Latin Resources : Confirmed Lithium Spodumene in Brazil - Drilling Update

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LATIN RESOURCES LIMITED

ACN: 131 405 144

Unit 3, 32 Harrogate Street,

West Leederville, WA 6007

P [phone]

E [e-mail]

W www.latinresources.com.au

16 February 2022

MULTIPLE ZONES OF SPODUMENE

PEGMATITES INTERSECTED IN FIRST DRILLING

AT SALINAS LITHIUM PROJECT

HIGHLIGHTS

• The first diamond hole drilled at the Company's Salinas Lithium Project in Brazil has intersected three separate spodumene rich pegmatites down dip from high-grade outcropping lithium.
• Potential new lithium discovery in one of the world's best mining jurisdictions.
• Priority drill targets were identified through surface sampling which returned high-grade results including 2.71% Li2O and 1.45% Li2O from spodumene bearing pegmatites, mapped over a strike length of over 1.2 kilometres.
• The Company plans to drill 14 diamond holes for a total of 2,000m of drilling in the first phase of drilling.
• The Bananal Valley is located within the Minas Gerais state - a rich mining region of Brazil, and home to the Grota do Cirilio Project under development by CAD $1.3 billion market cap TSX-V listed Sigma Lithium Corporation.

Latin Resources Limited (ASX: LRS) ("Latin" or "the Company") is pleased to confirm that drilling has commenced, with the top 90 metres of the first hole intersecting multiple zones of spodumene bearing pegmatites at the Company's Salinas Lithium Project in Brazil ("Salinas" or the "Project"), where the Company has defined multiple priority drill targets in what has been described as a lithium corridor.

Whilst drilling is ongoing to target depth, the Company is pleased to note that already three separate shallow-dipping spodumene pegmatites have been intersected in the first drill hole SADD001 (Appendix 1) (Figure 1).

Figure 1: The light green spodumene crystals in drill core from SADD001, Salinas Lithium Project - Bananal

Valley Brazil2

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The intersection of multiple spodumene pegmatites down dip from the high-grade outcrop (2.71% Li2O and 1.45% Li2O1), in the first hole drilled proves Latin's concept for the region and has greatly enhanced the potential for a significant lithium discovery in the Bananal Valley.

The hole SADD001 intersected a number of spodumene pegmatite up to 5.25m thick (Figure 2) and is currently at a drill depth of approximately 90m and is planned to continue to a depth of 120m or when mineralisation finishes. The geological team expect to see thicker zones as these pegmatites are known to pinch and swell as evidenced in the Company's surface mapping and sampling.

Figure 2: SADD001 - 5.25m thick coarse-grained pegmatite (83.85-89.10m), containing light green spodumene

crystals, hosted within a biotite-quartz schist (black rock) (Refer Appendix 1)2

1. Refer to ASX Announcement dated 26 October 2021
2. In relation to the disclosure of visual results, the Company cautions that visual estimates of mineral abundance should never be considered a proxy or substitute for a laboratory analysis. Assay results are required to determine the widths and grade of the visual mineralisation in preliminary geological logging. The Company will update the market when laboratory results become available.

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The drilling will continue over the coming days and field teams will prioritise the logging and sampling of this first hole to get samples to the laboratory for analysis.

The Company will provide additional updates throughout the 14-hole drilling campaign and as assay results are received and interpreted.

Figure 3: Bananal Valley Project and the lithium corridor - Planned Phase I and Phase II drill sites

Latin Resources' Managing Director, Chris Gale, commented: "This is a very good start to our drilling campaign with our first hole at our Salinas Project intersecting three separate spodumene bearing pegmatites.

"Our previous mapping and sampling has shown us that there is high-grade lithium in the mapped pegmatites within the project area over a strike extent of 1.2km, and this drilling has now confirmed the presence of additional thick pegmatites at depth.

"Our team in Brazil have proved the concept of lithium bearing pegmatites so Latin Resources could now potentially be on the cusp of a major new lithium discovery in the Bananal Valley.

"We have a total of 14 diamond holes and 2,000m planned at this location, and will be testing the full strike extent of the mapped pegmatite occurrence over the coming weeks. Our field team will prioritise the logging and sampling of this first hole, so that we can confirm the lithium grades of these spodumene pegmatites."

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ABOUT LITHIUM IN MINAS GERAIS, BRAZIL

Latin Resources' neighbour Sigma Lithium discovered the Grota do Cirilio lithium deposit in 2017 and is listed on the TSX-V exchange in Toronto. Sigma currently has a market capitalisation of CAD$1.3 billion.

Sigma Lithium Resources (TSXV: SGMA) is the most active lithium explorer in the region with a world- class lithium resource base which currently stands at 45.7Mt @1.38% Li2O3. Sigma is focused on 10 high-gradehard-rock lithium pegmatites, nine of which were past-producing lithium mines, yet have reported over 200 pegmatites within their tenure. Sigma is now in pre-construction of its large-scale lithium concentration commercial production plant in Minas Gerais. Based on the Feasibility Study Report4the Commercial Production Plant will contemplate a capacity of 220,000 tonnes annually of battery-grade "green" lithium concentrate and Sigma will be amongst the lowest-cost producers of lithium concentrate globally.

Whilst not far away, Brazilia company Companhia Brasileira de Lítio (CBL) is actively mining spodumene pegmatites, producing a spodumene concentrate which is then transferred to a chemical plant in Divisa Alegre, Minas Gerais, where it is transformed into industrial grade lithium hydroxide.

Latin Resources is particularly excited by the opportunities this may present in the future for battery grade lithium hydroxide production.

Figure 4: Salinas Project location, Jequitinhonha Valley district of Minas Gerais Province of eastern Brazil

1. Refer to Sigma Lithium TSX announcement "Sigma Lithium Triples Measured and Indicated Mineral Resources at Grota do Cirilo" - Dated 10.01.2019
2. Refer to Sigma Lithium TSX announcement "Sigma Lithium Announces a Positive Feasibility Study with forecast LOM Net Revenue of US$1.4 billion and EBITDA of US$ 690 million for the high-grade,low-cost Xuxa Deposit" - Dated 01.10.2019

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This Announcement has been authorised for release to ASX by the Board of Latin Resources.

For further information please contact:

Chris Gale	Andrew Rowell
Executive Director	Senior Communications Advisor
Latin Resources Limited	White Noise Communications
[phone]	[phone]

[e-mail]

www.latinresources.com.au

About Latin Resources

Latin Resources Limited (ASX: LRS) is an Australian-based mineral exploration company, with projects in Australia and South America, that is developing mineral projects in commodities that progress global efforts towards Net Zero emissions. The Australian projects include the Cloud Nine Halloysite-Kaolin Deposit. Cloud Nine Halloysite is being tested by CRC CARE aimed at identifying and refining halloysite usage in emissions reduction, specifically for the reduction in methane emissions from cattle.

In Latin America the Company focus is on its two Lithium projects, one in the state of Minas Gerais, Brazil and the other, the Catamarca Lithium Project in Argentina in which lithium is highly sought after as critical mineral for electric vehicles and battery storage.

Forward-Looking Statement

This ASX announcement may include forward-looking statements. These forward-looking statements are not historical facts but rather are based on Latin Resources Ltd.'s current expectations, estimates and assumptions about the industry in which Latin Resources Ltd operates, and beliefs and assumptions regarding Latin Resources Ltd.'s future performance. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", "potential" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are only predictions and are not guaranteed, and they are subject to known and unknown risks, uncertainties and assumptions, some of which are outside the control of Latin Resources Ltd. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. Actual values, results or events may be materially different to those expressed or implied in this ASX announcement. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Latin Resources Ltd does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward looking statement is based.

Competent Person Statement

The information in this report that relates to Geological Data and Exploration Results is based on information compiled by Mr Anthony Greenaway, who is a Member of the Australian Institute of Mining and Metallurgy. Mr Greenaway sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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'. Mr Greenaway consents to the inclusion in this report of the matters based on his information, and information presented to him, in the form and context in which it appears.

All information relating to exploration results has been previously released to the market and is appropriately referenced in this document.

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