Clean lithium developer Lake Resources NL (ASX: LKE; OTC: LLKKF) ('LAKE' or 'the Company') is pleased to provide an updated resource for the Kachi lithium brine project in Catamarca Province, Argentina. This updated resource is based on drilling activities that have been underway throughout the year, with the company having multiple drilling rigs on site to expedite drilling activities and related studies for the project. The company is currently in the process of installing test production wells for pumping and reinjection aquifer testing as part of the project DFS.

Highlights

Additional drilling has upgraded and increased confidence in the resource in the central area of the salar, with Measured and Indicated (M&I) resources of 2.2 Mt of lithium carbonate equivalent (LCE) defined, to a depth of 400 m over 81 km2.

Surrounding the M&I resources are Inferred resources of 3.1 Mt LCE defined over 117 km2.

The resource remains open to a depth of approximately 700 m and open laterally, wheredrilling is underway to better define the resource extent.

The lithium grade of the Measured resource (0-400 m) across the salar is 212 mg/L lithium, the Indicated resource immediately southeast is 178 mg/l lithium, and the surrounding

Inferred resource (0-400 m) has a concentration of 198 mg/L lithium.

Properties are 100% owned by Kachi Lithium PTY Ltd, in which Lake has a 90% interest and Lilac has a 10% interest.

Additional assays are awaited to expand the area of high confidence (M&I) resources.

Project background

The maiden resource estimate at Kachi was undertaken in 2018 as part of the project Pre-feasibility Study. That estimate identified an Indicated Resource of 1.05 Mt of LCE over an area of 61 km2 , surrounded by an Inferred resource of 3.19 Mt over an area of 114 km2 . The resource was defined from 50 m to an average of 334 m depth, with the upper 50 m excluded from the resource due to uncertainties about lithium concentrations over that interval at the time of the estimate. With further diamond and rotary drilling and geophysical logging of wells the confidence in the geological and resource models has increased and the resource classification has been upgraded to reflect this. Drilling has been conducted to 400 m depth across the Measured and Indicated resource area. Geophysics was previously undertaken to define the base of the unconsolidated sediments hosting brine. Additional geophysics will shortly commence to define extensions of the brine body and to define in more detail the geometry of the contacts between the brine and areas of brackish water, to support the development of pumping simulations and a reserve model for the project.

Location

The Kachi Lithium Brine Project is located in the Puna region of north-western Argentina, in the Province of Catamarca. It is approximately 520 km northwest of the capital of Catamarca Province, San Fernando de la Valle de Catamarca. It is 22 km west of the town of El Penon, and 50 km south of Antofagasta de Sierra, which is the regional administrative centre (Figure 1). In addition, it is at an altitude of approximately 3,000 metres above sea level, a major advantage for the project

Work program

Drilling of 20 new diamond and rotary drill holes has been completed since the maiden resource. All holes have been geophysically logged to provide additional information, except where the condition of holes prevented this. Holes have been drilled with a spacing of 1.5 km, to provide a high level of confidence in correlation of the geology between holes. Samples from the diamond and rotary drill holes were sent to external laboratories for porosity and chemical analysis. This information and downhole geophysics were used to revise the geological model for the resource estimate update. The geological model, sample results, and soon to be initiated pumping tests will be used to develop a groundwater model for the project, to define the project reserve.

Property holding

Lake Resources holds 52 properties (Minas) in the Basin covering the surface of the salt lake and surrounds (Figure 2). The Mining Concessions are summarised in Table 4 below (following the text), with the property names, file numbers and details of the approvals related to each of the concessions. All properties are granted to Morena Del Valle Minerals under a Mining titles (Minas). The only property that is not yet within this category is Morena 10 and as of writing this report, this approval of concession is still in progress. Additionally, a selection of these properties is in the process of detailed resurveying to provide a level of precision of the boundary locations, however any changes will be minor. Of these, Kachi Inca I and Morena 12 has been completed with details presented. Submission is pending for Kachi Inca VI, Pampa III and Debbie I. All information regarding the legal status of the properties was provided by the members of the Legal Department Morena del Valle Minerals (MVM), the local subsidiary of Lake Resources in the province of Catamarca. The status of properties has not been independently verified by the CP, who takes no responsibility for the legal status of the properties.

Kachi project geology

The Kachi salt lake is located within a large hinterland drainage basin of approximating 6,800 km2 . The basin is bounded to the east and west by north south trending mountain ranges that have been raised by reverse faults that expose a basement sequence of rocks that rise to an elevation of 5100m. The ranges are formed from Ordovician Falda Cienaga Formation, green-grey turbidites in outcrop; Permian Pataquia Formation, red-brown unit in satellite imagery; and beige-green Eocene aged Geste Formation (50-100 m thick). The Kachi salt lake is rhomboid in shape with a NW-SE long axis with surficial halite and surrounding lagoon and Vega areas covering an area of approximately 53 km2 . A Pliocene basaltic volcano penetrates basin sediments to the east of the salt lake, with flow and air fall basalts creating a veneer over the lake sediments, covering an area of approximately 55km2 . The basaltic shield volcano has a NW-SE striking fissure vent that is interpreted to be underlain by a NW-SE aligned intrusive dyke or plug of much smaller dimensions than the basalt cone has at surface. This orientation in combination with N-S trending regional reverse faulting has provided an extensional tectonic regime, allowing accumulation of extensive infill sediments in the salt lake basin. To the south of the salt lake, pale grey Pliocene, Pleistocene and Holocene welded ignimbrites and unconsolidated pyroclastic sediments of the Cerro Blanco Pyroclastic Complex are interpreted to cover brine bearing Kachi basin sediments. Ignimbrites are also exposed east of the basaltic cone and form deformed terraces heavily influenced by structural complexity. To the northeast of the Kachi project the Carachi Pampa basin is covered by extensive SSW dipping, faulted, and eroded sand and gravel terraces. Exploration activities since 2017 have consisted of passive seismic and Vertical Electrical Sounding geophysics and drilling. An extensive TEM (Transient Electromagnetic) geophysical survey is to commence at the project in the next weeks.

Basin geometry delineation was undertaken using a passive seismic geophysical technique (Moho Tromino) with data processing undertaken by Resource Potentials Limited of Perth, collecting 500+ stations across the basin. This proved to be effective in developing an understanding of basin geometry, with a strong seismic velocity contrast detected between unconsolidated and weakly consolidated basin sediments hosting the brine and the underlying high seismic velocity harder volcanics and other facies. This formed a basis for selecting drill hole sites and provided a foundation for conceptualisation of the basin. Figure 3 shows seismic profiles of the Carachi Pampa salar. The distinct reflectors identified in the survey correlate well with dense lithologies such as ignimbrite units within the predominantly unconsolidated sandy sediments, and probable basement rocks intersected at 300 m depth in K06D08 in the south east of the project area. Drilling at site K06 provided a correlation with the seismic survey and indicated the presence of unconsolidated sediments to a depth in excess of 500 m under gravel cover, away from the areas of surface salt crust. The seismic information suggests the basin is 700-800 m deep in the western area. Since the exploration drilling conducted for the 2018 maiden Resource estimation, more extensive drilling undertaken to 400 m depth and down hole geophysics have better defined the basin geology. Drilling allowed development of a salar basin model, with three separate geological and hydrogeological (hydrostratigraphic) units to 400 m depth as follows

Inferred Mineral

Resources An 'Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to an Ore Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. The Inferred Mineral Resource (Figure 11) is defined laterally to the M&I resources, to a depth of 400 m. The limits of the Inferred resource are areas of outcropping rocks and the limit of the M&I Resource over the salar. Taking account of the distribution of brine grade and porosity to date (as determined by BMR geophysics) there is a sufficient level of confidence to classify the resources extending to the edge of the basin as Inferred Resources. It is likely that additional drilling could convert these to a higher confidence resource classification.

Exploration Target

The resource is open laterally off the salar to the north and south. The resource may also extend eastward under the volcanic rocks of the extinct Kachi strata volcano, which is interpreted to have a mushroom-like geometry forming a veneer overlying basin sediments. A geophysical program will shortly begin to explore for brine under these volcanic rocks, in addition to better defining the distribution of brine away from the salar. There is potential to define additional resources in this area, immediately east of the salar, and between the 400 m deep base of the resource and the contact of the sediments infilling the basin, with the underlying basement rocks (Figure 12). These two different volumes are presented as an exploration target (Targets 1 and 2) for these respective areas, with the potential range in contained lithium shown in the table below. The potential quantity and grade of the exploration target is conceptual in nature, and there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource in the volumes defined as exploration targets. Future exploration drilling aims to convert at least part of the exploration target volume to resources. Note that insufficient exploration has been conducted to conclude with any certainty that the exploration target could be converted to resources. Drilling is required to evaluate whether the exploration targets can be converted to resources, which may not be possible for different reasons. It is important to note the exploration target contains a range of possible parameters, that are considered to represent the likely range of conditions in this volume, but the results should be considered to have a high uncertainty and are not to be considered resources or to be confused with resources

Competent Persons Statement

The information in thisreport that relatesto resource reporting at the Kachi project has been prepared by Mr Andrew Fulton. Mr Fulton is a hydrogeologist and is a Member of the Australian Institute of Geoscientists. Mr Fulton is an employee of Groundwater Exploration Services and is independent of Lake Resources. Mr Fulton has sufficient relevant experience to qualify as a competent person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. He is also a 'Qualified Person' as defined in NI 43-101. Mr Fulton consents to the inclusion in this announcement of this information in the form and context in which it appears.

Forward Looking Statements

Certain statements contained in this announcement, including information as to the future financial performance of the projects, are forward-looking statements. Such forward-looking statements arenecessarily based upon a number of estimates and assumptions that, while considered reasonable by Lake Resources N.L. are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results, expressed or implied, reflected in such forward-looking statements; and may include, among other things, statements regarding targets, estimates and assumptions in respect of production and prices, operating costs and results, capital expenditures, reserves and resources and anticipated flow rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions and affected by the risk of further changes in government regulations, policies or legislation and that further funding may be required, but unavailable, for the ongoing development of Lake's projects. Lake Resources N.L. disclaims any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words 'believe', 'expect', 'anticipate', 'indicate', 'contemplate', 'target', 'plan', 'intends', 'continue', 'budget', 'estimate', 'may', 'will', 'schedule' and similar expressions identify forward-looking statements. All forward-looking statements made in this announcement are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Lake does not undertake to update any forward-looking information, except in accordance with applicable securities laws

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