Enhanced Investments - Financial Portal

Published: 2022-07-28







		CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
		FOR THE SIX MONTHS ENDED JUNE 30, 2022 (Expressed in US Dol ars)


LITHIUM AMERICAS CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(Expressed in thousands of US dollars)

			June 30, December 31,
		Note		2022	2021
						$			$
CURRENT ASSETS
Cash and cash equivalents					4	440,821	510,607
Receivables, prepaids and deposits						4,698	1,968
Restricted cash					8	-			20,000
						445,519	532,575

NON-CURRENT ASSETS
Investment in Green Technology Metals					5	5,782	-
Investment in Arena Minerals					6	12,596	13,033
Warrants to purchase shares in Arena Minerals					6	4,822	7,558
Loans to Exar Capital					7	162,344	70,856
Investment in Cauchari-Olaroz Project					7	49,680	156,281
Long-term receivable from JEMSE						6,520	6,231
Deferred transaction costs						-			20,800
Property, plant and equipment					9	9,168	4,368
Exploration and evaluation assets					10	347,066	5,640
						597,978	284,767
TOTAL ASSETS						1,043,497	817,342

CURRENT LIABILITIES
Accounts payable and accrued liabilities						6,633	7,347
Current portion of long-term liabilities					12	3,461	909
						10,094	8,256
NON-CURRENT LIABILITIES
Convertible senior notes					11	212,601	236,156
Credit and loan facilities					12	-			27,915
Decommissioning provision								330	326
Other liabilities					13	8,452	8,374
						221,383	272,771
TOTAL LIABILITIES						231,477	281,027

SHAREHOLDERS’ EQUITY
Share capital						1,026,935	689,993
Contributed surplus						29,914	28,463
Accumulated other comprehensive loss						(3,487 )	(3,487 )
Deficit						(241,342 )	(178,654 )
TOTAL SHAREHOLDERS’ EQUITY						812,020	536,315

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY						1,043,497	817,342


Subsequent event (Note 21)

Approved for issuance on July 28, 2022
On behalf of the Board of Directors:
							“Fabiana Chubbs”	“George Ireland”
								Director		Director


	2


LITHIUM AMERICAS CORP.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)
(Expressed in thousands of US dollars, except for per share amounts; shares in thousands)

			Three Months	Six Months Ended

			Ended June 30,	June 30,
		Note	2022		2021	2022 2021
						$	$	$	$

Exploration and evaluation expenditures		17 (12,790 ) (8,844 ) (22,999 ) (13,526 )
General and administrative expenses		16 (5,151 ) (2,586 ) (8,680 ) (4,879 )
Equity compensation		14	(614 ) (1,016 ) (1,557 ) (2,300 )
Share of loss of Cauchari-Olaroz Project		7 (71,510 )			(597 ) (72,659 ) (1,097 )
Share of loss of Arena Minerals		6	(268 )	-		(437 )	-
		(90,333 ) (13,043 ) (106,332 ) (21,802 )
OTHER ITEMS
Transaction costs						-	(71 )	-	(114 )
Loss on JEMSE transaction						- (4,712 )	- (4,712 )
Gain on change in fair value of convertible notes derivative		11 81,561	- 31,230			-
Loss on change in fair value of Arena Minerals warrants		6 (3,753 )	- (2,736 )			-
Gain on modification of the loans to Exar Capital		7				-	- 20,354		-
Loss on change in fair value of Green Technology Metals shares		5 (4,237 )	- (4,237 )			-
Finance costs		(5,188 ) (2,836 ) (10,500 ) (5,332 )
Foreign exchange gain			540		134	890	248
Finance and other income			4,853		1,223	8,643 2,370
		73,776 (6,262 ) 43,644 (7,540 )
NET LOSS BEFORE DISCONTINUED OPERATIONS		(16,557 ) (19,305 ) (62,688 ) (29,342 )

(LOSS)/INCOME FROM DISCONTINUED OPERATIONS						-	(18 )	-	90

NET LOSS		(16,557 ) (19,323 ) (62,688 ) (29,252 )

TOTAL COMPREHENSIVE LOSS		(16,557 ) (19,323 ) (62,688 ) (29,252 )
BASIC AND DILUTED LOSS PER SHARE FROM CONTINUING
OPERATIONS			(0.12 )		(0.16 )	(0.47 ) (0.25 )
BASIC AND DILUTED LOSS PER SHARE			(0.12 )		(0.16 )	(0.47 ) (0.25 )
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-
		134,521 119,864 132,554 117,513

BASIC AND DILUTED





	3


LITHIUM AMERICAS CORP.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
(Expressed in thousands of US dollars, shares in thousands)


			Share capital
				Accumulated

					other

									Contributed	comprehensive					Shareholders’
						Deficit
		Number Amount	surplus	income/(loss)			equity
		of shares		$				$			$	$					$
Authorized share capital:

Unlimited common shares without par value
Balance December 31, 2020		101,103 307,152	27,204		(3,487 ) (140,166 )		190,703
Shares issued on conversion of RSUs, DSUs and
exercise of stock options											580	1,805			(1,099 )	-	-		706
Shares issued pursuant to the underwritten public
offering (Note 14)		18,182 400,000	-			-	-						400,000
Shares issuance costs											- (22,609 )	-		-	-			(22,609 )
Equity compensation (Note 14)											-	-			4,083	-	-		4,083
Net loss											-	-			-	- (29,252 )	(29,252 )
Balance June 30, 2021		119,865 686,348	30,188		(3,487 ) (169,418 )		543,631

Balance, December 31, 2021		120,831 689,993	28,463		(3,487 ) (178,654 )		536,315
Shares issued on conversion of RSUs, DSUs and
exercise of stock options											566	3,130			(1,770 )	-	-		1,360
Shares issued pursuant to the acquisition of
Millennial (Note 8)		13,199 333,812	-			-	-						333,812
Equity compensation (Note 14)											-	-			1,557	-	-		1,557
RSUs issued in lieu of accrued bonuses											-	-			1,374	-	-		1,374
DSUs issued in lieu of directors' fees											-	-			290	-	-		290
Net loss											-	-			-	- (62,688 )	(62,688 )
Balance June 30, 2022		134,596 1,026,935	29,914		(3,487 ) (241,342 )		812,020




	4


LITHIUM AMERICAS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Expressed in thousands of US dollars)

				Six Months Ended June 30,
		Note				2022	2021
						$	$
OPERATING ACTIVITIES
Net loss				(62,688 )			(29,252 )
Items not affecting cash and other items:
Equity compensation		14				1,557	2,300
Depreciation		9				1,016	345
Foreign exchange gain						(890 )	(248 )
Share of loss of Cauchari-Olaroz Project		7		72,659			1,097
Share of loss of Arena Minerals		6				437	-
Loss on JEMSE transaction			-					4,712
Gain on modification of the loans to Exar Capital		7		(20,354 )	-
Loss on change in fair value of Green Technology Metals shares		5				4,237	-
Loss on change in fair value of Arena Minerals warrants		6				2,736	-
Gain on change in fair value of convertible notes derivative		11		(31,230 )	-
Other items						(891 )	152
Changes in non-cash working capital items:
Increase in receivables, prepaids and deposits						(1,731 )	(1,098 )
Increase in accounts payable and accrued liabilities						951	1,945
Net cash used in operating activities				(34,191 )			(20,047 )
INVESTING ACTIVITIES
Loans to Exar Capital		7		(29,204 )						(30,870 )
Contribution to Investment in Cauchari-Olaroz project		7				(695 )					(1,378 )
Investment in Green Technology Metals		5		(10,000 )				-
Cash acquired as a result of Mil ennial acquisition		8		33,531				-
Transaction costs related to Mil ennial acquisition		8				(5,012 )				-
Payment of Mil ennial's acquisition date payables		8		(17,167 )				-
Release of escrow deposit for Mil ennial acquisition		8		20,000				-
Proceeds from sale of assets held for sale			-						4,034
Additions to exploration and evaluation assets		10				(3,376 )	(433 )
Release of restricted cash			-				150
Additions to property, plant and equipment		9				(932 )	(119 )
Net cash used in investing activities				(12,855 )			(28,616 )
FINANCING ACTIVITIES
Proceeds from stock option exercises		14				1,360	706
Proceeds from public offering		13	-					400,000
Equity offering issuance costs		13	-					(22,609 )
Drawdowns from the credit facilities		12	-					28,070
Repayment of the subordinate loan facility		12		(24,708 )	-
Finance lease repayments			-				(157 )
Repayment of long-term borrowings			-				(424 )
Other						(282 )	-
Net cash (used)/provided by financing activities				(23,630 )			405,586
Effect of foreign exchange on cash						890	248
CHANGE IN CASH AND CASH EQUIVALENTS				(69,786 )			357,171
CASH AND CASH EQUIVALENTS - BEGINNING OF THE PERIOD				510,607			148,070
CASH AND CASH EQUIVALENTS - END OF THE PERIOD				440,821			505,241





	5

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

1.		NATURE OF OPERATIONS
		Lithium Americas Corp. (“Lithium Americas” or the “Company”) is a Canadian-based resource company
		focused on advancing three significant lithium projects: the Cauchari-Olaroz project (“Cauchari-Olaroz”), a
		lithium brine project located in the Salar de Olaroz and Salar de Cauchari in Jujuy province, in north-western
		Argentina; the Thacker Pass project (“Thacker Pass”), a sedimentary-based lithium project located in the
		McDermitt Caldera in Humboldt County in north-western Nevada, USA and the Pastos Grandes lithium
		project (“Pastos Grandes”), a lithium brine project located in Salta province of Argentina.
		The Company’s interest in Cauchari-Olaroz is held through a 44.8% ownership interest in Minera Exar S.A.
		(“Minera Exar”), a company incorporated under the laws of Argentina. Ganfeng Lithium Co. Ltd. (“Ganfeng”)
		owns 46.7% of Minera Exar with the remaining 8.5% interest held by Jujuy Energia y Mineria Sociedad del
		Estado (“JEMSE”), a mining investment company owned by the government of Jujuy province in Argentina.
		Cauchari-Olaroz is in the development stage and nearing completion of construction. The Company holds
		a 100% interest in Thacker Pass through a wholly-owned subsidiary, Lithium Nevada Corp. (“Lithium
		Nevada”), a company incorporated under the laws of Nevada. Thacker Pass is in the exploration and
		evaluation stage. On January 25, 2022, the Company acquired Mil ennial Lithium Corp. (“Mil ennial”) and
		added its Argentinean lithium project Pastos Grandes to its pipeline of projects (Note 8).
		The Company’s common shares are listed on the Toronto Stock Exchange and the New York Stock
		Exchange under the symbol “LAC”.
		The Company’s head office and principal address is Suite 300, 900 West Hastings Street, Vancouver,
		British Columbia, Canada, V6C 1E5.
		To date, the Company has not generated significant revenues from operations and has relied on equity and
		other financings to fund operations. The underlying values of exploration and evaluation assets, property,
		plant and equipment and the investment in Cauchari-Olaroz project are dependent on the existence of
		economical y recoverable reserves, securing and maintaining title and beneficial interest in the properties,
		and the ability of the Company to obtain the necessary financing to complete permitting and development,
		and to attain future profitable operations.


2.		BASIS OF PREPARATION AND PRESENTATION

		These condensed consolidated interim financial statements (“Interim Financials”) have been prepared in
		accordance with International Financial Reporting Standards as issued by the International Accounting
		Standards Board (“IFRS”) applicable to the preparation of interim financial statements, including
		International Accounting Standard (“IAS”) 34, Interim Financial Reporting. The Interim Financials should be
		read in conjunction with the Company’s annual consolidated financial statements for the year ended
		December 31, 2021 (the “2021 Annual Financials”), which have been prepared in accordance with IFRS.
		These financial statements include the results for Mil ennial from the date of its acquisition on January 25,
		2022.
		The Interim Financials are expressed in US dollars, the Company’s presentation currency. The same
		accounting policies and methods of computation have been used in the Interim Financials and 2021 Annual
		Financials.




	6

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

3.		SIGNIFICANT ACCOUNTING POLICIES
		Critical Accounting Estimates and Judgments
		The preparation of these Interim Financials in conformity with IFRS applicable to the preparation of interim
		financial statements requires judgments, estimates, and assumptions that affect the amounts reported.
		Those estimates and assumptions concerning the future may differ from actual results. Estimates and
		judgments are continually evaluated and are based on historical experience and other factors, including
		expectations of future events that are believed to be reasonable under the circumstances.
		The nature and number of significant estimates and judgments made by management in applying the
		Company’s accounting policies and the key sources of estimation uncertainty are substantial y the same
		as those that management applied to the 2021 Annual Financials, except as described below.
		COVID-19 Uncertainty
		The COVID-19 pandemic declared by the World Health Organization in March 2020 is continuing to have
		a significant impact global y and on operations of the Company. The Company continues to advance
		operations, while protecting the safety and health of its employees, contractors and the communities in
		which it operates in accordance with government and public health authority requirements and guidelines.
		COVID-19 case numbers did not change significantly in Q2 2022. Construction activities at the Caucharí-
		Olaroz project continued to advance in strict compliance with COVID-19 protocols developed by Minera
		Exar and approved by authorities in Jujuy province where the project is located. Construction costs related
		to Caucharí-Olaroz continue to be capitalized in accordance with the Company’s policy, including costs
		arising from construction of the project during the pandemic such as workforce testing and quarantining,
		rental costs for additional camp facilities to al ow for social distancing, and other additional contractors’
		costs resulting from COVID-19 restrictions.
		Accounting for Acquisition of Millennial
		The Company accounted for the January 2022 acquisition of Mil ennial as an asset acquisition. Significant
		judgment was required to determine that the application of this accounting treatment was appropriate for
		the transaction. This included, among others, the determination that Millennial was not considered a
		business under IFRS 3 - Business Combinations as Mil ennial did not have inputs and substantive
		processes that can collectively contribute to the creation of outputs.
		New IFRS Pronouncements
		Amendments to IAS 16 – Property, Plant and Equipment: Proceeds before Intended Use
		In May 2020, the IASB issued amendments to IAS 16, Property, Plant and Equipment (IAS 16). The
		amendments prohibit a company from deducting from the cost of property, plant and equipment amounts
		received from sel ing items produced while the company is preparing the asset for its intended use. Instead,
		a company wil recognize such sales proceeds and related costs in profit (loss). An entity is required to
		apply these amendments for annual reporting periods beginning on or after January 1, 2022.

	7

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

3.		SIGNIFICANT ACCOUNTING POLICIES (continued)
		The amendments are applied retrospectively only to items of property, plant and equipment that are
		available for use after the beginning of the earliest period presented in the financial statements in which the
		entity first applies the amendments.
		There was no impact of these amendments on the Company’s Q2 2022 financial results. It is expected that
		the amendments will affect the accounting related to the sale of products upon commencement of
		production at Cauchari-Olaroz.
4.
		CASH AND CASH EQUIVALENTS


			June 30, 2022 December 31, 2021
				$	$
		Cash				167,123	137,714
		Short-term bank deposits				273,698	372,893
						440,821	510,607


		As at June 30, 2022, $2,464 of cash and short-term deposits were held in Canadian dollars (December 31,
		2021 – $4,393), $438,166 of cash and short-term deposits were held in US dol ars (December 31, 2021 –
		$506,214) and $191 of cash and short-term deposits were held in Argentine Pesos (December 31, 2021 –
		Nil). Cash and short-term deposits earn interest between 0.95%-1.8% per annum.

5.		INVESTMENT IN GREEN TECHNOLOGY METALS On April 28, 2022, the Company entered into an agreement to acquire shares of Green Technology Metals
		Limited (ASX: GT1) (“Green Technology Metals”), a North American focused lithium exploration and
		development company with hard rock spodumene assets in north-west Ontario, Canada, in a private
		placement for total consideration of $10,000, or approximately 5% of Green Technology Metals issued and
		outstanding shares following closing of the share placement.
		As at June 30, 2022, the Company holds approximately 13,301 common shares of Green Technology
		Metals with an estimated fair value of $5,782 determined based on the market price of Green Technology
		Metals shares as of such date. A loss on change in fair value of Green Technology Metals Shares of $4,237
		was recognized in the statement of comprehensive loss.

6.		INVESTMENT IN ARENA MINERALS In 2021, the Company acquired 66,226 common shares and 21,429 share purchase warrants of Arena
		Minerals Inc. (TSX-V: AN) (“Arena Minerals”) for total consideration of CDN$18,632 ($14,758). Each
		warrant entitles the holder to acquire one common share of Arena Minerals at CDN$0.25 for a period of 24
		months from the date of issuance.

	8

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

6.		INVESTMENT IN ARENA MINERALS (continued) Pursuant to the acquisition agreement, Lithium Americas has the right (i) to participate in future Arena
		Minerals financings to maintain its pro rata ownership interest in Arena Minerals if the Company maintains
		an ownership interest of at least a 7.5%; and (i ) to appoint a nominee to the Arena Minerals board of
		directors if the Company maintains an ownership interest of at least a 10%.
		At June 30, 2022, the Company owned approximately 17.05% of the issued and outstanding shares of
		Arena Minerals.
		The Company has significant influence over Arena Minerals by virtue of its current equity holdings of shares
		and warrants, and its nominee director to the board of Arena Minerals. As such, the investment in Arena
		Minerals is accounted for using the equity method of accounting. Warrants to acquire Arena Mineral’s
		common shares are derivatives and accounted for at fair value with changes in fair value recorded in the
		statement of comprehensive loss.


			Common shares	Warrants
					$	$
		Investment in Arena Minerals, as at December 31, 2020			-	-
		Purchase of Arena Minerals shares and warrants					13,375	1,383
		Share of loss of Arena Minerals			(342 )	-
		Gain on change in fair value of Arena Minerals warrants			-	6,175
		Investment in Arena Minerals, as at December 31, 2021					13,033	7,558
		Share of loss of Arena Minerals			(437 )	-
		Loss on change in fair value of Arena Minerals warrants			-	(2,736 )
		Investment in Arena Minerals, as at June 30, 2022					12,596	4,822


		The Arena Minerals warrants had an estimated fair value of $4,822 at June 30, 2022. The fair value of the
		warrants was estimated using a Black-Scholes valuation model with the following inputs: volatility of
		108.9%, risk-free rate of 3.09%, expected dividend of 0%, and expected life of 1.06 years. A loss on fair
		value of $2,736 was recognized in the statement of comprehensive loss.
		For the six months ended June 30, 2022, the Company recognized a loss of $437, which represents its
		share of loss of Arena Minerals under the equity method of accounting, resulting in an investment balance
		of $12,596 at June 30, 2022.
7.
		INVESTMENT IN CAUCHARI-OLAROZ PROJECT
		As at June 30, 2022 the Company, Ganfeng and JEMSE are 44.8%, 46.7% and 8.5% shareholders,
		respectively, of Minera Exar, the company that holds al rights, title and interest in and to Cauchari-Olaroz
		which is located in the Jujuy province of Argentina. The Company and Ganfeng are parties to a
		shareholders’ agreement concerning management of the project and are entitled to the project’s production
		offtake on a 49%/51% basis. Construction costs are also shared on the same 49%/51% pro rata basis
		between the Company and Ganfeng. The shareholders’ agreement regulates key aspects of governance
		of the project, which provides the Company with significant influence over Minera Exar and strong minority
		shareholder protective rights.


	9

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

7.		INVESTMENT IN CAUCHARI-OLAROZ PROJECT (continued)
		In addition, the Company and Ganfeng are 49% and 51% shareholders, respectively, in Exar Capital B.V.
		(“Exar Capital”), a company that provides financing to Minera Exar for the purpose of advancing
		construction of Cauchari-Olaroz (the investment in Minera Exar and Exar Capital together, the “Investment
		in Cauchari-Olaroz project”). Minera Exar and Exar Capital are accounted for using the equity method of
		accounting.
		Loans to Minera Exar and Exar Capital
		The Company has entered into loan agreements with Minera Exar and Exar Capital to fund the construction
		of Cauchari-Olaroz. Changes in the loans’ balances are summarized below.

			$
		Loans to Exar Capital, as at December 31, 2020		34,562
		Loans to Exar Capital		60,270
		Initial difference between the face value and the fair value of loans to Exar Capital		(29,677 )
		Accrued interest	5,701
		Loans to Exar Capital, as at December 31, 2021		70,856
		Loans to Exar Capital		29,204
		Remeasurement due to extinguishment of the loans to Exar Capital		54,991
		Accrued Interest	7,293
		Loans to Exar Capital, as at June 30, 2022		162,344

		Prior to 2022, loans by the Company and Ganfeng to Exar Capital were non-interest bearing. Starting from
		January 1, 2022, as agreed between the Company and Ganfeng, all loans by both the Company and
		Ganfeng to Exar Capital were amended to introduce interest.

		Loans advanced prior to 2022 carry interest rates between 9.74% - 12.64% while loans advanced starting
		in 2022 wil carry an interest rate of the Secured Overnight Financing Rate (“SOFR”) plus 10.305%. SOFR
		is a benchmark interest rate for dollar-denominated loans and derivatives established as an alternative
		benchmark rate as the London Inter-Bank Offered Rate (“LIBOR”) is being gradual y phased out. The
		amendment to the terms of the loans resulted, for accounting purposes, in an extinguishment of the pre-
		existing instruments and the recognition of new loans. The effect of this change was a re-measurement of
		the loan balances at January 1, 2022 from $70,856 to $125,847, which reversed the unamortized discount
		on the previously non-interest bearing loans. The extinguishment gain was recorded as $54,991, of which
		$34,637 (previously included as part of Investment in Cauchari-Olaroz) was recognized as a return of
		investment in Cauchari-Olaroz and credited against the investment in associate and the remaining $20,354
		was recorded as a gain in the Company’s statement of comprehensive loss.

		During the six months ended June 30, 2022, loans were provided by the Company to Exar Capital in the
		amount of $29,204, and by Ganfeng in the amount of $30,396. Such loans funded the Company’s and
		Ganfeng’s respective 49% and 51% shares of Cauchari-Olaroz construction costs.

		In addition to the loans from shareholders, in Q4 2021 and Q1 2022, Minera Exar obtained debt financing
		in the form of loans totaling $50,000 from a third party to fund construction. The third party loans are secured
		with a bank letter of credit arranged by Ganfeng. The Company has in turn provided a guarantee to Ganfeng
		in the amount of $19,600 for the loans.


	10

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

7.		INVESTMENT IN CAUCHARI-OLAROZ PROJECT (continued)
		Investment in Cauchari-Olaroz Project

		Changes in the Investment in Cauchari-Olaroz Project are summarized below:

					$
		Investment in Cauchari-Olaroz Project, as at December 31, 2020		131,394
		Contribution to Investment in Cauchari-Olaroz Project		31,772
		Share of income of Cauchari-Olaroz Project		25,731
		Elimination of unrealized gain on intercompany transactions		(22,104 )
		Share of decrease in Minera Exar net assets as a result of the JEMSE Transaction		(10,512 )
		Investment in Cauchari-Olaroz Project, as at December 31, 2021		156,281
		Remeasurement due to extinguishment of the loans to Exar Capital		(34,637 )
		Contribution to Investment in Cauchari-Olaroz Project	695
		Share of loss of Cauchari-Olaroz Project		(61,015 )
		Elimination of unrealized gain on intercompany transactions		(11,644 )
		Investment in Cauchari-Olaroz Project, as at June 30, 2022		49,680


		In Q2 2022, certain of the loans provided by Exar Capital to Minera Exar were amended to introduce a
		revised repayment mechanism linked to the implied market foreign exchange rate in Argentina. This change
		in the loans’ terms resulted in an extinguishment of the loan and the recognition of a related loss of $113,105
		(net of taxes), the Company’s share of which was $50,671. Subsequent to the amendment, the revised
		repayment feature gives rise to the existence of an embedded derivative which is required to be measured
		at fair value at each reporting date. Minera Exar incurred derivative losses of $36,648 (net of taxes), the
		Company’s share of which was $16,418 from the date of amendment to June 30, 2022.

		Minera Exar’s Commitments and Contingencies

		As at June 30, 2022, Minera Exar had the following commitments (on a 100% basis): •
			Annual royalty of $200 due in May of every year and expiring in 2041.
		•		Aboriginal programs agreements with seven communities located in the Cauchari-Olaroz project
			area having terms ranging from five to thirty years. The annual fees due are $120 in 2022 and $503
			between 2023 and 2061, assuming that such agreements are extended for the life of the project.
			The annual fees are subject to change. Minera Exar’s obligations to make the payments are subject
			to continued development of the project and commencement and continuation of production
			operations for the project.
		•		Commitments related to construction contracts of $1,228.
		Los Boros Option Agreement
		On September 11, 2018, Minera Exar exercised a purchase option agreement (“Option Agreement”) with
		Grupo Minero Los Boros (“Los Boros”), entered into on March 28, 2016, for the transfer of title to Minera
		Exar of certain mining properties that comprise a portion of Cauchari-Olaroz.
		Under the terms of the Option Agreement, Minera Exar paid $100 upon signing and exercised the purchase
		option for total consideration of $12,000 to be paid in sixty quarterly installments of $200. The first
		instal ment payment became due and was paid on the third anniversary of the purchase option exercise
		date, being September 11, 2021. Minera Exar has paid all subsequently due quarterly instal ments in full.

	11

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

7.		INVESTMENT IN CAUCHARI-OLAROZ PROJECT (continued)
		As security for the transfer of title of the mining properties, Los Boros granted to Minera Exar a mortgage
		over the mining properties for $12,000. In addition, in accordance with the Option Agreement, on November
		27, 2018, Minera Exar paid Los Boros a $300 royalty which was due within 10 days of the start date of
		construction of the commercial plant.
		Pursuant to the Option Agreement, a 3% net profit interest royalty (the “Los Boros Royalty”) is payable to
		Los Boros by Minera Exar annually within 10 business days after calendar year end, in Argentinian pesos,
		for a period of 40 years. Minera Exar has the right to cancel the first 20 years of the Los Boros Royalty in
		exchange for a one-time payment of $7,000 and the second 20 years for an additional payment of $7,000.
		As at June 30, 2022, al required payments under the Option agreement have been made.


8.		MILLENNIAL ACQUISITION
		On January 25, 2022, Lithium Americas completed the acquisition of Millennial through the purchase of all
		issued and outstanding shares of Mil ennial at a price of CDN$4.70 per share, payable in a combination of
		Lithium Americas common shares and cash of CDN$0.001 per Mil ennial share, for total consideration of
		$359,729. As a term of the offer, the Company paid Millennial $20,000 as reimbursement of break fees
		owed under the previous acquisition agreement entered into by Mil ennial with a third party. The Company
		incurred $5,812 in other transaction costs. The transaction was accounted for as an asset acquisition.
		Through Millennial, the Company owns two lithium projects in Argentina: Pastos Grandes and the Cauchari
		East project (“Cauchari East”, and together with Pastos Grandes, the “Mil ennial Projects”).
		Pastos Grandes, located in the Salta province of Argentina, is a brine lithium deposit and was subject to
		extensive exploration and evaluation efforts pre-acquisition. Cauchari East is located adjacent to Cauchari-
		Olaroz in the Province of Jujuy in Argentina, with only limited exploration, evaluation and permitting work
		completed to date.
		Consideration for the purchase is as follows:

			$
		Cash	105
		Lithium Americas common shares		333,812
		Transaction costs		25,812
		Consideration given		359,729



	12

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

8.			MILLENNIAL ACQUISITION (continued)
			The al ocation of the purchase price to the assets acquired and liabilities assumed is based upon estimated
			fair values at the date of acquisition as set out below:

					$
			Cash and cash equivalents			33,636
			Receivables, prepaids and deposits		999
			Property, plant and equipment		4,211
			Exploration and evaluation assets			338,050
			Accounts payable and accrued liabilities			(17,167)
			Net assets acquired			359,729


9.			PROPERTY, PLANT AND EQUIPMENT


					Equipment

		Buildings				and machinery	Other1		Total
										$	$	$	$
			Cost
			As at December 31, 2020							-	1,198	2,108	3,306
			Additions							-	118	3,360	3,478
			Disposals							-	-	(452 )	(452 )
			As at December 31, 2021							-	1,316	5,016	6,332
			Acquisition							1,571	2,640	-	4,211
			Additions							-	675	930	1,605
			As at June 30, 2022							1,571	4,631	5,946 12,148




					Equipment

		Buildings				and machinery	Other1		Total
										$	$	$	$
			Accumulated depreciation
			As at December 31, 2020							-	471	900	1,371
			Depreciation for the period							-	343	582	925
			Disposals							-	-	(332 )	(332 )
			As at December 31, 2021							-	814	1,150	1,964
			Depreciation for the period							53	447	516	1,016
			As at June 30, 2022							53	1,261	1,666	2,980



					Equipment

				Buildings				and machinery	Other1		Total
										$	$	$	$
			Net book value
			As at December 31, 2021							-	502	3,866	4,368
			As at June 30, 2022							1,518	3,370	4,280	9,168


			1	The “Other” category includes right of use assets with a cost of $4,607 and $1,216 of accumulated depreciation as at June 30, 2022.


	13

LITHIUM AMERICAS CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2022

(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

10.

EXPLORATION AND EVALUATION ASSETS

Exploration and evaluation assets were as fol ows:

Millennial

Thacker Pass

Projects

Total

Total exploration and evaluation assets

As at December 31, 2021

5,640

Additions

3,376

338,050

341,426

As at June 30, 2022

9,016

338,050

347,066

The Company has certain commitments for royalty and other payments to be made on the Thacker Pass

project and Pastos Grandes project as set out below. These amounts wil only be payable if the Company

continues to hold the subject claims in the future and the royalties wil only be incurred if the Company

starts production from the respective projects.

Thacker Pass: •

20% royalty on revenue solely in respect of uranium;

•

8% gross revenue royalty from ores extracted, mined or removed from the property up to a

cumulative payment of $22,000. The royalty wil then be reduced to 4% for the life of the project.

The Company has the option at any time to reduce the royalty to 1.75% upon payment of $22,000;

and

•

Option payments of $137.5 payable in Q3 2022, and $2,887.5 in 2023 to purchase water rights.

Pastos Grandes: •

1.5% royalty on the gross operating revenues from production from certain Pastos Grandes claims,

payable to the original vendors of the project; and

•

royalties to a maximum of 3% over net-back income, payable to the Salta Province.

11.

CONVERTIBLE NOTES

On December 6, 2021, the Company closed an offering of $225,000 aggregate principal amount of 1.75%

convertible senior notes due in 2027 (the “Convertible Notes”, “Notes” and the “Offering”). The Company

used a portion of the net proceeds from the Offering to repay in full its $205,000 senior secured credit

facility. On December 9, 2021, the initial purchasers under the Offering exercised in full their option to

purchase up to an additional $33,750 aggregate principal amount of the Convertible Notes, increasing the

total Offering size to $258,750.

The Convertible Notes represent financial instruments that include a debt host accounted for at amortized

cost and conversion option and redemption option derivatives, which are separated from the debt host and

accounted for at fair value with changes in fair value recorded in the statement of comprehensive loss.

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

11.		CONVERTIBLE NOTES (continued)

			Convertible note
			Debt host	derivative	Total
					$	$				$
		Convertible notes
		As at January 1, 2021			-	-				-
		Convertible notes principal				157,331	101,419				258,750
		Transaction costs				(5,170 )	(3,329 )				(8,499 )
		Gain on change in fair value of convertible notes derivative			-	(15,090 )				(15,090 )
		Accrued Interest			1,300	-				1,300
		Reclassification of short-term accrued interest to short-
		term liability			(305 )	-				(305 )
		As at December 31, 2021				153,156	83,000				236,156
		Gain on change in fair value of convertible notes derivative			-	(31,230 )				(31,230 )
		Accrued Interest			9,920	-				9,920
		Reclassification of short-term accrued interest to short-
						(2,245 )	-				(2,245 )
		term liability
		As at June 30, 2022				160,831	51,770				212,601


		The fair value of the derivatives was estimated using a partial differential equation method with Monte Carlo
		simulation with the following inputs: volatility of 75%, a risk-free rate of 3.08%, expected dividend of 0%,
		and credit spread of 10.50%. A gain on change in fair value for the six months ended June 30, 2022, of
		$31,230 was recognized in the statement of comprehensive loss. Accrued interest for the six months ended
		June 30, 2022, of $9,920 was recognized as finance costs in the statement of comprehensive loss.
		Valuation of the embedded derivative is highly sensitive to changes in the Company’s share price and the
		assumed volatility of the Company’s share price. The significant gain on change in fair value of the
		derivative in Q2 2022 was driven by changes in the underlying valuation assumptions, including a decrease
		as at June 30, 2022 compared to December 31, 2021, of the Company's market share price from $29.12
		to $20.13 and an increase in the risk-free interest rate from 1.37% to 3.08%, partial y offset by an increase
		in the volatility assumption from 65% to 75%.
		A reduction in the volatility rate by 20% would result in a corresponding reduction of the embedded
		derivative value by 30%, while a reduction/increase of the share price by 10% would result in a
		corresponding reduction/increase of the embedded derivative value by 14% and 15% respectively.
		The Convertible Notes are unsecured and accrue interest payable semi-annually in arrears at a rate of
		1.75% per annum payable on January 15 and July 15 of each year, beginning on July 15, 2022. Prior to
		October 15, 2026, the Notes are convertible at the option of the holders during certain periods, upon the
		satisfaction of certain conditions including:
								(i)	If the Notes’ trading price for any five consecutive trading day period was, on each day,
									less than 98% of the conversion value of such Notes;


	15

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

11.		CONVERTIBLE NOTES (continued)
			(ii)	if the Company elects to (a) issue equity instruments to all holders of the Company’s
				common shares entitling them, for a period of not more than 45 calendar days after issue,
				to subscribe for or purchase common shares at a price per share that is less than the
				average reported sales prices of the common shares for the 10-trading day period ending
				the trading day before the announcement of such issuance of equity instruments; or (b)
				make a distribution to al holders of the Company’s common shares, whether such
				distribution is of assets, securities, or rights to purchase the Company’s securities, and has
				a per share value exceeding at least 10% of the trading price of the common shares on the
				date immediately preceding the announcement date of such distribution;
			(iii)	upon the occurrence of certain significant business events;
			(iv)	if, at any time after the calendar quarter ending on March 31, 2022 (and only during such
				calendar quarter), the last reported price of the Company’s common shares for at least 20
				trading days (whether or not consecutive) during the last period of 30 trading days of the
				immediately preceding calendar quarter is greater than or equal to 130% of the conversion
				price on each applicable trading day (this has not occurred for the quarter ending on June
				30, 2022); or,
			(v)	upon a call for redemption by the Company, or upon the Company’s failure to pay the
				redemption price therefor.
		Thereafter, the Convertible Notes wil be convertible at any time until the close of business on the business
		day immediately preceding the maturity date. Upon conversion, the Convertible Notes may be settled, at
		the Company’s election, in common shares of the Company, cash or a combination thereof. The initial
		conversion rate for the Convertible Notes wil be 21.2307 shares per one thousand principal amount of
		Convertible Notes, equivalent to an initial conversion price of approximately $47.10 per share.
		The Convertible Notes mature on January 15, 2027, unless earlier repurchased, redeemed or converted.
		The Company may not redeem the Convertible Notes prior to December 6, 2024, except upon the
		occurrence of certain changes to the laws governing Canadian withholding taxes. After December 6, 2024,
		the Company has the right to redeem the Convertible Notes at its option in certain circumstances including:
			(i)	on or after December 6, 2024, if the Company’s share price for at least 20 trading days
				during any 30 consecutive trading day period ending on, and including, the last trading day
				of the immediately preceding calendar quarter is over 130% of the conversion price on
				each applicable trading day, at a redemption price equal to 100% of the principal plus
				accrued and unpaid interest; and
			(ii)	if the Company becomes obligated to pay additional amounts as a result of its obligation
				to bear the cost of Canadian or non-Canadian withholding tax, if applicable;
		Redemption can result in exercisability of the conversion option.
		Holders of Convertible Notes have the right to require the Company to repurchase their Convertible Notes
		upon the occurrence of certain events.


	16

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

12.		LONG-TERM LIABILITIES


			June 30, 2022 December 31, 2021
			$				$
		Current portion of long-term liabilities
		Accrued interest		2,551	305
		Other liabilities				910	604
				3,461	909
		Long-term liabilities
		Limited Recourse Loan Facility	-					27,915
			-					27,915
				3,461	28,824


		Limited Recourse Loan Facility In October 2018, Ganfeng provided Lithium Americas with a $100,000 unsecured, limited recourse,
		subordinated loan facility (the “Limited Recourse Loan Facility”) bearing an interest rate of 6-month LIBOR
		plus 5.5% (subject to an aggregate maximum interest rate of 10% per annum). The loan facility is repayable
		in an amount of 50% of Minera Exar’s Free Cash Flows (as defined in the credit facility agreement). In Q1 2022, the Limited Recourse Loan Facility balance and accumulated interest were repaid. The
		remaining undrawn available balance under the facility is $75,000.

13.		OTHER LIABILITIES Other liabilities consist of $2,515 in lease liabilities and $5,937 in mining contractor liability. The mining
		contractor liability balance includes $3,500 received by Lithium Nevada from a mining contractor pursuant
		to a mining design, consulting and mining operations service agreement for Thacker Pass entered into by
		Lithium Nevada in Q2 2019. As an additional term of the agreement, Lithium Nevada wil pay a success fee to the mining contractor of
		$4,650 upon achieving certain commercial mining milestones or repay the $3,500 advance without interest
		if a final project construction decision is not made by December 2024. Mining design and consulting services rendered by the mining contractor to date, are accrued and included
		in the mining contractor liability balance. Such amounts are payable on or before the earlier of December
		31, 2024, or 90 days after the start of production at Thacker Pass.


	17

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

14.		SHARE CAPITAL AND EQUITY COMPENSATION
		Share Capital
		On January 25, 2022, the Company closed the acquisition of 100% of Mil ennial and issued 13,199 shares
		to Mil ennial shareholders.
		On January 22, 2021, Lithium Americas closed an underwritten public offering of 18,182 shares, including
		2,273 shares following the exercise in ful by the underwriters of their over-allotment option.
		The shares were issued at a price of $22.00 each for gross proceeds to the Company of approximately
		$400,000. Share issuance costs were $22,609.
		Equity Incentive Plan
		The Company has an equity incentive plan (“Plan”) in accordance with the policies of the TSX whereby,
		from time to time, under the Company’s current equity compensation program and at the discretion of the
		Board of Directors, eligible directors, officers, employees and consultants are awarded restricted share
		units (“RSUs”) and performance share units (“PSUs”) that, subject to a recipient’s deferral right in
		accordance with the Income Tax Act (Canada), convert automatically into common shares upon vesting. In
		addition, independent directors are awarded deferred share units (“DSUs”), general y as partial
		compensation for their services as directors. DSUs may be redeemed by directors for common shares upon
		retirement or termination from the Board. The Plan also permits the grant of incentive stock options
		exercisable to purchase common shares of the Company (“stock options”); however, generally the
		Company has granted RSUs, PSUs and DSUs over stock options under its equity compensation program
		since 2018. The Plan is a “fixed plan” pursuant to which the aggregate number of common shares to be
		issued shall not exceed 16% of the Company’s issued and outstanding common shares as of April 1, 2020,
		or 14,401 shares.
		Restricted Share Units
		During the six months ended June 30, 2022, the Company granted 135 (2021 – 250) RSUs to its employees
		and consultants. The total estimated fair value of the RSUs was $3,343 (2021 – $3,366) based on the
		market value of the Company’s shares on the grant date. As at June 30, 2022, there was $2,393 (2021 –
		$1,517) of total unamortized compensation cost relating to unvested RSUs. During the six months ended
		June 30, 2022, stock-based compensation expense related to RSUs of $720 was charged to expenses
		(2021 – $917).

	18

LITHIUM AMERICAS CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2022

(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

14.

SHARE CAPITAL AND EQUITY COMPENSATION (continued)

A summary of changes to the number of outstanding RSUs is as follows:

Number of

RSUs

(in 000's)

Balance, RSUs outstanding as at December 31, 2020

2,290

Converted into shares

(191 )

Granted

256

Balance, RSUs outstanding as at December 31, 2021

2,355

Converted into shares

(45 )

Granted

135

Forfeited

(13 )

Balance, RSUs outstanding as at June 30, 2022

2,432

Deferred Share Units

During the six months ended June 30, 2022, the Company granted 9 DSUs (2021 – 12) as compensation

to independent directors with a total estimated fair value of $289 (2021 – $162).

Number of

DSUs

(in 000's)

Balance, DSUs outstanding as at December 31, 2020

218

Granted

Balance, DSUs outstanding as at December 31, 2021

242

Granted

Converted into common shares

(13 )

Balance, DSUs outstanding as at June 30, 2022

238

Stock Options

No stock options were granted by the Company during the six months ended June 30, 2022 and 2021.

Stock options outstanding and exercisable as at June 30, 2022 are as follows:

Number

Weighted

Outstanding and

Average

Weighted

Exercisable

Remaining

Average

Range of Exercise Prices

as at June 30,

Contractual

Exercise

CDN$

2022 (in 000’s)

Life (years)

Price (CDN$)

$4.55 - $5.00

160

0.0

4.90

$8.05 - $11.07

973

0.5

8.20

1,133

0.4

7.74

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

14.		SHARE CAPITAL AND EQUITY COMPENSATION (continued)

		A summary of changes to outstanding stock options is as follows:

			Number	Weighted Average
			of Options		Exercise Price,

			(in 000’s)		(CDN$)
		Balance, stock options outstanding as at December 31, 2020		2,303	6.05
		Exercised		(612 )		(3.05 )
		Expired				(9 )	(6.30 )
		Balance, stock options outstanding as at December 31, 2021		1,682	7.06
		Exercised		(549 )		(5.66 )
		Balance, stock options outstanding as at June 30, 2022		1,133	7.74


		The weighted average share price at the time of exercise of stock options during six months ended June
		30, 2022 was CDN$39.32 (2021 – CDN$20.00). During the six months ended June 30, 2022, 265 (2021 –
		280) stock options were exercised under the cashless exercise provision of the Plan, resulting in the
		issuance of 234 (2020 – 233) shares of the Company.

		Performance Share Units (“PSUs”)

		73 PSUs were granted by the Company during the six months ended June 30, 2022 (2021 – 162). As at
		June 30, 2022, there was $3,921 (2021 - $3,154) of total unamortized compensation cost relating to
		unvested PSUs.

		The fair value of the PSUs is estimated on the date of grant using a valuation model based on Monte Carlo
		simulation with the fol owing assumptions used for the grants made during the period:

							January 28,	January 4,
			2022		2021
		Number of PSUs granted	73	162
		Risk-free interest rate	1.39 %		0.17 %
		Dividend rate	0 %	0 %
		Annualized volatility	82.8 %		76.0 %
		Peer Group average volatility	55.73 %		72.2 %
		Estimated forfeiture rate	10.0 %		10.0 %
		Fair value per PSU granted	41.99						19.72



	20

LITHIUM AMERICAS CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2022

(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

14.

SHARE CAPITAL AND EQUITY COMPENSATION (continued)

During the six months ended June 30, 2022, equity compensation expense related to PSUs of $837 was

charged to operating expenses (2021 - $1,383). A summary of changes to the number of outstanding PSUs

is as follows:

Number of

PSUs

(in 000's)

Balance, PSUs outstanding as at December 31, 2020

999

Granted

162

Converted into common shares

(417 )

Balance, PSUs outstanding as at December 31, 2021

744

Granted

Forfeited

(51 )

Balance, PSUs outstanding as at June 30, 2022

766

15.

RELATED PARTY TRANSACTIONS Minera Exar, the Company’s equity-accounted investee, has entered into the following transactions with

companies controlled by the family of its president, who is also a director of Lithium Americas: -

Los Boros Option Agreement, entered into with Los Boros on March 28, 2016, for the transfer to

Minera Exar of title to certain mining properties that comprised a portion of the Cauchari-Olaroz

Project (Note 7).

Expenditures under the construction services contract for Cauchari-Olaroz with Magna

Construcciones S.R.L., were $2,721 for the six months ended June 30, 2022.

During the six months ended June 30, 2022, director’s fees paid by Minera Exar to its president, who is

also a director of Lithium Americas, totaled $37 (2021 - $37)

In Q1 2022, Minera Exar entered into a service agreement with a consortium owned 49% by a company

controlled by the family of its President, who is also a director of Lithium Americas. The agreement is for

servicing of the evaporation ponds at Cauchari-Olaroz over a five-year term, for total consideration of

$94,000 (excluding VAT).

The amounts due by Minera Exar to related parties arising from such transactions are unsecured, non-

interest bearing and have no specific terms of payment. Transactions with Ganfeng, a related party of the

Company by virtue of its position as a shareholder of the Company, are disclosed in Notes 7 and 12.

Compensation of Key Management

Key management includes the Company’s board of directors, and the executive management team. The

remuneration of directors and members of the executive management team was as follows:

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

15.		RELATED PARTY TRANSACTIONS (continued)


			Six months ended June 30,
				2022	2021
				$	$
		Equity compensation		930	1,284
		Salaries, bonuses, benefits and directors' fees included in general
		and administrative expenses		1,442	840
		Salaries, bonuses and benefits included in exploration expenditures		174	184
		Salaries and benefits capitalized to Investment in Cauchari-Olaroz
		project		282	542
				2,828	2,850



			June 30, 2022 December 31, 2021
				$	$
		Total due to directors and executive team		269	671



16.		GENERAL AND ADMINISTRATIVE EXPENSES The fol owing table summarizes the Company’s general and administrative expenses:


			Six months ended June 30,
				2022	2021
				$	$
		Salaries, benefits and directors' fees		3,237	1,568
		Office and administration		1,813	1,411
		Professional fees		2,364	1,225
		Regulatory and filing fees		154	259
		Travel		241	20
		Investor relations		699	297
		Depreciation		172	99
				8,680	4,879



	22

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

17.		EXPLORATION AND EVALUATION EXPENDITURES
		The fol owing table summarizes the Company’s exploration and evaluation expenditures:


					Six months ended June 30,
					2022							2021
									Millennial
								Thacker Pass	Projects	Thacker Pass
					$	$					$
		Engineering			12,422	-						8,771
		Consulting and salaries			4,261	422						2,963
		Permitting and environmental			2,345	2						1,030
		Field supplies and other			621				1,194	503
		Depreciation			744	100					246
		Dril ing and geological expenses			888	-					13
		Total exploration expenditures			21,281				1,718	13,526



18.		SEGMENTED INFORMATION The Company operates in four operating segments in three geographical areas. The Millennial Projects
		operating segment was added upon acquisition of these projects in Q1 2022.
		The Thacker Pass and Mil ennial Projects are in the exploration and evaluation stage and the Cauchari-
		Olaroz Project is in the development stage. The Organoclay segment, classified as a discontinued operation
		in 2021, was wound up in 2019 and its assets were sold in Q1 2021.
		The Company’s reportable segments are summarized in the following tables:

	Thacker							Cauchari-	Mil ennial
	Pass							Olaroz							Projects	Corporate				Total

				$	$				$	$					$
		As at June 30, 2022
		Property, plant and equipment		4,100					-				4,115	953					9,168
		Exploration and evaluation assets		9,016					- 338,050	- 347,066
		Total assets		16,089 218,544 354,002 454,862 1,043,497
		Total liabilities	(12,203 )					-				(270 ) (219,004 ) (231,477 )
		For the six months ended June 30, 2022
		Property, plant and equipment additions		1,550					-				-	55					1,605
		Net (loss)/Income	(22,081 ) (44,723 ) (1,559 )	5,675 (62,688 )
		Exploration expenditures	(21,281 )					- (1,718 )	- (22,999 )
		Depreciation					(744 )	-				(100 )	(172 )					(1,016 )
		For the three months ended June 30, 2022
		Property, plant and equipment additions		1,021					-				-	21					1,042
		Net (loss)/Income	(12,135 ) (67,388 )									(913 ) 63,879 (16,557 )
		Exploration expenditures	(11,743 )					- (1,047 )	- (12,790 )
		Depreciation					(427 )	-				(56 )	(87 )				(570 )


	23

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

18.		SEGMENTED INFORMATION (continued)


				Thacker	Cauchari-

	Organoclay			Pass		Olaroz	Corporate								Total

			$		$		$	$	$
		As at December 31, 2021
		Property, plant and equipment				-	3,294			-	1,074					4,368
		Exploration and evaluation assets				-	5,640			-	-	5,640
		Total assets				- 10,744 274,760 531,838 817,342
		Total liabilities				- (10,632 )				- (270,395 ) (281,027 )
		For the six months ended June 30, 2021
		Property, plant and equipment additions				-		96		-	23					119
		Income from discontinued operations				90		-		-	-	90
		Net loss				90 (15,140 ) (1,097 ) (13,105 ) (29,252 )
		Exploration expenditures				- (13,526 )				-	- (13,526 )
		Depreciation				-	(246 )			-	(99 )					(345 )
		For the three months ended June 30, 2021
		Property, plant and equipment additions				-		34		-	21					55
		Property, plant and equipment deconsolidation				-		-		-	-	-
		Loss from discontinued operations				(18 )		-		-	-	(18 )
		Net loss				(18 ) (9,683 )			(597 ) (9,025 ) (19,323 )
		Exploration expenditures				- (8,844 )				-	- (8,844 )
		Depreciation				-	(96 )			-	(55 )					(151 )

		The Company’s non-current assets are segmented geographical y as follows:

			Canada		United States	Argentina								Total

				$		$		$	$

		Non-current assets (1)
		As at June 30, 2022	13,549			13,103 391,858 418,510
		As at December 31, 2021		1,074			8,934 190,114 200,122

			1
		Non-current assets attributed to geographical locations exclude financial and other assets.



19.		SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS Supplementary disclosure of the Company’s transactions is provided in the table below.


					June 30, 2022 June 30, 2021
					$								$
		Interest paid					3,543		3,942





	24

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

20.		FINANCIAL INSTRUMENTS
		Financial instruments recorded at fair value on the consolidated statements of financial position and
		presented in fair value disclosures are classified using a fair value hierarchy that reflects the significance
		of the inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices that are observable for assets or liabilities, either directly or
		indirectly; and Level 3 – Inputs for assets and liabilities that are not based on observable market data.
		The fair value hierarchy requires the use of observable market inputs whenever such inputs exist. A
		financial instrument is classified in the lowest level of the hierarchy for which a significant input has been
		considered in measuring fair value. Other than warrants acquired as part of the Arena Minerals investment,
		common shares acquired as part of the Green Technology Metals investment and the convertible note
		derivative the Company, did not have any financial instruments measured at fair value on the statement of
		financial position on a recurring basis. As at June 30, 2022, the fair value of financial instruments not
		measured at fair value approximate their carrying value. Green Technology shares are classified at level 1
		of the fair value hierarchy, and Arena Minerals warrants and convertible note derivatives are classified at
		level 2 of the fair value hierarchy (refer to Note 5, 6 and 11).
		The Company manages risks to minimize potential losses. The main objective of the Company’s risk
		management process is to ensure that the risks are properly identified and monitored, and that the capital
		base maintained by the Company is adequate in relation to those risks. The principal risks which impact
		the Company’s financial instruments are described below.
		Credit Risk
		Credit risk is the risk of loss associated with a counterparty’s inability to fulfil its payment obligations.
		Financial instruments that potential y subject the Company to a concentration of credit risk consist primarily
		of cash, cash equivalents, receivables, long-term receivable from JEMSE, and loans to Exar Capital. The
		Company’s maximum exposure to credit risk for cash, cash equivalents, receivables, long-term receivable
		from JEMSE, and loans to Exar Capital is the amount disclosed in the consolidated statements of financial
		position. The Company limits its exposure to credit loss by placing its cash and cash equivalents with major
		financial institutions and invests only in short-term obligations that are guaranteed by the Canadian
		government or by Canadian and US chartered banks with expected credit losses estimated to be de
		minimis.	The Company and its subsidiaries and investees including Minera Exar, may from time to time
		make short-term investments into Argentinian government securities, financial instruments guaranteed by
		Argentinian banks and other Argentine securities. These investments may or may not realize short-term
		gains or losses.
		Management believes that the credit risk concentration with respect to financial instruments included in
		cash, cash equivalents, receivables, long-term receivable from JEMSE, and loans to Exar Capital is
		nominal.
		Liquidity Risk
		Liquidity risk is the risk that the Company wil not be able to meet its financial obligations as they fal due.
		The Company’s approach to managing liquidity is to evaluate current and expected liquidity requirements
		under both normal and stressed conditions to estimate and maintain sufficient reserves of cash and cash
		equivalents to meet its liquidity requirements in the short and long-term.

	25

LITHIUM AMERICAS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Expressed in thousands of US dollars, except for per share amounts; shares and equity instruments in thousands)

20.			FINANCIAL INSTRUMENTS (continued) As the industry in which the Company operates is very capital intensive, the majority of the Company’s
			spending or that of its investees is related to capital programs.
			The Company prepares annual budgets, which are regularly monitored and updated as considered
			necessary. As at June 30, 2022, the Company had a cash and cash equivalents balance of $440,821 to
			settle current liabilities of $10,094.
			The fol owing table summarizes the contractual maturities of the Company’s financial liabilities on an
			undiscounted basis:


											Years ending December 31,
		2025
						2022	2023 2024	and later	Total
						$				$			$	$			$
			Convertible senior notes			2,737	4,528 4,541	270,089	281,895
			Accounts payable and accrued
			liabilities			6,633				-	-	-				6,633
			Obligations under office leases¹			451				1,148 1,093	1,029				3,721
			Other obligations¹			15				8 6,096	-				6,119
			Total			9,836	5,684 11,730	271,118	298,368

				¹	Include principal and interest/finance charges.
			Market Risk
			Market risk incorporates a range of risks. Movement in risk factors, such as market price risk, the
			Company’s share price, and currency risk, affects the fair values of financial assets and liabilities. The
			Company is exposed to foreign currency risk as described below.
			Foreign Currency Risk
			The Company’s operations in foreign countries are subject to currency fluctuations and such fluctuations
			may affect the Company’s financial results. The Company reports its financial results in United States
			dollars (“US$”) and incurs expenditures in Canadian dol ars (“CDN$”), Argentine Pesos (“ARS$”) and US$,
			with the majority of the expenditures being incurred in US$ by the Company’s subsidiaries and investees.
			The Company and its subsidiaries and associates have a US$ functional currency. As at June 30, 2022,
			the Company held $2,464 and $191 in CDN$ and ARS$ denominated cash and cash equivalents
			respectively. Strengthening/(weakening) of a US$ exchange rate versus CDN$ and ARS$ by 10% would
			have resulted in a foreign exchange (loss)/gain for the Company of $246 and $2 respectively at June 30,
			2022.


21.			SUBSEQUENT EVENT
			On July 15, 2022, the Company paid interest of $2,755 due under its Convertible Notes.

	26