Positive Review at Galan’s 100% Owned HMW Project -Staged Pond Design Optimises Capex Profile

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to announce a positive review and completion of some early milestones in the feasibility study foundation works at its flagship Hombre Muerto West Project (HMW Project) located in the South American Lithium Triangle. The activities completed during Q2 2021 were delivered on budget and on time utilising Galan's in-house team with support from relevant consultants.

Highlights:

• The potential value of Galan's wholly owned HMW Project continues to increase

• Positive review of preliminary ponds design layout confirms a production rate up to 25k tpa of LCE by optimising the continuous terrain available

• Staged pond design to improve capex profile while lowering initial capex

• New evaporation tests continue to achieve high grade lithium chloride concentrate in excess of 6% of Li and low impurities

• Battery grade test work is well advanced; results slightly delayed by COVID-19

• New Candelas optimised brine modelling is also underway

The HMW Project team completed a preliminary evaporation ponds design with full use of tenements holding for producing up to 25k tpa LCE. This work confirmed the robustness of the evaporation design to achieve a high-quality brine concentrate by successfully completing two additional brine evaporation tests. In addition, a revised drilling programme was reviewed by the WSP Group, who have broad experience in both Chilean and Argentinian lithium brine deposits. Contract discussions have commenced with a view to commencing the drilling programme as soon as it is feasible.

Galan's Managing Director Juan Pablo (JP) Vargas de la Vega said: "Galan continuesto strengthen and broaden the flexibility of the HMW Project with a view to production as soon as possible. We have confirmed the existence of a strong product with lithium concentrate levels beyond 6% Li, and we continue to optimise our evaporation route. Our team is confident of the HMW Project's potential to increase its production levels up to 25k tpa LCE in the next feasibility studies. The Galan team continues to look at solutions to grow and make HMW as robust and as low risk as possible by using proven technology."

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