Galan Lithium : Extensional Drilling Success at HMW Project

ASX ANNOUNCEMENT

7 April 2022

Extensional Drilling Success at HMW Project

Delivers Lithium Resource Upside ______________________________________________________________

Highlights:

• • Diamond drillhole, PP-02-22, completed to a depth of 450m at Pata Pila licence.

• • Results confirm HMW Project Mineral Resource extends to the east at depth, delivering further resource and potential production upside:

  • ‒ Extends brine potential a further 800m from existing drillhole (PP-01-19) to within 1km of the neighbouring Livent tenement boundary.

  • ‒ Downhole geophysics indicate high porosity intervals, particularly the sand units equating to high specific yield (porosity) and hydraulic conductivity.

  • ‒ Core logs and cuttings reveal detailed units with abundant sand-dominant lithologies showing strong indicators for brine-bearing production aquifers.

• • Results to be incorporated into HMW Project Mineral Resource update, on track for completion during Q3 CY2022.

• • Further exploration drilling of new target zones to commence this quarter.

• • HMW pilot plant S1 pond filling with brine, evaporation testing to commence.

Galan Lithium Limited (ASX:GLN) (Galan or the Company) is pleased to announce the successful completion of the first drill hole in the latest drilling campaign at its 100% owned Hombre Muerto West Lithium Project (HMW Project), which is located on the Western Basin of the Hombre Muerto salar in Catamarca Province, Argentina.

Commenting on the latest drilling outcomes at Pata Pila, Galan's Managing Director, Juan Pablo ('JP') Vargas de la Vega, said:

"This exploration diamond hole has further unlocked the potential of the world-class lithium brine resource held at the HMW Project. The results have enhanced our hydrogeological modelling, a key to confirmation of Reserve estimates, and delivered further Mineral Resource upside at HMW."

"Following the new exploration target areas identified by the recent TEM geophysical survey, we now look forward to aggressively drilling these additional potential HMW Mineral Resource expansion zones from this quarter through the rest of 2022."

__________________________________________________________________________________

Level 3, 30 Richardson Street, West Perth, WA 6005 PO Box 396, West Perth, WA, 6872

Ph. [phone] Fax. [phone]www.galanlithium.com.auABN: 87 149 349 646

Figure 1 - Galan's HMW and Candelas tenure in Argentina

Extensional Drilling Confirms and Extends HMW Resource Potential

Diamond drillhole, PP-02-22, was completed at Pata Pila to a final depth of 450m. The Pata Pila licence covers large alluvial fan areas lying adjacent to Livent Corporation's (NYSE: LVHM) tenure in the region

(see Figures 1 and 2).

The key purpose of PP-02-22 was to extend knowledge in the Pata Pila licence area so as to build-out the hydrogeological models required to confirm Reserve estimates at the HMW Project. The drillhole was designed to provide key geological data for testing extension to the existing HMW Project Mineral Resource, in both horizontal and vertical dimensions, from the salar limits.

Figure 2 - Location of Pata Pila Drillhole PP-02-22 at HMW Project

Excellent recovery of drill core and cuttings from PP-02-22 has revealed a highly detailed stratigraphic profile downhole. The new borehole has revealed lithologies dominated by unconsolidated fine to medium sized sand for the majority of the 450m, apart from the topmost interval. Here, the top 90m of the hole consists of interbeds of gravel and fine to medium sands. Mud density measurements taken throughout the drilling confirm brines are present, typically 1.2g/ml or higher.

Downhole geophysical logging using Nuclear Magnetic Resonance (NMR) was undertaken to provide an accurate porosity and pore size distribution of the sediments, among other variables. The key results from this work include:

• • Confirmation of the conceptual geological model for the upgradient portion of the Pata Pila alluvial fan, corresponding to a thick sedimentary sequence (435 metres):

  • o Main presence of sands between approximately 90 and 280 m bls. This interval is estimated to have a relatively high specific yield and hydraulic conductivity.

  • o Further presence of sands between 355 and 435 m bls. This interval is estimated to have a high hydraulic conductivity, similar to the upper sand interval.

• • NMR results indicates high porosity values for the overall sequence:

  • o Specific yield values were generally estimated to be greater than 10%, with zones that exceed 20% and 30%. The higher values are closely related to the sand intervals.

• • The drilling and geophysical results allowed for the identification of hydrogeological basement rock at a depth of 450 m bls. This depth corresponds to previously identified geoelectric unit through surface geophysics. This allows the use of this method to better constrain the conceptual model in the surrounding areas.

Analysis of the Zelandez results suggest favorable zones for potential brine extraction at PP-02-22. With the presence of thick sections containing medium-coarse clastic sediments in the upper 280 m and lower 355 m to 435 m bls, specific yield and hydraulic conductivity values are interpreted to be high in general.

The results from PP-02-22 have delivered substantial confirmation of, and further potential upside to, the existing Mineral Resource estimate at the HMW Project. These results are set to be incorporated into an updated Mineral Resource estimate for the HMW Project, which is on track for completion during Q3 CY2022.

Exploratory diamond drilling activities are now set to move to drilling of recently identified Mineral Resource expansion targets (see Galan ASX release dated 31 March 2022, Hombre Muerto West Project Update: DFS and Pilot Plant Works Making Strong Progress, New Resource Targets Identified). These exploration drilling activities are expected to continue through the remainder of CY2022.

Pilot Plant Evaporation Operations Commenced

Following the recently completed construction of the first evaporation pond (S1, covering approximately 3,000m2) of the HMW Project Pilot Plant, Galan is pleased to advise that brine filling of this pond is almost complete and evaporation testing ready to commence (see Figure 3).

This is a major milestone given that it marks the commencement of large-scale piloting activities at the HMW Project. The data set to be obtained from this initial evaporation trial will allow the calibration of the simulation model to predict the completion time for achieving the first batch of brine concentrate with 6% of Li contents produced by the Pilot Plant.

Figure 3 - Aerial view of S1 pond filling with brine with camp and the Hombre Muerto salt flat in the background. Evaporation testing ready to commence.

The Galan Board has authorised this release.

For further information contact:

Juan Pablo ("JP") Vargas de la Vega	Terry Gardiner
Managing Director	Non-Executive Director
Email:[e-mail]	Email:[e-mail]
Tel: [phone]	Tel: + 61 400900377
Competent Person Statement

The information contained herein that relates to Exploration Results is based on information compiled or reviewed by Dr Luke Milan, who has consulted to the Company. Dr Milan is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Milan consents to the inclusion of his name in the matters based on the information in the form and context in which it appears.