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 31 March 2024 and to the date of this report. The main focus for the quarter was the ongoing construction works/activities at the Company’s 100% owned, high- grade/low-impurity Hombre Muerto West (HMW) Project in the Catamarca Province, Argentina. Galan continues its steady progress in advancing its low cost, high grade HMW project to production in a timely manner.

Hombre Muerto West (HMW)

• Galan’s 100% owned HMW Project is a low cost, tier one project that will produce a premium high grade lithium chloride (LiCl) concentrate of 6% Li, comparable to 13% Li2O or 32% Lithium Carbonate Equivalent (LCE) in H1 2025
• Low all-in sustaining costs; HMW is expected to be in the 1st quartile of lithium industry’s cost curve with an initial reserve estimate of 40 years
• Phase 2 Operating cost to LiCl concentrate of $US3,510/t LCE equates to a low Li2O equivalent operating cost of SC6 (Spodumene Concentrate) $US310/t-$US350/t; solid production margins at current spot prices
• Resource recently increased to 7.8Mt LCE @ 883 mg/L Li; the highest grade published resource in Argentina
• Galan signs commercial agreement with the Catamarca Government to enable the commercialisation of lithium chloride concentrate, locally and internationally as well as enhancing downstream processing routes
• Pond 1 and 2 evaporation continues, approx. 1,000t LCE contained inventory
• Pond 3 earthworks almost complete, liner installation at 60% and filling of pond 3 commenced; Pond 4 earthworks have commenced
• Overall project completion and budget spend now at 33%, with pond construction 45% complete; project execution is advancing as planned
• Key processing parameters; average brine flow rate, average Li grade from wells and evaporation rates in line with the Feasibility Study
• The project remains on track to commence production in H1 2025
• Opportunities to reduce the Capex and Opex for HMW Phase 1 identified; engineering and procurement teams working to quantify these opportunities within the next two months

Corporate

• Cash and liquid assets at the end of quarter ≈A$12 million
• Acuity Capital ATM Subscription Deed in place

OPERATIONS

Mineral Resource Estimate

The latest HMW Mineral Resource estimate was announced on 27 March 2024 (Refer ASX Announcement entitled “Galan Increases Total Mineral Resource by 18% to 8.6Mt LCE @ 859mg/L Lithium”. An Addendum to this ASX Announcement was announced on 4 April 2024 as per ASX Listing Rule 5.8.1 which requires various items of disclosure in the body of an announcement as well as in the JORC Tables.

The maiden HMW Project Mineral Resource Estimate (refer Galan ASX release dated 12 March 2020) was prepared by SRK and was further upgraded on 17 November 2020, 24 October 2022 and 1 May 2023. Each upgrade has not only significantly increased the Total Resource inventory but also enhanced the Resource category classifications and hence confidence in the viability and robustness of the HMW project. This latest resource upgrade enhances Galan’s objective to achieve the necessary production conditions for Stage 3 (40Ktpa LCE), towards our four-stage lithium production target of up to 60ktpa LCE (including Candelas).

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