Liontown Resources : Initial assays extend mineralised trend at Buldania

Strong initial assays from resource definition drilling at Buldania

extend mineralised trend to 1.4km

System remains open with further drilling required to define the limits

HIGHLIGHTS

• New intersections from recently commenced RC drill program include:

42m @ 1.0% Li2O from 155m (BDRC0106), including:

1. 14m @ 1.4% Li2O from 173m

20m @ 1.1% Li2O from 107m (BDR0123), including:

1. 14m @ 1.3% Li2O from 108m

12m @ 1.6% Li2O from 170m (BDRC0131), including:

1. 9m @ 1.9% Li2O from 171m

(True widths 80-100% of down-hole widths listed above)

• These intersections build on the strong, shallow results reported in 2018 which included:

30m @ 1.4% Li2O from 9m (BDDD0003), including:

1. 9m @ 1.6% Li2O from 9m

58m @ 1.2% Li2O from 39m (BDRC0015), including:

1. 16m @ 1.7% Li2O from 44m

35m @ 1.2% from 35m (BDRC0056), including:

1. 18m @ 1.7% Li2O from 51m

39m @ 1.6% Li2O from 9m (BDRC0090), including:

1. 13m @ 2.1% Li2O from 21m

(See ASX releases dated 26th March 2018, 19th September 2018, 1st November 2018 and 20th November 2018)

• Latest assays combined with geological observations extend the mineralised Anna pegmatite swarm to the south-east for a minimum strike length of 1.4km.
• Mineralised system remains open both along strike and at depth.
• New data increases geological understanding, which will be incorporated into the preparation of a maiden Mineral Resource Estimate.
• Lithium mineralisation at Buldania is hosted by multiple stacked, shallowing dipping spodumene-rich pegmatites.
• The mineralisation outcrops with no weathering-related depletion of lithium.
• Reverse Circulation drilling is ongoing with ~3,000m of drilling to come.

Liontown Resources Limited (ASX: LTR) is pleased to advise that initial results from an ongoing Reverse Circulation (RC) resource drilling program at its 100%-owned Buldania Lithium Project in WA's Norseman region have extended the main zone of mineralisation at the Anna pegmatite and provided valuable geological data to aid modelling and preparation of a maiden Mineral Resource Estimate (MRE).

Buldania is Liontown's second WA lithium project, which is being advanced alongside its flagship Kathleen Valley Project where the Company recently reported a substantial resource increase (ASX Release, 9th July 2019) and is progressing a Pre-Feasibility Study.

The latest drilling at Buldania has extended the previously defined mineralisation at the Anna prospect to the south-east and east for a continuous strike length of at least 1.4km, with the system remaining open (Figures 1 and 2).

Mineralisation is hosted by multiple, stacked, sub-parallel pegmatite lenses which vary from ~5-25m in thickness. In places, the pegmatites merge to form zones >50m thick.

RC drilling re-commenced in June 2019 and to date 47 holes (BDRC0097-0143) have been drilled for 8,497m. Since acquiring the Buldania Project in late 2017, Liontown has drilled a total of 150 holes for 20,054.5m, including three diamond core holes for 548.5m. Refer to Appendices 1 to 3 for a full listing of significant drill statistics.

With the exception of the first nine holes (BDRC0097 - 0105), all of the drilling this year has been undertaken at the Anna prospect (see Highlights for better results to date) with the primary objective of providing sufficient data to prepare a maiden MRE.

Up to 15 further RC holes for an additional ~3,000m drilling are planned at Anna as part of this program.

Holes BDRC0097 - 0105 were drilled into a target approximately 5km north-west of Anna, where previous exploration has defined a number of spodumene-bearing pegmatites (i.e. NW Pegmatites - see Figure 5). There has been no previous drill testing of this target area and initial assays have confirmed the potential for significant lithium mineralisation with better intersections including 5m @ 1.2% Li2O from 20m in BDRC0104 and 6m @ 1.5% Li2O from 54m in BDRC0105 (Figures 3 and 4). Most of the NW Pegmatite area remains untested and further drilling will be undertaken as part of the current program.

The Buldania Project is located ~30km east of Norseman (~600km east of Perth) in southern Western Australia and is part of a large, ~600km2, strategic land position owned by Liontown. The project is in the southern part of the Eastern Goldfields Province, a region well-known for hosting large lithium deposits including the Mt Marion and Bald Hill mines (Figure 5).

DAVID RICHARDS

Managing Director

22nd July 2019

The Information in this report that relates to Exploration Results is based on and fairly represents information and supporting documentation prepared by Mr David Richards, who is a Competent Person and a member of the Australasian Institute of Geoscientists (AIG). Mr Richards is a full-time employee of the company; and

Mr Richards has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activities being undertaken 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 Richards consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

This announcement contains forward-looking statements which involve a number of risks and uncertainties. These forward-looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

Figure 1: Anna Pegmatite - Drill hole plan showing better lithium intersections.

Figure 2: Anna Pegmatite - Long section looking northeast showing better lithium intersections.

Figure 3: NW Pegmatite Area - Lithium-in-Soil image showing pegmatites, rock chip samples and recent drilling.