Latin Resources : Assay results confirm high-grade lithium pegmatites - Brazil

LATIN RESOURCES LIMITED ACN: 131 405 144

Unit 3, 32 Harrogate Street, West Leederville, WA 6007

P [phone]

[e-mail] Wwww.latinresources.com.au

30 March 2022

3.22% Li2O.

ASSAY RESULTS CONFIRM HIGH-GRADE LITHIUM

PEGMATITES AT SALINAS PROJECT, BRAZIL

HIGHLIGHTS

• • First assay results from the initial two drill holes completed at the Southern Target area of the Salinas Lithium Project in Brazil have confirmed a potential new high-grade lithium discovery.

• • Excellent assay results with the presence of high-grade lithium in pegmatites, with a peak individual grade of 3.22% Li2O.

• • First major intersections include:

  • ○ SADD001: 4.31m @ 2.22% Li2O, from 83.82m

    Including: 1.13m @ 2.85% Li2O, from 87.0m

  • ○ SADD002: 8.13m @ 2.00% Li2O from 111.3m

    Including: 1.0m @ 3.22% Li2O from 112.3m and: 3.0m @ 2.20% Li2O from 115.3m

• • Assay results show consistent down-hole grade profiles in both holes, with a strong grade correlation down dip between the individual pegmatites in each hole.

• • Logging of all holes drilled to date indicates the consistent development of the separate pegmatites across a strike length of 500m, which remains open along strike.

• • The pegmatites are generally increasing in thickness along strike to the south, where assay results from the next four holes are pending.

• • The positive assay results now increase the Company's growing confidence that it has discovered a significant lithium occurrence.

• • The drilling will now be focused on the Southern Target area where the pegmatites are thicker and remain open to the south, where the Company will commence infill and step-out drilling.

Latin Resources Limited (ASX: LRS) ("Latin" or "the Company") is pleased to announce that the first assay results from drilling at the Salinas Lithium Project in Brazil ("Salinas Lithium Project"), have confirmed that the previously reported spodumene rich pegmatites contain high-grade lithium with a peak grade of 3.22% Li2O returned from one sample1. These positive assay results at the Salinas Lithium Project in Brazil are growing Latin's confidence of a potential new, high-grade lithium discovery. Assay results from the sampled pegmatite zones in the first two diamond holes (SADD001 and SADD002) (Figure 1 and Figure 2), show that the two main logged pegmatites (Figure 2, Peg_1 and Peg_2), both contain significant lithium, with Peg_2 showing a consistent higher grade in both holes (Table 1)1.

1 Refer to Appendix 1, Table 3 for full assay results.

Hole ID	From (m)	To (m)	Interval (m)	Li2O (%)	Comment
SADD001	24.22	26.22	2.00	0.53	Peg_1
SADD001	83.82	88.13	4.31	2.22	Peg_2
SADD002	48.50	54.95	6.45	0.79	Peg_1
SADD002	111.3	119.43	8.13	2.00	Peg_2
Including:	112.3	113.3	1.00	3.22

Table 1: Selected significant lithium (>0.4% Li2O) pegmatite intersections from Salinas Lithium Project diamond drilling. Refer to Appendix 1, Table 3 for full assay results.

Figure 1: Salinas Lithium Project - location of drill collars and planned Phase I and Phase II drill sites and spodumene sampling results2.

Latin Resources' Managing Director, Chris Gale, commented:

"These assay results from the first two holes drilled in the South Target area of the Salinas Lithium Project, are extremely pleasing, confirming that the intersected pegmatites contain significant high-grade lithium. These results continue to give us confidence that we may be onto a potentially major new lithium discovery in one of the best mining jurisdictions in the world.

"Lithium grades over two percent are not common, with most operations in Australia running between one to one and a half percent lithium. Our pegmatite Peg_2 is running grades of around two percent lithium, with a peak of over three percent over one meter, which are very high.

"The team on the ground will now focus the drilling on these much thicker pegmatites to the south to infill our existing sections and extend our drill coverage to the southwest where the pegmatites remain open.

2 Refer to ASX announcements dated 26 October 2021 and 16 February 2022.

"These assay results are only for the first two holes, we have another four holes that had thicker intersections with abundant spodumene as well. We are eagerly awaiting further assay results for these holes, which we expect to come through over the next few weeks."

Figure 2: Oblique drill section A - A' showing significant intersections (see Figure 2 for section location)1.

Drilling on all five sections in the Southern Target area has demonstrated strong continuity of the logged pegmatites both along strike and down dip, with the emerging pegmatite swarm remaining open in all directions. Detailed logging, core cutting and sampling of all drill holes from this area is now complete with assay results from the next holes SADD003 and SADD004 anticipated within the next few weeks.

Drilling of the initial six priority Phase 1 drill holes across four drill sections in the Southern Target area (Figure 1) has shown all six holes intersecting a series of stacked spodumene rich pegmatites. Logging has confirmed that the individual pegmatites range in true thickness to a maximum of 21.1m (Peg_2 SADD006), with a clear trend for the pegmatites to increase in thickness to the south.

Drilling of holes SADD008-SADD010 in the Northern Target area (Table 2), has confirmed that the intersected pegmatites are narrower in this direction, suggesting that the system may be closing out to the northeast. All logging and sampling has been completed from these holes, with assay results pending.

The drilling focus has now returned to the Southern Target area containing pegmatites that are significantly thicker and remain open to the south, where the Company will commence infill and step-out drilling. Detailed structural logging and petrological test work on the main pegmatites will be undertaken to assist in developing the detailed 3D model of the emerging pegmatite swarm.

ABOUT LITHIUM IN MINAS GERAIS, BRAZIL

Latin Resources' neighbour Sigma Lithium discovered the Grota do Cirilio lithium deposit in 2017 and is listed on the TSX-V exchange in Toronto. Sigma currently has a market capitalisation of approximately CAD$1.8 billion.

Sigma Lithium Resources (TSXV: SGMA) is the most active lithium explorer in the region with a world-class lithium resource base which currently stands at 45.7Mt @1.38% Li2O3. Sigma is focused on 10 high-grade hard-rock lithium pegmatites, nine of which were past-producing lithium mines, yet have reported over 200 pegmatites within their tenure. Sigma is now in pre-construction of its large-scale lithium concentration commercial production plant in Minas Gerais. Based on the Feasibility Study Report4the Commercial Production Plant will contemplate a capacity of 220,000 tonnes annually of battery-grade "green" lithium concentrate and Sigma will be amongst the lowest-cost producers of lithium concentrate globally.

Whilst not far away from the Salinas Lithium Project, Brazilia company Companhia Brasileira de Lítio (CBL) is actively mining spodumene pegmatites, producing a spodumene concentrate which is then transferred to a chemical plant in Divisa Alegre, Minas Gerais, where it is transformed into industrial grade lithium hydroxide.

Latin Resources is particularly excited by the past results and current operations of SGMA and the activities of CBL and what those results may present in the future for battery grade lithium hydroxide production in the Salinas region. The geographical proximity of Salinas to SGMA is shown in Figure 3 below.

Figure 3: Salinas Lithium Project location, Jequitinhonha Valley district of Minas Gerais Province of eastern

Brazil.

• 3 Refer to SGMA TSX announcement "Sigma Lithium Triples Measured and Indicated Mineral Resources at Grota do Cirilo" - Dated 10.01.2019.

• 4 Refer to SGMA TSX announcement "Sigma Lithium Announces a Positive Feasibility Study with forecast LOM Net Revenue of US$1.4 billion and EBITDA of

US$ 690 million for the high-grade, low-cost Xuxa Deposit" - Dated 01.10.2019.

The Company notes that details of neighbouring projects to the Company's projects are set out for information purposes only and is not an indication of the prospectivity of the geology of the Company's projects.

This Announcement has been authorised for release to ASX by the Board of Latin Resources.

For further information please contact:

Chris Gale	Fiona Marshall
Executive Director	Senior Communications Advisor
Latin Resources Limited	White Noise Communications
[phone]	[phone]
[e-mail]
www.latinresources.com.au
About Latin Resources

Latin Resources Limited (ASX: LRS) is an Australian-based mineral exploration company, with projects in Australia and South America, that is developing mineral projects in commodities that progress global efforts towards Net Zero emissions.

In Latin America the Company focus is on its two Lithium projects, one in the state of Minas Gerais, Brazil and the other, the Catamarca Lithium Project in Argentina in which lithium is highly sought after as critical mineral for electric vehicles and battery storage.

The Australian projects include the Cloud Nine Halloysite-Kaolin Deposit. Cloud Nine Halloysite is being tested by CRC CARE aimed at identifying and refining halloysite usage in emissions reduction, specifically for the reduction in methane emissions from cattle.