Galan Lithium : Outstanding Initial Well Test Results at HMW Project

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ASX ANNOUNCEMENT

14 July 2022

Outstanding Initial Well Test Results at HMW Project

High lithium grades, porosity and brine flow rates recorded

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Highlights:

• 72-hourconstant rate testing successfully completed at first Pata Pila pumping well (PPB-01-21).
• • Brine sampling confirms high grade resource (Li > 910 mg/L).
  • Hydraulic testing saw aquifer response showing favourable conditions for high volume brine production (15 - 20L per second).
• 30-daylonger term pumping test started and flowing steadily.
• Porosity test (RBRC) for specific yield on second Pata Pila well core samples returned positive results (range of 10.1 - 21.0%, mean of 14.1%).
• Pumping tests to be completed on three further wells; a second well at Pata Pila and two wells at Rana de Sal.
• Testing of first well at Rana de Sal (PBRS-01-21) is imminent.

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to provide an update on the long- term pump testing program for its 100%-owned Hombre Muerto West Lithium Project (HMW Project), located on the Western Basin of the Hombre Muerto salar in Catamarca Province, Argentina. These tests are an integral part of the current Definitive Feasibility Study (DFS) for the HMW Project.

Galan Managing Director, JP Vargas de la Vega, commented:

"We are extremely pleased with the outcomes from the 3-day constant rate pump test at the first Pata Pila well, PPB-01-21. High lithium grades, porosity and brine flow rates are a powerful combination for driving operational efficiency and economic performance. These outstanding hydrological outcomes are paramount to the project DFS foundations and further validates the world-class nature of the lithium brine resource we hold at HMW.

The results are a ready demonstration of the substantial progress we are making in advancing the Project. They also represent key de-risking of the planned HMW development. While we are focussed on a substantially lower risk, conventional process route and project development at HMW, we are ensuring that every aspect of our planned operation at HMW is comprehensively evaluated and proven, both technically and commercially."

__________________________________________________________________________________

Level 3, 30 Richardson Street, West Perth, WA 6005	PO Box 396, West Perth, WA, 6872
Ph. [phone]	Fax. [phone]
www.galanlithium.com.au	ABN: 87 149 349 646

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Well pump testing program update

The well pump testing program is advancing at the HWM Project in order to evaluate the hydraulic properties of the target brine bearing aquifers. A series of hydraulic tests have been successfully performed on the first pumping well at Pata Pila (PPB-01-21). These include a step test and constant rate test.

Long term (30-day) pumping tests at PPB-01-21 began on 30 June and are set to conclude on 30 July 2022. Brine levels and samples for geochemical analysis will be collected throughout the testing period. This series of pump tests are planned to be conducted across a further three wells, being a second well at Pata Pila and two wells at Rana de Sal. Testing of the first well at Rana de Sal (PBRS-01-21) is expected to commence in the next few days.

All well pump test data is to be incorporated into the upcoming HMW Resource/Reserve model. This will form part of the current DFS for the HMW Project, being undertaken by Hatch Engineering.

Constant rate test outcomes at Pata Pila: High lithium grades and brine flow rates

The constant rate test was performed for 72 hours and observed with three (3) different piezometers. Aquifer response during the pumping test indicates favorable conditions (permeability) for brine production with expected flowrates between 15 - 20 L/s per well at Pata Pila.

Fourteen brine samples were collected throughout the duration of the test and analyzed for lithium (Li) at the Alex Stewart laboratory. Chemical results positively confirm a high-grade brine resource, with an increasing Li grade during pumping, stabilising at approximately 910 mg/L (see Figure 1 for results). The site operations and sampling procedures were supervised by SRK Consultants.

Figure 1 - Lithium grade [mg/L] samples obtained during the 72 hours constant rate test at PPB-01-21.

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Porosity test (RBRC) outcomes at Pata Pila

Data from the first batch of twenty (20) core samples obtained from the Pata Pila Diamond Drillhole undergoing Relative Brine Release Capacity (RBRC) testing has been received. These analyses were conducted at the Daniel B. Stephens & Associates (DBS&A) laboratories based in Albuquerque, USA.

The RBRC results are positive with specific yield values consistent with reported values in the literature for medium-to-fine sand lithologies, and as previously described with respect to the core samples. The RBRC values ranged between 10.1% and 21.0%, with a mean specific yield value of 14.1%.

A second batch consisting of 39 core samples has already been selected by SRK geologists on site and is being prepared for transportation to the DBS&A laboratory. This batch includes samples from both Rana de Sal and Pata Pila.

Figure 2 - Brine discharge at PBPP-01-21 during long term pumping test.

The Galan Board has authorised this release.
For further information contact:
Juan Pablo ("JP") Vargas de la Vega	Terry Gardiner
Managing Director	Non-Executive Director
Email: [e-mail]	Email: [e-mail]
Tel: [phone]	Tel: + 61 400900377

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Forward-Looking Statements

Some of the statements appearing in this announcement may be in the nature of forward-looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which Galan Lithium Limited operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward- looking statement. No forward-looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by several factors and subject to various uncertainties and contingencies, many of which will be outside Galan Lithium's control. Galan Lithium Limited does not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of Galan Lithium Limited, its directors, employees, advisors, or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements in this announcement reflect views held only as at the date of this announcement.

About Galan

Galan Lithium Limited (ASX:GLN) is an ASX-listed lithium exploration and development business. Galan's flagship assets comprise two world-class lithium brine projects, HMW and Candelas, located on the Hombre Muerto salar in Argentina, within South America's 'lithium triangle'. Hombre Muerto is proven to host lithium brine deposition of the highest grade and lowest impurity levels within Argentina. It is home to the established El Fenix lithium operation (Livent Corporation) and the Sal de Vida (Allkem) and Sal de Oro (POSCO) lithium projects. Galan is also exploring at Greenbushes South in Western Australia, approximately 15km south of the Tier 1 Greenbushes Lithium Mine.

Hombre Muerto West (HMW): A ~14km by 1-5km region on the west coast of Hombre Muerto salar neighbouring Livent Corp to the east. HMW is currently comprised of seven concessions - Pata Pila, Rana de Sal, Deceo III, Del Condor, Pucara, Catalina and Santa Barbara. Geophysics and drilling at HMW demonstrated a significant potential of a deep basin. In March 2020, a maiden resource estimate delivered 1.1Mt of LCE for two of the largest concessions (Pata Pila and Rana de Sal). That resource now sits at 2.3Mt of LCE with exploration upside remaining for the rest of the HMW concessions not included in the current indicated resource.

Candelas: A ~15km long by 3-5km wide valley filled channel which project geophysics and drilling have indicated the potential to host a substantial volume of brine and over which a maiden resource estimated 685kt LCE (Oct 2019). Furthermore, Candelas has the potential to provide a substantial amount of processing water by treating its low-grade brines with reverse osmosis, this is without using surface river water from Los Patos River.

Greenbushes South Lithium Project: Galan has an Exploration Licence application (E70/4629) covering a total area of approximately 43 km2. It is approximately 15kms to the south of the Greenbushes mine. In January 2021, Galan entered into a sale and joint venture with Lithium Australia Ltd for an 80% interest in the Greenbushes South Lithium project, which is located 200 km south of Perth, the capital of Western Australia. With an area of 353 km2, the project was originally acquired by Lithium Australia NL due to its proximity to the Greenbushes Lithium Mine ('Greenbushes'), given that the project covers the southern strike projection of the geological structure that hosts Greenbushes. The project area commences about 3km south of the current Greenbushes open pit mining operations.

Competent Persons Statement

The information contained herein that relates to Exploration Results is based on information compiled or reviewed by Dr Luke Milan, who has consulted to the Company. Dr Milan is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Milan consents to the inclusion of his name in the matters based on the information in the form and context in which it appears.

ANNEXURE 1

JORC CODE, 2012 EDITION - TABLE 1

only		Section 1 Sampling Techniques and Data
	Criteria		• JORC Code explanation			Commentary
	Sampling techniques		• Nature and quality of sampling (eg cut		•	Drill core was recovered in 1.5 m length core
			channels, random chips, or specific			runs in core split tubes to minimize sample
			specialised industry standard measurement			disturbance. Core recovery was carefully
			tools appropriate to the minerals under			measured by comparing the measured core to
			investigation, such as down hole gamma			the core runs.
			sondes, or handheld XRF instruments, etc).		•	Drill core was to obtain representative samples
use			These examples should not be taken as			of the stratigraphy and sediments.
		limiting the broad meaning of sampling.		•	Water/brine samples were collected by purging
		• Include reference to measures taken to			the brine section of the hole of all fluid over an
		ensure sample representivity and the			approximate 72 hour period. The hole was then
		appropriate calibration of any measurement			allowed to re-fill with ground water and the
		tools or systems used.			purged sample for lab analysis collected.
		• Aspects of the determination of		•	Samples were taken from the relevant section
		mineralisation that are Material to the Public			based upon geological logging and conductivity
		Report.			testing of water.
		• In cases where 'industry standard' work has		•	Water/brine samples were collected as listed in
				table 1.
personal			been done this would be relatively simple
			•	Conductivity tests are taken on site with a field
		(eg 'reverse circulation drilling was used to
				portable Hanna Ph/EC/DO multiparameter.
		obtain 1 m samples from which 3 kg was
			•	Density measurements were undertaken on site
			pulverised to produce a 30 g charge for fire
					with a field portable Atmospheric Mud Balance,
			assay'). In other cases more explanation
					made by OFI testing equipment.
			may be required, such as where there is
			coarse gold that has inherent sampling
			problems. Unusual commodities or
			mineralisation types (eg submarine nodules)
			may warrant disclosure of detailed
			information.
	Drilling techniques		• Drill type (eg core, reverse circulation, open-		•	Diamond drilling with internal (triple) tube was
			hole hammer, rotary air blast, auger,			used for drilling. The drilling produced core with
			Bangka, sonic, etc) and details (eg core			variable core recovery, associated with
			diameter, triple or standard tube, depth of			unconsolidated material. Recovery of the more
			diamond tails, face-sampling bit or other			friable sediments was difficult, however core
			type, whether core is oriented and if so, by			recovery by industry standards was very good.
			what method, etc).		•	Brine is used as base for drilling fluid for
						lubrication during drilling.
	Drill sample recovery		• Method of recording and assessing core		•	Diamond drill core was recovered in 1.5m length
			and chip sample recoveries and results			intervals in triple (split) tubes. Appropriate
For			assessed.			additives were used for hole stability to maximize
		• Measures taken to maximise sample			core recovery. The core recoveries were
		recovery and ensure representative nature			measured from the core and compared to the
		of the samples.		•	length of each run to calculate the recovery.
		• Whether a relationship exists between		Brine samples were collected over relevant
				sections based upon the geology encountered
		sample recovery and grade and whether
				and ground water representation.
		sample bias may have occurred due to
			•	Brine quality is not directly related to core
		preferential loss/gain of fine/coarse material.
				recovery and is largely independent of the quality
					of core samples. However, the porosity and
						permeability of the lithologies where samples are
						taken is related to the rate of brine inflow.
	Logging		• Whether core and chip samples have been		•	The core is logged by a senior geologist and
			geologically and geotechnically logged to a			contract geologists who are overseen by the
			level of detail to support appropriate Mineral			senior geologist who also supervised the taking
			Resource estimation, mining studies and			of samples for laboratory analysis.
			metallurgical studies.		•	Logging is both qualitative and quantitative in
			• Whether logging is qualitative or quantitative			nature. The relative proportions of different
			in nature. Core (or costean, channel, etc)			lithologies which have a direct bearing on the