Latin Resources : High-Grade Results from Cloud Nine Halloysite-Kaolin Deposit

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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 January 2022

HIGH‐GRADE RESULTS FROM CLOUD NINE HALLOYSITE‐

KAOLIN DEPOSIT

HIGHLIGHTS:

• The final XRD results from the close spaced drilling, further confirms the continuity of high‐ grade and thickness of the halloysite bearing kaolinised granite, within the Cloud Nine Mineral Resource area. Significant intersections include:

1. NBAC378: 6m @ 24% halloysite from 7m and: 13m @ 18% halloysite from 21m

• o NBAC380: 16m @ 27% halloysite from 14m

  o NBAC382: 6m @ 26% halloysite from 14m Incl: 2m @ 36% halloysite from 16m

  o NBAC383: 18m @ 26% halloysite from 7m Incl: 6m @ 46% halloysite from 17m

• Ongoing analysis of the infill drilling required to update the existing Cloud Nine JORC Mineral Resource Estimate will be completed using the Company's alternate analysis pathway, which is anticipated to significantly improve the results delivery timeframe.
• A specialised drilling contractor has been secured to complete geotechnical drilling and metallurgical drilling at the Cloud Nine Halloysite‐Kaolinite deposit, with drilling scheduled to commence in February.

Latin Resources Limited (ASX: LRS) ("Latin" or "the Company") is pleased to provide an update on the commencement of the 2022 site‐based exploration activities at the Cloud Nine Halloysite‐Kaolin deposit ("Cloud Nine") in Western Australia.

Following a short break of the Christmas and New Year period, field activities at Cloud Nine have now recommenced. The Company is continuing to progress advanced metallurgical, mineral resource and other studies as part of its ongoing evaluation of the deposit, including preparation for a maiden core drilling campaign to collect metallurgical and geotechnical samples.

Latin's Exploration Manager Tony Greenaway commented, "Our field team has been busy back out on site as of last week at Cloud Nine, collecting samples for additional metallurgical test work. We will continue to progress our detailed studies at Cloud Nine over the next quarter, including work on an upgrade to the maiden JORC Inferred Mineral Resource, along with geotechnical and other mining related studies.

"We plan to have drilling rigs back out on site very soon to enable us to collect bulk samples; while in parallel we will also be commencing work on the longer lead time approvals required for development of the deposit, which include conversion of the existing Exploration Licences to Mining Licences and baseline environmental studies."

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CLOUD NINE HALLOYSITE‐KAOLIN DEPOSIT, WESTERN AUSTRALIA

The Company has secured a specialised sonic drilling contractor with experience specific in coring kaolinised granite. A ten‐hole drilling program has been designed to provide sufficient core samples to conduct bulk density test work on a number of representative units across Cloud Nine, as well as providing additional core samples for ongoing detailed metallurgical test work.

The final halloysite results via XRD analysis have been returned from the close spaced geostatistical cross drilling at the Company's 100% owned Cloud Nine Halloysite‐Kaolin Deposit near Merredin, Western Australia (Appendix 1). Drilling results once again, continue to demonstrate the consistent nature of the halloysite bearing material within the area tested at Cloud Nine and reinforces its position as a globally significant halloysite deposit.

The Company has previously reported a JORC (2012) Inferred Mineral Resource of 207Mt of kaolinised granite at Cloud Nine, which includes separate domains containing 123Mt of bright‐white kaolinite and 84Mt of kaolin/halloysite‐bearing material1.

Figure 1: Proposed geotechnical drilling program within the Cloud Nine JORC Inferred Mineral Resource Area,

Western Australia

1 Refer ASX Announcement dated 31 May 2021

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Final Halloysite Results from XRD Analysis

The last 13 drillholes to be analysed from the close‐spaced drilling, have returned consistent halloysite grades and thicknesses, further confirming the high quality of the area tested. The recent results also confirmed the continued presence of two discreet zone of halloysite bearing material (Figure 2) within the kaolinised granite clays.

Exceptionally high‐grade halloysite intersections, including 36% and 46% halloysite, were encountered within the broader zones.

Significant results received from the southern portion of the Geostatistical Cross include:

• NBAC378: 6m @ 24% halloysite from 7m and 13m @ 18% halloysite from 21m
• NBAC380: 16m @ 27% halloysite from 14m
• NBAC381: 12m @16% halloysite from 19m Incl: 2m @ 28% halloysite from 21m
• NBAC382: 6m @ 26% halloysite from 14m Incl: 2m @ 36% halloysite from 16m
• NBAC383: 18m @ 26% halloysite from 7m Incl: 6m @ 46% halloysite from 17m
• NBAC388: 20m @ 13% halloysite from 8m
• NBAC389: 16m @ 12% halloysite from 8m

Full detail including geochemical results used to calculate the significant intersections for these most recent results are contained in Appendix 2, Table 3.

Figure 2: Updated Halloysite results for the southern portion of the geostatistical cross drilling, within Cloud

Nine

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Geotechnical Drilling for Bulk Density and Metallurgical Test Work Samples

A specialist drilling contractor has been engaged to complete approximately 400 metres of drilling using the sonic drilling technique, at representative locations within the Cloud Nine Mineral Resource area. The sonic drilling system has demonstrated elsewhere that it can provide competent core samples of kaolinised granite like that found within Cloud Nine.

The core samples will be used to determine, a deposit specific, bulk density for the geological domains used in the current JORC Mineral Resource Estimate at Cloud Nine, along with providing additional samples material for the Company's ongoing metallurgical test work.

Drilling is scheduled to commence in late February 2022.

Halloysite Research Update

Bulk samples required for studies by the Company's research partner, CRC CARE Pty Ltd ("CRC CARE") are currently being collected from drill samples on site. This will enable commencement of the highly specialised test work as part of the Company's collaboration with CRC CARE, in an effort to develop critical methane and other Green House Gas (GHG) capture technology.

This collaboration between Latin and CRC CARE is a significant investment by the Company.

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

For further information please contact:
Chris Gale	Andrew Rowell
Executive Director	Senior Communications Advisor
Latin Resources Limited	White Noise Communications
[phone]	08 6374 2907

[e-mail]│ www.latinresources.com.au

About Latin Resources

Latin Resources Limited (ASX: LRS) is an Australian‐based mineral exploration company with several mineral resource projects in Latin America and Australia. The Australian projects include the Yarara gold project in the NSW Lachlan Fold belt, Cloud Nine Halloysite‐Kaolin Deposit near Merredin, WA, and the Big Grey Project in the Paterson region of WA.

The Company recently signed a JV agreement with the Argentinian company Integra Capital to fund the next phase of exploration on its lithium pegmatite projects in Catamarca, Argentina.

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Forward‐Looking Statement

This ASX announcement may include forward‐looking statements. These forward‐looking statements are not historical facts but rather are based on Latin Resources Ltd.'s current expectations, estimates and assumptions about the industry in which Latin Resources Ltd operates, and beliefs and assumptions regarding Latin Resources Ltd.'s future performance. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", "potential" and similar expressions are intended to identify forward‐looking statements. Forward‐looking statements are only predictions and are not guaranteed, and they are subject to known and unknown risks, uncertainties and assumptions, some of which are outside the control of Latin Resources Ltd. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward‐looking statements or other forecast. Actual values, results or events may be materially different to those expressed or implied in this ASX announcement. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward‐looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Latin Resources Ltd does not undertake any obligation to update or revise any information or any of the forward‐looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward looking statement is based.

Competent Person Statement

The information in this ASX release that relates to Exploration Results is based on information compiled by Mr Anthony Greenaway, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Greenaway is a full‐time employee of Latin Resources Ltd and has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the exploration activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australian Code for Reporting of Mineral Resources and Ore Reserves". Mr Greenaway consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

The information in this ASX release that relates to Mineral Resources is based on information compiled under the supervision of Mr Louis Fourie. Mr Fourie is a licenced Professional Geoscientist registered with APEGS (Association of Professional Engineers and Geoscientists of Saskatchewan) in the Province of Saskatchewan, a 'Recognised Professional Organisation' (RPO) included in a list that is posted on the ASX website from time to time. Mr Fourie has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity of resource estimation to qualify as a Competent Person as defined in the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Latin confirms it is not aware of any new information or data that materially affects the information included in the market announcement. Latin confirms that the form and context in which the Competent Person's findings are presented have not been materially modified.

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