Galan Lithium Limited announced further advancements on its 100%-owned Hombre Muerto West Project (HMW Project) in Catamarca Province, Argentina. The first exploration diamond drillhole (SB-01-23) at Santa Barbara was completed at a depth of 455 metres through the alluvial sediments and underlying fractured breccia. 72-hour airlift testing of SB-01-23 delivered an extracted high average lithium brine grade of 829 mg/L, with observed lithium brine grade ranges between 795 and 839 mg/L. New geophysical survey work over the Santa Barbara tenure has also evidenced brine continuity over the entire area.

Drilling activities have also commenced for three (3) new production wells in the current HMW Project resource areas, starting with production well No 4 (PBRS-03-23) at Rana de Sal I. This well is set to be drilled to an expected depth of around 380 metres proximate to a previously explored location. These three new production wells are set to complement the existing wells to ensure full brine flexibility for the extended pilot plant activities. These wells, along with the three completed wells, are expected to be part of the long-term HMW Project production infrastructure.

Maiden Santa Barbara exploration well, SB-01-23, was drilled in the Santa Barbara XXIV tenement. This diamond drillhole was completed to 455 metres depth. The recovered cores indicate the presence of thick gravel, sand and fractured breccia succession.

These lithologies are likely associated with a high permeability aquifer. A 72-hour airlift test was conducted on well SB-01-23 over the period 10 - 13 February 2023. A total of six (6) samples were recovered during the airlift test and chemical analysis was undertaken at Alex Stewart NOA laboratory in Jujuy, Argentina.

The average extracted lithium brine grade was 829 mg/L, with observed lithium brine grade ranges between 795 and 839 mg/L. Two surface geophysical surveys were carried out over the Santa Barbara X, Santa Barbara XXIV, and Don Martín tenements, as shown in Figure 1. Surveys included Controlled-source Audio-frequency Magnetotellurics (CSMAT) profiles (2019) and Transient Electromagnetic (TEM) exploration carried out in November 2022. The latter was processed and interpreted in December 2022, allowing for an improved resolution of the brine reservoir and confidence in defining drilling targets in the area. TEM resistivity line 1880, confirmed the presence of a low resistivity zone in the direction of the salt flat and its continuity throughout the alluvial fan.

Exploration well SB-01-23 is approximately located at station 3200 of the profile, showing low resistivities in this zone, consistent with previous CSAMT results. Consequently, TEM resistivity section 2460 shows the extension of the low resistivity anomaly in the northwest-southeast direction, confirming brine continuity over the entire alluvial area. Three new production wells are set to be constructed at the HMW Project over the next few months.

The first new production well (PBRS-03-23) is currently being drilled with rotary equipment at Rana de Sal I. The following two production wells are planned to be drilled immediately thereafter. All three new wells are set to be part of the long-term HMW Project production infrastructure. The current HMW Project exploration program is progressing well and as planned.

Several new diamond infill holes are planned for the next quarter, in parallel to the production wells program outlined above. SRK Australia is on track to complete the HMW Project Reserve model and updated resource estimate during first quarter 2023. The HMW Project Definitive Feasibility Study (DFS) also continues to advance, with expected completion in a similar timeframe.