Lithium Australia NL (ASX: LIT, 'Lithium Australia' or 'the Company') provides the following update on its joint-venture agreement with Charger Metals NL (ACN 646 203 465) ('Charger'), originally announced on 9 December 2020.

HIGHLIGHTS

The Charger transaction has progressed, with Charger making significant progress towards its initial public offering ('IPO') on the ASX.

Lithium Australia retains a 30% interest in the exploration projects, free carried to the definitive feasibility study notice, and will be the major shareholder in Charger.

Charger has an option until 4 September 2021 to acquire Company exploration projects that include: the Coates project in the highly prospective Western Yilgarn nickel/ copper/platinum group elements belt, close to Chalice Mining Ltd's Julimar discovery in Western Australia; the Lake Johnston project, near Southern Cross in Western Australia, prospective for lithium, gold and nickel and the Bynoe project, near Darwin in the Northern Territory, prospective for lithium and gold.

Lithium Australia shareholders to be offered a priority allocation in the Charger IPO.

Coates project

The Coates Mafic Intrusive Complex lies about 28 kilometres ('km') southeast of the recent nickel/copper/platinum group elements ('Ni-Cu-PGE') discovery at the Julimar project of Chalice Mining Ltd ('Chalice', ASX: CHN, formerly Chalice Gold, which is developing rapidly as drilling progresses and has attracted significant interest in this new exploration province.

Lithium Australia's Coates project exhibits geology similar to the Chalice discovery, with geochemistry results from an adjacent tenement returning encouraging Ni, Cu, PGE and gold anomalies, which few previous explorers successfully identified, providing the motivation to further explore this target.

The township of Wundowie sits on the flanks of the Coates Mafic Intrusion, which also hosts a vanadium deposit mined briefly in the 1980s. Western Australian examples of mafic intrusions that host nickel mineralisation include Radio Hill near Karratha and Carr Boyd near Kalgoorlie; both went on to host underground mines.

Significant overseas examples include the Norilsk mine in Russia, Voisey's Bay in Canada and Jinchuan in China. The location plan of the Coates project (below) shows it in relation to Chalice's Julimar Ni-Cu-PGE project, which is overlain on the regional aeromagnetic image.

Bynoe project

The Company's Bynoe lithium and gold project tenement (EL30897) is surrounded by the extremely large tenement holdings comprising Core Lithium Ltd's Finnis lithium project ('Finnis'), reported as having a total mineral resource inventory of 14.7 million tonnes ('Mt') at 1.32% lithium oxide ('Li2O'), of which 7.6 Mt are in the Measured and Indicated Mineral Resource category. Finnis is at a very advanced stage of development, with a definitive feasibility study completed in April 2019. The location of the Company's Bynoe project is shown below

Lake Johnston project

Reconnaissance geological mapping and geochemical sampling have identified a number of lithium-caesium-tantalum (LCT) pegmatites, and the discovery of a spodumene pegmatite cluster at Bontempelli Hill near Lake Medcalf in Western Australia.

The Bontempelli Hill outcrops consist of stacked pegmatites containing 20-30% spodumene. Rock-chip samples from the pegmatite dyke swarm average 3.6% Li2O, with up to a maximum 7.15% Li2O from spodumene outcrop. The mineralised pegmatites at this prospect outcrop over an area of 450 x 250 metres ('m'). Soil sampling and geology indicate possible extensions to the southeast under adjacent cover. Individual dykes range from about 20 to 120 m in length and 1 to 5 m in thickness. There has been no drilling on any of the lithium targets.

Contact:

Adrian Griffin

Tel: +61 (0) 418 927 658

Email: Adrian.Griffin@lithium-au.com

About Lithium Australia NL

Lithium Australia aims to ensure an ethical and sustainable supply of energy metals to the battery industry (enhancing energy security in the process) by creating a circular battery economy. The recycling of old lithium-ion batteries to new is intrinsic to this plan. While rationalising its portfolio of lithium projects/alliances, the Company continues with R&D on its proprietary extraction processes for the conversion of all lithium silicates (including mine waste), and of unused fines from spodumene processing, to lithium chemicals. From those chemicals, Lithium Australia plans to produce advanced components for the battery industry globally, and for stationary energy storage systems within Australia. By uniting resources and innovation, the Company seeks to vertically integrate lithium extraction, processing and recycling.

About Charger Metals NL

Charger Metals NL is a special purpose, unlisted public exploration company recently incorporated to buy interests in precious metals and battery minerals projects in Western Australia and the Northern Territory. The projects to be acquired are prospective for Ni, Cu, PGEs, gold and lithium. Currently, Charger's lead project is the highly prospective Wundowie project in the emerging Ni-Cu-PGE belt southeast of Chalice's Julimar project.

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