Galaxy Resources Limited announced that it is leveraging off its portfolio of world-class assets to create a sustainable, large scale, global lithium chemicals business. The Company is pleased to provide an operational and shipping update at its Western Australian spodumene project, Mt Cattlin. HIGHLIGHTS: Operations resumed on schedule in February after a planned summer outage; Front-end optical sorters ("ore sorters") successfully installed and commissioned to upgrade low-grade stockpiled ore; Overall recoveries expected to improve whilst maintaining a final product grade of 6.0% Li2O; 33,000 dry metric tonnes ("dmt") of lithium concentrate shipped in March, reducing inventory levels by half; Production volumes and inventory levels sufficient to meet 2020 contractual terms. Ore sorters installed and commissioned: As part of Galaxy's strategy to optimise operations at Mt Cattlin in current market conditions, the Company has prioritised value over volume to preserve resource life and control unit costs. A key part of this strategy is the use of ore sorters at the front-end of the process plant to upgrade and process low-grade ore that has been stockpiled at site. The ore sorters are designed to upgrade this ore, by detecting and rejecting basalt content, before it is presented to the process plant. Commissioning comes after a successful pilot program in 2019 that demonstrated over 70% of basalt contained in the stockpiled ore could be rejected. Based on prior sampling and analysis, the stockpiled ore contains a basalt content of between 10-24%. The underlying head grade of the ore is similar to material mined and processed in 2019, however the stockpile is referred to as low-grade due to its basalt content. Stockpiled ore and mined material are crushed and sorted into three size fractions with only coarse material presented to the ore sorter. The reduction of fine material improves the performance of the dense medium separation circuit and is expected to increase overall plant recoveries. Each ore sorter detects the darker basalt rocks through a camera and rejects it using high pressure air jets as it falls through the sorter. Upgraded ore, with basalt content less than 3%, is produced and reports to the main process plant. Further basalt is rejected by the product ore sorter at the back end of the process plant, enabling a final product grade of 6.0 % Li2O. Stockpiled ore will contribute to approximately 40% of throughput in 2020, allowing mining volumes to be reduced. Mining costs associated with the stockpiled ore have already been expensed, assisting to control unit operating costs. SHIPMENT Galaxy confirms 33,000 dmt of lithium concentrate was shipped from the Esperance Port on 11 March, indicating that processing facilities in China are slowly resuming activities since the disruption caused by COVID-19. Galaxy is monitoring the situation daily and is in regular contact with its customers. The March shipment is in addition to the previously reported 15,000 dmt that was sold in Fourth Quarter 2019 but not shipped at the discretion of the customer. Prepayment of 65% was received and the customer has advised that they now expect to take this shipment in second quarter of 2020.

The company provided production guidance for the first quarter of 2020. Targeted lithium concentrate production volume for first quarter of 2020 is expected to range between 14,000-17,000 dmt following the restart of operational activities in February 2020. The restart comes after after a scheduled break over the Christmas period, allowing for the installation of the ore sorters and the retendering of the mining contract. Retendering was part of a cost saving initiative program and the new mining contractor has transitioned smoothly.