Quarterly Activities and Cash Flow Report

The Board of Galan Lithium Limited (Galan or the Company) is pleased to provide this Quarterly Activities Report for the quarter ended 30 June 2023 to the date of this report. The focus for the quarter was the completion of the Definitive Feasibility Study (DFS) and associated works/activities at its 100% owned, high- grade/low-impurity Hombre Muerto West (HMW) Project in the Catamarca Province, Argentina, as well as the drilling campaign at its wholly owned Greenbushes South Lithium Project in Western Australia.

HIGHLIGHTS

Hombre Muerto West (HMW)(100% Galan):

• HMW Total mineral Resource increases to 6.6Mt contained lithium carbonate equivalent (LCE) @ 880 mg/l Li; 72% in Measured category with no cut-off grade
• Phase 1 DFS delivers compelling economics from an initial 5.37ktpa LCE operation at HMW; targeting a high quality, 6% concentrated lithium chloride product (equivalent to 12.9% Li2O or 31.9% LCE) in H1, 2025
• Phase 1 on its own delivers a post-tax NPV8% of US$460m, IRR of 36% and free cash flow of US$54m per year, facilitating Galan’s funding for further expansions.
• CAPEX before contingency of US$104m and OPEX of US$3,963/t of recoverable LCE contained in concentrated lithium chloride product; Phase 1 costing in the first half of world lithium cost curve
• Approximate 2 year payback from commencement of production
• Phase 1 provides an exceptional foundation for significant economic upside in the Phase 2 DFS (20ktpa LCE) due in Sep’23; Phase 2 production expected in 2026
• HMW pilot plant confirms production of a premium quality (6% Li) lithium chloride concentrate product; lithium chloride samples ready to distribute to potential off-take partners
• Phase 1 preparation works (new camp, top-soil removal etc) on track for lithium chloride production in H1, 2025; main pond 1 clearing 80% complete

Greenbushes South (100% Galan):

• Drilling complete at Galan’s Greenbushes South Lithium Project, located only 3km from the world-class Greenbushes lithium mine; awaiting assay results
• Developing land access agreements for future drilling campaign at Greenbushes South

Corporate:

• Strongly supported A$31.5m institutional placement completed in May’23
• Catalina provincial (Catamarca and Salta) tenure issue resolved and consolidated; area not previously included in HMW Resource estimate
• Cash at the end of quarter ≈A$45 million

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