Quarterly Activities Report September 2024

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to provide this Quarterly Activities Report for the quarter ended 30 September 2024, including activities up to the date of this report. The main focus for the quarter was the continued construction works at the Company’s 100% owned Hombre Muerto West (HMW) lithium brine project in the Catamarca Province of Argentina. Significantly, the Company announced a memorandum of understanding (MOU) for an offtake prepayment and completed a successful capital raise to support the full funding of initial production for Phase 1 of HMW.

Highlights

• Galan becomes the first mining company to apply for the Argentine ‘RIGI’, an incentive regime for large scale investments
• Strong lithium inventory build with over 6,000 tonnes LCE in ponds. Average lithium grade and evaporation rates in line with Phase 1 DFS
• First production from HMW is targeted for H2 2025. Overall project completion is approximately 45%
• Earthworks on ponds 5 and 6 complete; overall pond construction 76% complete with liner installation on ponds 55% complete
• Public consultation, one of the final steps towards the grant of Phase 2 construction permits, finished
• US$40 million offtake prepayment MOU with Chemphys
• Fully subscribed Entitlement Offer as part of a A$25m equity capital raising to support full funding of Phase 1 of HMW
• Cash of A$2.4m, capital raising proceeds of A$14m received subsequent to the end of the quarter

Figure 1. HMW Project looking north

Operations

HMW Project, Argentina (100% Galan)

The operational de-risking of Phase 1 of HMW advanced during the period. Lithium chloride inventories continued to build in the pond system to a current position of approximately 6,000 tonnes LCE. Lithium grades, flow rates and evaporation rates remained consistent with Feasibility Study expectations.

Galan has built approximately 730,000 m² of evaporation area, allowing for an inventory build-up of up to 10,000 t LCE before the need to process the lithium chloride through a liming plant. The overall completion of the HMW Phase 1 project now sits at approximately 45% with 76% of the ponds constructed and 55% of the ponds lined. First production from HMW is anticipated in the second half of 2025. An initial production rate of 4,000 tpa LCE will be targeted before an expansion to production level 5,400tpa LCE when market conditions allow.

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