Latin Resources : Drilling continues to show high-grade Lithium - Salinas

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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

27 July 2022

COLINA LITHIUM UPDATE

RESOURCE DRILLING CONTINUES TO SHOW CONSISTENT

HIGH‐GRADE LITHIUM UP TO 4.22% Li2O

HIGHLIGHTS

• Resource definition diamond drilling at Colina progressing well, approximately one quarter of planned 100 drill holes completed, total of approximately 5,890m.
• The program continues to ramp up to accelerate the maiden resource estimate, with a fourth diamond drill rig on site and drilling.
• Latest assay results continue to show strong down dip continuity of both grade and thickness of the logged pegmatites, peak grade of 4.22% lithium. Results include:

SADD017:

8.87m @ 1.09% Li2O from 137.00m

Inc: 1.00m @ 2.02% Li2O from 137.00m

13.86m @ 1.33% Li2O from 173.29m

Inc: 7.00m @ 1.93% Li2O from 178.00m

SADD018:

9.16m @ 1.68% Li2O from 133.84m

Inc: 6.00m @ 2.16% Li2O from 135.0m

Inc: 1.00m @ 3.52% Li2O from 137.00m

16.00m @ 1.29% Li2O from 189.00m

Inc: 1.00m @ 3.06% Li2O from 190.00m

and: 1.00m @ 4.22% Li2O from 196.00m

SADD019:		11.96m	@ 1.64% Li2O from 206.24m
	Inc:	8.20m	@ 1.82% Li2O from 210.00m
SADD020:		2.35m	@ 3.57% Li2O from 120.33m
		7.58m	@ 1.45% Li2O from 143.77m
	Inc:	1.60m	@ 2.45% Li2O from 144.40m

• Regional mapping teams recommenced field work in the area immediately to the west of Colina targeting a parallel pegmatite system; and further to the south‐east at the Salinas South tenement area, where previous work identified a 'lithium corridor' over a distance of 4.0km.

Latin Resources Limited (ASX: LRS) ("Latin" or "the Company") is pleased to provide the following update on resource definition drilling and other studies currently ongoing at the Company's 100% owned high‐grade Colina Lithium Prospect ("Colina") (Appendix 1 and Figure 1).

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Latin Resources' Exploration Manager, Tony Greenaway, commented:

"We are very pleased with the progress being made on site in Brazil, with activity on multiple fronts including the systematic resource definition diamond drilling, and our latest results continuing to show excellent high‐grade lithium intersections and continuity of the pegmatites along strike and down dip.

"We now have our fourth drill rig operational on site, so we are up and running at full speed. We have a first‐class drilling crew on site, who are maintaining high drilling production rates, and more importantly, excellent core quality coming out of the ground. With around one quarter of the holes now completed, we are well on track to deliver our maiden JORC Resource Estimate by the end of CY22.

"I am also pleased to have our regional teams out mapping to the west of Colina and at Salinas South where we know we have more outcropping pegmatites. Our plan is to work‐up these areas to drill‐ ready status, and then in the near term commence drilling to begin testing these new areas."

Figure 1: Colina Prospect area showing completed drill collars1 and significant intersections received to date

1 Refer to Appendix 1 Table 2 for drill collar details

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Colina Prospect - Resource Definition Drilling

Latest assay results from diamond drilling at the Company's 100% owned Colina Prospect, part of the broader Salinas Lithium Project in Brazil, continue to confirm the continuity of grade and thickness of the high‐grade Colina pegmatites at depth. Latest results include2:

SADD017:	8.87m	@ 1.09% Li2O from 137.00m
	Inc: 1.00m	@ 2.02% Li2O from 137.00m
	13.86m	@ 1.33% Li2O from 173.29m
	Inc: 7.00m	@ 1.93% Li2O from 178.00m
SADD018:	9.16m	@ 1.68% Li2O from 133.84m
	Inc: 6.00m	@ 2.16% Li2O from 135.0m
	Inc: 1.00m	@ 3.52% Li2O from 137.00m

16.00m @ 1.29% Li2O from 189.00m

Inc: 1.00m @ 3.06% Li2O from 190.00m

and: 1.00m @ 4.22% Li2O from 196.00m

SADD019:		11.96m	@ 1.64% Li2O from 206.24m
	Inc:	8.20m	@ 1.82% Li2O from 210.00m
SADD020:		2.35m	@ 3.57% Li2O from 120.33m
		7.58m	@ 1.45% Li2O from 143.77m
	Inc:	1.60m	@ 2.45% Li2O from 144.40m

Figure 2: Drill section A showing completed and planned drill holes, and logged pegmatites and new assay

results for hole SADD018

2 Refer to Appendix 1 Table 3 for a full details of significant intersections

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The Company has completed 29 holes for a total of approximately 5,890m of the estimated 25,000m resource definition drilling program. With the arrival of the fourth diamond drill rig on site (Figure 3), the resource definition drilling campaign is at full speed and on track to complete a maiden JORC Mineral Resource Estimate (MRE), for the Colina Prospect by the end of the year.

Figure 3: New diamond drilling rig on site at Colina Prospect lay‐down area

In addition to the current resource definition drilling campaign, Latin has recommenced regional mapping activities focused on the area immediately to the west of Colina resource definition drilling. Preliminary work completed in this area during the previous mapping season identified highly weathered west dipping pegmatites. The new field mapping program will focus on better defining the known pegmatite occurrences and extend mapping coverage further out to the west looking for additional parallel systems.

The Company controls a significant tenement package in the area, with the prospective stratigraphy extending across strike approximately 2.1km to the west and 1.0km to the south of Colina.

Latin will send a separate regional exploration team to the Salinas South tenement area located approximately 17.0km to the south‐west of Colina (Figure 6, Appendix 1), where the previous seasons' exploration work identified a 'lithium corridor' extending across 4.0km. Soil sampling completed toward the end of the previous campaign highlighted an area of anomalous lithium in the northeast of the tenement (Figure 4). New mapping will focus in this area to refine the initial drill targets as well as extending geochemical sampling along the full extent of the mapped prospective corridor.

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Figure 4: Salinas South tenement package, highlighting the mapped 'Lithium Corridor' and initial target areas

Monte Alto Prospect

Results from drilling of nine holes (Figure 5, Appendix 1 Table 4) at the Monte Alto Prospect have now been returned. While logging of these holes indicated that the pegmatites mapped at surface were somewhat continuous at depth, no material spodumene occurrences were logged in the core. This outcome has led to the interpretation that the Monte Alto pegmatites may represent a zoned heterogeneous pegmatite; an interpretation that is supported by the presence of some exotic minerals.

Assay results from sampling did not return any significant results (Appendix 1 Table 5), consistent with the lack of spodumene logged in the drill core.

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