Galan Lithium Limited provided an update on the well pumping test and exploration programs 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. The pumping tests are an integral part of the current DFS for the HMW Project. Well pump testing program delivering excellent results: Pata Pila: The 30-day long term pumping test at the first Pata Pila well (PPB-01-21) was successfully completed at the end of July.

The sustained pumping rates were solid, ranging between 17 and 20 L/s. More than 150 brine samples were collected during this testing phase, with laboratory analysis returning an average Li grade of 874 mg/L (from a range of 821 to 927 mg /L). The hydraulic testing of the second pumping well at Pata Pila (PPB-02-22) is set to commence shortly. This well is located approximately 800m upgradient in the Pata Pila alluvial fan.

Rana de Sal: The first pumping well at Rana de Sal (PBRS-01-21) is currently under hydraulic testing. Following an initial step test, a 72-hour constant rate and recovery test was recently performed. During this test, the pumping rate was stabilised at 20 L/s and drawdown was measured in three monitoring wells.

Eighteen (18) brine samples were also collected during this testing phase, with laboratory analysis returning outstanding Li grades ranging between 932 and 957 mg/L, with a mean of 945 mg/L. A long term (30-day) pumping test is set to commence shortly on PBRS-01-21, with an expected initial flow rate in the range of 22 to 27 L/s. Pumping tests are expected to conclude in early October 2022. All data obtained during the testing campaign is being analysed by SRK as part of the development of the Resource and Reserve model for the HMW Project. Exploration drillholes at Rana de Sal intercept thick sedimentary unit: Two diamond drill (DDH) exploration wells were recently completed at Rana de Sal, RS-02-22 and RS-03-22.

Both exploration wells are upgradient of PBRS-01-21 where pumping tests are being conducted. Both holes intersected thick sedimentary facies before hitting basement at 270 and 390 metres below surface, respectively. The boreholes were completed with a 2-inch slotted PVC, and brine samples were recovered using the airlift method (conducted over 72 hours).

Preliminary Lithium grades returned from laboratory analysis ranged between 923 and 1,035 mg/L, consistent with the high extracted grades at pumping well PBRS-01-21. Extended exploration at Casa del Inca and Del Condor tenements: Exploration drilling continues at the HMW Project with the next drillhole (CI-01-22) located at Casa del Inca. This drillhole is designed to validate the potential hydrogeological extension of the brine reservoir between the Pata Pila alluvial fan and salar margin below recent lava flows in Casa del Inca, as suggested by surface resistivity surveys.

Drilling at CI-01-22 shows a fractured basalt unit overlying unconsolidated sands and gravels. The drillhole was completed to a depth of 155m. Following the finalization of CI-01-22, drilling will commence in del Condor (DC-01-22) with the aim of improving certainty in the area connecting Rana de Sal and Pata Pila for the updated resource.