Quarterly Activities and Cash Flow Report December 2022

The Board of Galan Lithium Limited (Galan or the Company) is pleased to provide this Quarterly Activities Report for the quarter ended 31 December 2022 to the date of this report. The focus for the quarter was the solid progression of the Definitive Feasibility Study (DFS) and associated works/activities, including well pump testing and further drilling at its 100% owned, high-grade/low- impurity Hombre Muerto West (HMW) Project in the Catamarca Province, Argentina as well as continued exploration at the wholly owned Greenbushes South lithium project in Western Australia.

HIGHLIGHTS

Hombre Muerto West DFS:

• DFS engineering and associated workstreams/infrastructure on track and budget
  
• Reserve conversion work on course for Measured Resource of 4.4 Mt LCE @ 886 mg/l Li, one of the largest high-grade measured resources in Argentina
• High-flow, high-grade, long-term pumping test results completed on three (3) wells at Pata Pila and Rana de Sal
• Confirmed well-ready flow capacity for development of 4 Ktpa LCE pilot plant
• Full-scale HMW production permitting (20 Ktpa+ LCE) to be lodged Q1, 2023

HMW Exploration and Resource Expansion:

• Drilling and geophysical data confirms further lithologic and brine continuity
  
• Santa Barbara drilling (SB-01-22) completed at 455m depth

Greenbushes South:

• Galan acquires 100% of Greenbushes South Lithium Project, located only 3km from the world-class Greenbushes Lithium Mine, POW approval and drilling imminent

Corporate:

• Cash on hand at the end of quarter was ≈A$38 million

OPERATIONS

Mineral Resources

Please also refer to the JORC Code Tables, 2012 Edition, as detailed in Annexure 1 of the Galan ASX announcement dated 24 October 2022 entitled “Spectacular 2.5x Increase in HMW Resource – Now 5.8 Mt LCE @ 866 mg/l Li (76% in Measured Category)”.

The original Mineral Resource Estimate (MRE) was completed by SRK Consulting (Australasia) (SRK) in March 2020 (ASX: GLN 12 March 2020) and was based upon results from 1,054 metres of drilling within the Pata Pila, Rana de Sal and Casa del Inca tenement holdings at Hombre Muerto West. The hydrogeologic domains were constrained to logged units within the drillholes and supported by the interpretation of Controlled Source Audio-Frequency Magnetotellurics (CSMAT) and Transient Electromagnetic (TEM) geophysical profiles. Mineral Resource Estimates for lithium (reported as Li2CO3 equivalent) and potassium (KCl equivalent) were completed by SRK.

Table 1 summarises the updated MRE, incorporating the results of the 2021-2022 exploration campaign and reporting in accordance with the JORC Code guidelines. According to SRK, the Hombre Muerto West MRE is hosted within geologically well-defined zones of high-grade lithium mineralisation, including significant mineralised hydrogeologic domains.

The HMW Project is located on the western shore of the Hombre Muerto Salar, a world-renowned lithium-bearing salar located in the Argentinean Puna plateau region of the high Andes at an elevation of approximately 4,000 m above sea level. The HMW Project comprises various exploration areas (note that the Catalina, Santa Barbara and Pucara tenements are not included in the HMW Resource), covering a total estimated polygon area of 7.5 km strike, up to 2.5 km in width and up to 718 m in depth. It lies adjacent to Livent Corporation, Allkem Limited 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. The Candelas Project lies approximately 40 km ESE of the HMW Project. It is hosted within a ~15 km by 3–4 km wide structurally controlled basin infilled with sediments that host the Li-bearing brines (Figure 1).

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