Argosy Minerals : Rincon 2,000tpa Li2CO3 Operations Update

ASX ANNOUNCEMENT

For personal use only

1 April 2022

RINCON 2,000TPA Li2CO3 OPERATIONAL UPDATE _________________________________________________________________________________________

HIGHLIGHTS

67% of total construction works now complete - first production of battery quality Li2CO3 product targeted from mid-2022

2,000tpa lithium carbonate process plant development works progressing on schedule and budget

____________________________________________________________________________________________________________________________________________________________

Argosy Minerals Limited (ASX: AGY) ("Argosy" or "Company") is pleased to advise further progress at the Rincon Lithium Project, located in Salta Province, Argentina, with 67% of the total works now completed for the development of the modular 2,000tpa lithium carbonate production operation.

The Company remains on schedule to achieve first production of >99.5% battery quality lithium carbonate product from mid-2022.

The 2,000tpa production operation major works comprise three main phases of works, comprising design, construction and commissioning.

The design phase works (including engineering layout) are complete (100%); The construction phase works are 70% complete;

Plant commissioning works (comprising raw materials acquisition and workforce/team development) are 13% complete.

The construction phase comprises the process plant, equipment and associated installations, earthworks and site construction (including additional camp development and associated site infrastructure), and expansion of the brine system (pumping station, plant settling ponds) are progressing on budget and schedule, with;

99% of earthworks/land movements completed; 87% of site works completed (comprising site camp/accommodation, laboratory, office, and other works);

the brine system works are complete - 100% (comprising pumping station and plant settling ponds works);

67% of the process plant completed (comprising plant equipment acquisition and plant warehouse works); and 61% of utilities and associated services (comprising vapour system, communication system and ancillary services works).

The Company is progressing toward successfully developing the modular 2,000tpa operation and become a commercial battery quality lithium carbonate producer.

Argosy Managing Director, Jerko Zuvela said "The Company's Puna operations team are making significant progress on the construction and development works at our Rincon Lithium Project, as we move closer to commencing the 2,000tpa lithium carbonate production operations.

Page 1 of 6

Argosy Minerals Limited

ACN 073 391 189

Level 2, 22 Mount Street, Perth, WA 6000

PO Box 7054, Cloisters Square, Perth, WA 6850

Ph: [phone] Fax: [phone]

ASX ANNOUNCEMENT

For personal use only

The lithium market remains very positive and lithium carbonate prices are maintaining record highs, which is providing great interest in our project and especially our product, noting our Rincon Lithium Project will become the next commercial production operation. Argosy's transformation into a cashflow generator is nearing, whilst also progressing toward the next stage 12,000tpa scale operations. We look forward to a significant near-term growth phase from our operations this year and beyond."

Figure 1. Rincon Lithium Project - 2,000tpa Operation Site Layout (schematic)

Current and recent construction works have concentrated on completion works of the on-site office and laboratory, equipment procurement, delivery and installation - including installing and commissioning the evaporator/dryer and the vibrator screening equipment (following its delivery from Germany), building the various industrial sheds, and additional camp accommodation facilities.

In addition, pumps and pumping equipment have been delivered to site for the brine system operations - with brine pumping operations re-commencing to supply raw brine to the evaporation ponds from the production wells, additional process tanks and reactors are due for delivery within the next week, the electric generators have been tested and are ready for delivery, and the industrial water treatment system is ready for installation.

Further upcoming works will focus on plant and equipment delivery and installation, utilities and associated services supply and installation, and auxiliary systems installation, with significant progress to be made over coming months.

Furthermore, the Company has recruited additional engineering and site personnel, is procuring the raw materials (chemical reagents, etc) in preparation for production operations, and commenced training programs for the production team, including utilising the industrial scale pilot plant for production operations, where the lithium carbonate product produced will be sold to Argentina domestic customers to supply the local market.

Upon completion of the construction phase works, the plant commissioning and production test-works, and ramp-up to 2,000tpa operations will follow immediately thereafter.

Page 2 of 6

Argosy Minerals Limited

ACN 073 391 189

Level 2, 22 Mount Street, Perth, WA 6000

PO Box 7054, Cloisters Square, Perth, WA 6850

Ph: [phone] Fax: [phone]

ASX ANNOUNCEMENT

For personal use only

Figure 2. Rincon Lithium Project - 2,000tpa Operation Site Works

Figure 3. Rincon Lithium Project - Installed Evaporator/Dryer

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Argosy Minerals Limited

ACN 073 391 189

Level 2, 22 Mount Street, Perth, WA 6000

PO Box 7054, Cloisters Square, Perth, WA 6850

Ph: [phone] Fax: [phone]

ASX ANNOUNCEMENT

For personal use only

Figure 4. Rincon Lithium Project - 2,000tpa Operation Evaporation Ponds Filled

Figure 6. Rincon Lithium Project - 2,000tpa Operation Site Works

ENDS

This announcement has been authorised by Jerko Zuvela, the Company's Managing Director

For more information on Argosy Minerals Limited and to subscribe for regular updates, please visit our website atwww.argosyminerals.com.au or contact us [e-mail] or Twitter@ArgosyMinerals.

Page 4 of 6

Argosy Minerals Limited

ACN 073 391 189

Level 2, 22 Mount Street, Perth, WA 6000

PO Box 7054, Cloisters Square, Perth, WA 6850

Ph: [phone] Fax: [phone]

ASX ANNOUNCEMENT

For personal use only

For further information:

Jerko Zuvela Managing Director

T | [phone]

E |[e-mail] W|www.argosyminerals.com.au

Forward Looking Statements: Statements regarding plans with respect to the Company's mineral properties are forward looking statements. There can be no assurance that the Company's plans for development of its mineral properties will proceed as expected. There can be no assurance that the Company will be able to confirm the presence of mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company's mineral properties.

Argosy confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Argosy confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

ASX Listing Rules Compliance

Argosy advises references to the Company's current target of producing 2,000tpa of high purity battery quality lithium carbonate product at the Rincon Lithium Project should be read subject to and clarified by the Company's current intention that the 2,000tpa production target does not extend beyond a two-year period from the Clarifying Announcement (lodged 10th February 2021, available atwww.argosyminerals.com.au andwww.asx.com).

At the conclusion of the two-year period, it is the Company's current intention that, subject to feasibility, finance, market conditions and completion of development works at the Rincon Lithium Project, the Company's 10,000tpa production target will apply. The current 2,000tpa production target is intended to form a modular part of the 10,000tpa operation from its commencement.

Argosy further advises that references in this ASX release in relation to the 10,000tpa production target are extracted from the report entitled "Argosy delivers exceptional PEA results for Rincon Project" dated 28

November 2018, available atwww.argosyminerals.com.au andwww.asx.com.Argosy confirms that it is not aware of any new information or data that materially affects the information included in the Announcement and, in the case of the Production Target, Mineral Resources or Ore Reserves contained in the Announcement, that all material assumptions and technical parameters underpinning the estimates in the PEA announcement continue to apply and have not materially changed. Argosy confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the PEA announcement.

Reference to Previous ASX Releases:

This document refers to the following previous ASX releases:

28th Nov 2018 - Argosy delivers exceptional PEA results for Rincon Project

11th Jan 2021 - Rincon Project JORC Exploration Target

8th Feb 2021 - $30M Placement to Fund 2,000tpa Production

10th Feb 2021 - Clarifying Announcement

ABOUT ARGOSY MINERALS LIMITED

Argosy Minerals Limited (ASX: AGY) is an Australian company with a current 77.5% (and ultimate 90%) interest in the Rincon Lithium Project in Salta Province, Argentina and a 100% interest in the Tonopah Lithium Project in Nevada, USA.

Page 5 of 6

Argosy Minerals Limited

ACN 073 391 189

Level 2, 22 Mount Street, Perth, WA 6000

PO Box 7054, Cloisters Square, Perth, WA 6850

Ph: [phone] Fax: [phone]