Communicators

Highlights:

-          Maiden Inferred mineral resource for Pata Pila and Rana de Sal of 1.08Mt of contained lithium carbonate equivalent (LCE) @ 946mg/l Li (no cut off) at the HMW project.

-          Resource estimate significantly exceeds Galan’s expectations of grade, impurities and size

-          Galan’s total combined mineral resource increased by 158% from 685kt LCE @ 672mg/l Li to 1.77Mt LCE @ 837mg/l Li

-          Potential for further resource estimates from Portofino option concessions to be assessed

-          Exploration upside exists for the remaining HMW concessions

-          Results strongly complement the Candelas Scoping and Pre-Feasibility Study with project synergies now being reviewed and upgraded

-          The Galan projects represent one of the highest grade/lowest impurity resources within Argentina

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is very pleased to announce the maiden JORC (2012) reported Mineral Resource estimate for the Hombre Muerto West lithium brine project located in Catamarca province, Argentina. The resource estimate was completed by the Company’s consultants SRK Consulting (Australasia) and was conducted by their Australian based team.

The Inferred mineral resource estimate for Pata Pila and Rana de Sal is 1,080,775 tonnes of contained lithium carbonate equivalent (LCE) product grading at 946mg/l Li (with no Li cut off). A summary of the HMW mineral resource, is provided in the Mineral Resource Statement (Table 2).

Galan’s Managing Director Juan Pablo (JP) Vargas de la Vega said: “We are delighted to deliver a JORC reported maiden Resource estimate resulting in an approximate 1.1Mt tonnes of LCE product within the HMW project area. This Inferred resource helps to consolidate Galan’s Scoping and Pre-Feasibility Study and has exceeded the Company’s expectations significantly, further validating the high-grade, low impurity nature of the HMW and Candelas projects. With the new combined resource of 1.8Mt of LCE and flexibility of two solid projects, our strategy is now stronger to advance towards commercial development and to demonstrate the economic product viability. I look forward to updating investors on the progress of our Scoping and Pre-Feasibility study.”

Summary of Resource Estimate and Reporting Criteria

The mineral resource estimation was undertaken by SRK Consulting (Australasia) (SRK) and was based upon results from drill holes within the Pata Pila and Rana de Sal tenement holding at Hombre Muerto West for a total of 1,054 metres. See Table 1 for the assay summaries (PP-01-19 and RS-01-19) and Figure 1 for location of drill holes in the Western Basin tenements. The location of holes was mainly guided on the results of resistivity (Controlled Source Audio Magneto-Tellurics (CSMAT)) data.

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

The mineral resource estimates undertaken by SRK were determined for lithium and potassium. Lithium is reported as lithium carbonate (Li2CO3) equivalent, and potassium as potassium chloride (KCI). Table 2 below provides a summary of the resource reported in accordance with the JORC Code guidelines:

Table 2: Mineral Resource Statement for Hombre Muerto West and Candelas North (March 2020)

NB.; no cut-off grade for HMW, Li: 500mg/l cut off for Candelas North. These results refer to the drainable porosity, the specific yield (SY) values used are as follows: Sand – 10%, Gravel – 4% and Halite – 3%. There may be minor discrepancies in the above table due to rounding. The conversion for LCE = Li x 5.3228, KCl = K x 1.907.

(*) The Candelas North Mineral Resource Statement was originally announced by Galan on 1 October 2019.

According to SRK, the maiden Hombre Muerto West Mineral Resource represents geologically well-defined zones of high-grade lithium mineralisation. It comprises of significant mineralised hydrogeologic domains. The units within the domains show some variation in thickness along strike and depth, see figure 2.

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

Location & Tenure

The Hombre Muerto West Project is located on the western shores of the Hombre Muerto, a world-renowned lithium bearing salar, located in the Argentinean Puna of the high Andes mountains at an elevation of approximately 4 km above sea-level. The Project comprises two exploration permits, covering a total area of 3,843 hectares and lies adjacent to Livent Corporation, Galaxy Resources and POSCO’s Sal de Vida projects. It is approximately 1,400 km northwest of the capital of Buenos Aires and 170 km west-southwest of the city of Salta (in a straight line).

Figure 2: The geological model for Pata Pila and Rana de Sal produced by SRK. Note specific yields are: Sand (10%), Halite (3%) and Gravels (4%)

Please follow the link to view entire original news release:

https://www.asx.com.au/asxpdf/20200312/pdf/44fzbs3lfvtyw4.pdf

Next Steps

Further work planned to better define the synergies of the mineral resources from Candelas and HMW will include additional drilling within the HMW and the Candelas North project areas to provide better geological definition and mineralisation potential of the aquifers. Additionally, complementary works will include the new HMW resource for inclusion in the Scoping and Pre-Feasibility Study which will include base hydrogeological modelling and the investigation of various processing technologies with a focus on traditional evaporation ponds as a precursor to processing. Galan has recently acquired the option to purchase strategic projects (Del Condor and Pucara de Salar) at HMW from Portofino Resources Inc (Galan Announcement dated 26 February 2020). These concessions are shown in figure 3.

Figure 3: Map of Hombre Muerto West Showing Portofino’s Del Condor and Pucara del Salar concessions (in red) and Galan’s concessions (in black)

The Galan Board authorises the release of this announcement.

For further information contact:

Juan Pablo (“JP”) Vargas de la Vega

Managing Director

Email: jp@galanlithium.com.au

Tel: +61 8 9322 6283

Terry Gardiner

Non-Executive Director

+61 400 900 377

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 has two projects:

Candelas: 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 estimated 685kt LCE (Oct 2019). Furthermore, Candelas has the potential to provide a substantial amount of processing water by treating its low-grade brines with reverse osmosis, this is without using surface river water from Los Patos River.

Hombre Muerto West (HMW): a ~14km by 1-5km wide of the west coast of Hombre Muerto salar neighbouring Livent Corp to the east. HMW is currently comprised of four concessions and an additional two concessions under an option agreement from Portofino Resources Inc (TSX-V). Geophysics and drilling at HMW demonstrated a significant potential of a deep basin. In March 2020, a maiden resource estimate delivered 1.1Mt of LCE for two of the largest concessions (Pata Pila and Rana de Sal) with exploration upside remaining for the rest of the concessions.

Competent Persons Statements

Competent Persons Statement 1

The information contained herein that relates to exploration results and geology 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 Code 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.

Please follow the link to view entire original news release:

https://www.asx.com.au/asxpdf/20200312/pdf/44fzbs3lfvtyw4.pdf