganfeng has agreed to financing terms in an aggregate amount of US$174 million in exchange for 19.9% of the outstanding common shares of Lithium Americas pro-forma (the "Private Placement"); the right to buy a fixed portion of the lithium carbonate production from the Cauchari-Olaroz project (the “Offtake Entitlement”); and a US$125 million project debt facility (the “Project Debt Facility”). Transaction Highlights · Private Placement: Ganfeng has agreed to purchase, by way of a private placement, 75,000,000 common shares at a price of C$0.85 per common share for gross proceeds of C$64 million (US$49 million). Following the close of the Private Placement, Ganfeng will own approximately 19.9% of the Company’s issued and outstanding shares; · Project Debt Facility: Ganfeng and the Company have agreed to terms by which Ganfeng will provide to Lithium Americas a US$125 million Project Debt Facility to be used for the funding of Lithium Americas’ share of Cauchari-Olaroz construction costs. The Project Debt Facility has a term of six years, with an interest rate of 8.0% for the first three years that increases to 8.5% in year four, 9.0% in year five and 9.5% in year six; · Offtake Entitlement: Ganfeng and the Company have agreed to terms for an Offtake Entitlement in favour of Ganfeng for the purchase of up to 70% of Lithium Americas’ share of Cauchari-Olaroz Stage 1 lithium carbonate production at market prices; and · Investor Rights: Ganfeng will be entitled to one nominee on Lithium Americas’ board of directors