Excellent Preliminary Economic Assessment Results forCandelas Project in Catamarca, Argentina

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is very pleased to announce the results of the Preliminary Economic Assessment (PEA) for its 100% owned Candelas Project (“the Project”) in Catamarca Province, Argentina. The PEA, at a minimum, complies with the Canadian NI 43-101 regulation known as a PEA and is equivalent to a JORC Scoping Study.

The Study estimated a production profile of 14,000 tonnes per annum of battery grade lithium carbonate product including some technical grade product for the first three (3) years. The PEA process has provided significant economic outcomes for the Candelas Project which Galan believes can be optimised and enhanced further to refine the Project’s obvious potential.

The preparation of the Project’s PEA was managed by Ad Infinitum and Galan’s Project Manager for the engineering inputs including the recovery method, project layout and infrastructure, capital cost and operating cost estimates and overall economic evaluation. The other sections of the study were managed by consultants and employees of Galan Lithium Limited.

Highlights:

• Robust economic results, unleveraged Pre-tax NPV of US$1,225m (8% discount rate) and IRR of 27.9% with a four (4) year payback period
• Long life project 25 years of 14ktpa of battery grade lithium carbonate (LCE)
• Competitive cash production cost for Li2CO3 of US$4,277/t positioning the Candelas project as a low-cost developer in the lithium industry
• Galan now has two (2) PEA study level projects with combined long term production potential of 34ktpa LCE
• Long term average real lithium price assumption (2025-2040) of US$18,594/t LCE used as the basis for the economic assessment
• Initial capital cost of US$ 408M (US$ 302M direct costs)
• Average life-of-mine annual pre-tax EBITDA of US$188m
• Scoping Study/PEA completed under the guidance and assistance of engineering consultancy Ad Infinitum