Galan Lithium : Positive Anomalous Soil Assays at Greenbushes South

For personal use only

ASX ANNOUNCEMENT

24 March 2022

Positive Anomalous Soil Assays Delineate Donnybrook-

Bridgetown Shear Zone

______________________________________________________________

Highlights:

• Pathfinder element concentrations from soil samples and rock chips indicate prospective targets near the trace of the mineralising Donnybrook-Bridgetown Shear Zone.
• Completion of 7,622 km of airborne magnetic and radiometric geophysics flown at an average height of 55 m for high-resolution data.
• Processing of geophysical data underway by Thomson Airborne, and soon to be interpreted by Southern Geoscience Consultants
• Geochemical survey results received for 425 soil samples and 14 rock chip samples.
• Anomalous pathfinder elements in lags derived from the adjacent pending tenement indicate potential targets.
• Galan has submitted a final revision of its Conservation Management Plans for further exploration activities within its pending Greenbushes applications.
• New Conservation Management Plan for exploration activities for its 100% owned Donnelly tenement.

Galan Lithium Limited (ASX: GLN) (Galan or the Company) has recently completed its first exploration sampling and mapping work at the Greenbushes South Lithium project (joint venture between Galan and Lithium Australia NL (LIT) (20%)).

The Company has received the results of its completed geochemical survey which show 425 soil samples and 14 rock chip samples. These samples were taken at the northern edge of Galan's E70/4790 tenement and at the mapped location of the Donnybrook-Bridgetown Shear Zone (DBSZ). The DBSZ a primarily associated with syntectonic emplacement of the lithium-bearing pegmatites of the Greenbushes mine to the north.

_________________________________________________________________________________

Level 3, 30 Richardson Street, West Perth, WA 6005	PO Box 396, West Perth, WA, 6872
Ph. [phone]	Fax. [phone]
www.galanlithium.com.au	ABN: 87 149 349 646

For personal use only

The airborne geophysical survey campaign was conducted by Thomson Airborne, was recently completed and is now in the data processing phase. After the raw data has been processed by Thomson it will be handed off to Southern Geoscience Consultants, who have been contracted to interpret results for potential lithium targets. A total of 7,622 km was flown at heights between 45 and 65 m. The geophysical survey acquired high-resolution magnetics and radiometrics above all Galan tenements (Fig. 4), with the Company eagerly awaiting to the high-resolution data to improve targeting of the DBSZ and target generation to help identify lithium-bearing pegmatites

Pathfinder elements such as arsenic (As, Fig. 1) and antimony (Sb, Fig. 2) show elevated levels in soil samples near the trace of the DBSZ. When combined with historical data in the area, this indicates the strong potential for pegmatite targets within Galan's pending applications to the north. Other pathfinder elements such as tin (Sn, Fig. 3) and rubidium show a broad lag (transported) signal east of the DBSZ.

The Company's Managing Director, JP Vargas de la Vega said " We are excited with the prospectivity at our Greenbushes South Lithium project and are encouraged with the new soil sample results that continue to indicate that the tracing elements that are found within the Donnybrook sheer zone may well host lithium pegmatites the same as in the Greenbushes mine bordering to the north of our tenements.

Galan looks forward to further strengthening its geological data and knowledge within its tenements as soon as the report from our consultants is completed. The results will formulate our next exploration phase when we will be able to generate and prioritise specific exploration targets in the area".

Galan has also submitted its final revision of its Conservation Management Plan (CMP) for its planned exploration activities on its pending applications (E70/4889, P70/1702 & P70/1703). The CMP outlines the proposed exploration and prospecting activities, management, and communications for work within the Hester State Forest (30) / Proposed Nature Reserve (154). Additionally, Galan has submitted a new CMP for its 100% owned pending tenement (E70/4629) in the Donnelly State Forest. Exploration within the tenement has been the focus for pegmatite-derived mineralisation, notably tin and tantalum, since the early 1900s. The more recent exploration targeting base metal mineralisation and lithium-tin-tantalum pegmatites. A re-interpretation of historical geophysical data acquired by Galan indicates that the DBSZ extends into E70/4629 and may be responsible for the emplacement of pegmatites.

About Greenbushes South Lithium Project

In January 2021, Galan entered into a sale and joint venture with Lithium Australia NL (ASX:LIT) for an 80% interest in the Greenbushes South Lithium project, which is located 200 km south of Perth. With an area of 353 km2, the project was originally acquired by LIT due to its proximity to the Greenbushes Lithium Mine ('Greenbushes'), which commences 3km south of the current Greenbushes open pit mining operations.

Greenbushes is currently the largest hard-rock lithium mine in the world, operated since May 2014 by Talison Lithium Pty Ltd, an incorporated joint venture between Tianqi Lithium Corporation (51%) and Albemarle Corporation (49%). Greenbushes produces a concentrate of the lithium mineral, spodumene, to feed both China and Western Australian based mineral conversion plants or consumers of spodumene concentrates in Europe, North America and China. In December 2020, Australian mining company IGO Limited signed a deal to acquire a 24.99% stake in Greenbushes from Tianqi Lithium Corporation.

For personal use only

For personal use only

For personal use only