Lake Resources NL advised that a contract amendment has been signed to resolve the dispute between Lilac Solutions and Lake Resources. This amendment allows the teams to reset the relationship and jointly focus on delivery of the world class Kachi Project which will lead the industry in terms of high-quality Lithium produced with a minimal environmental footprint. In resolving the dispute, Lake and Lilac have agreed to an amended timeline which both are confident can be achieved; as before, Lake will have certain buy back rights if Lilac does not meet agreed testing criteria in a timely manner.

Lilac and Lake continue work at the Kachi Project Demonstration Plant, with performance of the plant in line with expectations. The Demonstration Plant has now produced more than 15% of the total Demonstration Plant forecast output in the short period since the Plant came online this quarter. 20,000 litres of LiCl have been produced to date and ongoing production is proceeding, consistent with the Demonstration Plant's planned operational schedule.

The Demonstration Plant is currently operating continuously at 90% of steady state capacity, volume, and production. Hatch Ltd. engineering personnel will travel to Argentina to observe and validate the operations of demonstration plant in steady state in coming weeks. The Kachi Demonstration Plant continues to produce in-spec LiCl solution between 1900 and 3800 mg/L. Previous testing on Kachi brines at Lilac's California headquarters Oakland delivered 1400-2354mg/L. Lilac Solutions is preparing samples for shipment to Saltworks and Lilac's facility in Oakland CA for conversion into Lithium Carbonate.