Galaxy Resources Ltd. provided an update on the progress of development activities and strategic initiatives for the Sal de Vida Project. Recent project development activities have been largely focused on the Front-End Engineering Design ("FEED") and optimization phase, as well as improving Galaxy's operational readiness in order to minimize executional risks and maximize financial returns. Strategic Process Throughout the second half of 2018, Galaxy has undertaken a comprehensive evaluation of strategic options in relation to Sal de Vida in order to maximize Project value. Galaxy has received several offers from potential strategic partners which are currently being evaluated in detail. Negotiations continue to progress, so the Board has resolved to formally extend the process timeline to ensure proper consideration is given to the strategic merits and proposed terms and structure of each of the offers. Given the superior quality of Sal de Vida as a long life, low-cost operation with excellent economics, Galaxy will only proceed with a strategic partner if the final terms of the relationship properly recognize the fundamental underlying value of Sal de Vida and the partner can add additional value to the Project either through technical and/or financial input. The Company will advise the market upon further developments with the strategic process. The company continues to focus on advancing Sal de Vida in the short term. Project development will continue to advance independent of the ongoing strategic process. Galaxy's existing strong financial position, with zero debt and solid cash flow from Mt Cattlin, allows for a comprehensive market testing and price discovery process, without the Project timeline being impacted. Sal de Vida is recognized as one of the best undeveloped lithium resources, globally, based on: Reserves of 1.14Mt LCE (0.18Mt Proved, 0.96Mt Probable), supporting an initial 40-year project life, coupled with a resource of 4.92Mt LCE (1.96Mt Measured, 2.58Mt Indicated, 0.38 Inferred) and substantial upside - Favorable brine chemistry ­ highest lithium concentration of Argentine development assets (732mg/L Li) and low impurity levels - High economic returns forecast through feasibility studies, with operating costs forecast to be within the lowest quartile - Project already substantially de-risked from a financial perspective following the completion of the POSCO transaction for USD 280 million.

Michael Nelson, an executive mining professional with 30 years of project execution and leadership experience, has been appointed as the Project Director for Sal de Vida, effective January 2019. Mike's experience across project development and construction will significantly boost the company's execution capability. Mike has successfully managed, developed and delivered multi-billion-dollar international resource projects, with considerable experience specifically in Spanish speaking Latin America. Prior to joining Galaxy, Mike was the Project Director for the Quebrada Blanca Phase II.