Galan Lithium's Quarterly Activities Report JUNE 2021

Galan to Initiate Candelas Scoping Study

The Board of Galan Lithium Limited ("Galan" or "the Company") is pleased to provide this Quarterly Activities Report for the quarter ended 30 June 2021 to the date of this report. The main focus for the quarter was the commencement of foundation feasibility works and the completion of proof-of-concept laboratory testing for its low carbon footprint brine evaporation process at its flagship Hombre Muerto West Project located in the South American Lithium Triangle in Catamarca, Argentina.

HIGHLIGHTS

Foundation works begin to accelerate the commencement of Feasibility Studiesat Hombre Muerto West (HMW) Project
SRK Consulting (Australia) to commence resource to reserve works
WSP Group appointed to support hydrogeological model at HMW – team includes ex SQM hydrogeologist
Proof of concept laboratory test of HMW Project's Lithium Carbonate Equivalent(LCE) achieves 99.88% of purity (min requirement of battery grade quality is>99.5% LCE)
Further Greenbushes South field work completed – two extra licences granted• Option to purchase key tenement executed• Galan donates five (5) ventilators to the local health authorities in Catamarca, Argentina
Company continues to adhere to Covid-19 protocols in Argentina, Chile andAustralia with employee's health and safety our number one priority
Imminent commencement of scoping study for Candelas Project also located inthe Hombre Muerto West salt flat
Cash on hand at end of quarter was $15.5m ($14.9m - 31 March 2021)

OPERATIONS

Hombre Muerto West

As announced on 17 May 2021, the Company commenced early foundation works for its feasibility study at its flagship Hombre Muerto West (HMW) Project located in the South American lithium triangle in Catamarca, Argentina.

Resource to Reserves

The Company has recently appointed WSP Consulting Chile (WSP) and SRK Consulting (Australia) Pty Ltd (SRK) in respect of transforming the huge HMW resource into reserves, the main foundation for its feasibility study.

WSP will provide support and design work, including production wells, for different aspects related to the hydrogeology of the HMW tenements located in the Hombre Muerto Salar Basin. WSP's team includes two former SQM employees who have a long history working with lithium brines.

SRK, in association with WSP, will review the current resource estimate and then undertake reserve conversion work for the HMW project.

Drilling at HMW fill follow up soon after the design and location of the wells is confirmed. Galan is in advanced discussion with drilling companies to execute the programme.

On 12 July 2021, Galan announced exciting proof of concept test work results for the precipitation of battery grade lithium carbonate product at its HMW Project.

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