Liontown Resources : Quarterly Activities and Cashflow Report

MARCH 2019

QUARTERLY ACTIVITIES REPORT

$7.9M raising underpins outstanding quarter with resource expansion drilling exceeding expectations and feasibility studies at Kathleen Valley tracking well

HIGHLIGHTS

KATHLEEN VALLEY LITHIUM PROJECT (WA)

•Potential to significantly expand the maiden Mineral Resource estimate of 21.2Mt @ 1.4% Li2O and 170ppm Ta2O5 confirmed by successful resource expansion and metallurgical test work drilling.

•Scoping Study released in January indicated that the conceptual open pits were largely constrained by the limits of drill data. New intersections include:

o19m @ 1.6% Li2O from 215m (KVRC0004A), including:

1m @ 2.9% Li2O from 216m and

3m @ 2.3% Li2O from 226m

o31m @ 1.7% Li2O from 192m (KVRC0174), including:

10m @ 1.9% Li2O from 193m and

9m @ 2.0% Li2O from 208m

o25.9m @ 2.0% Li2O from 104m (KVDD0017), including:

19m @ 2.2% Li2O from 110m

o16.5m @ 1.4% from 45m (KVDD0018), including:

8m @ 2.0% Li2O from 48m

•Latest results indicate that mineralisation is hosted by multiple stacked, spodumene-bearing pegmatites that extend for at least 300m beyond the current conceptual open pits.

•Resource expansion drilling is being undertaken by two Reverse Circulation rigs and is expected to complete in May 2019.

•Results from the drill program, when completed, will be used to prepare an upgraded Mineral Resource Estimate (MRE) to underpin a Pre-Feasibility Study (PFS) due later this year.

•Feasibility-levelmetallurgical test work designed to optimise the process flowsheet, generate plant design criteria as well as provide samples for potential off-take partners has commenced at ALS Laboratories.

BULDANIA LITHIUM PROJECT (WA)

•Further soil sampling extends strong lithium anomalism at the NW Pegmatite target area to 4.5 x 2.5km.

•Resource definition drilling to re-commence at the Anna pegmatite in Q2 2019.

CORPORATE

•Successful capital raising of approximately $7.9M completed.

•Funds to underpin the continued exploration and development of the Kathleen Valley and Buldania lithium projects.

Drill rigs at Kathleen Valley

INVESTMENT HIGHLIGHTS

•Positive Scoping Study paves way for further feasibility studies on >21Mt, high grade lithium-tantalum Mineral Resource at Kathleen Valley.

•Second significant lithium discovery confirmed at Buldania.

•Maiden 84Mt vanadium Mineral Resource delineated at the Toolebuc Project.

Buldania drill core showing coarse

spodumene crystals

PROJECTS

1. Kathleen Valley Lithium Project, WA (Liontown: 100%)

The Kathleen Valley Project is located in Western Australia, approximately 680km north-east of Perth within the Eastern Goldfields of the Archaean Yilgarn Craton (Figure 1). Spodumene-bearing pegmatites were discovered by historical prospecting at Kathleen Valley and drilling by Liontown has since delineated a maiden Mineral Resource estimate (MRE) of 21.2Mt @ 1.4% Li2O and 170ppm Ta2O5. Further drilling is expected to significantly expand the maiden MRE.

Figure 1: Kathleen Valley Project - Location and Geology Plan.

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Following the release of a highly positive Scoping Study in late January 2019, Liontown has continued to fast- track the Kathleen Valley Project with activities during the Quarter including resource expansion drilling and the commencement of feasibility-level metallurgical test work.

RESOURCE EXPANSION DRILLING

A 16,000 - 20,000m program of Reverse Circulation (RC) resource expansion drilling commenced during the Quarter. It follows on from the Scoping Study released in January 2019, which indicated:

•The potential to establish a commercially robust, conventional open pit mining operation at Kathleen Valley; and

•That the conceptual open pits used in the Scoping Study were largely constrained by the limit of drill data.

The current drill program, which is expected to be completed in May 2019, is designed to increase both the size of, and confidence in, the existing MRE by drilling immediately along strike, down-dip and between previous intersections. An updated MRE is scheduled for completion in mid-2019.

Liontown previously announced (see ASX release dated 29th January 2019) that it was targeting an additional

8.5- 16Mt @ 1.2 - 1.5% Li2O at Kathleen Valley; however, the latest drilling has resulted in the Company substantially increasing its Exploration Target to 15 - 22.5Mt @ 1.2 - 1.5% Li2O*, which is in addition to the current MRE of 21.2Mt @ 1.4% Li2O. If the Exploration Target is successfully converted to JORC compliant Mineral Resources, it could substantially extend the potential mine life.

(*The potential grade and tonnage of the Exploration Target referred to above is conceptual in nature and there has been insufficient exploration to estimate an increased Mineral Resource. It is uncertain if further exploration will result in the estimation of an increased Mineral Resource.)

Since drilling re-commenced in February 2019, a further 66 RC holes have been drilled, including five re- entries, for 11,836m. This brings the total amount of drilling completed by Liontown at Kathleen Valley to 255 holes for 35,069m, comprising 213 RC holes for 30,507m and 42 diamond core holes for 4,562m.

The latest drilling and assays indicate that:

•Spodumene-bearingpegmatites extend for at least 300m to the north-west, away from the limits of the current conceptual open pits (Figure 2);

•Mineralisation is largely hosted by multiple, stacked, shallow dipping pegmatites (Figure 3); and

•There is good geological and grade continuity between previous, wider spaced drill holes.

Geological logging indicates the potential for further significant assay results, with a number of holes intersecting individual pegmatites >25m thick and cumulative pegmatite widths of >50m.

Once the current drilling program is completed, results will be used to prepare an upgraded MRE for Kathleen Valley which will be incorporated into further feasibility studies, the next stage of which is due for completion in Q4 2019.

METALLURGICAL DRILLING AND TEST WORK

Previous preliminary metallurgical test work results based on 300kg of sample collected in mid-2018 indicated that a saleable spodumene concentrate can be produced at Kathleen Valley.

A 33-hole/2,896m PQ diamond core drilling programme, completed in late 2018, has provided an additional 4 tonnes of material for the feasibility-level metallurgical test work program, which has commenced at Australian Laboratory Services' (ALS) Balcatta laboratory in Perth under the supervision of Lycopodium Minerals Pty Ltd (Lycopodium)

The program is scheduled to take ~6 months to complete and is designed to optimise the process flowsheet, generate plant design criteria as well as provide samples for potential off-take partners.

Assay results from the metallurgical drilling, which was sited between and down-dip of previous intersections, confirmed the continuous, high-grade nature of mineralisation and are consistent with 2018 RC drilling data used to prepare the maiden MRE.

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Figure 2: Kathleen Valley - Drill hole plan showing better lithium intersections from metallurgical*

and resource expansion drilling programs.

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Figure 3: Kathleen Valley - Drill section showing mineralised pegmatites and latest lithium intersections (see Figure 2 for location) extending well beyond limit of

conceptual open pit indicated by maiden MRE and Scoping Study.

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