HMW Project Update – Pond 1 Liner Installation Underway

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to provide a further update on the progress of construction activities at its 100% owned Hombre Muerto West (HMW) Phase 1 lithium brine project, with lithium chloride production expected in H1 2025. The above demonstrates Galan’s continued activity and progress in advancing its low cost, high grade HMW project to production in a timely manner.

Highlights:

• Pond 1 earthworks almost complete
• Pond 1 liner installation commenced (5% completion)
• Fill of pond 1 in Q1, 2024; evaporation process to commence this summer, this is the first major step of the long-term production schedule
• Pond 2 earthworks construction underway (10% completion)
• 9 production wells now constructed (and ongoing); Phase 1 production only requires 6 wells
• HMW Project is a 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 in the 1st quartile of lithium industry’s cost curve with an initial reserve estimate of 40 years
• Updated resource estimate due in Q1 2025
• Glencore site visit being planned as part of due diligence

As previously announced, the HMW project was separated into four production phases. The initial Phase 1 Definitive Feasibility Study (DFS) focused on the production of 5.4ktpa LCE of a lithium chloride concentrate by H1 2025, as governed by the approved production permits. The Phase 2 DFS targets 21ktpa LCE of a lithium chloride concentrate in 2026, followed by Phase 3 production of 40ktpa LCE by 2028 and finally a Phase 4 production target of 60ktpa LCE by 2030. Phase 4 will include lithium brine sourced from both HMW and Galan’s other 100% owned project in Argentina, Candelas. The very positive Phase 2 DFS results were announced on 3 October 2023 (https://wcsecure.weblink.com.au/pdf/GLN/02720109.pdf).

Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:

“The commencement of the installation of liners for Pond 1 is another tick in the box for the HMW Phase 1 construction team. The team continues to push forward on all fronts as it aims to validate Galan’s low- cost, low-risk lithium chloride development strategy to become the next lithium producer in Argentina in H1 2025.”

Liner installation process

Liner installation commencement

Overall progression of liner installation on Pond 1

The brine well field is located in the same area as the HMW ponds system. The wells field for Phases 1 and 2 are exclusively located in the Rana de Sal, Del Condor, Deceo III, Pata Pila, Casa del Inca III & IV, and Santa Barbara XXIV mining tenements. The HMW Project also has several tenements (including Catalina) with great potential to further increase the quantity and quality of the brine resources, which may result in additional production.

In total, there are 23 production wells required for Phases 1 and 2. Ongoing drilling to date, shows that Galan has completed nine (9) wells with only six (6) being required for phase 1 production.

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