Latin Resources : New Drilling Results - Salinas Lithium Project

LATIN RESOURCES LIMITED ACN: 131 405 144

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

P [phone]

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

11 April 2022

3.07% Li2O

NEW RESULTS CONFIRM HIGH-GRADE CONTINUITY

AND INCREASING THICKNESS OF PEGMATITES

DRILLING UPDATE - SALINAS LITHIUM PROJECT

HIGHLIGHTS

• • Results received from the latest two diamond drill holes at the Salinas Lithium Project have confirmed the continuity of the previously reported high-grade lithium pegmatites, and upgraded the project through now confirming the thickening of the logged pegmatites to the south.

• • More outstanding assay results show further high-grade lithium in pegmatites, with a peak of 2.0m @ 3.07% Li2O. All results remain open along strike and down dip.

• • Intersections include:

  • ○ SADD004: 17.38m @ 1.46% Li2O from 119.80m

    Including 10.20m @ 2.05% Li2O from 120.95m Including: 3.05m @ 2.26% Li2O from 120.95m and: 2.00m @ 3.07% Li2O from 127.00m

  • ○ SADD003: 17.05m @ 0.95% Li2O from 65.65m

    Including 4.00m @ 1.96% Li2O from 69.65m and: 5.15m @ 1.31% Li2O from 98.35m Including: 1.90m @ 2.13% Li2O from 98.35m

• • Assay results continue to show consistent down hole and down dip grade profiles, which is now demonstrated across the first two wide spaced drill sections.

• • Drilling of SADD011, approximately 350m to the north of drilling reported above, has confirmed the continuation of spodumene bearing pegmatites over a strike extent approaching one kilometre. This positive result indicates a possible link of a mineralised system to the south target, expanding the strike considerably. Planning for additional drill testing is being carried out to test this middle zone.

• • These further very positive assay results provide the Company the confidence to secure additional drilling rigs in order to fast-track mineral resource definition drilling, of what it believes could be a significant lithium occurrence.

Latin Resources Limited (ASX: LRS) ("Latin" or "the Company") is very pleased to announce that the latest assay results from drilling at the Salinas Lithium Project in Brazil, continue to confirm high-grade lithium with a peak grade of 2.0m @ 3.07% Li2O returned in hole SADD0041. These continued very positive results from the Salinas Lithium Project in Brazil provide Latin with the confidence to expand the drilling team to facilitate the fast tracking of systematic mineral resource definition drilling.

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

Hole ID	From (m)	To (m)	Interval (m)	Li2O (%)	Comment
SADD003	65.65	82.70	17.05	0.95	Peg_1
Including:	69.65	73.65	4.00	1.96	Peg_1
SADD003	98.35	103.50	5.15	1.31	Peg_2
Including:	98.35	100.25	1.90	2.13	Peg_2
SADD004	107.20	111.50	4.30	0.64	Peg_1
Including:	110.40	111.50	1.10	1.22	Peg_1
SADD004	119.80	137.18	17.38	1.46	Peg_2
Including:	120.95	131.15	10.20	2.05	Peg_2
Including:	120.95	124.00	3.05	2.26	Peg_2
and:	127.0	128.0	2.00	3.07	Peg_2

Table 1: Selected significant lithium (>0.4% Li2O) pegmatite intersections from Salinas Lithium Project diamond drilling. Refer to Appendix 1, Table 4 for full assay results

Latin Resources' Managing Director, Chris Gale, commented:

"These new assay results from the latest two holes drilled in the South Target Area of the Salinas Lithium Project, are once again extremely pleasing. We have now confirmed our initial observations that the logged lithium bearing pegmatites are increasing in thickness as we move south, while maintaining the very high-grades seen in the first two holes.

"We are also very excited to have intersected fresh spodumene in hole SADD0011, which is quite a way out to the north of our previous drilling in what appears to in fact be a continuation of the mineralised system . This new evidence of extension in strike length of the spodumene pegmatites coupled with the confirmation of continuing high-grades in our early drilling, further enhances our belief that we are on the verge of what could be a major new discovery. We have now confirmed spodumene bearing pegmatites over a continuous strike length approaching one kilometre.

"As we announced last week, we have expanded out tenement holding in the area to cover another known high-grade lithium outcropping pegmatite. This new area will become our second frontline in the area, as we move to fast-track mineral resource definition with infill and step-out drilling at our initial prospect; and in parallel commence drilling on our new Monte Alto prospect to the east.

"With more assay results to come from holes SADD005 and SADD006, the strong evidence of a northern extension of the spodumene pegmatite system, and the commencement of drilling on a second working front at Monte Alto, it is an extremely exciting time for the company. Expect more to come over the next few weeks."

Figure 1: Green and light pink-purple spodumene crystals in drill core from SADD006 (assay results pending)

Results received from sampling of diamond drill holes SADD003 and SADD004 (Figure 2), have confirmed previously reported observations from drill core logging, with a close correlation to the estimated spodumene abundances2. Grade correlations down hole and between the two main lithium bearing pegmatites (Peg_1 and Peg_2) continue to demonstrate continuity of the mineralisation along strike and down dip, with the emerging pegmatite swarm remaining open in all directions

(Figure 2 and Figure 3).

Figure 2: Bananal Valley "Southern Target Area" drill Collar plan showing significant intersections received to date3

• 2 Refer to ASX announcements dated 16 March 2022.

• 3 Refer to ASX announcements dated 30 March 2022.

Figure 3: Oblique drill section B - B' showing significant intersections (see Figure 2 for section location)

Drilling of the first hole into a central target between the south and extreme north targets SADD011 (Figure 5), has confirmed a very possible continuation with the spodumene bearing pegmatite system of the south target. While the intersected pegmatites in this northern area are thinner than these intersected in the south, significant spodumene has been logged (Table 2).

Figure 4: Green spodumene associated to quartz and some feldspar and mica at 62.5m depth in SADD011

Hole ID	From (m)	To (m)	Int (m)	Description	Visually Estimated Spodumene %
SADD011	48.90	51.95	3.05	Coarse grained pegmatite with sparse fresh elongate light green spodumene crystals.	10-15%
SADD011	60.85	63.95	3.10	Coarse grained pegmatite with abundant fresh elongate light green/ white spodumene crystals.	15-20%
SADD011	105.75	108.00	2.25	Coarse grained weathered pegmatite with kaolinized spodumene crystals.	0-5%

Table 2: Visual estimation of spodumene mineralisation in hole SADD011

Planning of additional holes will be undertaken to test this central zone between holes SADD001/SADD002 and SADD011 (Figure 5), as a part of the proposed detailed infill and extension resource definition drilling program designed to fast track the declaration of a maiden JORC mineral resource for the project.

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.

Figure 5: Salinas Lithium Project - location of drill collars4 and planned Phase I and Phase II drill sites and spodumene sampling results5

4 Note: due to logistical rescheduling on site of the planned drill order, the location of SADD011 which was previously reported in ASX announcement dated 30 March 2022 as "in Progress", has been updated.

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