EX-4.4



 Exhibit 4.4 
  





 
  
  

LITHIUM AMERICAS CORP. 

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 

(Expressed in US Dollars) 

(Unaudited – Prepared by Management) 
  

 







 LITHIUM AMERICAS CORP. 

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars) 
  

													
	 	 
				
	  	  	 September 30,
2017

$
	 	 	 December 31,
2016

$
	 	 	  	 
	 CURRENT ASSETS
	  				 				 			
	 Cash and cash equivalents
	  	 	73,208	 	 	 	8,056	 	 			
	 Escrow deposit (Note 4)
	  	 	833	 	 	 	833	 	 			
	 Receivables, prepaids and deposits
	  	 	1,298	 	 	 	979	 	 			
	 Deferred financing costs
	  	 	1,748	 	 	 	—  	 	 			
	 Inventories
	  	 	1,177	 	 	 	531	 	 			
		  	  
	  
	 	 	  
	  
	 	 			
		  	 	78,264	 	 	 	10,399	 	 			
		  	  
	  
	 	 	  
	  
	 	 			
	 NON-CURRENT ASSETS
	  				 				 			
	 Restricted cash
	  	 	150	 	 	 	150	 	 			
	 Exploration and evaluation assets
	  	 	1,901	 	 	 	1,447	 	 			
	 Escrow deposit (Note 4)
	  	 	833	 	 	 	1,667	 	 			
	 Loan to Joint Venture (Note 4)
	  	 	11,255	 	 	 	—  	 	 			
	 Investment in Joint Venture (Note 4)
	  	 	7,981	 	 	 	13,136	 	 			
	 Property, plant and equipment (Note 5)
	  	 	18,078	 	 	 	18,502	 	 			
		  	  
	  
	 	 	  
	  
	 	 			
		  	 	40,198	 	 	 	34,902	 	 			
		  	  
	  
	 	 	  
	  
	 	 			
	 TOTAL ASSETS
	  	 	118,462	 	 	 	45,301	 	 			
	 	 
	 CURRENT LIABILITIES
	  				 				 			
	 Accounts payable and accrued liabilities
	  	 	4,285	 	 	 	1,637	 	 			
	 Current portion of long-term borrowing
	  	 	130	 	 	 	125	 	 			
	 Obligation under finance leases
	  	 	45	 	 	 	44	 	 			
		  	  
	  
	 	 	  
	  
	 	 			
		  	 	4,460	 	 	 	1,806	 	 			
		  	  
	  
	 	 	  
	  
	 	 			
	 LONG-TERM LIABILITIES
	  				 				 			
	 Long-term borrowing
	  	 	735	 	 	 	833	 	 			
	 Obligation under finance leases
	  	 	34	 	 	 	69	 	 			
	 Decommissioning provision
	  	 	179	 	 	 	170	 	 			
		  	  
	  
	 	 	  
	  
	 	 			
		  	 	948	 	 	 	1,072	 	 			
		  	  
	  
	 	 	  
	  
	 	 			
	 TOTAL LIABILITIES
	  	 	5,408	 	 	 	2,878	 	 			
		  	  
	  
	 	 	  
	  
	 	 			
	 SHAREHOLDERS’ EQUITY
	  				 				 			
	 Share capital
	  	 	195,643	 	 	 	108,670	 	 			
	 Contributed surplus
	  	 	19,342	 	 	 	11,948	 	 			
	 Accumulated other comprehensive loss
	  	 	1,585	 	 	 	(2,124	) 	 			
		  	  
	  
	 	 	  
	  
	 	 			
	 Deficit
	  	 	(103,516	) 	 	 	(76,071	) 	 			
		  	  
	  
	 	 	  
	  
	 	 			
	 TOTAL SHAREHOLDERS’ EQUITY
	  	 	113,054	 	 	 	42,423	 	 			
	 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
	  	 	118,462	 	 	 	45,301	 	 			


							
	 

 Change in year-end (Note 2) 

Subsequent event (Note 14) 
 Approved for issuance on
November 13, 2017 
 On behalf of the Board of Directors: 
  

							
	 “Gary Cohn”
	  	Director	  	 “George Ireland”
	  	 Director


 The accompanying notes are an integral part of these condensed consolidated interim financial statements.








 LITHIUM AMERICAS CORP. 

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars, except per share amounts, shares in thousands) 

 

																	
	 	 
	 	  	Three Months Ended
September 30,	 	 	 Nine Months Ended

September 30,
	 
		  	  
	  
	 
	  	  	 2017

$
	 	 	 2016

$
	 	 	 2017

$
	 	 	 2016

$
	 
	 ORGANOCLAY SALES
	  	 	1,059	 	 	 	452	 	 	 	3,838	 	 	 	620	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 COST OF SALES
	  				 				 				 			
	 Production costs
	  	 	(1,416	) 	 	 	(628	) 	 	 	(4,295	) 	 	 	(1,045	) 
	 Depreciation
	  	 	(159	) 	 	 	(127	) 	 	 	(705	) 	 	 	(187	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total cost of sales
	  	 	(1,575	) 	 	 	(755	) 	 	 	(5,000	) 	 	 	(1,232	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 GROSS LOSS
	  	 	(516	) 	 	 	(303	) 	 	 	(1,162	) 	 	 	(612	) 
	 EXPENSES
	  				 				 				 			
	 Exploration expenditures (Note 10)
	  	 	(1,231	) 	 	 	(676	) 	 	 	(2,623	) 	 	 	(1,729	) 
	 Organoclay research and development
	  	 	(110	) 	 	 	(101	) 	 	 	(318	) 	 	 	(330	) 
	 Other expenses
	  	 	—  	 	 	 	—  	 	 	 	(369	) 	 	 	—  	 
	 General and administrative (Note 8)
	  	 	(2,762	) 	 	 	(1,180	) 	 	 	(5,334	) 	 	 	(3,858	) 
	 Share of income/(loss) in Joint Venture (Note 4)
	  	 	776	 	 	 	(1,231	) 	 	 	(4,452	) 	 	 	(1,372	) 
	 Stock-based compensation (Note 6)
	  	 	(7,139	) 	 	 	(463	) 	 	 	(9,729	) 	 	 	(2,307	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
		  	 	(10,466	) 	 	 	(3,651	) 	 	 	(22,825	) 	 	 	(9,596	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 OTHER ITEMS
	  				 				 				 			
	 Foreign exchange (loss)/gain
	  	 	(2,347	) 	 	 	211	 	 	 	(4,157	) 	 	 	179	 
	 Convertible security accretion
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(323	) 
	 Loss on sale of 50% interest in Minera Exar
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(9,010	) 
	 Other income
	  	 	570	 	 	 	20	 	 	 	699	 	 	 	507	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
		  	 	(1,777	) 	 	 	231	 	 	 	(3,458	) 	 	 	(8,647	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 NET LOSS FOR THE PERIOD
	  	 	(12,759	) 	 	 	(3,723	) 	 	 	(27,445	) 	 	 	(18,855	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 OTHER COMPREHENSIVE INCOME/(LOSS) ITEMS THAT MAY BE RECLASSIFIED SUBSEQUENTLY TO NET
LOSS
	  				 				 				 			
	 Reclassification of cumulative translation adjustment on sale of 50% interest in Minera
Exar
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	15,093	 
	 Unrealized gain/(loss) on translation to reporting currency
	  	 	2,212	 	 	 	(579	) 	 	 	3,709	 	 	 	(4,572	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
		  	 	2,212	 	 	 	(579	) 	 	 	3,709	 	 	 	10,521	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 TOTAL COMPREHENSIVE LOSS FOR THE PERIOD
	  	 	(10,547	) 	 	 	(4,302	) 	 	 	(23,736	) 	 	 	(8,335	) 
	 	 
	 LOSS PER SHARE - BASIC AND DILUTED
	  	 	(0.03	) 	 	 	(0.01	) 	 	 	(0.08	) 	 	 	(0.07	) 
	 	 
	 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED
	  	 	430,325	 	 	 	300,710	 	 	 	358,948	 	 	 	289,233	 
	 	 

 The accompanying notes are an integral part of these condensed consolidated interim financial statements.








 LITHIUM AMERICAS CORP. 

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars and shares in thousands) 
  

																									
	 	 
	 	  	Share capital	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	  	Number
of Shares	 	  	Amount
$	 	 	 Contributed
surplus

$
	 	 	 Accumulated
other
comprehensive
loss

$
	 	 	 Deficit

$
	 	 	 Shareholders’
equity

$
	 
	 Authorized share capital:
	  				  				 				 				 				 			
	 Unlimited common shares without par value
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Balance, December 31, 2016
	  	 	301,866	 	  	 	108,670	 	 	 	11,948	 	 	 	(2,124	) 	 	 	(76,071	) 	 	 	42,423	 
	 Shares issued on exercise of stock options (Note 6)
	  	 	3,557	 	  	 	1,438	 	 	 	(811	) 	 	 	—  	 	 	 	—  	 	 	 	627	 
	 Shares issued on exercise of warrants (Note 6)
	  	 	6,717	 	  	 	4,604	 	 	 	(208	) 	 	 	—  	 	 	 	—  	 	 	 	4,396	 
	 Shares issued on conversion of restricted shares (Note 6)
	  	 	2,563	 	  	 	1,545	 	 	 	(1,527	) 	 	 	—  	 	 	 	—  	 	 	 	18	 
	 Deferred share units issued (Note 6)
	  	 	—  	 	  	 	—  	 	 	 	256	 	 	 	—  	 	 	 	—  	 	 	 	256	 
	 Restricted shares issued
	  	 	—  	 	  	 	—  	 	 	 	97	 	 	 	—  	 	 	 	—  	 	 	 	97	 
	 Shares issued for equity financing (Note 6)
	  	 	125,000	 	  	 	80,999	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	80,999	 
	 Share issuance costs (Note 6)
	  	 	—  	 	  	 	(1,755	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1,755	) 
	 Shares issued on conversion of DSUs
	  	 	205	 	  	 	142	 	 	 	(142	) 	 				 				 	 	—  	 
	 Stock-based compensation
	  	 	—  	 	  	 	—  	 	 	 	9,729	 	 	 	—  	 	 	 	—  	 	 	 	9,729	 
	 Net loss
	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(27,445	) 	 	 	(27,445	) 
	 Other comprehensive income
	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	3,709	 	 	 	—  	 	 	 	3,709	 
	 Balance, September 30, 2017
	  	 	439,908	 	  	 	195,643	 	 	 	19,342	 	 	 	1,585	 	 	 	(103,516	) 	 	 	113,054	 
	 	 
	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Balance, December 31, 2015
	  	 	289,996	 	  	 	104,069	 	 	 	11,203	 	 	 	(12,048	) 	 	 	(51,619	) 	 	 	51,605	 
	 Shares issued for convertible security
	  	 	1,978	 	  	 	541	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	541	 
	 Shares issued on exercise of stock options
	  	 	5,628	 	  	 	1,929	 	 	 	(1,175	) 	 	 	—  	 	 	 	—  	 	 	 	754	 
	 Shares issued on exercise of warrants
	  	 	2,034	 	  	 	1,256	 	 	 	(106	) 	 	 	—  	 	 	 	—  	 	 	 	1,150	 
	 Shares issued on conversion of restricted shares
	  	 	1,813	 	  	 	701	 	 	 	(627	) 	 	 	—  	 	 	 	—  	 	 	 	74	 
	 Stock-based compensation
	  	 	—  	 	  	 	—  	 	 	 	2,308	 	 	 	—  	 	 	 	—  	 	 	 	2,308	 
	 Net loss
	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(18,855	) 	 	 	(18,855	) 
	 Other comprehensive income
	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	10,521	 	 	 	—  	 	 	 	10,521	 
	 Balance, September 30, 2016
	  	 	301,449	 	  	 	108,496	 	 	 	11,603	 	 	 	(1,527	) 	 	 	(70,474	) 	 	 	48,098	 
	 	 

 The accompanying notes are an integral part of these condensed consolidated interim financial statements.








 LITHIUM AMERICAS CORP. 

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars) 
  

									
	 	 
	 	  	For the nine months ended September 30,	 
	  	  	 2017

$
	 	 	 2016

$
	 
	 OPERATING ACTIVITIES
	  				 			
	 Net loss for the period
	  	 	(27,445	) 	 	 	(18,855	) 
	 Items not affecting cash:
	  				 			
	 Stock-based compensation
	  	 	9,729	 	 	 	2,307	 
	 Depreciation
	  	 	827	 	 	 	577	 
	 Foreign exchange loss/(gain)
	  	 	4,157	 	 	 	(179	) 
	 Share of loss in Joint Venture (Note 4)
	  	 	4,452	 	 	 	1,372	 
	 Convertible security accretion
	  	 	—  	 	 	 	323	 
	 Loss on sale of 50% interest in Minera Exar
	  	 	—  	 	 	 	8,369	 
	 Inventories write down
	  	 	332	 	 	 	348	 
	 Other losses/(income)
	  	 	322	 	 	 	(463	) 
	 Changes in non-cash working capital items:
	  				 			
	 Increase in receivables, prepaids and deposits
	  	 	(581	) 	 	 	(291	) 
	 Increase in inventories
	  	 	(364	) 	 	 	(629	) 
	 Increase/(decrease) in accounts payable and accrued liabilities
	  	 	685	 	 	 	(485	) 
		  	  
	  
	 	 	  
	  
	 
	 Net cash used in operating activities
	  	 	(7,886	) 	 	 	(7,606	) 
		  	  
	  
	 	 	  
	  
	 
	 INVESTING ACTIVITIES
	  				 			
	 Loans to Joint Venture (Note 4)
	  	 	(11,000	) 	 	 	—  	 
	 Contribution to Joint Venture (Note 4)
	  	 	(238	) 	 	 	—  	 
	 Additions to exploration and evaluation assets
	  	 	(495	) 	 	 	(657	) 
	 Cash received from Joint Venture
	  	 	—  	 	 	 	14,754	 
	 Escrow deposit (Note 4)
	  	 	833	 	 	 	(2,500	) 
	 Cash acquired from plan of arrangement
	  	 	—  	 	 	 	(93	) 
	 Additions to property, plant and equipment (Notes 5 and 12)
	  	 	(750	) 	 	 	(228	) 
		  	  
	  
	 	 	  
	  
	 
	 Net cash (used in)/provided by investing activities
	  	 	(11,650	) 	 	 	11,276	 
		  	  
	  
	 	 	  
	  
	 
	 FINANCING ACTIVITIES
	  				 			
	 Proceeds from stock options exercises
	  	 	627	 	 	 	754	 
	 Proceeds from warrants exercises
	  	 	4,396	 	 	 	1,150	 
	 Net proceeds from financings (Note 6)
	  	 	79,325	 	 	 	3,484	 
	 Repayment of convertible security funding
	  	 	—  	 	 	 	(1,653	) 
	 Finance lease and long-term borrowing repayments
	  	 	(126	) 	 	 	(119	) 
		  	  
	  
	 	 	  
	  
	 
	 Net cash provided by financing activities
	  	 	84,222	 	 	 	3,616	 
		  	  
	  
	 	 	  
	  
	 
		  				 			
		  	  
	  
	 	 	  
	  
	 
	 EFFECT OF FOREIGN EXCHANGE ON CASH
	  	 	466	 	 	 	77	 
		  	  
	  
	 	 	  
	  
	 
	 CHANGE IN CASH AND CASH EQUIVALENTS
	  	 	65,152	 	 	 	7,363	 
	 CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD
	  	 	8,056	 	 	 	2,646	 
		  	  
	  
	 	 	  
	  
	 
	 CASH AND CASH EQUIVALENTS - END OF PERIOD
	  	 	73,208	 	 	 	10,009	 
	 	 

 Supplemental disclosure with respect to cash flows (Note 12) 

The accompanying notes are an integral part of these condensed consolidated interim financial statements. 







 LITHIUM AMERICAS CORP. 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars, except for per share amounts, shares in thousands) 

 

	1.	 NATURE OF OPERATIONS 



Lithium Americas Corp. (“Lithium Americas” or the “Company”) is a Canadian based resource company focused
on advancing two significant lithium projects, the Cauchari-Olaroz project, located in Jujuy province of Argentina, and the Lithium Nevada project (formerly the Kings Valley project), located in north-western Nevada, USA, and on the manufacturing
and sales of organoclay products. 
 The Company’s organoclay plant located in Fernley, Nevada, USA manufactures
specialty organoclay products, derived from clays, for sale to the oil and gas and other sectors. 
 The Company’s head
office and principal address is Suite 1100-355 Burrard Street, Vancouver, British Columbia, Canada, V6C 2G8. Effective August 11, 2017 the Company’s registered and records office is 2200-885 West Georgia Street, Vancouver, British
Columbia, Canada, V6C 3E8. 
 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 and investment in joint venture are entirely dependent on the existence of economically recoverable reserves, securing and maintaining title
and beneficial interest in the properties, the ability of the Company to obtain the necessary financing to complete permitting, development, and to attain future profitable operations. 

 

	2.	 BASIS OF PREPARATION AND PRESENTATION 



The Company changed its fiscal year end from September 30 to December 31, effective 2016. The Company changed its
year end in order to align it with the Joint Venture for reporting and planning purposes as well as to bring its financial reporting timetable in line with the other companies in the industry. 

These condensed consolidated interim financial statements have been prepared in accordance with International Financial
Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) applicable to the preparation of interim financial statements, including International Accounting Standard (“IAS”) 34,
Interim Financial Reporting. The condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements for the fifteen months ended December 31, 2016, which have been prepared in accordance
with IFRS as issued by the IASB. 
 These condensed consolidated interim financial statements are expressed in US dollars,
the Company’s presentation currency, and have been prepared on a historical cost basis. The Company has used the same accounting policies and methods of computation as in the annual consolidated financial statements for the fifteen months ended
December 31, 2016. 
  

	3.	 SIGNIFICANT ACCOUNTING POLICIES 



Recent Accounting Pronouncements 

Accounting standards and amendments issued but not yet adopted 

IFRS 9, Financial Instruments (“IFRS 9”), addresses the classification, measurement and recognition of financial
assets and financial liabilities. The complete version of IFRS 9 was issued in July 2014. It replaces the guidance in IAS 39 that relates to the classification and measurement of financial instruments. 








 LITHIUM AMERICAS CORP. 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars, except for per share amounts, shares in thousands) 

 

	3.	 SIGNIFICANT ACCOUNTING POLICIES (continued)  



 

 Accounting standards and amendments issued but not yet adopted
(continued) 
 IFRS 9 retains but simplifies the mixed measurement model and establishes three primary
measurement categories for financial assets: amortized cost, fair value through other comprehensive income (“OCI”) and fair value through profit and loss (“FVTPL”). There is now a new expected credit losses model that replaces
the incurred loss impairment model used in IAS 39. 
 For financial liabilities there were no changes to classification and
measurement except for the recognition of changes in own credit risk in OCI, for liabilities designated as FVTPL. The standard is effective for accounting periods beginning on or after January 1, 2018. The Company is still in the process of
assessing the impact of the new standard but does not anticipate the adoption of this standard to have a material impact on the Company’s consolidated financial statements. 

IFRS 15, Revenue from Contracts with Customers (“IFRS 15”), deals with revenue recognition and establishes principles
for reporting useful information to users of financial statements about the nature, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. IFRS 15 was issued in May 2014 by the IASB. Under IFRS 15,
revenue is recognized when a customer obtains control of a good or service and thus has the ability to direct the use and obtain the benefits from the good or service. The standard replaces IAS 18, Revenue, and IAS 11, Construction Contracts, and
related interpretations. The standard is effective for annual periods beginning on or after January 1, 2018. The Company is still in the process of assessing the impact of the new standard but does not expect the adoption of this standard to
have a material impact on the timing or amounts of revenue recognized in its consolidated financial statements. 
 IFRS 16,
Leases (“IFRS 16”), was issued in January 2016 by the IASB. According to the new standard, all leases will be on the statement of financial position of lessees, except those that meet the limited exception criteria. The standard is
effective for annual periods beginning on or after January 1, 2019. The Company is currently evaluating the effect the standard will have on its consolidated financial statements. 

Critical Accounting Estimates and Judgements 

The preparation of these condensed consolidated interim financial statements in conformity with IFRS requires judgments,
estimates, and assumptions that affect the amounts reported. Those estimates and assumptions concerning the future may differ from actual results. Estimates and judgements 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. 
 In preparing
these condensed consolidated interim financial statements, the Company makes judgements, estimates and assumptions concerning the future which may vary from actual results. The significant estimates and judgements made by management in applying the
Company’s accounting policies and the key sources of estimation uncertainty were substantially the same as those that applied to the consolidated financial statements as at and for the fifteen months ended December 31, 2016, except as
follows: 
 The application of the Company’s accounting policy for exploration and evaluation assets requires judgement
in assessing when the commercial viability and technical feasibility of the Cauchari-Olaroz project has been determined, at which point the asset is reclassified to property and equipment. In the judgement of the Company, the commercial viability
and technical feasibility of the Cauchari-Olaroz project has been demonstrated effective July 1, 2017. 








 LITHIUM AMERICAS CORP. 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars, except for per share amounts, shares in thousands) 

 

	4.	 INVESTMENT IN JOINT VENTURE 



 

 On March 28, 2016, the Company entered into an agreement with SQM to
form a 50/50 Joint Venture on the Cauchari-Olaroz project in Jujuy, Argentina. 
 The Joint Venture is governed by a
Shareholders Agreement which provides for (i) equal representation by the Company and SQM on its Management Committee, (ii) unanimous approval by the Company and SQM on budgets and timing of expenditures, (iii) the right to purchase a
50% share of production and (iv) buyout and termination provisions in the event that SQM chooses not to proceed with the project. 

In May 2016, SQM and the Company also entered into an Escrow Agreement requiring the Company to deposit $2,500 of the $15,000
contribution (the “Escrow Amount”) into an escrow account. Subject to certain provisions, the Escrow Amount will be released to the Company over three years as follows: $833 was received in April 2017, $833 will be released on
March 28, 2018, and $833 will be released on March 28, 2019. The Escrow Amount can be used to pay certain contingent liabilities of Minera Exar, if any arise, related to the actions prior to the Joint Venture formation. The Company has
also provided a guarantee for up to $354 in transaction related costs in the event that such costs arise in the future. 

Effective July 1, 2017, the Joint Venture’s Cauchari-Olaroz project entered the development phase. Accordingly, all
costs directly attributable to the project are capitalized. 
 The changes in investment in the Joint Venture since initial
contribution are as follows: 
  

					
	 	 
	 	  	 	 	 
	 Initial contribution to Joint Venture – March 28,2016
	  	 	$	 
	 50% of net asset value of Minera Exar
	  	 	13,276	 
	 50% of contribution for Joint Venture project
development
	  	 	5,000	 
	 Total initial contribution
	  	 	18,276	 
	 Share of loss of Joint Venture
	  	 	(3,987	) 
	 Translation adjustment
	  	 	(1,153	) 
	 Investment in Joint Venture – December 31,
2016
	  	 	13,136	 
	 Share of loss of Joint Venture – for the nine months ended September 30, 2017
	  	 	(4,452	) 
	 Translation adjustment – for the nine months ended September 30, 2017
	  	 	(858	) 
	 Contribution to Joint Venture by LAC
	  	 	283	 
	 Elimination of unrealized interest on loans to Joint
Venture
	  	 	(128	) 
	 Investment in Joint Venture – September 30, 2017
	  	 	7,981	 
	 	 

 During the nine months ended September 30, 2017, the Company entered into two loan agreements and
advanced $11,000 to Minera Exar. The rate of interest on the first loan with a principal amount of $5,000 is 12-month LIBOR plus 3% and is calculated on the basis of a 360-day year. The maturity date of the first loan is two years following the
drawdown date. The rate of interest on the second loan with a principal amount of $6,000 is 12-month LIBOR plus 10% and is calculated on the basis of a 360-day year. The maturity date of the second loan is fifteen years following the drawdown date.
The interest on both loans is accrued on a non–compounding basis. The loans will be used by Minera Exar for mining exploration or mining construction and development purposes. 

In October 2017, the Company made an irrevocable capital contribution, proportionate to its 50% interest in the Joint Venture, for future
capital increases in Minera Exar in an amount of $13,300 to develop, explore, and operate the Cauchari-Olaroz project. 








 LITHIUM AMERICAS CORP. 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars, except for per share amounts, shares in thousands) 

 

	4.	 INVESTMENT IN JOINT VENTURE (continued)  



 

 JEMSE Arrangement 

The Joint Venture has granted a right to Jujuy Energia y Mineria Sociedad del Estado (“JEMSE”), a mining investment
company owned by the government of Jujuy Province in Argentina, to acquire an 8.5% equity interest in Minera Exar for one US dollar and provide management services as required to develop the project. 

If it exercises its right, JEMSE will be required to provide its pro rata (8.5%) share of the financing requirements for
the construction of the Cauchari-Olaroz project. These funds will be loaned to JEMSE by the shareholders of Minera Exar and will be repayable out of one-third of the dividends to be received by JEMSE over future years from the project. The
distribution of dividends to JEMSE and other shareholders in the project will only commence once all commitments related to the project and its financing have been met. 
  

	5.	 PROPERTY, PLANT AND EQUIPMENT 



 

																									
	 	 
	  	  	 Land

$
	 	  	 Buildings

$
	 	  	 Equipment
and machinery

$
	 	 	 Organoclay
plant

$
	 	  	 Other

$
	 	 	 Total

$
	 
	 Cost
	  				  				  				 				  				 			
	 As at September 30,2015
	  	 	371	 	  	 	1,957	 	  	 	5,068	 	 	 	11,149	 	  	 	356	 	 	 	18,901	 
	 Additions
	  	 	15	 	  	 	184	 	  	 	88	 	 	 	346	 	  	 	70	 	 	 	703	 
	 Disposition
	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	(29	) 	 	 	(29	) 
	 Contribution to Joint Venture
	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	(12	) 	 	 	(12	) 
	 Foreign exchange
	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	(3	) 	 	 	(3	) 
	 As at December 31, 2016
	  	 	386	 	  	 	2,141	 	  	 	5,156	 	 	 	11,495	 	  	 	382	 	 	 	19,560	 
	 Additions
	  	 	—  	 	  	 	2	 	  	 	558	 	 	 	—  	 	  	 	212	 	 	 	772	 
	 Write downs
	  	 	—  	 	  	 	—  	 	  	 	(399	) 	 	 	—  	 	  	 	—  	 	 	 	(399	) 
	 As at September 30, 2017
	  	 	386	 	  	 	2,143	 	  	 	5,315	 	 	 	11,495	 	  	 	594	 	 	 	19,933	 
	 	 
		  				  				  				 				  				 			
	 	 
	  	  	 Land

$
	 	  	 Buildings

$
	 	  	Equipment
and machinery
$	 	 	 Organoclay
plant

$
	 	  	 Other

$
	 	 	 Total

$
	 
	 Accumulated depreciation
	  				  				  				 				  				 			
	 As at September 30, 2015
	  	 	—  	 	  	 	—  	 	  	 	112	 	 	 	—  	 	  	 	76	 	 	 	188	 
	 Depreciation for the year
	  	 	—  	 	  	 	76	 	  	 	335	 	 	 	431	 	  	 	52	 	 	 	894	 
	 Disposition
	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	(20	) 	 	 	(20	) 
	 Contribution to Joint Venture
	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	(4	) 	 	 	(4	) 
	 As at December 31,
2016
	  	 	—  	 	  	 	76	 	  	 	447	 	 	 	431	 	  	 	104	 	 	 	1,058	 
	 Depreciation for the period
	  	 	—  	 	  	 	80	 	  	 	269	 	 	 	431	 	  	 	47	 	 	 	827	 
	 Write downs
	  	 	—  	 	  	 	—  	 	  	 	(30	) 	 	 	—  	 	  	 	—  	 	 	 	(30	) 
	 As at September 30, 2017
	  	 	—  	 	  	 	156	 	  	 	686	 	 	 	862	 	  	 	151	 	 	 	1,855	 
	 	 
	  	  	Land
$	 	  	Buildings
$	 	  	Equipment
and machinery
$	 	 	 Organoclay
plant

$
	 	  	Other
$	 	 	 Total

$
	 
	 Net book value
	  				  				  				 				  				 			
	 As at December 31, 2016
	  	 	386	 	  	 	2,065	 	  	 	4,709	 	 	 	11,064	 	  	 	278	 	 	 	18,502	 
	 As at September 30, 2017
	  	 	386	 	  	 	1,987	 	  	 	4,629	 	 	 	10,633	 	  	 	443	 	 	 	18,078	 
	 	 









 LITHIUM AMERICAS CORP. 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars, except for per share amounts, shares in thousands) 

 

	6.	 ISSUED CAPITAL, EQUITY COMPENSATION AND WARRANTS 



 

 Ganfeng Investment Agreement 

During the nine months ended September 30, 2017, the Company completed the closing of the investment agreement (the
“Ganfeng 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: 
  

	 	•	 	 The Company issued to Ganfeng 75,000 common shares at a price of CDN$0.85 per share, for an aggregate cash
subscription of CDN$63,750 ($47,460). 


  

	 	•	 	 Ganfeng will provide to Lithium Americas a $125,000 project debt facility to be used to fund a portion 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; 


  

	 	•	 	 Ganfeng and the Company have agreed to terms for an offtake entitlement in favour of Ganfeng for the purchase
of up to 80% of Lithium Americas’ share of Cauchari-Olaroz Stage 1 lithium carbonate production at market prices; 


  

	 	•	 	 Ganfeng is entitled to one nominee on Lithium Americas’ board of directors and anti-dilution protection
to maintain its proportionate interest in Lithium Americas for a two-year term. 


 Bangchak Investment
Agreement 
 During the nine months ended September 30, 2017, the Company completed the closing of the investment
agreement (the “Bangchak Investment Agreement”) with The Bangchak Petroleum Public Company Limited (“Bangchak”) through its wholly-owned subsidiary, BCP Innovation Pte Ltd (“BCPI”) for funding to advance the
construction of the Cauchari-Olaroz lithium project in Jujuy, Argentina. 
 Pursuant to the Investment Agreement: 

 

	 	•	 	 The Company issued to BCPI 50,000 common shares at price of CDN$0.85 per share for an aggregate cash
subscription of CDN$42,500 ($33,539). 


  

	 	•	 	 BCPI will provide to Lithium Americas an $80,000 project debt facility to be used to fund a portion 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;



  

	 	•	 	 BCPI and the Company have agreed to terms for an offtake entitlement in favour of BCPI for the purchase of up
to 20% of Lithium Americas’ share of Cauchari-Olaroz Stage 1 lithium carbonate production at market prices; 


  

	 	•	 	 BCPI is entitled to one nominee on Lithium Americas’ board of directors and anti-dilution protection to
maintain its proportionate interest in Lithium Americas for a two-year term. 


 Financing costs of $1,755,
related to the equity portion of the Ganfeng and Bangchak financings, were recorded as share issuance costs. $81 of these costs are included in accounts payable and accrued liabilities on September 30, 2017. Financing costs of $1,748, related
to the debt portion of the Ganfeng and Bangchak financings, are deferred and included in receivables, prepaids, and deposits and will be amortized over the terms of the loans. $1,517 of these costs are included in accounts payable and accrued
liabilities on September 30, 2017. 








 LITHIUM AMERICAS CORP. 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars, except for per share amounts, shares in thousands) 

 

	6.	 ISSUED CAPITAL, EQUITY COMPENSATION AND WARRANTS (continued) 



 

 Equity Incentive Plan 

The Company has an equity incentive plan (“Plan”) in accordance with the policies of the TSX whereby, from time to
time, at the discretion of the Board of Directors, eligible directors, officers, employees and consultants are: (1) granted incentive stock options exercisable to purchase common shares (“Stock Options”); (2) awarded restricted
share rights (“RSs”) that convert automatically into common shares upon vesting; and (3) for eligible directors, awarded deferred share units (“DSUs”) which the directors are entitled to redeem for common shares upon
retirement or termination from the Board. Under the Plan, common shares reserved for issuance of Stock Options, RSs and DSUs shall not exceed 10% of the outstanding shares from time to time. The exercise price of each stock option is based on the
fair market price of the Company’s common shares at the time of the grant. The options can be granted for a maximum term of five years. 

Restricted Shares 

During the nine months ended September 30, 2017, the Company granted approximately 7,845 RSs to its directors, executive
officers, and employees. The total estimated fair value of the RSs was $7,812 based on the market value of the Company’s shares on the grant date. The fair value of RS is being recorded as a share-based payments expense and charged to operating
expenses over the vesting periods. 
 During the nine months ended September 30, 2017, the fair value of RSs of $6,713
(nine months ended September 30, 2016 - $1,367) was recorded as a share-based payments expense and charged to operating expenses. 

A summary of changes to restricted shares is as follows: 

 

									
	 	 
	  	  	Number
of RSs
(in 000’s)	 	  	FMV Price per share,
(CDN$)	 
	 Balance, RSs September 30, 2015
	  	 	—  	 	  	 	—  	 
	 Granted
	  	 	3,247	 	  	 	0.47	 
	 Granted
	  	 	350	 	  	 	0.75	 
	 Granted
	  	 	100	 	  	 	0.73	 
	 Granted
	  	 	350	 	  	 	0.96	 
	 Granted
	  	 	320	 	  	 	0.74	 
	 Converted into common shares
	  	 	(1,613	) 	  	 	(0.47	) 
	 Converted into common shares
	  	 	(200	) 	  	 	(0.75	) 
	 Converted into common shares
	  	 	(100	) 	  	 	(0.73	) 
	 Balance, RSs December 31, 2016
	  	 	2,454	 	  	 	0.56	 
	 	 
	 Granted
	  	 	2,825	 	  	 	0.91	 
	 Granted
	  	 	900	 	  	 	1.00	 
	 Granted
	  	 	134	 	  	 	0.92	 
	 Granted
	  	 	3,986	 	  	 	1.61	 
	 Converted into common shares
	  	 	(600	) 	  	 	(0.47	) 
	 Converted into common shares
	  	 	(1,143	) 	  	 	(0.91	) 
	 Converted into common shares
	  	 	(150	) 	  	 	(0.75	) 
	 Converted into common shares
	  	 	(320	) 	  	 	(0.76	) 
	 Converted into common shares
	  	 	(350	) 	  	 	(0.96	) 
	 Balance, RSs September 30, 2017
	  	 	7,736	 	  	 	1.24	 
	 	 









 LITHIUM AMERICAS CORP. 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars, except for per share amounts, shares in thousands) 

 

	6.	 ISSUED CAPITAL, EQUITY COMPENSATION AND WARRANTS (continued) 



 

 Deferred Share Units 

During the nine-month period ended September 30, 2017, the Company awarded 365 DSU’s in connection with fees payable
to independent directors of the Company and 205 DSUs were converted into common shares. 
 As at September 30, 2017, the
Company had 206 DSUs outstanding. 
 Stock Options 

On April 4, 2017, the Company granted 4,175 stock options at the exercise price of CDN$0.98 per option to its directors,
executive officers, and employees. The expiry date of the stock options is April 4, 2022. The fair value of the stock options was estimated at CDN$0.42 per option for a total of CDN$1,754 which will be expensed over the 18-month vesting period.
The fair value of stock options was estimated on the date of grant using the Black-Scholes Option pricing model with the following assumptions: risk-free rate of 0.7%, estimated volatility 73%, expected life of three years, share price on the grant
date of CDN$0.91, and expected dividend yield of 0%. Annualized volatility was determined solely based on historical volatility. 

On April 4, 2017, the Company also granted 1,000 stock options at the exercise price of CDN$0.98 per option to two of its
executive officers. The expiry date of the stock options is April 4, 2022. The fair value of the stock options was estimated at CDN$0.42 per option for a total of CDN$420 which will be expensed over the 18-month vesting period. The fair value
of stock options was estimated on the date of grant using the Black-Scholes Option pricing model with the following assumptions: risk-free rate of 0.7%, estimated volatility 73%, expected life of three years, share price on the grant date of
CDN$0.91, and expected dividend yield of 0%. Annualized volatility was determined solely based on historical volatility. 500 of the options granted on April 4, 2017, are subject to an 18-months vesting period starting on the closing of the
Ganfeng and Bangchak Investment Agreements. The remaining 500 of these options are subject to an 18-month vesting period starting on the first drawdown of debt under the Ganfeng and Bangchak Investment Agreements. 

On May 16, 2017, the Company granted 500 stock options at the exercise price of CDN$1.00 per option to a director and
officer. The expiry date of these stock options is May 16, 2022. The fair value of the stock options was estimated at CDN$0.47 per option for a total of CDN$235 which will be expensed over the 18-month vesting period. The fair value of stock
options was estimated on the date of grant using the Black-Scholes Option pricing model with the following assumptions: risk-free rate of 0.7%, estimated volatility 72%, expected life of three years, share price on the grant date of CDN$1.00, and
expected dividend yield of 0%. Annualized volatility was determined solely based on historical volatility. 
 On
September 14, 2017, the Company granted 9,300 stock options at the exercise price of CDN$1.61 per option to its directors and officers. The expiry date of the stock options is September 14, 2022. The fair value of the stock options was
estimated at CDN$0.75 per option for a total of CDN$6,975 which will be expensed over the 18-month vesting period. The fair value of stock options was estimated on the date of grant using the Black-Scholes Option pricing model with the following
assumptions: risk-free rate of 1.6%, estimated volatility 69%, expected life of three years, share price on the grant date of CDN$1.61, and expected dividend yield of 0%. Annualized volatility was determined solely based on historical volatility.









 LITHIUM AMERICAS CORP. 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars, except for per share amounts, shares in thousands) 

 

	6.	 ISSUED CAPITAL, EQUITY COMPENSATION AND WARRANTS (continued) 



 

 Equity Incentive Plan (continued) 

Stock Options 

Stock options outstanding and exercisable as at September 30, 2017, are as follows: 

 

											
	 
	 Number

of Options Outstanding
 (in
000’s)
	  	 Number

of Options Exercisable
 (in
000’s)
	 	  	 Exercise Price

CDN$
	 	  	Expiry Date
	 450
	  	 	450	 	  	 	0.27	 	  	October 21, 2018    
	 1,105
	  	 	1,105	 	  	 	0.38	 	  	April 19, 2019    
	 275
	  	 	275	 	  	 	0.49	 	  	July 16, 2019    
	 3,708
	  	 	3,708	 	  	 	0.29	 	  	July 16, 2019    
	 500
	  	 	500	 	  	 	0.69	 	  	August 15, 2019    
	 533
	  	 	533	 	  	 	0.34	 	  	February 12, 2020    
	 1,213
	  	 	1,213	 	  	 	0.30	 	  	October 5, 2020    
	 3,563
	  	 	3,563	 	  	 	0.47	 	  	March 30, 2021    
	 500
	  	 	375	 	  	 	0.75	 	  	May 1, 2021    
	 500
	  	 	375	 	  	 	0.96	 	  	August 11, 2021    
	 260
	  	 	195	 	  	 	0.91	 	  	August 30, 2021    
	 3,875
	  	 	969	 	  	 	0.98	 	  	April 4, 2022    
	 1,000
	  	 	500	 	  	 	0.98	 	  	April 4, 2022    
	 500
	  	 	125	 	  	 	1.00	 	  	May 16, 2022    
	 9,300
	  	 	2,325	 	  	 	1.61	 	  	September 14, 2022    
	 27,282
	  	 	16,211	 	  				  	
	 

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

 

													
	 	 
	  	  	 Number

of Options
 (in
000’s)
	 	  	 Weighted Average

Exercise Price,

(CDN$)
	 	  	  	 
	 Balance, outstanding September 30, 2015
	  	 	17,331	 	  	 	0.43	 	  	 	 	 
	 Expired
	  	 	(1,450	) 	  	 	(1.23	) 	  			
	 Forfeited
	  	 	(116	) 	  	 	(0.45	) 	  			
	 Exercised
	  	 	(8,011	) 	  	 	(0.35	) 	  			
	 Granted
	  	 	9,365	 	  	 	0.46	 	  	 	 	 
	 Balance, outstanding December 31, 2016
	  	 	17,119	 	  	 	0.43	 	  			
	 	 
	 Forfeited
	  	 	(362	) 	  	 	(0.76	) 	  			
	 Exercised
	  	 	(4,450	) 	  	 	(0.41	) 	  			
	 Granted
	  	 	14,975	 	  	 	1.37	 	  	 	 	 
	 Balance, outstanding September 30, 2017
	  	 	27,282	 	  	 	0.94	 	  			
	 	 

 During the nine-month period ended September 30, 2017, 2,453 options were exercised under
the cashless exercise provision of the Company’s stock option plan, resulting in the issuance of 1,560 common shares of the Company. 

Stock-based compensation expense related to stock options of $3,016 (nine months ended September 30, 2016 - $940) was
charged to operations and credited to contributed surplus to reflect the fair value of stock options vested during the period ended September 30, 2017. At September 30, 2017, $1,535 of the fair value of stock options previously granted but
not yet vested remains to be expensed in fiscal 2017, $2,952 in fiscal 2018, and $11 in fiscal 2019. At December 31, 2016, $317 of the fair value of stock options previously granted but not yet vested remained to be expensed in fiscal 2017, and
$5 in fiscal 2018. The weighted-average fair market share price on the date of the stock options exercised was CDN$1.12. 








 LITHIUM AMERICAS CORP. 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars, except for per share amounts, shares in thousands) 

 

	6.	 ISSUED CAPITAL, EQUITY COMPENSATION AND WARRANTS (continued) 



 

 Equity Incentive Plan (continued)  

Warrants 

A summary of the changes in the number of the Company’s share purchase warrants is as follows: 

 

											
	 
	  	  	Number of
Warrants
(in ‘000’s)	 	  	Weighted Average
Exercise Price
(CDN$)	 	  	Expiry Date
	 Balance, September 30, 2015
	  	 	17,777	 	  	 	0.81	 	  	 
	 Exercised
	  	 	(371	) 	  	 	0.58	 	  	May 16, 2016
	 Exercised
	  	 	(1,344	) 	  	 	0.75	 	  	May 16, 2016
	 Exercised
	  	 	(215	) 	  	 	0.90	 	  	June 9, 2017
	 Exercised
	  	 	(25	) 	  	 	0.70	 	  	June 9, 2017
	 Exercised
	  	 	(79	) 	  	 	0.48	 	  	August 28, 2016
	 Expired
	  	 	(6,409	) 	  	 	(0.75	) 	  	May 16, 2016
	 Balance, December 31, 2016
	  	 	9,334	 	  	 	0.87	 	  	
	 
	 	  	 	 	 	  	 	 	 	  	 
	 Exercised
	  	 	(717	) 	  	 	0.70	 	  	June 9, 2017
	 Exercised
	  	 	(4,594	) 	  	 	0.90	 	  	June 9, 2017
	 Exercised
	  	 	(1,406	) 	  	 	0.85	 	  	May 19, 2018
	 Expired
	  	 	(898	) 	  	 	0.90	 	  	June 9, 2017
	 Balance, September 30, 2017
	  	 	1,719	 	  	 	0.85	 	  	
	 

 Subsequent to September 30, 2017, all outstanding warrants of the Company were exercised
for the purchase of common shares. 
  

	7.	 RELATED PARTY TRANSACTIONS 



Up to August 14, 2017, the Company paid its non-executive directors a base annual fee of $35 per year and an additional $5
per year to a Committee Chair, $10 to the Company’s Audit Committee Chair, and $25 to the Company’s Board Chair. In addition, the Company paid $1 per meeting in cash for Board meetings in excess of six meetings per year. 

Effective August 14, 2017, the Company revised the remuneration of its non-executive directors to a base annual fee of $80
per year and an additional $18 per year to the Company’s Audit Committee Chair, $13 to the Company’s other Committee Chairs, and $40 to the Company’s Board Chair. In addition, the Company will pay $1 per meeting in cash for Board
meetings in excess of six meeting per year. The fees will be settled through a combination of cash and the issuance of DSUs with each board member obligated to receive a minimum of 50% and a maximum of 100% of all such compensation in DSUs. 








 LITHIUM AMERICAS CORP. 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars, except for per share amounts, shares in thousands) 

 

	7.	 RELATED PARTY TRANSACTIONS (continued)  



 

 The remuneration of directors and members of the executive management team
included: 
  

									
	 	 
	 	  	For the nine months ended September 30,	 
	 	  	2017	 	  	2016	 
	  	  	$	 	  	$	 
	 Stock-based compensation
	  	 	1,612	 	  	 	503	 
	 Bonuses – stock-based compensation
	  	 	5,847	 	  	 	1,206	 
	 Bonuses – cash payments
	  	 	1,425	 	  	 	—  	 
	 Salaries, benefits and directors fees included in general and administrative expenses
	  	 	1,244	 	  	 	1,169	 
	 Salaries and benefits included in exploration expenditures
	  	 	290	 	  	 	242	 
	 Salaries allocated to investment in Joint Venture
	  	 	75	 	  	 	—  	 
		  	 	10,493	 	  	 	3,120	 
	 	 
		  				  			
	 	 
	 	  	As at September 30,	 	  	As at December 31,	 
	 	  	2017	 	  	2016	 
	  	  	$	 	  	$	 
	 Total due to directors and executive team
	  	 	804	 	  	 	411	 
	 	 

 There were no contractual or other commitments arising from the related party transactions. The
amounts due to related parties are unsecured, non-interest bearing and generally have no specific terms of payment. 
  

	8.	 GENERAL AND ADMINISTRATIVE EXPENSES 



The following table summarizes the Company’s general and administrative expenses during the periods ended
September 30, 2017 and 2016: 
  

									
	 	 
	 	  	For the nine months ended September 30,	 
	 	  	2017	 	  	2016	 
	  	  	$	 	  	$	 
	 Investor relations
	  	 	55	 	  	 	146	 
	 Marketing
	  	 	411	 	  	 	513	 
	 Office and administration
	  	 	498	 	  	 	464	 
	 Professional fees
	  	 	571	 	  	 	420	 
	 Regulatory and filing fees
	  	 	109	 	  	 	89	 
	 Salaries, benefits and directors fees
	  	 	3,093	 	  	 	1,620	 
	 Travel and conferences
	  	 	565	 	  	 	251	 
	 Transaction costs
	  	 	—  	 	  	 	333	 
	 Depreciation
	  	 	32	 	  	 	22	 
		  	 	5,334	 	  	 	3,858	 
	 	 









 LITHIUM AMERICAS CORP. 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars, except for per share amounts, shares in thousands) 

 

	9.	 COMMITMENTS 



 

 As at September 30, 2017, the Company had the following commitments that
have not been disclosed elsewhere in these condensed consolidated interim financial statements: 
  

																	
	 	 
	  	  	 Not later than
1 year

$
	 	  	
Later than 1 year
and not later than
5 years

$
	 	  	 Later than 5
years

$
	 	  	Total
$	 
	 Rent of office spaces
	  	 	274	 	  	 	378	 	  	 	—  	 	  	 	652	 
	 	 

  

	10.	 EXPLORATION EXPENDITURES 



The following tables summarize the Company’s exploration expenditures during the nine-month periods ended
September 30, 2017 and 2016: 
  

													
	 	 
	  	  	For the nine months ended September 30, 2017	 
	 	  	Lithium Nevada	 	  	Cauchari-Olaroz1	 	  	Total	 
	  	  	$	 	  	$	 	  	$	 
	 Drilling
	  	 	609	 	  	 	—  	 	  	 	609	 
	 Engineering
	  	 	14	 	  	 	—  	 	  	 	14	 
	 Environmental
	  	 	89	 	  	 	—  	 	  	 	89	 
	 Geological and consulting
	  	 	1,152	 	  	 	428	 	  	 	1,580	 
	 Field supplies, other services, and taxes
	  	 	204	 	  	 	43	 	  	 	247	 
	 Lithium demo plant equipment depreciation
	  	 	84	 	  	 	—  	 	  	 	84	 
	 Total exploration expenditures
	  	 	2,152	 	  	 	471	 	  	 	2,623	 
	 	 

  

	1	 Expenditures related to the Cauchari-Olaroz project
incurred directly by the Company. Starting from July 1, 2017, construction costs related to the Cauchari-Olaroz project are capitalized into Investment in Joint Venture. 



 

													
	 	 
	  	  	For the nine months ended September 30, 2016	 
	 	  	Lithium Nevada	 	  	Cauchari-Olaroz1	 	  	Total	 
	  	  	$	 	  	$	 	  	$	 
	 Engineering
	  	 	81	 	  	 	34	 	  	 	115	 
	 Environmental
	  	 	47	 	  	 	—  	 	  	 	47	 
	 Geological and consulting
	  	 	937	 	  	 	153	 	  	 	1,090	 
	 Field supplies, other services, and taxes
	  	 	114	 	  	 	279	 	  	 	393	 
	 Lithium demo plant equipment depreciation
	  	 	84	 	  	 	—  	 	  	 	84	 
	 Total exploration expenditures
	  	 	1,263	 	  	 	466	 	  	 	1,729	 
	 	 

  

	1 	 Exploration expenditures prior to the formation of the Joint Venture. 



 








 LITHIUM AMERICAS CORP. 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars, except for per share amounts, shares in thousands) 

 


	11.	 SEGMENTED INFORMATION 



The Company operates in three operating segments and four geographical areas. The Organoclay project is in the production
stage, the Lithium Nevada project is in the exploration stage, and the Cauchari-Olaroz project is in the development stage. 

The Company’s reportable segments are summarized in the following tables: 

 

																					
	 	 
	  	  	 Organoclay

$
	 	 	 Lithium Nevada

$
	 	 	 Cauchari-

Olaroz
 $
	 	 	 Corporate

$
	 	 	 Total

$
	 
	 As at September 30, 2017
	  				 				 				 				 			
	 Property, plant and equipment
	  	 	17,001	 	 	 	1,044	 	 	 	—  	 	 	 	33	 	 	 	18,078	 
	 Exploration and evaluation assets
	  	 	—  	 	 	 	1,901	 	 	 	—  	 	 	 	—  	 	 	 	1,901	 
	 Total assets
	  	 	19,484	 	 	 	3,219	 	 	 	7,981	 	 	 	87,778	 	 	 	118,462	 
	 Total liabilities
	  	 	(1,677	) 	 	 	(645	) 	 	 	—  	 	 	 	(3,086	) 	 	 	(5,408	) 
	 For the three months ended September 30, 2017
	  				 				 				 				 			
	 Capital expenditures
	  	 	411	 	 	 	74	 	 	 	—  	 	 	 	3	 	 	 	488	 
	 Sales
	  	 	1,059	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1,059	 
	 Net loss
	  	 	502	 	 	 	1,619	 	 	 	(776	) 	 	 	11,414	 	 	 	12,759	 
	 Exploration expenditures
	  	 	—  	 	 	 	1,231	 	 	 	—  	 	 	 	—  	 	 	 	1,231	 
	 Organoclay research and development
	  	 	110	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	110	 
	 	 
	 For the nine months ended September 30, 2017
	  				 				 				 				 			
	 Capital expenditures
	  	 	634	 	 	 	123	 	 	 	—  	 	 	 	15	 	 	 	772	 
	 Sales
	  	 	3,838	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	3,838	 
	 Net loss
	  	 	2,187	 	 	 	3,103	 	 	 	4,452	 	 	 	17,703	 	 	 	27,445	 
	 Exploration expenditures
	  	 	—  	 	 	 	2,152	 	 	 	471	 	 	 	—  	 	 	 	2,623	 
	 Organoclay research and development
	  	 	318	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	318	 
	 	 
	 For the three months ended September 30, 2016
	  				 				 				 				 			
	 Capital expenditures
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	31	 	 	 	31	 
	 Sales
	  	 	452	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	452	 
	 Net loss
	  	 	603	 	 	 	766	 	 	 	1,231	 	 	 	1,123	 	 	 	3,723	 
	 Exploration expenditures
	  	 	—  	 	 	 	676	 	 	 	—  	 	 	 	—  	 	 	 	676	 
	 Organoclay research and development

 
	  	 	101	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	101	 
	 	 
	 For the nine months ended September 30, 2016
	  				 				 				 				 			
	 Capital expenditures
	  	 	248	 	 	 	—  	 	 	 	—  	 	 	 	31	 	 	 	279	 
	 Sales
	  	 	620	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	620	 
	 Net loss
	  	 	1,583	 	 	 	1,866	 	 	 	2,026	 	 	 	13,380	 	 	 	18,855	 
	 Exploration expenditures
	  	 	—  	 	 	 	1,263	 	 	 	466	 	 	 	—  	 	 	 	1,729	 
	 Organoclay research and development
	  	 	330	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	330	 
	 	 









 LITHIUM AMERICAS CORP. 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars, except for per share amounts, shares in thousands) 

 

	11.	 SEGMENTED INFORMATION (continued) 



 


																					
	  
	 
		  				 				 				  				 			
	  	  	Organoclay
$	 	 	 Lithium
Nevada

$
	 	 	 Cauchari-

Olaroz
 $
	 	  	 Corporate

$
	 	 	 Total

$
	 
	 As at December 31, 2016
	  				 				 				  				 			
	 Property, plant and equipment
	  	 	17,450	 	 	 	1,033	 	 	 	—  	 	  	 	19	 	 	 	18,502	 
	 Exploration and evaluation assets
	  	 	—  	 	 	 	1,447	 	 	 	—  	 	  	 	—  	 	 	 	1,447	 
	 Total assets
	  	 	18,585	 	 	 	3,056	 	 	 	13,136	 	  	 	10,524	 	 	 	45,301	 
	 Total liabilities
	  	 	(1,513	) 	 	 	(291	) 	 	 	—  	 	  	 	(1,074	) 	 	 	(2,878	) 

  

The Company’s total assets are located in the following geographical areas: 

 

																					
	  
	 
		  				  				  				  				  			
	  	  	Canada
$	 	  	United
States $	 	  	Germany
$	 	  	Argentina
$	 	  	 Total

$
	 
	 Non-current assets1
	  				  				  				  				  			
	 As at September 30, 2017
	  	 	33	 	  	 	19,312	 	  	 	784	 	  	 	7,981	 	  	 	28,110	 
	 As at December 31, 2016
	  	 	19	 	  	 	19,212	 	  	 	868	 	  	 	13,136	 	  	 	33,235	 
	 Revenue
	  				  				  				  				  			
	 For the three months ended September 30, 2017
	  	 	—  	 	  	 	1,059	 	  	 	—  	 	  	 	—  	 	  	 	1,059	 
	 For the three months ended September 30,
2016
	  	 	—  	 	  	 	452	 	  	 	—  	 	  	 	—  	 	  	 	452	 
	 Revenue
	  				  				  				  				  			
	 For the nine months ended September 30, 2017
	  	 	—  	 	  	 	3,838	 	  	 	—  	 	  	 	—  	 	  	 	3,838	 
	 For the nine months ended September 30, 2016
	  	 	—  	 	  	 	620	 	  	 	—  	 	  	 	—  	 	  	 	620	 

  

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


  

	12.	 SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS 



Supplementary disclosure of the Company’s non-cash transactions is provided in the table below: 

 

									
	 	 
	 	  	For the nine months ended Sept 30,	 
	  	  	 2017

$
	 	  	 2016

$
	 
	 Accounts payable related to property, plant and equipment
	  	 	25	 	  	 	—  	 
	 Accounts payable related to inventories
	  	 	545	 	  	 	161	 
	 Accounts payable related to financings
	  	 	1,598	 	  	 	175	 
	 Deferred financings costs
	  	 	1,517	 	  	 	—  	 
	 RSs and DSUs granted in lieu of deferred salaries and directors’ fees
	  	 	353	 	  	 	80	 
	 	 
		  				  			
	 	 
	 Interest/finance charges paid
	  	 	40	 	  	 	46	 
	 Income taxes paid
	  	 	—  	 	  	 	—  	 
	 	 









 LITHIUM AMERICAS CORP. 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars, except for per share amounts, shares in thousands) 

 


	13.	 FINANCIAL INSTRUMENTS 



Financial instruments recorded at fair value on the condensed consolidated interim statements of financial position 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 to the lowest level of the hierarchy for which a significant input has been considered in measuring fair value. The Company did not have any financial instruments measured at fair value on the condensed consolidated interim statement of
financial position. 
 The Company may be exposed to risks of varying degrees of significance which could affect its ability
to achieve its strategic objectives. 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 that the capital base is adequate
in relation to those risks. The principal risks to which the Company is exposed are described below. 
 Credit Risk

 Credit risk is the risk of loss associated with a counterparty’s inability to fulfill its payment obligations.
Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, escrow deposit, receivables, and loans to the Joint Venture. The Company’s maximum
exposure to credit risk for cash and cash equivalents, and escrow deposit is the amount disclosed in the condensed consolidated interim 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. 

Included in the receivables, prepaids and deposits are credit sales receivables of $778. Management’s assessment of
recoverability involves judgments regarding the probable outcomes of claimed deductions and/or disputes. The provisions made to date may be subject to change. 

The Company’s receivables, prepaids and deposits include an $84 bank deposit for the Company’s secured credit cards
and other miscellaneous receivables that are subject to normal industry credit risk. 
 Management believes that the credit
risk concentration with respect to financial instruments included in cash and cash equivalents and receivables is minimal. 

Liquidity Risk 

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The
Company’s approach to managing liquidity is to evaluate current and expected liquidity requirements under both normal and stressed conditions to ensure that it maintains sufficient reserves of cash and cash equivalents to meet its liquidity
requirements in the short and long term. As the industry in which the Company operates is very capital intensive, the majority of the Company’s spending is related to its capital programs. The Company prepares annual budgets, which are
regularly monitored and updated as considered necessary. 








 LITHIUM AMERICAS CORP. 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 

(Unaudited – Prepared by Management) 

(Expressed in thousands of US dollars, except for per share amounts, shares in thousands) 

 

	13.	 FINANCIAL INSTRUMENTS (continued) 



 

 Liquidity Risk (continued) 

As at September 30, 2017, the Company had a cash and cash equivalents balance of $73,208 (December 31, 2016 - $8,056) to
settle current liabilities of $4,460 (December 31, 2016 - $1,806). 
 The following table summarizes the maturities of the
Company’s financial liabilities on an undiscounted basis: 
  

																	
	 	 
	  	  	Years ending December 31,	 
	  	  	 2017

$
	 	  	2018
$	 	  	2019 and later
$	 	  	Total
$	 
	 Accounts payable and accrued liabilities
	  	 	4,285	 	  	 	—  	 	  	 	—  	 	  	 	4,285	 
	 Long-term borrowing1
	  	 	43	 	  	 	172	 	  	 	790	 	  	 	1,005	 
	 Obligation under finance leases1
	  	 	12	 	  	 	48	 	  	 	24	 	  	 	84	 
	 Total
	  	 	4,340	 	  	 	220	 	  	 	814	 	  	 	5,374	 
	 	 

  

	1 	 Long-term borrowing and obligation under capital leases include principal and interest/finance charges.



 Market Risk 

Market risk incorporates a range of risks. Movement in risk factors, such as market price risk and currency risk, affect the
fair values of financial assets and liabilities. The Company is exposed to these risks as the ability of the Company to develop or market its property and the future profitability of the Company are related to the market price of certain minerals.

 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 and incurs
expenditures in Canadian dollars (“CDN$”), US dollars (“US$”), Euros (“€”), and Argentinian pesos (“ARS”) with the majority of the expenditures being incurred in US$ by the Company’s subsidiaries. As
at September 30, 2017, $67,426 of the 
 Company’s $73,208 in cash and cash equivalents was held in US$. 

 

	14.	 SUBSEQUENT EVENT 



On November 3, 2017, the Company announced that it has applied to list its common shares on the NYSE American stock
exchange. In connection with the planned U.S. listing, and as previously authorized by its shareholders, the Company effected a consolidation of its outstanding common shares on the basis of one new common share for every five outstanding common
shares. The consolidation took effect on November 8, 2017.