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Lithium Americas Corp. Closes $10.5 Million Equity Financing Including Investment With Second Strategic Investor


December 23, 2009

Lithium Americas Corp. (the "Company") reports that it has closed the previously announced $10.5 million financing. The Company has issued 7,000,000 units ("Units") at a price of $1.50 per Unit for gross cash proceeds of $10.5 million to fund exploration and development efforts at its lithium projects (the "Financing"). Each Unit consists of one common share of the Company (the "Common Shares") and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one additional Common Share of the Company at an exercise price of $2.00 per Common Share at any time prior to the date that is two years from the date of completion of a going public transaction which shall result in the Common Shares of the Company being listed on either the Toronto Stock Exchange or TSX Venture Exchange or three years from the closing date of the Financing, whichever is earlier.

GMP Securities L.P., PowerOne Capital Markets Limited and Dundee Securities Corporation were the agents on the Financing.

The previously announced significant strategic investor (see September 14, 2009 press release) exercised its pre-emptive right to acquire securities of the Company and continues to maintain its 17.7% interest in the Company.

A second significant strategic investor also participated in the Financing. As part of its investment, this investor received certain rights, including a pre-emptive right to maintain and in certain circumstances increase its equity interest in the Company and an option to acquire a percentage of any lithium and potassium production provided that it maintains its equity interest in the Company and provides an interest free loan for part of the funds necessary to build the mine following a positive feasibility study.

Latin American Minerals Inc. retains a 17.1% interest in the Company.

About the Company

Lithium Americas is a junior exploration and development company focused on the exploration and development of lithium, potash, borax and other industrial minerals in South America. Lithium Americas Corp. is managed by accomplished professionals with a proven track record of discovery, a deep knowledge of South American geology and an extensive network of high-level and strategic relationships throughout the continent.