Quarterly Activities Report March 2023

The Board of Galan Lithium Limited (“Galan” or the “Company”) is pleased to provide this Quarterly Activities Report for the quarter ended 31 March 2023 to the date of this report. The focus for the quarter was the continued progression of the Definitive Feasibility Study (“DFS”) and associated works/activities, including optimisations, 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 the commencement of drilling at its wholly owned Greenbushes South lithium project in Western Australia.

HIGHLIGHTS

Hombre Muerto West (HMW) DFS:

• Board appointed Advisor, Juan Carlos Barrera (ex SQM VP Operations) and newly appointed Director, Ms Claudia Pohl drive DFS optimisation and review
  
• Long-term production development plan, including Candelas, updated; Total production increase from 34ktpa to 60ktpa LCE over 4 stages
• DFS optimisation across two phases; 1st phase end May’23 and 2nd phase Aug’23
• Updated HMW Resource imminent; HMW Reserve model to follow with DFS

HMW Exploration:

• Positive airlift testing results at Santa Barbara plus geophysical survey work confirm brine continuity and high grade
• 4th production well completed at Rana de Sal; Hydraulic tests to start in May’23
• Commenced drilling of 5^th production at Del Condor

Candelas

• 100% ownership of Candelas completed

Greenbushes South:

• Drilling commenced at Galan’s 100% owned Greenbushes South Lithium Project, located only 3km from the world-class Greenbushes Lithium Mine

Corporate:

• Ms Claudia Pohl, ex senior SQM executive, appointed to Board
  
• Juan Carlos Barrera, former SQM VP Operations appointed as Advisor
• Cash and investments at the end of quarter ≈A$28 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 (2012) 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.

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