Document:

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.EX-4.5

 Exhibit 4.5 

LITHIUM AMERICAS CORP. 
 MANAGEMENT’S DISCUSSION
AND ANALYSIS 
 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 

Background 
 This Management’s
Discussion and Analysis (“MD&A”), prepared as of November 13, 2017, should be read in conjunction with the condensed consolidated interim financial statements (“financial statements”) and the notes thereto of Lithium
Americas Corp. (“Lithium Americas”, the “Company”, or “LAC”) for the nine months ended September 30, 2017, and the audited consolidated financial statements and notes thereto of Lithium Americas for the fifteen
months ended December 31, 2016, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Refer to Notes 2 and 3 of the
audited consolidated financial statements for the fifteen months ended December 31, 2016, for disclosure of the Company’s significant accounting policies. All amounts are expressed in United States dollars, unless otherwise stated. This
MD&A contains “forward looking statements” and readers should read the cautionary note contained in the section entitled “Forward Looking Statements” contained in this MD&A regarding such forward looking statements. 

Significant Updates on Company’s Projects from the Start of Fiscal Year 

Cauchari-Olaroz : 
  

	 	•	 	 The Cauchari-Olaroz project remains on schedule to begin production in 2019. 

 

	 	•	 	 US$48.6 million has been advanced to Minera Exar year-to-date by the joint venture partners (including US$24.3 million by the Company) in the form of loans and equity contributions to fund exploration, construction and development.

  

	 	•	 	 Development activities continue with the advancement of detailed engineering, camp construction, design and
supplies purchases. Pond contractor was selected and construction is targeted to begin in Q4 2017. Earth works, production well drilling and hydrological testing are underway. 

 

	 	•	 	 On May 11, 2017, a National Instrument 43-101 (“NI 43-101”) technical report that summarizes the Stage 1 DFS (as defined below) was filed on SEDAR (http://www.sedar.com). The Company’s share of the expected capital expenditures for the construction
of Stage 1 of the Cauchari-Olaroz project is approximately US$212.5 million before value-added taxes (“VAT”) taxes and working capital. 

  

	 	•	 	 On June 29, 2017, senior executives from Minera Exar, Lithium Americas and SQM (as defined below)
attended a meeting in Buenos Aires with government officials from Argentina, including the President of Argentina, Mauricio Macri, and the Governor of the Province of Jujuy, Gerardo Morales. All parties reaffirmed their commitment to support the
development of the Cauchari-Olaroz project. 

 Lithium Nevada: 

 

	 	•	 	 Assembled a strong technical team with experience in the lithium industry, project engineering, geology and
permitting. 

  

	 	•	 	 Advancing a scalable process to produce lithium hydroxide from lithium-bearing claystone.

  

	 	•	 	 Conducting an exploration program with the objectives of increasing the confidence of the identified resource,
potentially expanding the size of the resource, and better understanding the areas that are unconfined by drilling. 

  

	 	•	 	 Engaged The Advisian WorleyParsons Group (“WorleyParsons”) to complete a NI 43-101 Preliminary Feasibility Study (PFS) by the end of Q2 2018. 

  

	 	•	 	 Approved budget of US$10.5 million through to Q3 2018. 

 

	 	•	 	 Examining future strategic partnership/financing alternatives to collaborate on and develop the Lithium Nevada
project. 

 RheoMinerals: 
  

	 	•	 	 RheoMinerals (as defined below) is experiencing a significant increase in sales to oilfield service companies
since the start of commercial operations at Fernley plant in Nevada in April 2016. The sales for the nine months ended September 30, 2017 reached US$3.8 million (2016 period- US$0.6 million). 

 

	 	•	 	 RheoMinerals continues the development of environmental and other products. 

  
 1 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 Corporate: 
  

	 	•	 	 On May 10, 2017, Gabriel Rubacha was appointed President of South American Operations. Mr. Rubacha
is a director of Lithium Americas and was previously the Commercial Director of Techint Engineering and Construction S.A. 

  

	 	•	 	 On June 7, 2017, Wang Xiaoshen and Jonathan Evans were appointed to Lithium Americas’ Board of
Directors. Mr. Wang is currently Vice Chairman and Executive Vice President of Jiangxi Ganfeng Lithium Co. Ltd. Mr. Evans has more than 20 years of operations and general management experience and was previously Vice President and GM for the
Lithium Division at FMC Corporation. 

  

	 	•	 	 On June 7, 2017, the Company announced the closing of the investment agreement with Ganfeng Lithium
(“Ganfeng Lithium investment agreement”). Pursuant to the investment agreement, Ganfeng Lithium agreed to provide Lithium Americas with an aggregate of approximately US$172 million in equity and debt financing. 

 

	 	•	 	 On June 28, 2017, Gary Cohn was appointed to Lithium Americas’ Board of Directors. Mr. Cohn was
previously employed with Magna International Inc. overseeing mergers and acquisitions. 

  

	 	•	 	 In July 2017, the Company closed the investment agreement (Bangchak investment agreement”) with Bangchak
Corporation Public Company Limited (“Bangchak”). Pursuant to the Bangchak investment agreement, Bangchak has agreed to provide Lithium Americas with an aggregate of approximately US$113 million in equity and debt financing primarily
to fund a portion of the Company’s share of construction costs for the Cauchari-Olaroz lithium project. The parties also executed an investor rights agreement in which a nominee of Bangchak is entitled to be appointed to the Board of Directors.

  

	 	•	 	 On July 17, 2017, the Company appointed Chaiwat Kovavisarach, the CEO of Bangchak, to the Board of
Directors. 

  

	 	•	 	 As a result of the closing of the Ganfeng Lithium and Bangchak investment agreements, the Company has
US$205 million in undrawn debt facilities.  

  

	 	•	 	 On August 15, 2017, the Company appointed Alexi Zawadzki as the President of North American Operations.
Alexi has over 20 years of experience developing and constructing mining and energy projects across North and South America, in addition to the management of technical teams and business units.  

 

	 	•	 	 As at September 30, 2017, the Company had US$73.2 million in cash and cash equivalents. 

  

	 	•	 	 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, the Company has effected a consolidation of its outstanding common shares on the basis of one new common share for every five outstanding common shares, effective November 8,
2017.  

 Company Overview 

Lithium Americas is a Canadian-based resource company focused on the advancement of 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 from its plant located in Fernley,
Nevada. 
 On March 28, 2016, the Company entered into an agreement with SQM POTASIO S.A., a subsidiary of Sociedad Quimica y Minera de
Chile S.A. (“SQM”) to form a 50/50 joint venture (the “Joint Venture”) on the Cauchari-Olaroz project. The Company’s former wholly-owned subsidiary Minera Exar S.A. (“Minera Exar”) was used for formation of the
Joint Venture. The Cauchari-Olaroz project is a lithium brine project. 
 The Lithium Nevada project is a clay-based lithium project and has
been the subject of extensive exploration and processing development work. The Company has recently expanded its technical team and is currently in the process of advancing permitting and exploration, in addition to the development of innovative
lithium extraction and processing technologies that build on previous successful piloting studies for this project. 
 The Company is
advancing both of its lithium projects with the intention of delivering lithium products for the growing lithium ion battery sector. Lithium Americas intends for its lithium business to become significant contributor to the global lithium supply
chain. 

  
 2 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 In addition, the Company’s wholly-owned subsidiary RheoMinerals Inc.
(“RheoMinerals”) operates an organoclay plant located in Fernley, Nevada, USA and manufactures specialty organoclay products, derived from clays. RheoMinerals’ products are used by the oil and gas industry as specialty viscosifier
additives for drilling fluids and in other sectors. 
 The Company’s head office is located at Suite
1100-355 Burrard Street, Vancouver, BC, Canada, V6C 2G8. The Company trades in Canada on the Toronto Stock Exchange under the symbol “LAC” and in the US on OTCQX under the symbol “LACDF”.
The Company operates in the United States through its wholly owned subsidiaries, Lithium Nevada Corp. (formerly Western Lithium Corp.) and RheoMinerals Inc. (formerly Hectatone Inc.) and in Argentina through the Joint Venture. Additional information
relating to the Company, including the Company’s annual information form, is available on SEDAR at www.sedar.com. 
 Description of Business

 Cauchari-Olaroz Project, Jujuy Province, Argentina 

The Joint Venture with SQM began to advance the Cauchari-Olaroz project immediately after the closing of the transaction on March 28,
2016, and the operating team is continuing to progress the work plan. The Joint Venture is strongly committed to advancing the Cauchari-Olaroz project as expediently as possible and an organization was put in place, with the support from both Joint
Venture partners, for the execution and management of the operation. Stage 1 of the project is on schedule to commence commerical production by 2019. The project is fully permitted and construciton is underway. 

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 the production and (iv) buyout and termination provisions in the event that SQM
chooses not to proceed with the project. 
 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. 

Updated Feasibility Study 
 On
March 29, 2017 the Company announced results of a Definitive Feasibility Study (the “Stage 1 DFS”) on the first stage of the Cauchari-Olaroz project. 

Unless otherwise stated, all figures are quoted in U.S. dollars (“$”) and are reported on a 100% equity project basis. 

Highlights of the Stage 1 DFS: 
  

	 	•	 	 Average annual production of 25,000 tonnes of battery-grade lithium carbonate over a 40-year project life 

  

	 	•	 	 Estimated construction capital cost of $425 million, before working capital and VAT

  

	 	•	 	 Average operating costs of $2,495/t of battery-grade lithium carbonate produced 

 

	 	•	 	 Average annual EBITDA of $233 million, after-tax NPV of
$803 million (at a 10% discount rate) and after-tax IRR of 28.4% assuming a price of $12,000/t of battery-grade lithium carbonate sold 

 

	 	•	 	 Creation of at least 260 permanent jobs during the 40 years of operations and employment of at least 800
people during the 2-year construction period 

  

	 	•	 	 Government confirmation of all necessary permits to commence construction and operate. 

  
 3 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 The Joint Venture is pursuing a development plan at the Cauchari-Olaroz project for
production capacity of 50,000 tonnes per annum (“tpa”) of battery-grade lithium carbonate (“Li2CO3”) in two stages, with each stage consisting of 25,000 tpa of Li2CO3. The Stage 1 DFS covers the first stage (“Stage 1”)
and the plant for Stage 1 has been engineered to integrate production from the second stage (“Stage 2”). No estimated financial results or reserve estimate associated with Stage 2 are included in the Stage 1 DFS. The results of the Stage 1
DFS are provided below: 
  

					
	Cauchari-Olaroz Stage 1 DFS Results	  	  	 
	  	  	Stage 1 DFS	 
	 Lithium carbonate price
	  	$	12,000/t Li2CO3	 
	 Average annual production
	  	 	25,000 tpa Li2CO3	 
	 Expected project life
	  	 	40 years	 
	 Project capital costs
	  	$	425 million	 
	 Operating costs
	  	$	2,495/t Li2CO3	 
	 Average annual EBITDA
	  	$	233 million	 
	 Pre-tax NPV 10% discount
	  	$	1,266 million	 
	 After-tax NPV 10% discount
	  	$	803 million	 
	 Pre-tax IRR
	  	 	34.0	% 
	 After-tax IRR
	  	 	28.4	% 
	 Payback period
	  	 	3 years, 5 months	 

 The Company has recently filed a NI 43-101 technical report that
summarizes the Stage 1 DFS on SEDAR (http://www.sedar.com) and on the Company’s website (http://www.lithiumamericas.com). 
 Project
Financing 
 The Company has recently closed two financings with GFL International Co., Ltd., a wholly-owned subsidiary of Jiangxi
Ganfeng Lithium Co., Ltd. (“Ganfeng Lithium”) and with BCP Innovation Pte Ltd., a wholly-owned subsidiary of Bangchak. Together, Lithium Americas has raised approximately $285 million in debt and equity, providing it with a strong
financial position to fund the remaining share of Cauchari-Olaroz’ capital costs alongside its joint venture partner, SQM. 
 Political and Economic
Changes in Argentina 
 The Argentine economy underwent significant positive changes in late 2015 and early 2016 as a result of measures
that the new government has taken to reduce or remove controls and restrictions on capital flows. Since taking office in December 2015, President Mauricio Macri has moved swiftly to appoint a business-friendly cabinet and implement a series of major
fiscal, political and regulatory policy measures. President Macri lifted foreign exchange controls that had been in place since 2011, and abolished export taxes on many agricultural and industrial goods, including lithium. Additionally, the Province
of Jujuy, where the project is located, whose administration is of the same political party as the national administration, is very supportive for the development of the project. 

Lithium Nevada Project, Nevada, USA 

The Company is developing the 100% owned Lithium Nevada project, a clay-based lithium resource in the McDermitt Caldera, through its wholly
owned subsidiary, Lithium Nevada Corp. (“Lithium Nevada”). Building on years of exploration and testing, a Preliminary Feasibility Study (the “PFS”) on the Lithium Nevada project is expected to be complete by the end of Q2 2018
to demonstrate the economic potential of producing lithium hydroxide from lithium-bearing claystone. 
 The Lithium Nevada project is
advancing a process technology with the objective to produce battery-grade lithium hydroxide from claystone. The flowsheet is designed to use leaching to liberate lithium from the ore, and to apply proven purification technology to produce
high-quality lithium compounds. Leaching is believed to be advantageous when compared to previously considered processes as it avoids energy-intensive roasting, significantly reduces tailings volume, and maximizes the recovery of lithium through
commercially-viable process technology. Test work is underway at a leading lithium manufacturing facility using a combination of laboratory and existing commercial production equipment. This strategic and cost-effective approach is targeted to
advance the testing process towards final design and provides options for future strategic partnership/financing alternatives. Ongoing process test work is currently focused on refinement of the following aspects of the flowsheet: the
characterization and beneficiation of ore; optimizing leaching and recovery conditions of lithium from claystone; and purification and production of high-value lithium compounds. 

  
 4 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 The Lithium Nevada project’s lithium clay resource is the largest known lithium resource
in the United States, and is unconfined by drilling. An exploration program commenced in 2017 at the Lithium Nevada project (the “2017 Exploration Program”) consisting of drilling and seismic work. The purpose of the 2017 Exploration
Program is to increase the confidence of the identified resource, potentially expand the size of the resource, and better understand areas that are unconfined by drilling. 

A total of 70 drill targets have been strategically located within, and to the south and to the east, of the Lithium Nevada project’s
Zone 1 (previously referred to as Stage 1 in the Company’s June, 2016 technical report entitled “Independent Technical Report for the Lithium Nevada Property, Nevada, USA”), where some of the most highly-concentrated lithium clays in
North America have been discovered. The 2017 Exploration Program is fully permitted and is expected to be concluded by early 2018. Seismic work was completed in 2017 and will be analyzed with the drilling data obtained from the 2017 Exploration
Program to better understand the geological structures in areas unconfined by drilling to the east of Zone 1 of the Lithium Nevada project. Additional seismic exploration is anticipated to be conducted in 2018. The resource at the Lithium Nevada
project is near-surface and in some areas the overburden consists of hectorite clay, which has commercial value in other industries. Due to the soft nature of the claystone, conventional open pit mining using truck and shovel methods is contemplated
with blasting not considered a requirement for day-to-day operations. 

Mineral Resource Statement for Zone 1 (as of May 31, 2016)(1)(2) 

 

																					
	Category	  	Tonnage
(000 t)	 	  	Avg. Li
(ppm)	 	  	Avg. Li
(%)	 	  	Avg. Li2O
(%)	 	  	LCE
(000 tonnes)	 
	 Measured
	  	 	50,753	 	  	 	3,120	 	  	 	0.312	 	  	 	0.67	 	  	 	843	 
	 Indicated
	  	 	164,046	 	  	 	2,850	 	  	 	0.285	 	  	 	0.61	 	  	 	2,489	 
	 Measured and Indicated
	  	 	214,799	 	  	 	2,910	 	  	 	0.291	 	  	 	0.624	 	  	 	3,332	 
	 Inferred
	  	 	124,890	 	  	 	2,940	 	  	 	0.294	 	  	 	0.63	 	  	 	1,954	 

 Notes: 
  

	1.	 Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no
certainty that all or any part of the mineral resource will be converted into mineral reserves. 

	2.	 Resources presented at a Li% 0.20 [0.431 % Li2O] cut-off grade which was determined using the following economic assumptions: US$3.36 Li carbonate/lb; 87.2% metallurgical recovery; US$66/tonne ore processed; US$2.75/tonne material moved. 

Lithium Nevada is in the process of completing a PFS compliant with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (“NI 43-101”) to demonstrate the economic potential of extracting lithium hydroxide from claystone. The PFS is expected to be completed by the end of Q2
2018. The Advisian WorleyParsons Group (“WorleyParsons”) has been appointed to lead the PFS and project design. WorleyParsons is a global full-service engineering firm with extensive experience in lithium project design, construction, and
preparing NI 43-101 compliant reports. WorleyParsons will focus on project infrastructure, mineral processing and metallurgical testing, capital and operating costs and project economics. Mining Plus Pty Ltd.,
a sub-contractor to WorleyParsons, will focus on potential mineral reserve estimates and mining methods. Mining Plus is a fully integrated global mining consultancy that has experience in open pit mining,
including the development and operation of large-scale lithium mining projects in Australia. 
 Additional baseline environmental surveys
are expected to begin in early 2018 with the major mine plan permit application expected to be initiated in H2 2018. Lithium Nevada has existing fully-certificated water rights within the Quinn River Valley (located 25 km east of the proposed mine
site at the Lithium Nevada project) totaling approximately 1,000 acre-feet annually, which is expected to be sufficient for a large-scale lithium mine and processing facility. 

Consistent with Lithium Americas’ focus on environmental sustainability, Lithium Nevada and the University of Nevada, Reno
(“UNR”) have founded the Rangeland Rehabilitation Research Fund (the “Fund”). The Fund’s mission is to improve sagebrush habitat through effective habitat rehabilitation methods. The Fund will be administered by UNR. Lithium
Nevada is providing the seed financing to kick-start the long-term initiative and is entitled to one nominee on the Fund’s board of directors. It is expected that other industry partners will participate and expand the research program. 

  
 5 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 Anticipated Work Program and Timeline: 

 

	 	•	 	 Q4 2017 / Q1 2018 – complete 2017 Exploration Program. 

 

	 	•	 	 Q1 2018 – finalize process testing. 

 

	 	•	 	 Q1 2018 – advance additional baseline environmental surveys. 

 

	 	•	 	 Q2 2018 – complete PFS, including updated resource and reserve estimates. 

 

	 	•	 	 H2 2018 – initiate major mine plan permitting. 

 

	 	•	 	 H2 2018 – commence detailed engineering. 

Lithium Americas’ Board of Directors have approved a budget of US$10.5 million to fund the Lithium Nevada project through to Q3
2018. In addition, the Company is examining future strategic partnership/financing alternatives to collaborate and develop the Lithium Nevada project. 

RheoMinerals Business 
 The
organoclay plant, operated by the Company’s wholly-owned subsidiary RheoMinerals, located in Fernley, Nevada, was completed and ready for intended use on April 1, 2016. Accordingly, sales and costs of sales are recorded in respect of these
operations commencing April 1, 2016. Prior to April 1, 2016, sales of organoclay product of $0.7 million were accounted for as a reduction of the capitalized costs of organoclay property, plant and equipment. From April 1, 2016
to December 31, 2016 the Company reported $1.2 million in organoclay sales and $3.8 million during the nine months ended September 30, 2017. Most of RheoMinerals’ sales during the nine months ended September 30, 2017
were to oil and gas service sector customers. 
 In addition to clays for use in the oil and gas sector, RheoMinerals is a certified vendor
with a Fortune 500 industrial group to sell its products internationally to the animal feed market as mycotoxin binders. RheoMinerals is also collaborating with industry participants on a specialty organophilic clay product for environmental
applications. The product will service the existing market to remove organic compounds from industrial wastewater effluent. 
 In fiscal
year 2016, RheoMinerals entered into a Technical Assistance and Royalty Agreement (the “Delmon Agreement”) with Delmon Co. Ltd., part of The Delmon Group of Companies (“Delmon”) in Saudi Arabia. Delmon has business interests
spanning wide market segments of products and services, and is a leading local supplier of oilfield minerals and chemicals to Saudi Aramco. Under this agreement, RheoMinerals will collaborate with Delmon in the design and construction of a
manufacturing facility (the “Delmon Plant”) for specialty additives used in oil based drilling fluids. The initial product offering will include organophilic bentonite and organophilic lignite products. RheoMinerals will receive
$1.2 million (includes $0.3 million received in 2016 and $0.3 million received in Q3 2017) in progress payments upon Delmon achieving certain construction and operational milestones in addition to the reimbursements of expenses and
costs of technical personnel. Under the Delmon Agreement, RheoMinerals will also receive royalties from the future Delmon Plant production. Delmon expects to commission the new facility in 2018. 

Change in Fiscal Year End 
 The Company
has 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. 
 Selected Financial Information 

The following selected financial information is presented in thousands of US dollars, shares in thousands, unless otherwise stated and except per share
amounts. 

  
 6 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 Summary of Selected Assets and Quarterly Results 

 

																																	
	  	  	2017	 	 	2016	 
	  	  	Q3	 	 	Q2	 	 	Q1	 	 	Q5	 	 	Q4	 	 	Q3	 	 	Q2	 	 	Q1	 
	  	  	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 
	 Total assets
	  	 	118,462	 	 	 	86,017	 	 	 	48,517	 	 	 	45,301	 	 	 	50,537	 	 	 	53,845	 	 	 	57,664	 	 	 	57,876	 
	 Investment in Joint Venture
	  	 	7,981	 	 	 	7,507	 	 	 	11,649	 	 	 	13,136	 	 	 	16,074	 	 	 	17,673	 	 	 	18,163	 	 	 	—  	 
	 Property, plant and equipment
	  	 	18,078	 	 	 	17,876	 	 	 	18,066	 	 	 	18,502	 	 	 	18,618	 	 	 	18,862	 	 	 	19,164	 	 	 	18,932	 
	 Working capital
	  	 	73,804	 	 	 	50,923	 	 	 	9,620	 	 	 	8,593	 	 	 	11,260	 	 	 	13,384	 	 	 	13,667	 	 	 	2,532	 
	 Organoclay sales
	  	 	1,059	 	 	 	1,612	 	 	 	1,167	 	 	 	534	 	 	 	452	 	 	 	168	 	 	 	—  	 	 	 	—  	 
	 Expenses
	  	 	(10,466	) 	 	 	(7,969	) 	 	 	(4,390	) 	 	 	(5,308	) 	 	 	(3,651	) 	 	 	(3,276	) 	 	 	(2,743	) 	 	 	(2,707	) 
	 Net loss for the period
	  	 	(12,759	) 	 	 	(9,726	) 	 	 	(4,960	) 	 	 	(5,598	) 	 	 	(3,723	) 	 	 	(3,766	) 	 	 	(11,366	) 	 	 	(3,272	) 
	 Basic loss per common share
	  	 	(0.03	) 	 	 	(0.03	) 	 	 	(0.02	) 	 	 	(0.01	) 	 	 	(0.01	) 	 	 	(0.01	) 	 	 	(0.03	) 	 	 	(0.01	) 
	 Diluted
loss per common share
	  	 	(0.03	) 	 	 	(0.03	) 	 	 	(0.02	) 	 	 	(0.01	) 	 	 	(0.01	) 	 	 	(0.01	) 	 	 	(0.03	) 	 	 	(0.01	) 
	 	 

 Quarterly amounts added together may not equal to the total reported for the period due to rounding or reclassifications. 

 

	*	 2016 had five quarters due to the change in year end from September 30 to December 31 during the
year. 

 Total Assets 

The Company’s total assets increased by $32,445 in Q3 2017 compared to Q2 2017 mostly due to the proceeds of $33,539 received under the
terms of the investment agreement with Bangchak. 
 The Company’s total assets increased by $37,500 in Q2 2017 compared to Q1 2017
mostly due to the net proceeds of $39,485 received under the terms of the investment agreement with GFL International Co., Ltd (“Ganfeng”). 

The Company’s total assets increased by $3,216 in Q1 2017 compared to Q5 2016 mostly due to net proceeds of $7,233 received from the
equity financing made by Ganfeng, partially offset by $4,390 of expenses incurred during the period. 
 Investment in Joint Venture 

The increase in the investment in the Joint Venture in Q2 2016 is due to the completion of the transaction with SQM which closed on
March 28, 2016. 
 The changes in investment in the Joint Venture since the 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	 	  			
	 	 

 As at September 30, 2017 the aggregate amount of assets and liabilities in the Joint Venture were $45,609
and $29,958 respectively, and the loss for the nine months ended September 30, 2017 was $8,904. 

  
 7 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 Property, Plant and Equipment 

Most of the Company’s property, plant and equipment amounts relate to the RheoMinerals organoclay plant. The plant was constructed during
2014 and considered to be completed and ready for intended use on April 1, 2016. Sales and costs of sales for the organoclay plant were recorded commencing April 1, 2016.  

Working Capital 
 The increase in working
capital of $22,881 in Q3 2017 is mostly attributable to the gross proceeds of $33,539 received in connection with the Bangchak investment agreement, net of financings costs of $1,013, proceeds of $953 received from the stock option and warrant
exercises and proceeds of $300 received under the Delmon Agreement. These amounts were partially offset by a $6,000 loan provided to the Joint Venture, general and administrative expenses, the annual claim fees paid to the Bureau of Land Management,
costs capitalized to property, plant, and equipment, and an increase in accounts payable. 
 The increase in working capital of $41,303 in
Q2 2017 is mostly attributable to the net proceeds of $39,485 received in connection with the Ganfeng Lithium investment agreement and $3,519 received from the stock option and warrant exercises, partially offset by general and administrative
expenses. 
 The increase in working capital of $1,027 in Q1 2017 is mostly attributable to the net proceeds of $7,233 received in
connection with the Ganfeng Lithium investment agreement and $550 received from the stock option and warrant exercises, partially offset by a $5,000 loan provided to the Joint Venture and general and administrative expenses. In Q1 2017, the Company
reclassified $833 escrow deposit from its non-current assets to current assets. The $833 deposit released from escrow was received in April 2017. 

The increase in working capital of $11,135 in Q2 2016 is mostly attributable to the $13,333 receivable from the Joint Venture, which was
formed on March 28, 2016. 
 Organoclay Sales 

The Company started to recognize revenues from organoclay sales on April 1, 2016, upon the organoclay plant achieving intended use status.

 Expenses and Net Loss 
 The increase
in the Company’s expenses in Q3 2017 compared to Q2 2017 was primarily due to an increase in exploration expeditures incurred as a result of the increase in activity on the Lithium Nevada project, an increase in salaries, benefits, and
directors’ fees expense due to executive bonuses awarded in Q3 2017, and an increase in stock-based compensation expense due to new stock options and restricted share grants in Q3 2017. The increase in the Company’s foreign exchange loss
was due to the strengthening of the Canadian dollar against the US dollar during the period. The Company holds most of its cash in US currency. 

The increase in the Company’s expenses in Q2 2017 compared to Q1 2017 was primarily due to an increase in the Company’s share of
loss in the Joint Venture due to the increase in activity on the Cauchari-Olaroz project and to an increase in stock-based compensation expense due to new stock options and restricted share grants in Q2 2017. 

The decrease in the Company’s expenses in Q1 2017 compared to Q5 2016 was primarily due to a decrease in the Company’s share of loss
in the Joint Venture and lower stock-based compensation expense. 
 The increase in the Company’s expenses in Q5 2016, compared to Q4
2016 was mostly due to increase in consulting fees, legal expenses, marketing, and wages and salaries due to an increase in corporate activities and increase in the number of employees. 

The increase in the Company’s expenses in Q4 2016 and Q3 2016, compared to other quarters was primarily due to increases in the
Company’s share of loss in Joint Venture, which was formed on March 28, 2016. The increase in the Company’s share of loss in the Joint Venture from quarter to quarter was due to the increased level of exploration activities on the
Cauchari-Olaroz project. 

  
 8 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 Included in Q3 2017 other income is $300 of proceeds received under the Delmon Agreement.

 Included in Q1 2017 other losses is RheoMinerals’ equipment write down of $369 and Lithium Nevada’s property costs write off of
$49. In Q2 2016, the Company recorded a loss of $8,979 on the sale of 50% of its equity interest in Minera Exar to SQM mainly due to $15,098 of cumulative exchange differences (“CTA”) in Minera Exar. In March 2016, the Company received a
favorable court judgement on the litigation between the Company and a former officer and reversed a previously recorded provision of $544 included in accounts payable and accrued liabilities and recorded the reversal as a gain in other income
(loss).  
 Results of Operations – Nine Months Ended September 30, 2017 

For the nine months ended September 30, 2017, the Company reported a net loss of $27,445 compared to a net loss of $18,855 for the nine
months ended September 30, 2016, of which a $1,162 gross loss (2016 – $612) is attributed to organoclay sales, $22,825 (2016 – $9,596) is attributed to expenses, and a loss of $3,458 (2016 – $8,647) is attributed to other items
discussed in the summary of the quarterly results. 
 Organoclay Sales and Cost of Sales 

The organoclay sales revenue in the period ended September 30, 2017 was $3,838 (2016-$620), with related production costs of $4,295 (2016
– $1,045), and depreciation expense of $705 (2016 – $187), resulting in gross loss from organoclay sales of $1,162 (2016 – $612). 

Expenses 
 Exploration expenditures of
$2,623 (2016 – $1,729) includes expenditures incurred for the Lithium Nevada project of $2,152 (2016 – $1,263) and $471 (2016 – $466) in expenditures incurred directly by the Company related to the Cauchari-Olaroz project. The
increase in the Company’s exploration expenditures from quarter to quarter is mostly due to advancing the Lithium Nevada project. 

Organoclay research and development costs are consistent from period to period and include costs of operating the research and development
team and lab for new organoclay products development. 
 Loss from the Joint Venture of $4,452 (2016 – $1,372) represents the
Company’s share of the Joint Venture expenses for the Cauchari-Olaroz project. The increase in the Company’s share of the Joint Venture expenses was due to the increase in activity on the Cauchari-Olaroz project. 

Stock-based compensation of $9,729 (2016 – $2,307) is a non-cash expense and consists of the
$3,017 estimated fair value of stock options vested during the period and the $6,712 fair market value of restricted shares. During the period ended September 30, 2017, the Company granted 14,975 stock options and 7,845 restricted shares to its
directors, executive officers, and employees. 
 Results of Operations – Nine Months Ended September 30, 2017 

Included in General and Administrative expenses of $5,334 (2016 – $3,858): 

 

	 	•	 	 Marketing expenses of $411 (2016 – $513) include salaries, travel expenses, and other miscellaneous
expenses of RheoMinerals marketing staff; 

  

	 	•	 	 Office expenses of $498 (2016 – $464) include Vancouver, Reno, Toronto, and Buenos Aires offices rent,
insurance, IT, telephone and other related expenses and general office expenses; 

  
 9 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

	 	•	 	 Professional fees of $571 (2016 – $420) consist of legal fees of $256 (2016 – $224), consulting fees
of $159 (2016 – $130), public relations fees of $79 (2016 – $23), and accounting fees of $77 (2016 – $43). The increase is due to an increase in corporate activities; 

 

	 	•	 	 Salaries and benefits of $3,093 (2016 – $1,620) include salaries, benefits, and bonuses for the
Company’s employees and directors’ fees. The increase in salaries and benefits is due to hiring new employees in 2017 and awarding bonuses to the Company’s two senior executives upon completion of the Bangchak and Ganfeng financings
in Q3 2017; 

  

	 	•	 	 Travel and conferences of $565 (2016 – $251). The increase is due to an increase in corporate activities.

 Results of Operations – Three Months Ended September 30, 2017 

For the three months ended September 30, 2017, the Company reported a loss of $12,759 compared to a loss of $3,723 for the three months
ended September 30, 2016 (“2016 period”), of which a $516 loss (2016 period – $303) is attributed to organoclay sales, $10,466 (2016 period – $3,651) is attributed to expenses, and a loss of $1,777 (2016 period – income
of $231) is attributed to other items discussed in the summary of the quarterly results. 
 Organoclay Sales and Cost of Sales 

The organoclay sales revenue in Q3 2017 were $1,059 (2016 period – $452), wih related production costs of $1,416 (2016 period – $628)
and depreciation expense of $159 (2016 period – $127), resulting in gross loss from organoclay sales of $516 (2016 period – $303). The decrease in the Company’s sales and the increase in gross loss in Q3 2017 compared to Q2 2017 was
due to a temprorary shutdown of the Company’s organoclay plant due to equipment replacement. The Company’s sales increased from $534 in Q5 2016 to $1,167 in Q1 2017, and to $1,633 in Q2 2017. 

Expenses 
 Exploration expenditures of
$1,231 (2016 period – $676) includes expenditures incurred for the Lithium Nevada project. The increase in the Company’s exploration expenditures is due to advancing of the Lithium Nevada project. 

Organoclay research and development costs are consistent from period to period and include costs of operating a small research team and lab
for new organoclay products development. 
 In July 2017, the Joint Venture’s Cauchari Olaroz project entered the development phase.
Effective July 1, 2017, all costs directly attributable to the project are being capitalized. The Company’s share of the Joint Venture losses decreased in Q3 2017 compared to prior quarter as the majority of costs were capitalized as
project development costs. In addition, the Company recoqnized its share of the Joint Venture’s VAT and other taxes receivable which resulted in the Company’s share of Q3 2017 income in the Joint Venture of $776. 

Stock-based compensation of $7,139 (2016 period – $463) is a non-cash expense and consists of the
$2,015 estimated fair value of stock options vested during the period and the $5,124 fair market value of restricted shares issued during the period. In Q3 2017, the Company granted 9,300 stock options and 4,120 restricted shares to its directors,
executive officers, and employees. 
 Included in General and Administrative expenses of $2,762 (2016 period – $1,180): 

 

	 	•	 	 Marketing expenses of $155 (2016 period – $164) include salaries, travel expenses, and other
miscellaneous expenses of RheoMinerals marketing staff; 

  

	 	•	 	 Office expenses of $183 (2016 period – $183) include Vancouver, Reno, Toronto, and Buenos Aires office
rent, insurance, IT, telephone and other related expenses and general office expenses; 

  

	 	•	 	 Professional fees of $167 (2016 period – $122) include legal, consulting, public relations, and
accounting fees; 

  

	 	•	 	 Salaries and benefits of $2,011 (2016 period – $504) include salaries and benefits for the Company’s
employees. 

 Convertible security accretion in 2016 period was $140. In 2016 period, the Company repaid the remaining
balance of the convertible security note. 

  
 10 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 The Company recognized in Q3 2017 a foreign exchange loss of $2,347 (2016 period –
income $211). The increase in the Company’s foreign exchange loss was due to the strengthening of Canadian dollar against US dollar during the period. The Company holds most of its cash in US currency. 

Liquidity and Capital Resources 
  

																
	 	 
	Cash Flow Highlights	  	            Nine months ended September 30,      
          
	 	  	 2017

$
	  	 2016

$
	  	  
	 Cash used in operating activities
	  	 	 	(7,886	)	  	 	 	(7,606	)	  	 			
	 Cash (used in)/provided by investing activities
	  	 	 	(11,650	)	  	 	 	11,276		  	 			
	 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		  	 			
	 	 

 As at September 30, 2017, the Company had cash and cash equivalents of $73,208 and working capital of
$73,804 compared to cash and cash equivalents of $8,056 and working capital of $8,593 on December 31, 2016. 
 On January 27,
2017, pursuant to the Ganfeng Lithium investment agreement, the Company issued to Ganfeng 11,250 common shares at a price of CDN$0.85 per share, for an aggregate cash subscription of CDN$9,563 ($7,297). On June 7, 2017, the Company issued to
Ganfeng an additional 63,750 common shares at a price of CDN$0.85 per share, for an aggregate cash subscription of CDN$54,188 ($40,163). 

On July 14, 2017, pursuant to the Bangchak investment agreement, the Company issued to Bangchak 50,000 common shares at a price of
CDN$0.85 per common share, for an aggregate cash subscription of CDN$42,500 ($33,539). 
 The Company incurred related financing costs of
$3,503 of which $1,755 related to equity portion of the financings were recorded as share issuance costs and $1,748 related to future debt financings are deferred and will be amortized over the terms of the loans. $1,598 of the incurred financing
costs are included in accounts payable and accrued liabilities on September 30, 2017. 
 In January 2016, the Company received $3,500
from a non-brokered private placement of subscription receipts and incurred related costs of $42. 

In April 2016, the Company received $14,754 from the Joint Venture, net of $246 transaction costs. 

The Company will require additional working capital to continue development of its organoclay business and for further development of its
lithium projects. The timing and the amount of RheoMinerals and Lithium Nevada expenditures are within the control of the Company due to its direct and sole ownership. Pursuant to the agreements governing the Joint Venture on the Cauchari-Olaroz
project, decisions regarding capital and operating budgets for the project require unanimous approval.     
 The
Company’s capital resources are largely determined by the strength of the junior resource markets and by the status of the Company’s projects in relation to these markets, and its ability to compete for investor support of its projects.
There can be no assurance that the Company will be successful in obtaining the required financing to develop its projects.     

  
 11 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 Except as disclosed, the Company does not know of any trends, demands, commitments, events or
uncertainties that will result in, or that are reasonably likely to result in, its liquidity and capital resources either materially increasing or decreasing at present or in the foreseeable future. Material increases or decreases in liquidity and
capital resources are substantially determined by the success or failure of the exploration and development programs. 
 The Company does
not now nor does it expect in the future to engage in currency hedging to offset any risk of currency fluctuations. 
 Financings 

Ganfeng Lithium Investment 
 During
the nine months ended September 30, 2017, the Company completed the investment agreement with Ganfeng Lithium for funding to advance the construction of the Cauchari-Olaroz lithium project. 

Pursuant to the Ganfeng Lithium investment agreement: 
  

	 	•	 	 Ganfeng Lithium purchased, by way of a private placement, 75,000 common shares at a price of CDN$0.85 per
common share for gross proceeds of CDN$63,750 ($47,460); 

  

	 	•	 	 Ganfeng Lithium will provide to Lithium Americas a $125,000 debt facility to be used to fund a portion of
Lithium Americas’ share of Cauchari-Olaroz construction costs. The 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 Lithium and the Company have agreed to terms for an offtake entitlement in favour of Ganfeng Lithium
for the purchase of up to 80% of Lithium Americas’ share of Cauchari-Olaroz Stage 1 lithium carbonate production at market prices; 

  

	 	•	 	 Ganfeng Lithium 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 
 During the
nine months ended September 30, 2017, the Company completed the investment agreement with Bangchak for funding to advance the construction of the Cauchari-Olaroz lithium project. 

Pursuant to the Bangchak investment agreement: 
  

	 	•	 	 Bangchak purchased, by way of a private placement, 50,000 common shares at a price of CDN$0.85 per common
share for gross proceeds of C$42,500 ($33,539); 

  

	 	•	 	 Bangchak will provide to Lithium Americas an $80,000 debt facility to be used to fund a portion of Lithium
Americas’ share of Cauchari-Olaroz construction costs. The 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;

  

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

  

	 	•	 	 Bangchak 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. 

The Company provided corporate guarantees, to both lenders, Bangchak and Ganfeng, in connection with the debt
facility.     
 Operating Activities 

Net cash used in operating activities during the nine month period ended September 30, 2017, was $7,886 compared to $7,606 net cash used
during the nine month period ended September 30, 2016. The significant components of operating activities are discussed in the Results of Operations sections.  

  
 12 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 Investing Activities 

Investing activities required cash of $11,650 during the nine month period ended September 30, 2017, compared to $11,276 cash provided
during the nine-month period ended September 30, 2016. The cash used in investing activities was for the additions to property, plant and equipment of $750 (2016 - $228) and additions to exploration and evaluation assets of $495 (2016 - $657).
In the period 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 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 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.  

Financing Activities 
 During the nine
month period ended September 30, 2017, the Company received $47,460 in connection with the Ganfeng investment agreement and $33,539 in connection with the Bangchak investment agreement and incurred costs related to equity portion of financings
of $1,755, received $627 (2016—$598) from the exercise of stock options and $4,396 (2016 - $958) from the warrant exercises. $81 of the financing costs related to equity portion of the financings is included in accounts payable and accrued
liabilities on September 30, 2017. 
 During the nine month period ended September 30, 2016, the Company received $3,500 from
Bangchak subscription receipt and repaid the remaining balance of $1,653 related to convertible security note. Accounts payable and accrued liabilities related to the Bangchak subscription receipt financing on September 30, 2016, were $250.

 Current Share Data 
 As at the date
of this report and after giving effect to the announced share consolidation of five to one which took effect on November 8, 2017, the Company has 88,456 common shares issued and outstanding, 1,211 restricted shares, 41 deferred share units, and
5,284 stock options outstanding. 
 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 $17.5 per year to the Company’s Audit Committee Chair, $12.5 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 meetings per year. The fees will be settled through a combination of cash and the issuance of the DSUs with each board member
obligated to receive a minimum of 50% and a maximum of 100% of all such compensation in DSUs. 
 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. 

  
 13 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 Contractual Obligations 

As at September 30, 2017, the Company had the following contractual obligations: 

 

													
	  
	 
	 	  	 Not later than
1 year

$
	 	  	 Later than 1 year and not
later than 5 years

$
	 	  	 Total            

$            
	 
	  
	 
		  				  				  			
	  
	 
	 Rent of office spaces
	  	 	274	 	  	 	378	 	  	 	652            	 
	 Promissory note for RheoMinerals plant1
	  	 	172	 	  	 	833	 	  	 	1,005            	 
	 Equipment finance leases1
	  	 	48	 	  	 	36	 	  	 	84            	 
	  
	 
	 Total
	  	 	494	 	  	 	1,247	 	  	 	1,741            	 
	  
	 

  

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

 Financial Instruments 

Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial
assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership. 

All of the Company’s financial instruments are classified into one of two categories: loans and receivables, or other financial
liabilities. All financial instruments are initially measured in the statement of financial position at fair value. 
 Subsequent
measurement and changes in fair value will depend on their initial classification. Loans and receivables and other financial liabilities are measured at amortized cost. 

Cash and receivables have been designated as loans and receivables and are included in current assets due to their short term nature. The
Company’s other financial liabilities include accounts payable and accrued liabilities, long-term borrowing, and obligations under finance leases. Accounts payable, accrued liabilities, and the current portion of long-term borrowing and finance
leases that is due within twelve months from the financial statement reporting date are included in current liabilities due to their short-term nature. Long-term borrowing and obligations under finance leases are included in long-term liabilities
due to their long-term nature. 
 Off-Balance Sheet Arrangements 

The Company’s off-balance sheet arrangements related to the exploration and evaluation assets are
disclosed in notes 4 and 6 of the Company’s December 31, 2016 audited consolidated financial statements and will only be incurred if the Company continues to hold the subject property, starts production or exercises purchase option. The
Company’s reclamation bond arrangement is disclosed below. 
 Decommissioning Provision and Reclamation Bond 

The Company estimated the carrying value of the liability for decommissioning provision that arose to date as a result of exploration
activities to be $179 for the Lithium Nevada project. The fair value of the liability was determined to be equal to the estimated remediation costs. In May 2014, the Company’s $908 reclamation bond payable to the Bureau of Land Management was
guaranteed by a third-party insurance company upon the issuance of Lithium Nevada clay mine project permit to the Company in 2014. The bond guarantee is renewed annually and secured by the Company’s $150 security deposit. 

  
 14 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 Significant Accounting Policies 

Please refer to the Company’s annual MD&A for the Significant Accounting Policies. 

Critical Accounting Estimates and Judgements 

Please refer to the Company’s annual MD&A for the Critical Accounting Estimates and Judgements. 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. 
 Risks
and Uncertainties 
 Please refer to the Company’s annual MD&A in the section entitled “Risks and Uncertainties”, as
well as the Company’s annual information form in the section entitled “Risk Factors” for risks and uncertainties faced by the Company. 

New Accounting Standards and Recent Pronouncements 

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. 

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. 

  
 15 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 Changes in Directors and Management 

On August 15, 2017, the Company appointed Alexi Zawadzki as the President of North American Operations. Alexi has over 20 years of
experience developing and constructing mining and energy projects across North and South America, in addition to the management of technical teams and business units. 

John Macken did not stand for re-election at the Company’s AGM on August 14, 2017 and
retired from the Board. 
 On July 17, 2017, Chaiwat Kovavisarach was appointed to Lithium Americas’ Board of Directors.
Mr. Kovavisarach is currently Chief Executive Officer of Bangchak. 
 On June 28, 2017, Gary Cohn was appointed to Lithium
America’s Board of Directors. Prior to his recent consulting work on corporate development matters, Mr. Cohn had a lengthy career with Magna International Inc. which began in 1989. His roles with Magna included overseeing the mergers and
acquisitions function, serving as in-house legal counsel and acting as corporate secretary. He was a member of the Board of Directors of the former Lithium Americas Corp. from 2014 until its merger with the
Company. 
 On June 7, 2017, the Company announced the appointment of Wang Xiaoshen and Jonathan Evans to Lithium America’s Board
of Directors. Mr. Wang was appointed as the nominee of Jiangxi Ganfeng Lithium Co. Ltd., which has a board nomination right pursuant to the strategic financing with the Company. Mr. Wang is currently Vice Chairman and Executive Vice
President of Ganfeng Lithium. 
 Mr. Evans has more than 20 years of operations and general management experience across businesses of
various sizes and industry applications. Previously, he served as Vice President and GM for the Lithium Division at FMC Corporation. Mr. Evans is currently the Chief Operating Officer of DiversiTech Corporation. Mr. Evans has also held
executive management roles at Arysta LifeScience, AMRI Corporation and General Electric. 
 Coincident with the appointment of Mr. Wang
and Mr. Evans to the Board, Lenard Boggio and Nicole Adshead-Bell voluntarily stepped down as directors of the Company. 
 On
May 10, 2017 the Company announced the appointment of Gabriel Rubacha as the Company’s President, South American Operations. Mr. Rubacha was previously the Commercial Director of Techint Engineering and Construction S.A.
(“Techint”). Mr. Rubacha continues to serve as a director of the Company and as the Company’s representative on the Board of the Joint Venture company Minera Exar. 

Investor Relations 
 Tom Hodgson, CEO, and
John Kanellitsas, President and Vice-Chairman coordinate investor relations activities for the Company. 
 Interest of Experts 

All technical and scientific information discussed in this MD&A in respect of the Cauchari-Olaroz project has been reviewed and approved by
Ernest Burga, a consultant of the Company, who is a “Qualified Person” for the purposes of NI 43-101. Detailed descriptions of mineral resource and mineral reserve estimates, data verification and
QA/QC programs in respect to the Cauchari-Olaroz project are included in the NI 43-101 compliant technical report summarizing the Stage 1 DFS available on SEDAR (www.sedar.com). 

Information on the Zone 1 Mineral Resource Estimate (MRE) in respect of the Lithium Nevada project has been reviewed and approved by
Mr. Tim Carew, P.Geo., a “Qualified Person” for the purposes of NI 43-101. Information on data verification performed on the Lithium Nevada project, as well as on known risks that could affect
the potential development of the Lithium Nevada project, is contained in Lithium Americas’ most recently filed annual information form and the current technical report for the Lithium Nevada project, all available at www.sedar.com. 

  
 16 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 All other scientific and technical information discussed in this MD&A has been reviewed
and approved by Dr. Rene LeBlanc, a “Qualified Person” for purposes of NI 43-101. Dr. LeBlanc is Lithium Nevada’s Senior Process Development Manager. 

Disclosure Controls and Procedures 

Disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed by the Company in its
annual filings, interim filings or other reports filed under securities legislation is recorded, processed, summarized and reported within the time periods specified by securities regulators and include controls and procedures designed to ensure
that information required to be disclosed by the Company in its annual filings, interim filings or other reports filed under securities legislation is accumulated and communicated to the Company’s management, including its certifying officers,
as appropriate to allow timely decisions regarding required disclosure. The Company’s management designed the disclosure controls and procedures to provide reasonable assurance that material information relating to the Company, including its
consolidated subsidiaries, is made known to them on a timely basis. The Company’s management believes that any disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance
that the objectives of the disclosure controls and procedures are met. 
 Internal Controls over Financial Reporting 

Internal controls over financial reporting are designed to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements in accordance with IFRS. Management is responsible for the design of the Company’s internal controls over financial reporting. 

The Company’s internal controls over financial reporting include policies and procedures that pertain to the maintenance of records that
in reasonable detail accurately and fairly reflect the transactions and disposition of assets, provide reasonable assurance that transactions are recorded as necessary to permit the preparation of the financial statements in accordance with IFRS and
that receipts and expenditures are being made only in accordance with authorization of management and directors of the Company, and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition
of assets that could have a material effect on the financial statements. 
 Because of their inherent limitations, internal controls over
financial reporting can provide only reasonable assurance and may not prevent or detect misstatements. Furthermore, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because
of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 
 There has been no change in
the Company’s internal controls over financial reporting that occurred during the most recently completed quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal controls over financial
reporting. 
 Forward Looking Statements 

Certain of the statements made and information contained herein is “forward-looking information” within the meaning of applicable
Canadian securities legislation. These statements relate to future events or the Company’s future performance. All statements, other than statements of historical fact, may be forward-looking statements. Information concerning mineral resource
and mineral reserve estimates also may be deemed to be forward-looking statements in that it reflects a prediction of mineralization that would be encountered if a mineral deposit were developed and mined. Forward-looking statements are often, but
not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”,
“predict”, “propose”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. 

  
 17 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 These statements involve known and unknown risks, uncertainties and other factors that may
cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that
these expectations will prove to be correct and such forward-looking statements included in this MD&A should not be unduly relied upon by investors as actual results may vary. These statements speak only as of the date of this MD&A and are
expressly qualified, in their entirety, by this cautionary statement.     
 In particular, this MD&A contains
forward-looking statements pertaining to the following: capital expenditure programs; the listing of common shares on the NYSE, estimates of the quality and quantity of the mineral resources and mineral reserves at its mineral properties;
development of mineral resources and mineral reserves; treatment under governmental and taxation regimes; expectations regarding the Company’s ability to raise capital; expenditures to be made by the Company on its properties; the
Company’s expectations regarding the preparation of a feasibility study for lithium carbonate production at the Lithium Nevada project; the completion of exploration and development work at the Company’s properties, including, but not
limited to, the completion of a PFS in respect of the Lithium Nevada project, results of development and advancement work at the Company’s properties; scheduled production at the Cauchari-Olaroz project; the expectation for the development of
the Cauchari-Olaroz project through the Joint Venture with SQM; work plans to be conducted by the Company, including expectations with respect to the operational status of, and commercial production at, its Fernley plant; the Company’s plans to
introduce certain products to the market; the Company’s ability to source sales contracts for its organoclay products, the Company’s role in the lithium-ion battery sector; and the Company’s
contribution to the global supply chain. 
 With respect to forward-looking statements listed above and contained in this MD&A, the
Company has made assumptions regarding, among other things: 
  

	 	•	 	 uncertainties relating to receiving mining, exploration, environmental and other permits or approvals in
Nevada, USA and Jujuy Province, Argentina; 

  

	 	•	 	 the ability to obtain regulatory and stock exchange approval in a timely manner; 

 

	 	•	 	 the impact of increasing competition in the lithium business; 

 

	 	•	 	 unpredictable changes to the market prices for lithium and clay-based organoclay products;

  

	 	•	 	 exploration and development costs for the Cauchari-Olaroz project and the Lithium Nevada project;

  

	 	•	 	 anticipated results of exploration and development activities; 

 

	 	•	 	 availability of additional financing; 

 

	 	•	 	 the Company’s ability to obtain additional financing on satisfactory terms; 

 

	 	•	 	 the ability to achieve production at any of the Company’s mineral exploration and development properties;

  

	 	•	 	 preparation of a development plan for lithium carbonate production at the Lithium Nevada project;

  

	 	•	 	 the market price of organoclay, the Company’s ability to produce RheoMinerals products at a competitive
price and to source sales contracts; and the continued growth of the shale gas and ultra-deep oil drilling and lithium industries. 

  
 18 

 LITHIUM AMERICAS CORP. 

MANAGEMENT’S DISCUSSION AND ANALYSIS 
 FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2017 
  

 The Company’s actual results could differ materially from those anticipated in these
forward-looking statements as a result of the risk factors set forth below and elsewhere in this MD&A including the following: volatility in the market price for minerals; uncertainties associated with estimating mineral resources and mineral
reserves, including uncertainties relating to the assumptions underlying mineral resource and mineral reserve estimates; uncertainty of whether there will ever be production at the Company’s mineral exploration properties; geological,
technical, drilling or processing problems; liabilities and risks, including environmental liabilities and risks, inherent in mineral extraction operations; fluctuations in currency exchange and interest rates; incorrect assessments of the value of
acquisitions; unanticipated results of exploration activities; competition for, amongst other things, capital, undeveloped lands and skilled personnel; lack of availability of additional financing and/or joint venture partners; unpredictable weather
conditions; unanticipated delays at Fernley plant or in preparing feasibility studies; the ability to manufacture an organoclay product that meets customer requirements; an increase in the costs of manufacturing organoclay, including the costs of
any raw materials used in the process; a reduction in the demand for shale or ultra-deep drilling, as well as those risk factors described in the Company’s annual information form in the section entitled “Risk Factors”. 

Readers are cautioned that the foregoing lists of risk factors are not exhaustive. The forward-looking statements contained in this MD&A
are expressly qualified by this cautionary statement. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

  

  
 19

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