Galan Lithium : Notification regarding unquoted securities - GLN

Notification of Issue, Conversion or Payment up of Unquoted Equity SecuritiesAnnouncement Summary

Entity name

For personal use only

GALAN LITHIUM LIMITED

Date of this announcement Tuesday April 19, 2022

The +securities the subject of this notification are:Other

Total number of +securities to be issued/transferredASX +securityTotal number of +securities to be

code	Security description	issued/transferred	Issue date
New class - code	Performance Rights	1,500,000	22/04/2022
to be confirmed

Refer to next page for full details of the announcementNotification of Issue, Conversion or Payment up of Unquoted Equity Securities

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Notification of Issue, Conversion or Payment up of Unquoted Equity SecuritiesPart 1 - Entity and announcement details

For personal use only

1.1 Name of entity GALAN LITHIUM LIMITED

We (the entity named above) give notice of the issue, conversion or payment up of the following unquoted +securities.

1.2 Registered number type ABN

1.3 ASX issuer code GLN

1.4 The announcement isNew announcement

1.5 Date of this announcement 19/4/2022

Registration number 87149349646

Notification of Issue, Conversion or Payment up of Unquoted Equity Securities

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Notification of Issue, Conversion or Payment up of Unquoted Equity Securities

Part 2 - Issue details

2.1 The +securities the subject of this notification are:

Other

For personal use only

Please specify Performance Rights

2.2a This notification is given in relation to an issue of +securities in a class which is not quoted on ASX and which:does not have an existing ASX security code ("new class")

Notification of Issue, Conversion or Payment up of Unquoted Equity Securities

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Notification of Issue, Conversion or Payment up of Unquoted Equity Securities

Part 3C - number and type of +securities the subject of this notification (new class) where issue has not previously been notified to ASX in an Appendix 3B

For personal use only

New +securities

ASX +security code

New class - code to be confirmed

+Security descriptionPerformance Rights

+Security type

ISIN code

Other

Date the +securities the subject of this notification were issued 22/4/2022

Will all the +securities issued in this class rank equally in all respects from their issue date?

Yes

Please provide a URL link for a document lodged with ASX setting out the material terms of the +securities being issued.

Performance Rights have the same terms and conditions as the Director Performance Rights issued on 25/2/22. Terms and conditions are included in the AGM NOM dated 30 December 2021https://wcsecure.weblink.com.au/pdf/GLN/02472237.pdf

Any other information the entity wishes to provide about the +securities the subject of this notification

The Performance Rights vesting conditions are:

H1 300,000 Rights upon Galan's ASPM of $2.25 H2 300,000 Rights upon Galan's ASPM of $2.50 H3 300,000 Rights upon Galan's ASPM of $3.00 H4 300,000 Rights upon Galan's ASPM of $3.25 H5 300,000 Rights upon Galan's ASPM of $3.50

The hurdles are based on GLN's adjusted share price milestone (ASPM) of the Shares. The price target ascribed to the performance hurdles is the VWAP over 20 consecutive Trading Days on which Shares are traded in the 5 years from issue, adjusted to reflect various types of changes in Share issues/splits or consolidations, Share price, bonus issues, dividends/capital returns, cash/scrip/in specie distributions.

Once the relevant ASPM is reached, the corresponding Right vests and each vested Right gives the holder the option to formally subscribe for one Share, before the date that is 15 years from the date of issue of the Right. A Right will expire on the date that is 5 years from its date of issue.

Please provide any further information needed to understand the circumstances in which you are notifying the issue of these +securities to ASX, including why the issue of the +securities has not been previously announced to the market in an Appendix 3B

Issued to senior Galan management as approved by the Board.

Notification of Issue, Conversion or Payment up of Unquoted Equity Securities

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Notification of Issue, Conversion or Payment up of Unquoted Equity Securities

Issue details

Number of +securities

1,500,000

For personal use only

Were the +securities issued for a cash consideration?

No

Please describe the consideration being provided for the +securities Nil

Purpose of the issue Other

Additional Details

Issued to senior Galan management as approved by the Board.

Notification of Issue, Conversion or Payment up of Unquoted Equity Securities

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