Quarterly Activities Report December 2021

The Board of Galan Lithium Limited (“Galan” or “the Company”) is pleased to provide this Quarterly Activities Report for the quarter ended 31 December 2021 to the date of this report. The main focus for the quarter was the ongoing feasibility works, construction activities and further drilling at its high-grade Hombre Muerto West (“HMW”) project and the completion of the PEA/scoping study for the Candelas project. Both key projects are located in the Hombre Muerto West salt flat in the South American Lithium Triangle (see tenement location map in Figure 1).

• Updated stronger, compelling HMW economic study completed - unleveraged pre-tax NPV of US$2.2 billion, IRR of 37.5% and less than three (3) year payback period
• HMW Feasibility Study awarded to Hatch
• Long term average lithium price assumption of US$18,594/t LCE battery grade used for HMW and Candelas economic assessments
• Excellent Preliminary Economic Assessment (PEA) results for Candelas - unleveraged pre-tax NPV of US$1.225 billion, IRR of 27.9% and a four (4) year payback period. Initial capital cost of US$408 million with a long project life of 25 years at 14ktpa of battery grade lithium carbonate (LCE)
• Competitive cash production cost for Li2CO3 of US$4,227/t positioning Candelas as a low-cost developer in the lithium industry
• Galan has two (2) PEA study level projects (wholly owned) with combined long term production potential of 34ktpa LCE – no offtake, JV or royalty agreements
• Grade is king - Hombre Muerto West resource ~ 2.3Mt LCE @ 946 mg/l Li
• Total indicated resource inventory in Argentina of ~ 3Mt LCE @ 858 mg/l Li
• Strong M & A action in Argentina lithium space – CDN$966m Neo Lithium Corp (Oct’21), CDN$377m Millennial Lithium Corp (Sep’21) and Galaxy/Orocobre finalised (Aug’21)
• Potential targets identified at Greenbushes South JV
• Company continues to adhere to Covid-19 protocols in Argentina, Chile and Australia with employee’s health and safety our number one priority
• Cash on hand at end of quarter was $59.3m

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