Latin Resources : Drilling confirms thick Spodumene Bearing Pegmatites, Brazil

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LATIN RESOURCES LIMITED

ACN: 131 405 144

Unit 3, 32 Harrogate Street,

West Leederville, WA 6007

P [phone]

E [e-mail]

W www.latinresources.com.au

16 March 2022

DRILLING CONFIRMS THICK SPODUMENE BEARING

PEGMATITES, OPEN IN ALL DIRECTIONS

HIGHLIGHTS

• Six diamond drill holes completed, on four sections covering 500m of strike, with all holes intersecting multiple spodumene bearing pegmatites.
• Cumulative pegmatite intersections of up to 36.1m true thickness encountered in one hole, with individual pegmatites up to 21.1m true thickness. All pegmatites are open along strike and down dip.
• Samples for the first four holes have been dispatched to the laboratory for analysis, with the first assay results anticipated in the next few weeks.
• Drilling focus has moved approximately 500m to the north to drill Priority 1 drill holes in the northern target area.

Latin Resources Limited (ASX: LRS) ("Latin" or "the Company") is pleased to provide an update on the maiden diamond drilling campaign at the Company's Salinas Lithium Project in Brazil ("Salinas" or the "Project"), where drilling continues to intersect wide, shallow dipping spodumene rich pegmatites (Figure 1).

Drilling of the initial six Priority 1 drill holes across four drill sections in the southern target area (Figure 2) is nearing completion, with all six holes intersecting a series of stacked spodumene pegmatites. Logging has confirmed that the individual pegmatites range in true thickness to a maximum of 21.1m, with a cumulative intersection of over 36m in hole SADD004 (Figure 2, Table 1).

Figure 1: SADD005 - large, fresh green spodumene crystals in drill

core

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Figure 2: Bananal Valley Project - completed drill collars and planned Phase I and Phase II drill sites and

spodumene sampling results1

Figure 3: Oblique drill section B - B' SADD004 showing a significant thickening of the pegmatites along strike

and down dip (Table 1) (see Figure 2 for section location)

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Figure 4: Bananal Valley Project - Latin Resources Senior Geologist with spodumene rich pegmatite core, and

core logging on site

Drilling has continued to show 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 the first four drill holes is now complete with samples dispatched to the laboratory for analysis. Initial assay results from holes SADD001 and SADD002 are anticipated in the next few weeks.

With the completion of the final Priority 1 drill hole in the southern target area anticipated this week, drilling will move focus to the next target area some 500m to the north (Figure 2). Initial mapping and outcrop sampling has confirmed the extensive pegmatites encountered in the diamond drilling to the south, extend into and through this northern target area. An initial five Priority 1 drill holes on three drill sections are planned.

Latin Resources' Managing Director, Chris Gale, commented:

"The whole team at Latin Resources is ecstatic about the continual positive drilling results from our Salinas Lithium Project. The growing thickness along with the rich spodumene pegmatites is further indication that Latin may have a very compelling lithium project on its books.

"We look forward to receiving the assay results from these spodumene pegmatites in the next few weeks. The companies market cap is approximately $60m, and much lower than our lithium peers, which we expect offers strong potential for re-rating as positive assay results confirm the strength of the Salinas Project."

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TABLE 2

VISUAL ESTIMATES OF SPODUMENE MINERALISATION

																	Visually
only		Hole			From			To			Int			Description			Estimated
	ID			(m)			(m)			(m)					Spodumene
																	%
	SADD001	23.45		26.90		3.45			Coarse grained pegmatite with partially weathered	5-7%
														elongate light green spodumene crystals.
	SADD001	83.86		89.10		5.24			Coarse grained pegmatite with abundant fresh	18-20%
														elongate light green spodumene crystals.
	SADD001	94.28		95.56		1.28			Coarse grained pegmatite with sparse fresh elongate	<5%
														light green spodumene crystals.
use
SADD002	48.55		54.94		6.39			Coarse grained pegmatite with abundant fresh	5-10%
													elongate light green spodumene crystals.
													5-7%
	SADD002	110.23	119.42	9.19			Coarse grained pegmatite with abundant fresh	15-20%
														elongate light green spodumene crystals.
	SADD002	144.00	146.37	2.37			Coarse grained pegmatite with abundant fresh	<5%
														elongate light green spodumene crystals.
	SADD003	11.50		13.77		2.32			Coarse grained pegmatite with partially weathered
personal														elongate light green spodumene crystals.
SADD003	65.60		81.77		16.17		Coarse grained pegmatite with abundant fresh	10-15%
													elongate light green spodumene crystals.
	SADD003	81.77		84.20		2.43			Coarse grained pegmatite with elongate light green
														spodumene crystals, with intercalated schistose host	<5%
														rock.
	SADD003	95.90		103.48		7.58			Coarse grained pegmatite with abundant fresh	10-15%
														elongate light green spodumene crystals.
	SADD004	78.50		89.50		11.00			Coarse grained pegmatite with abundant fresh	10-15%
														elongate light green spodumene crystals.
	SADD004	106.1		112.6		6.50			Coarse grained pegmatite with partially weathered	<5%
														elongate light green spodumene crystals.
	SADD004	119.8		137.18		17.38			Coarse grained pegmatite with abundant fresh	15-20%
														elongate light green spodumene crystals.
	SADD004	141.15	142.35		1.20			Coarse grained pegmatite with abundant fresh	10-15%
														elongate light green spodumene crystals.
	SADD005	125.42	129.65		4.23			Coarse grained pegmatite with abundant fresh	10-15%
														elongate light green spodumene crystals.
For
SADD005	159.10	165.45		6.35			Coarse grained pegmatite with abundant fresh	10-15%
													elongate light green spodumene crystals.
	SADD006	169.84	182.20		12.36			Coarse grained pegmatite with sparse fresh elongate	<5%
														light green spodumene crystals.
	SADD006	208.80	229.50		21.1			Coarse grained pegmatite with abundant fresh	15-20%
														elongate light green spodumene crystals.
	Cautionary note:

The Company stresses that the reported visually estimated percentages in Table 2 above, relate specifically to the abundance of spodumene crystals logged in the drill core and is not estimated lithium grade for the interval.

In relation to the disclosure of visual results, the Company cautions that visual estimates of mineral abundance should never be considered a proxy or substitute for a laboratory analysis. Assay results are required to determine the widths and grade of the visual mineralisation in preliminary geological logging. The Company will update the market when laboratory results become available.

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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 CAD$1.3 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% Li2O1. Sigma is focused on 10 high-gradehard-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 Report2the 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, 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 opportunities this may present in the future for battery grade lithium hydroxide production.

Figure 5: Salinas Lithium Project location, Jequitinhonha Valley district of Minas Gerais Province of eastern

Brazil

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

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