Latin Resources : Salinas Lithium Project Update

LATIN RESOURCES LIMITED ACN: 131 405 144

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

P [phone]

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

26 April 2022

THICKEST INTERSECTION RECORDED TO DATE

WITH 21.1M @ 1.2% Li2O

RESULTS CONTINUE TO CONFIRM SPODUMENE PEGMATITE

CONTINUITY, MONTE ALTO DRILLING COMMENCED

HIGHLIGHTS

• • Latest results from diamond drill holes at the Bananal Valley Prospect area have returned the thickest intersection recorded to date with 21.1m @ 1.20% Li2O from 208.80m in hole SADD006.

• • Drilling has commenced at the new Monte Alto Prospect area where the Company will undertake the first ever drill testing of the outcropping high-grade lithium pegmatites, in parallel with the commencement of a large 25,000m resource definition campaign at the Company's more advanced Bananal Valley Prospect approximately 4 kilometres to the west.

• • Assay results continue to demonstrate the strong continuity of the lithium grades with significant intersections returned over a strike length of greater than 600m and remaining open along strike and down dip.

• • Most recent new intersections received for the Bananal Valley Prospect include:

  • ○ SADD006: 21.1m @ 1.20% Li2O from 208.80m

    Including 14.00m @ 1.69% Li2O from 210.90m

    Including: 3.00m @ 2.28% Li2O from 214.90m

  • ○ SADD005: 4.25m @ 1.32% Li2O from 125.40m

    Including 1.05m @ 2.65% Li2O from 127.55m and: 4.01m @ 1.36% Li2O from 159.10m Including 1.00m @ 1.92% Li2O from 161.10m

Latin Resources Limited (ASX: LRS) ("Latin" or "the Company") is very pleased to announce that diamond drill testing of high-grade outcropping lithium pegmatites at the Company's second prospect area, the Monte Alto Prospect in Brazil, has commenced. The latest assays from drilling at the Company's first prospect, the Bananal Valley Prospect to the west (Appendix 1, Figure 7), continue to return exceptional results.

Figure 1: Monte Alto Prospect area - Latin Resources' geologists mapping outcropping zones with good exposure of large spodumene crystals, kaolinised by surface weathering

Figure 2: Diamond drilling at Salinas Lithium Project, Brazil

Latin Resources' Managing Director, Chris Gale, commented:

"We continue to receive exceptional assay results from our Bananal Valley Prospect. This continues to get more encouraging every day. We are also very excited to be commencing drilling at our new Monte Alto Prospect. Our mapping and outcrop sampling in this area has shown us that we have thick, high-grade lithium pegmatites outcropping over a considerable strike extent. With multiple high-grade results up to 2.30% Li2O1 from initial surface sampling, the early signs are equal to or better than those returned at the same stage from our more advanced Bananal Valley Prospect. We are planning an initial 2,000m of drilling in two stages at Monte Alto and assay results should start flowing in May.

"With the company recently raising $35,000,000, we have now expedited the drilling program by commencing our 25,000m resource definition drilling campaign at Bananal Valley.

"With drilling now on multiple fronts, and more rigs on the way to site, we have really stepped up our pace in Brazil to fast track our pathway to an initial JORC Mineral Resource estimate."

Bananal Valley Prospect (Salinas Lithium Project)

The latest results from the ongoing drilling at the Bananal Valley Prospect have returned the thickest intersection to date with 21.1m @ 1.20% Li2O from 208.8m in hole SADD006. These results have reaffirmed the Company's belief that the Salinas Lithium Project may represent a significant new lithium discovery, with lithium intersections from holes SADD005 and SADD006, outlined below (Table 1 and Figure 3).

Hole ID	From (m)	To (m)	Interval (m)	Li2O (%)	Comment
SADD005	125.40	129.65	4.25	1.32	Peg_1
Including:	127.55	128.60	1.05	2.65	Peg_1
and:	159.10	163.10	4.00	1.36	Peg_2
Including:	161.10	162.10	1.00	1.92	Peg_2
SADD006	173.70	177.50	3.80	0.80	Peg_1
and:	208.80	229.90	21.10	1.20	Peg_2
Including:	210.90	224.90	14.00	1.69	Peg_2
Including:	214.90	217.90	3.00	2.28	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

Figure 3: Bananal Valley "Southern Target Area" drill Collar plan showing significant intersections received to date2

2 Refer to ASX announcements dated 30 March 2022 and 11 April 2022.

These results, have now confirmed the presence of thick high-grade lithium bearing pegmatites over a strike extent of more than 600m (Figure 3), prompting the Company to commence a large systematic drilling campaign over the area aimed at providing sufficient data to undertake a maiden Mineral Resource Estimate ("MRE") for the Salinas Lithium Project.

This resource definition drill out is expected to comprise approximately 25,000m of diamond drilling, testing a full 800m strike length of the known high-grade pegmatites, from surface to a down dip depth of around 400m. This extended strike length is based on recent positive drill holes executed on the central target, located some 300m to the north of hole SADD001 (see Figure 3 and Table 2). This activity, with multiple drilling rigs committed to the drill out of the project, will enable the Company to fast track its next major milestone of a maiden JORC resource.

Monte Alto Prospect

Drilling rig access to the Monte Alto site has now been established (Figure 4), with the drilling rig on site ready to commence coring. The Company is planning to undertake an initial 2,000m drilling campaign to test the strike extent of the outcropping spodumene bearing pegmatites, where initial sampling has returned high-grade lithium with multiple high-grade results up to 2.30% Li2O3 (Figure 5).

Figure 4: New site access track completed at the Monte Alto Prospect - Salinas Lithium Project, Brazil

Figure 5: Monte Alto tenement area, showing surface sampling results4 and proposed maiden diamond drill hole locations

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

For further information please contact:

Chris Gale Executive Director Latin Resources Limited [phone]

[e-mail]

Fiona Marshall

Senior Communications Advisor White Noise Communications [phone]

4 Refer to ASX announcement dated 6 April for full details and JORC tables.