Successful 2022 Pumping Test Program

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to announce the successful completion of the 2022 brine pumping test campaign at its flagship Hombre Muerto West Project (HMW Project) in Catamarca Province, Argentina.

Highlights:

• Long-term pumping test campaign successfully completed at Pata Pila and Rana de Sal, strongly supports key DFS workstream.
  
• Results also confirm well-ready capacity for the 4kpa LCE Pilot development
• Second long-term pumping test at Pata Pila (PPB-02-22) results in average extraction rate of 21 L/s and lithium grades of 815 to 866 mg/L.
• Initial results at Pucara del Salar exploration well (PS-01-22) indicate extensive fractured media with high-grade brine (average 974 mg/L).
• New geophysical data from Pata Pila, del Condor, Rana de Sal, Casa del Inca and Santa Barbara further confirms lithologic and brine continuity.
• Drilling at Santa Barbara (SB-01-22) targeting further expansion of HMW Project resource currently at 223m depth

Galan Exploration Manager, Álvaro Henríquez, commented:

“The positive long-term pumping brine test results are extremely significant by providing certainty of brine flow extraction, lithium grade, and cementing the HMW reserve model.

We have further demonstrated a high production capacity at both Pata Pila and Rana de Sal. Importantly, we have extended the reservoir quality throughout the main (uphill) alluvial deposits of Pata Pila. Recent results at Pucara de Salar also show further potential to expand the total HMW Project resource and reserve. All of the above factors, keep adding empirical support for the world-class nature of the HMW Project and its continued rapid advancement and development to production.”

2022 pumping test campaign successfully completed with excellent outcomes

A total of three production pumping wells were completed during the second half of 2022 – two at Pata Pila (PPB-01-21 and PPB-02-22) and one at Rana de Sal (PBRS-01-21) (see Figure 1).

Each production pumping well was constructed at previous exploration platforms and included diamond drill holes to confirm the stratigraphic characteristics of the reservoir, production capacity, and optimum design for production wells. Each test consisted of an initial step test, a 72-hour constant rate and recovery test, and then a long-term pumping (30+ days) and recovery test period.

Brine levels were constantly monitored through multiple monitoring (observation) wells, each of which was specifically designed to monitor the brine levels response of individual hydrogeological units (shallow and deep). Brine chemistry was also analysed from each pumping well.

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