Communicators

HOMBRE MUERTO LITHIUM BRINE PROJECT, ARGENTINA

-          Conductivity surveys completed at Pata Pila and Rana del Sal

-          Results confirm the presence of highly conductive horizons consistent with extensive geological units saturated with brine

-          Conductive units are also coincident with confirmed high Li grade/low impurity brines returned from recent drilling

-          Results to assist company consultants, SRK (Australia), to estimate maiden resources for the Western Basin projects

-          Targets lie in the Western Hombre Muerto basin adjacent to Livent Corporation’s (formerly FMC) Fenix lithium brine operation

-          Targets complement the recently defined resource at Candelas

December 19, 2019 – Galan Lithium Limited (ASX:GLN) (Galan or the Company) is pleased to announce that geophysical CSAMT (Controlled Source Audio-frequency Magnetotellurics) surveys over the Pata Pila and Rana del Sal projects to assist in the estimation of potential lithium brine resources at the Western Basin of the Hombre Muerto salar in Argentina have now been completed.

The Rana de Sal and Pata Pila licenses cover large alluvial fan areas lying adjacent to Livent Corporation’s (NYSE: LVHM) tenure, covering the western margin of the Hombre Muerto salar. Recent drilling returned significant intercepts of high grade/low impurity lithium bearing brines (ASX:GLN releases 11 September, 9 October 2019) from Pata Pila and from limited sampling at Rana del Sal. The results confirmed high grades with most samples returning lithium grades >900mg/l Li with low levels of Mg/Li (Table 1). Further entire aquifer sampling is also planned to be conducted.

Table 1: Previously reported laboratory and field test results, Pata Pila & Rana del Sal

Geophysics

Single lines of CSAMT (Controlled Source Audio-frequency Magnetotellurics) surveying were initially conducted prior to the drilling over several of the Western Basin projects as seen in Figure 1 (ASX:GLN 18 October 2018). Following the positive follow up drilling results the Company conducted follow up detailed CSAMT surveys at Pata Pila and Rana del Sal (figure 1). The surveys successfully mapped extensive zones of high conductivity which, given the coincidence with the lithium bearing brines encountered in the drilling, are interpreted to represent horizons consistent with geological units saturated with brine (see figure 2 example section).

The survey results will assist the estimate of a maiden resource for the Western Basin projects. The estimate will be conducted by the Company’s resource consultants, SRK (Australia), utilising their Australian and Argentinian based teams, and who recently finalised a maiden resource over the Candelas project also located at Hombre Muerto (ASX: GLN 1 October 2019).

Figure 1: Galan Lithium Limited’s Western Basin Projects, Hombre Muerto salar, Argentina

Figure 2: Example CSAMT Section, Line 10400, Rana del Sal, Hombre Muerto salar

(Purple colours = highly conductive horizons)

For further information contact:

Juan Pablo (“JP”) Vargas de la Vega

Managing Director, Galan Lithium Limited

Email: jp@galanlithium.com.au

Tel: +61 8 9322 6283

Nathan McMahon

Non-Executive Chairman, Galan Lithium Limited

Email: nathan@galanlithium.com.au

Tel: +61 8 9322 6283

About Galan

Galan is an ASX listed company exploring for lithium brines within South America’s Lithium Triangle on the Hombre Muerto salar in Argentina. Hombre Muerto is proven to host the highest grade and lowest impurity levels within Argentina and is home to Livent Corporation’s El Fenix operation and Galaxy Resources and POSCO’s Sal de Vida projects. Galan’s primary target is the adjoining Candelas channel target, a ~15km long by 3-5km wide valley filled channel which project geophysics and drilling have indicated the potential to host a substantial volume of brine and over which a maiden resource estimate has recently been conducted.

Competent Persons Statement

The information contained herein that relates to Exploration Results is based on information compiled or reviewed by Dr Luke Milan, who has consulted to the Company. Dr Milan is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2012 Edition of the ‘Australasian Cod e for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Milan consents to the inclusion of his name in the matters based on the information in the form and context in which it appears.

Link to the full report: https://www.asx.com.au/asxpdf/20191219/pdf/44cqdktwwjlj9w.pdf