Lithium Americas Corp. Announces $18.5 Million Rights Offering

Geologic Resource Partners LLC to act as Standby Purchaser

TORONTO, ONTARIO -- (Marketwired - Jan. 20, 2014) - Lithium Americas Corp. (TSX:LAC) ("Lithium Americas" or the "Company") today announced that it will be filing a preliminary short form prospectus within each province of Canada, in respect of a rights offering to raise gross proceeds of approximately $18.5 million through the issuance of rights to subscribe for common shares of the Company.

The Company's largest shareholder, Geologic Resource Partners LLC, through funds it manages, has entered into an agreement with the Company to act as Standby Purchaser in respect of the full rights offering, and will purchase all of the common shares that are not otherwise subscribed for under the rights offering. For this commitment, the Company will pay a fee to Geologic Resource Partners LLC equal to 3% of the gross proceeds of the rights offering.

The number of rights to be issued and the exercise price of each right will be determined by the Company in consultation with the Standby Purchaser at the time of filing the Final Prospectus, but will be priced at a minimum 35% discount to the 5-day volume weighted average trading price on the TSX of the Company's common shares at the time.

The net proceeds will be used by the Company to repay all its outstanding debt, currently approximately $9.5 million, and for general working capital purposes, including the continued funding of its flagship Cauchari-Olaroz lithium project in Jujuy province, Argentina.

In announcing the rights offering, LAC's Executive Chairman, Tom Hodgson, commented: "LAC's Board of Directors and Management felt it is both fair and essential that all the Company's eligible current shareholders have the opportunity to participate in this financing, and we are very appreciative of the strong show of support from Geologic Resource Partners LLC to ensure that the rights offering is a complete success. The funds to be raised will strengthen our balance sheet, eliminate our existing debt and provide working capital for the Company, as we continue to pursue the best development opportunity for our Cauchari-Olaroz lithium project in Argentina."

The rights offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the acceptance of the Toronto Stock Exchange.

This press release does not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. The rights offering will be made pursuant to a public offering by means of a prospectus that, upon filing, may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements. The Company intends to file a registration statement registering the rights offering in the United States with the U.S. Securities and Exchange Commission.


About the Company

Lithium Americas is developing one of the world's largest and lowest cost lithium operations. The Company has defined the world's third largest lithium brine resource, and a completed definitive Feasibility Study identified that Lithium Americas' operating cost per tonne of lithium carbonate is expected to be one of the lowest in the industry.


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CONTACT INFORMATION

Lithium Americas Corp.
Mike Cosic, Chief Financial Officer
416-360-1921
mcosic@lithiumamericas.com
www.lithiumamericas.com