Successful Delivery of a Premium Quality, (6% Li) Lithium Chloride Concentrate Product from HMW Pilot Plant

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is very pleased to provide this project update and announce that the Hombre Muerto West (HMW) piloting activities have now produced a high quality, (6% Li) concentrated lithium chloride product. The 100 % owned HMW Project is located in the Catamarca Province, Argentina.

• HMW pilot plant confirms production of a premium quality, (6% Li) lithium chloride concentrate product (equivalent to 13% Li20 or 31.9% LCE)
• Proven predictive lithium concentration model and process design for HMW Project
• Lithium chloride samples ready to distribute to potential off-take partners
• Preparations and engineering design commenced for a lithium carbonate pilot plant using lithium chloride produced at HMW.
• Phase 1 preparation works (new camp, top-soil removal etc) are on track for delivering lithium chloride production of 5.4ktpa LCE in 2025; main pond 1 clearing 80% complete
• Brine concentration process to continue through 2023 and into 2024
• Phase 1 full construction permit and Phase 2 DFS advancing, both are expected in Q3 2023

“This is a wonderful achievement and significant project milestone! To deliver a high quality product from our HMW piloting activities is just reward to the Galan team. It has proven our process model and design theories were correct – it can be done. Congratulations to the whole project team who have ploughed on, despite the ravages of winter, to achieve this sensational result.

Samples are now ready to be distributed to potential buyers of our lithium chloride product. As we gear up for Phase 1 construction, I am confident that Galan has put together one of the most experienced lithium brine teams in the business.”

Pilot Plant Achievement and Next Steps

Galan commenced piloting activities in April 2022 by filling the first evaporation pond of the existing pilot plant. This plant had a small scale, as the main purpose of early pilot plant construction and operation was to prove the process design for the HMW Project, and to provide samples to potential buyers of the lithium chloride product.

Figure 1: Premium lithium chloride concentrate sample

On 16 July 2023, the most advanced brine evaporation delivered a premium quality product of 350 litres containing 6% of Li content with significantly low levels of impurities (Mg, Ca, SO^-4 etc). During the piloting process the team learnt important takeaway knowledge on evaporation rates and reagent usage at site. As a result the team feels vindicated and confident of delivering the Phase 1 DFS lithium chloride production milestone in H1 2025.

The next stage of the piloting is to achieve continuous production delivering multiple samples at low and medium scale for satisfying any volume required by potential off-takers. In addition, the pilot plant will feed a demonstrative lithium carbonate plant to be installed at the HMW Project site in 2024.

The Galan project team is now focused on the next block of activities:

• Preparations and engineering design of a demonstrative lithium carbonate pilot plant using the current lithium chloride concentrate feedstock
  
• Provision of samples for potential off-take partners
• Testing of further downstream optionality

The pilot plant is expected to continue operations during 2023 and 2024 to provide ongoing data for further optimising the HMW project.

Previous Test work and Piloting Activities

During 2022, Galan conducted test work activities at the HMW Project site for obtaining lithium chloride with a content of 6% Li. Test work utilised a batch methodology starting with a volume of around 40m³ of brine, to obtain around 10 litres of lithium chloride. Another set of lab test work activities were conducted in the Antofagasta Region of Chile during 2021. These tests also obtained lithium chloride products with similar qualities with the results being released to the market on 21 March 2021.

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