Earnings release
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__________________________________________________________________________________ Level 1, 50 Kings Park Road, West Perth, WA 6005 PO Box 584, West Perth, WA, 6872 Ph. +61 8 9214 2150 www.galanlithium.com.au ABN: 87 149 349 646 ASX ANNOUNCEMENT 30 April 2025 QUARTERLY ACTIVITIES REPORT MARCH 2025 Highlights • Galan secures binding funding package for initial production at Hombre Muerto West (HMW) • Execution of an Offtake Agreement and an Operating Agreement with Authium Limited (Authium), pursuant to which Authium will: Purchase a total of 45 kt LCE as lithium chloride concentrate over 6 to 12 years Provide US$6 million in offtake prepayments for supply of lithium concentrate to an Authium lithium carbonate production facility in the USA Fund, supply and operate processing technology at HMW, to position Galan with materially lower upfront capital costs and operating costs • Galan’s total Mineral R esources sit at 9.5 Mt LCE ( at a lithium grade of 841mg/L) • Cash and liquid assets of $A 1.4m at the end of quarter . Successful placement in April raising approximately A$13 million (before costs) in addition to a $4 million SPP to eligible shareholders Galan Lithium Limited (Galan or the Company) presents its Quarterly Activities Report for the quarter ended 31 March 2025, as well as activities up to the date of this release. Galan’s focus remains solely on the completion of construction activities in H2 2025 at the world class, 100% owned Hombre Muerto West project (HMW), in Argentina, in advance of lithium chloride production in H1 2026. Managing Director, Juan Pablo (JP) Vargas de la Vega, commented: “This period has been transformative for the company . To have secured both a binding offtake agreement with Authium and construction funding amidst a challenging macro environment is a significant achievement. The agreements with Authium provide strong alignment between offtaker and producer in commercialising the substantial resources at HMW for the benefit of all our stakeholders.”
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Agreements with Authium As announced on 16 April 2025, the Company signed definitive agreements ( Agreements) with Authium, including a lithium chloride concentrate Offtake Agreement and an Operating Agreement which governs the roles and obligations for the processing technology to be implemented at HMW. Following a comprehensive review of potential funding options, including the previously announced memorandum of understanding with Chengdu Chemphys Chemical Industry Co., Ltd, the Company decided that Authium was its preferred partner. The partnership with Authium offers the Company superior financial, technical and timing benefits to other identified alternatives and yields the best outcome for the Company and its shareholders to complete HMW Phase 1 and commence the receipt of revenues. Under the terms of the Agreements, Galan will sell 45 kt (LCE) of its lithium chloride concentrate to supply Authium’s USA lithium processing operations over a period of 6 to 12 years. Galan will continue to manage the current HMW lithium brine inventories (estimated at 9, 000t LCE), to final lithium chloride concentrate and will utilise Authium’s HMW based nano filtration processing plant to enable Galan to reach its target lithium chloride concentrate grade of 6%. One of the key benefits of the Authium partnership is, that Authium will fund, supply and operate the processing plant at HMW. As a result, Authium’s proposal will enable Galan to significantly reduce its capital costs to complete HMW Phase 1, by removing $41.5 million of capital expenditure relating to the liming plant and is also expected to reduce operating costs by around 18% relative to the HMW Phase 1 DFS ( https://tinyurl.com/GalanLithium), due to cost savings related to the reagents and filtering plant. In addition, Galan has the ability to drawdown on offtake prepayments of up to US$6 million over a 6- month period commencing from the date lithium is processed through the processing plant (Prepayment). Galan is now working with Authium to secure an additional working capital facility, should it be required. Placement Alongside the Agreements with Authium, Galan advised that it has received firm commitments for a placement of approximately $13 million (before costs) to institutional, sophisticated, and professional investors at $0.11 (Placement). A total of 114,923,665 fully paid ordinary shares would be issued under existing 7.1 (99,823,460 shares) and 7.1A (15,100,205 shares) capacity. The Directors will also be participating in the Placement. Subject to shareholder approval, in early June 2025, the Company will issue up to 6,545,455 fully paid ordinary shares to the Directors (Mr JP Vargas de la Vega – 4,545,455 shares (proceeds of $500,000) and Mr Terry Gardiner – 2,000,000 (proceeds of $220,000)). The Placement price of $0.11 represents an 8.3% discount to the last closing price and a 14.2% discount to the 15-day volume weighted average trading price to 9 April 2025. Gross proceeds of $10.982m were received on 24 April 2025 with an allotment of a total of 99,832,755 fully paid ordinary shares made on 28 April 2025. The balance of 15,090,910 fully paid ordinary shares is expected to be allotted shortly (upon the receipt of the associated gross proceeds).
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Placement funds will support construction costs associated with HMW Phase 1 production, working capital and offer costs . Petra Capital Pty Limited acted as Lead Manager and Bookrunner to the Placement. Authium founder and Technical Director, Mr Cameron Stanton has committed to participating in the Placement, increasing his holding to approximately 2% post Placement. Combined with the prepayment financing under the Offtake Agreement, the funds received under the Placement will enable Galan to complete the final stages of the Phase 1 production facility at HMW. Galan anticipates that this will allow it to achieve its first production during the first half of calendar year 2026. Share Purchase Plan (SPP) In addition to the Placement, the Company will offer all eligible existing Australian and New Zealand shareholders (including retail shareholders) the opportunity to apply for new GLN shares, at the same issue price of $0.11, without brokerage fees, and on the same terms and conditions as the Placement. Galan intends to raise up to $4 million and retains discretion over the allocation of shares per investor. The SPP will allow eligible shareholders to apply for the maximum allowed of $30,000 of new fully paid ordinary shares, per shareholder. The SPP is not underwritten. Resources On 29 January 2025, the Company announced a substantial increase in the mineral resources at its 100% owned Candelas lithium brine project. 1The Candelas Mineral Resource was increased by more than 150% to 1.6 Mt LCE, providing Galan with a total Mineral Resource of 9.5 Mt LCE. This increase provides Galan with increased optionality in commercialising the project with significant upside potential also identified to further enhance the latest Candelas Mineral Resource. Table 1. Mineral Resource Statement for Hombre Muerto West and Candelas (January 2025) Resource Category Brine Vol (Mm3) In Situ Li (Kt) Avg Li (mg/L) LCE (Kt) In Situ K (Kt) Avg K (mg/L) KCl Equiv. (Kt) Hombre Muerto West: Measured 1,028 890 866 4,738 7,714 7,505 14,711 Indicated 347 310 894 1,649 2,717 7,837 5,181 Inferred 300 278 926 1,480 2,464 8,210 4,700 HMW Total 1,675 1,478 883 7,867 12,895 7,700 24,591 Candelas: Indicated 350 242 689 1,284 2,406 6,870 4,588 Inferred 100 65 661 350 649 6,520 1,238 Subtotal 450 307 683 1,634 3,055 6,792 5,826 Galan’s Total Resource Inventory Total 2,125 1,785 841 9,501 15,950 7,508 30,417 1 Refer to announcement dated 29 January 2025 “Galan’s Mineral Resources grow to 9.5Mt LCE”. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, i n the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the orig inal market announcement continue to apply and have not materially changed.
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Notes: 1. A cut-off grade of 500 mg/L updated Mineral Resource Estimate for Candelas. 2. The Mineral Resource Estimate for Hombre Muerto West is unchanged from 27 March 2024. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements, and that a ll material assumptions and technical parameters have not changed. 3. There may be minor discrepancies in the above table due to rounding. 4. The conversion for LCE = Li x 5.3228, KCl = K x 1.907. For detailed technical information please refer to GLN ASX announcements dated 1 October 2019, 27 March 2024, 4 April 2024 and 29 January 2025. Figure 1: Location of Galan’s 100% owned HMW and Candelas Projects in Argentina
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Other Galan Projects While Galan’s focus remains on the construction activities of HMW the Company is also committed to maintaining and exploring its exploration tenure at Greenbushes South and surrounding areas. During the period Galan sought to follow up on its LiDAR aerial survey flown in March of 2024 in the Donnelly project area. The high -resolution LiDAR data set provided a metre -scale digital surface model. This provided a “bare earth” model of the tenement, which effectively filtered all canopy cover. Using these LiDAR data, Galan developed a targeted surface exploration programme to identify potential outcrops and mineralisation and map potential access points within the tenement. Galan’s Donnelly project is composed of Galan’s 100% owned Exploration Licence E70/4629. The project is 230 km south of Perth and 15 km west of Bridgetown along the Brockman Highway. The tenement is interpreted to intersect the major Archean tectonic structure in the region, the Donnybrook-Bridgetown Shear Zone. This structure is considered responsible for the mineralisation of the lithium-bearing pegmatites at the Greenbushes Mine, nearly 25 km north. Figure 2: Overview of E70/4629 and other Galan tenements The Donnelly project contains the historic Smithfield pegmatite field project area, containing “Donavon’s Tin Find”. This area is associated with cassiterite -bearing stream gravels that were exploited in the early 1900s. Cassiterite, an important tin mineral, is often associated with LCT pegmatites, and therefore, the area is highly prospective for pegmatite-hosted lithium mineralisation.
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Galan focused on two areas in its E70/4629 tenement, in the northeast portion of the tenement, following up on the historic Donovon’s fine tin discovery, and another portion to the southwest, which LiDAR interpretation showed a subtle elevation change at the kilometre scale to topography. Hand samples were picked in the historic costeans and trenches near the Smithfield pit. Laterised pegmatites were identified and sampled. These pegmatites were up to 20 m wide and heavily weathered and kaolinized to albite -quartz-microcline-muscovite asse mblages. Accessory minerals such as tourmaline and cassiterite were identified. Collected hand samples were assayed and contained concentrations of up to 600 ppm tin and 73 ppm tantalum, significantly higher than background levels. In the southwest portion of the tenement, the area was mapped for any potential outcrops. Due to the dense vegetation and limited outcrops encountered, exploratory panning was undertaken. Visible gold was recognised in stream sediment samples. Stream sediment samples were taken from around the topographic high. Visible gold was recognised in three of five stream sediment samples. Two samples sent for assay show concentrations of greater than 350 ppb Au (0.35 g/ton), and greater than 1600 ppm Sn. Galan plans on following up on these preliminary encouraging results with another targeted surface sampling and mapping expedition that aims to identify the location and source of the anomalous gold and tin. Figure 3 – Tin concentrations of surface samples
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Figure 4 – Gold concentrations of stream sediment samples taken in the south-west portion of the tenement. No material work undertaken in the quarter, on Galan’s 50% owned James Bay (Canada) projects. Corporate Capital Raising As announced on 28 February and 28 March 2025, the Company issued 13,000,000 and 5,700,000 fully paid ordinary shares , respectively, to Acuity Capital, under the At-the-Market Subscription Deed (ATM). Galan received net proceeds of $2,075,000. As per previous details contained in this activities report, on 16 April 2025, the Company announced a successful placement of around $13 million (before costs). Financial Position At the end of the March 2025 quarter, the Company had cash resources of approximately A$1.4 million. Payments to related parties of the Company and their associates for the quarter totalled $298,319 for director fees, legal fees and consulting fees.
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The Galan Board authorises the release of this March 2025 Quarterly Activities Report. For further information contact: COMPANY MEDIA Juan Pablo (“JP”) Vargas de la Vega Matt Worner Managing Director Vector Advisors jp@galanlithium.com.au mworner@vectoradvisors.au + 61 8 9214 2150 +61 429 522 924 Forward-Looking Statements Some of the statements appearing in this announcement may be forward -looking in nature. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which Galan Lithium Limited operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward -looking statement. No forward -looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by several factors and subject to various uncertainties and contingencies, many of which will be outside Galan Lithium Limited’s control. Galan Lithium Limited does not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the informat ion, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, neither Galan Lithium Limited, its directors, employees, advisors, or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements reflect views held only as at the date of this announcement. Conversion Factors Lithium grades are normally presented in mass percentages or milligrams per litre (or parts per million (ppm)). Grades of deposits are also expressed as lithium compounds in percentages, for example as a percentage of lithium oxide (Li2O) content or percentage of lithium carbonate (Li2CO3) content. Lithium carbonate equivalent (LCE) is the industry standard terminology and is equivalent to Li2CO3. Use of LCE provides data comparable with industry reports and is the total equivalent amount of lithium carbonate, assuming the lithium content in the deposit is converted to lithium carbonate, using the conversion rates in the table included below to get an equivalent Li2CO3 value in per cent. Use of LCE assumes 100% recovery and no process losses in the extraction of Li2CO3. Table 3. Conversion Factors for Lithium Compounds and Minerals Convert from Convert to Li Convert to Li2O Convert to Li2CO3 Lithium Li 1.000 2.153 5.323 Lithium Oxide Li2O 0.464 1.000 2.473 Lithium Carbonate Li2CO3 0.188 0.404 1.000 Lithium Chloride LiCl 0.871 Potassium is converted to potassium chloride (KCl) with a conversion factor of 1.907. Competent Persons Statement 1 The information contained herein that relates to exploration results and geology is based on information compiled or reviewed by Dr Luke Milan, who has consulted to the Company. Dr Milan is a Member of the Australasian Institute of Mining and Metallurgy an d has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Milan consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
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Competent Persons Statement 2 The information relating to the integrity of the database and site inspection was done by Dr Michael Cunningham, GradDip, (Geostatistics) BSc honours (Geoscience), PhD, MAusIMM. Dr Cunningham is a Principal Consultant and full-time employee of SRK Consulting (Australasia) Pty Ltd. The information in this report that relates to the Mineral Resources estimation approach at Candelas was compiled by Dr Cunningham. He has sufficient e xperience relevant to the assessment and of this style of mineralisation to qualify as a Competent Person as defined by the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Cunningham consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. INTEREST IN MINING TENEMENTS AT 31.03.25 Argentina (HMW & Candelas projects) - 100% interest Australia (Greenbushes South project) – 100% interest Argentina Gold I E70/4629 Candela I – IX, XI-XV E70/4690 Casa Del Inca III & IV E70/4790 Catalina E70/4777 Deceo I, II & III E70/5680 Del Condor E70/4889 (Pending) Delmira, Demira I P70/1698 to P70/1704 (Pending) Don Martin E70/6263 (Pending) Pata Pila E70/6264 (Pending) Pucara del Salar Rana de Sal I, II, III & IV Canada (James Bay project) – 50% interest Salinas Santa Barbara VII, VIII, X, XXIV James Bay – Claim Nos CDC2643135 CDC2650113-CDC2650118 CDC2662038-CDC2662057 CDC2652549 CDC2652551-CDC2652567 CDC2660890-CDC2660897 Taiga – Claim Nos CDC2661464-CDC2661493
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ANNEXURE 1 - JORC CODE, 2012 EDITION – TABLE 1 Section 1 Sampling Techniques and Data Criteria JORC Code explanation Commentary Sampling techniques • Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. • Rock chip sampling- Representative samples weighing 0.5 - 1 kg were selected from pegmatitic material within the costean. Three samples of <1kg representative samples of recognized pegmatites were selected. Care was taken to ensure the least weathered samples were collected. Pictures were taken of outcropped, and sampling locations were recorded with a hand held GPS. • Stream Sediment Sampling: Five stream samples, weighing 2 kg were collected. Pictures were taken of each sample and sampling locations were recorded with handheld GPS. Drilling techniques • Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc). N/A
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Drill sample recovery • Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. N/A Logging • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged. N/A Sub-sampling techniques and sample preparation • If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled. N/A
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Quality of assay data and laboratory tests • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. • Analyses for tin, tantalum and other accessory minerals were completed by LabWest using their Lithium Borate Fusion for Major Oxides and resistant traces (AF-01 technique) with an ICP-MS/OES finish. This technique is considered “total” recovery and focuses on recovery of highly refractory species (e.g. Zr, Ta, Nb, Hf) in a silica matrix. Stream sediments were analysed by total aqua regia digest focusing on low- level gold analyses by ICP-MS (WAR- 25). • LabWest is an accredited lab Verification of sampling and assaying • The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data. • This is a preliminary assay of just five (5) stream sediment samples, and twenty-one (21) rock chip samples. The future major campaign will contain necessary QA/QC sampling. Location of data points • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control. • The survey locations were located using modern Garmin handheld GPS with an accuracy of +/- 1.8 m. • The grid system used was GDA 94/ MGA zone 50 (EPSG:28350) Data spacing and distribution • Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) • Preliminary rock sampling was conducted in historic costeans or at outcrops encountered during mapping. Stream sediment sampling was undertaken in established drainage systems. • The density and distribution of sampling are not sufficient to
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and classifications applied. • Whether sample compositing has been applied. establish a degree of grade for Mineral Reserve. • Care was taken during rock chip sampling to ensure they were taken from representative examples to provide an accurate preliminary data set of the geochemical character of the pegmatite. Orientation of data in relation to geological structure • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. • Stream sediment sampling was taken within a drainage system based on panning of visible gold. • Rock chip samples were collected where suitable representative in-situ outcrop within costeans could be found, or from outcrops during surface mapping. Sample security • The measures taken to ensure sample security. • Data was recorded and processed by trusted employees, consultants and contractors to the Company and overseen by senior management ensuring the data was not manipulated or altered. • Samples were transported from site to secure storage daily. Audits or reviews • The results of any audits or reviews of sampling techniques and data. N/A Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Mineral tenement and land tenure status • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to • Galan Lithium Limited is the registered tenement holder of exploration licence E70/4629. The tenement was granted on the 19 of February 2024 and comprises 15 blocks and 42 square kilometres. Galan has 100% ownership of the exploration rights.
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obtaining a licence to operate in the area. Exploration done by other parties • Acknowledgment and appraisal of exploration by other parties. • The area has been the focus of periodic exploration for pegmatite- derived mineralisation, notably for tin, since the early 1900s; most notably at Donavon's Find. More recent exploration has explored targeting base metal mineralisation as well as gold mineralisation. • The most recent exploration was held by Aultra Exploration Pty Ltd which held the lease from 2010 to 2014. In 2013, a short RC program targeted the rare metal pegmatites at Smithfield. Although due to access restrictions and weather conditions, the RC program was terminated after two drill holes with a total depth of 105 metres were drilled. Geology • Deposit type, geological setting and style of mineralisation. • The Donnelly project lies within the Greenbushes district. This area contains the major Archean tectonic structure of the major Donnybrook-Bridgetown Shear Zone. This structure is interpreted as being responsible for the mineralisation of the LCT pegmatites in Greenbushes, the mineralising structure resultant of the Greenbushes Mine at Greenbushes, nearly 25 km to the north. The Donnelly project contains the historic Smithfield pegmatite area, which contains the historic tin workings at Donovon's Find. This area identified cassiterite-bearing stream gravels in the early 1900s. Cassiterite, an important tin mineral, is often associated with LCT pegmatites, and therefore, the project area shows a high prospectivity for pegmatite-hosted lithium mineralisation.
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Drill hole Information • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar dip and azimuth of the hole • down hole length and interception depth hole length. • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. N/A Data aggregation methods • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut -off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly stated. N/A Relationship between mineralisation widths and intercept lengths • These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, • The mineralisation occurs in pegmatites hosted within a significant shear zone. This structure was followed along strike where possible and samples were taken across the strike. • Stream sediment samples were taken when appropriate
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there should be a clear statement to this effect (eg ‘down hole length, true width not known’). Diagrams • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. • Refer to map in the announcement Balanced reporting • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. • These preliminary results are from the early stages of exploration Other substantive exploration data • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. • All meaningful and material information is reported Further work • The nature and scale of planned further work (eg; tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. • A targeted sampling campaign around samples showing high concentrations of trace elements will be developed. Stream sediments will be limited to drainages relevant to previous sampling while in-fill sampling will help provide geologic vectors for sourcing of mineralisation.
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Rule 5.5 ASX Listing Rules Appendix 5B (17/07/20) Page 1 + See chapter 19 of the ASX Listing Rules for defined terms. Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Name of entity GALAN LITHIUM LIMITED ABN Quarter ended (“current quarter”) 87 149 349 646 31 March 2025 Consolidated statement of cash flows Current quarter $A’000 Year to date $A’000 1. Cash flows from operating activities 132 324 1.1 Receipts from customers 1.2 Payments for - - (a) exploration & evaluation (b) development - - (c) production - - (d) staff costs - - (e) administration and corporate costs (897) (2,744) 1.3 Dividends received (see note 3) - - 1.4 Interest received 9 55 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Government grants and tax incentives - - 1.8 Other (provide details if material) - - 1.9 Net cash from / (used in) operating activities (756) (2,365) 2. Cash flows from investing activities - - 2.1 Payments to acquire or for: (a) entities (b) tenements - - (c) property, plant and equipment - (8) (d) exploration & evaluation (8,092) (34,561) (e) investments - - (f) other non-current assets - -
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Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 2 + See chapter 19 of the ASX Listing Rules for defined terms. Consolidated statement of cash flows Current quarter $A’000 Year to date $A’000 2.2 Proceeds from the disposal of: - - (a) entities (b) tenements - - (c) property, plant and equipment - - (d) investments - 1,085 (e) other non-current assets - - 2.3 Cash flows from loans to other entities - - 2.4 Dividends received (see note 3) - - 2.5 Other (provide details if material) - - 2.6 Net cash from / (used in) investing activities (8,092) (33,484) 3. Cash flows from financing activities 6,609 33,768 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities - - 3.3 Proceeds from exercise of options - - 3.4 Transaction costs related to issues of equity securities or convertible debt securities 17 (866) 3.5 Proceeds from borrowings - - 3.6 Repayment of borrowings - - 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid - - 3.9 Other (provide details if material) - - 3.10 Net cash from / (used in) financing activities 6,626 32,902 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 3,611 4,335 4.2 Net cash from / (used in) operating activities (item 1.9 above) (756) (2,365) 4.3 Net cash from / (used in) investing activities (item 2.6 above) (8,093) (33,484) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 6,626 32,902
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Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 3 + See chapter 19 of the ASX Listing Rules for defined terms. Consolidated statement of cash flows Current quarter $A’000 Year to date $A’000 4.5 Effect of movement in exchange rates on cash held 9 9 4.6 Cash and cash equivalents at end of period 1,397 1,397 5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Current quarter $A’000 Previous quarter $A’000 5.1 Bank balances 1,312 3,316 5.2 Call deposits - - 5.3 Bank overdrafts - - 5.4 Other (provide details) Overseas bank acc 85 295 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 1,397 3,611 6. Payments to related parties of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to related parties and their associates included in item 1 164 6.2 Aggregate amount of payments to related parties and their associates included in item 2 134 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. Includes MD salary, NED salaries and professional fees and commissions plus legal fees paid to an associate of a NED. 7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities 7.2 Credit standby arrangements 7.3 Other (please specify) 7.4 Total financing facilities 7.5 Unused financing facilities available at quarter end 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.
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Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 4 + See chapter 19 of the ASX Listing Rules for defined terms. 8. Estimated cash available for future operating activities $A’000 8.1 Net cash from / (used in) operating activities (item 1.9) (756) 8.2 (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) (8,092) 8.3 Total relevant outgoings (item 8.1 + item 8.2) (8,848) 8.4 Cash and cash equivalents at quarter end (item 4.6) 1,397 8.5 Unused finance facilities available at quarter end (item 7.5) - 8.6 Total available funding (item 8.4 + item 8.5) 1,397 8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 0.2 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. 8.8 If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Answer: Yes, the company has reduced the rate of expenditure at its Argentina project in order to preserve cash ahead of finalisation of funding arrangements. 8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Answer: On 16 April 2025, the Company announced that it had received firm commitments for a placement of approximately $13 million (before costs) to institutional, sophisticated, and professional investors at $0.11 (Placement). The majority of the Placement funds settled on 24 April 2025. In addition, the Company announced that it intends to raise a further $4 million via a share purchase plan on the same terms and conditions as the Placement. 8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: Yes, the combination of expected equity funding and prepayment funding attached to a definitive offtake agreement announced on 16 April 2025 is expected to provide cashflow to meet its business objectives in 2025. Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.
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Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 5 + See chapter 19 of the ASX Listing Rules for defined terms. Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Date: 30 April 2025 Authorised by: The Board of Galan Lithium Limited Juan Pablo Vargas de la Vega (Managing Director) (Name of body or officer authorising release – see note 4)
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Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 6 + See chapter 19 of the ASX Listing Rules for defined terms. Notes 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter , how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, t he definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. 4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.