Updated Economic Study for Flagship HMW Project – NPV Increases to US$2.2b on Revised Lithium Price

Highlights:

• New stronger, compelling economic results for Galan’s flagship HMW project with unleveraged Pre-tax NPV of US$2,193m (8% discount rate), IRR of 37.5%, and less than (3) year payback period
• Pre-tax NPV8 up 120% from US$1.0b to US$2.2b and Average life-of-mine annual EBITDA of US$287m (fromUS$174m)
• Long term average real lithium price assumption (2025-2040) of US$18,594/t LCE battery grade used as the basis for the economic assessment
• UpdatedHMWeconomicstudyretainslong-life40years+projectof20ktpaof battery grade lithium carbonate (LCE) including competitive cash production cost for Li2CO3 of US$3,518/t in the first quartile of global lithium cost production curve
• Galan has two (2) PEA study level projects (HMW and Candelas) with combined long term production potential of 34ktpaLCE
• Combined HMW and Candelas Pre-tax NPV8 of US$3.4billion
• HMW’s new drilling campaign, pilot plant and engineering works are advancing in preparation for the commencement of DFC

The original PEA (as per ASX announcement dated 21 December 2020) was based on an average Li price of US$11,687/t to the year 2040. The updated HMW economic study uses the same conservative Li price of US$18,594/t as used in the study for Galan’s second project (Candelas) (as per ASX announcement dated 30 November 2021). The updated economic study retains the original production profile of 20,000 tonnes per annum of battery grade lithium and no changes or improvements were made to Capex/ Opex estimations used in the original PEA study. The updated economic study results also reflect recent changes to the tax legislation in Argentina.

The preparation of the Project’s original PEA disclosed in December 2020 was carried out by several well-regarded consultants. The mineral resource estimate was prepared by SRK, the lithium recovery method was designed by Ad-Infinitum, while Worley Chile reviewed the potential recovery method, the project’s potential layout and infrastructure, capital and operating cost estimates and preliminary economic evaluation. The other sections of the original PEA were managed by employees of Galan Lithium Limited. The updated economic study results were managed by Ad-Infinitum and employees of Galan.

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