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 31 October 2025 QUARTERLY ACTIVITIES REPORT SEPTEMBER 2025 Highlights • Successful completion of due diligence by the Clean Elements Fund (“Clean Elements”) confirming HMW’s world-class status; $20 million placement to proceed with full and final settlement due by November. • RIGI incentive regime approved by the Argentine Government for the HMW Project, providing fiscal stability and significant long-term benefits. • Advancement of Phase 1 construction at Hombre Muerto West (HMW), including completion of Pond 4 design and progress on nano -filtration plant fabrication in Sydney. • No debt and strong cash position of approx. $11m with a further $10m in placement proceeds due in November. • Galan remains funded to complete Phase 1 construction and deliver first lithium chloride production in H1 2026. • Strategic expansion of Greenbushes South tenure. Galan Lithium Limited ( Galan or the Company) presents its Quarterly Activities Report for the quarter ended 30 September 2025, along with activities up to the date of this release. Galan continues to focus on the construction of Phase 1 at its 100%-owned HMW lithium brine project in Argentina. With funding secured and regulatory approvals in place, the Company is well -positioned to transition into production in H1 2026. Figure 1. Construction of Nano-filtration Plant in Sydney is well advanced. For personal use only
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Speaking on the progress achieved this quarter, Managing Director Juan Pablo (“JP”) Vargas de la Vega said: “The September quarter marked a pivotal period for Galan, highlighted by two major achievements - the securing of full Phase 1 construction funding with the support of Clean Elements and t he Argentine Government’s approval of our RIGI incentive application. Together, these developments provide both the financial and fiscal foundation to complete construction and transition toward first lithium production at HMW in 2026. Being only the second mining company to be granted approval under the RIGI regime underscores the strength of our project, our relationships in Catamarca and our alignment with Argentina’s economic and investment priorities. Galan is now in a uniquely competitive position as we move closer to becoming a low -cost, high-grade lithium producer. The momentum across all workstreams continues to build and we remain firmly focused on delivering first production in H1 2026.” Strategic and Funding Developments During the quarter, Galan successfully satisfied all conditions for the $20 million equity placement with Clean Elements. The placement, conducted at a premium to market, validates the strategic value and quality of the HMW Project. Tranche 1 settlement ($ 10 million) occurred shortly after shareholder approval on 22 August 2025, with Tranche 2 ($10 million) scheduled to settle by November 2025. This funding ensures completion of Phase 1 construction and delivery of first lithium chloride concentrate in H1 2026. Régimen de Incentivo para Grandes Inversiones (RIGI) Incentive Regime The Argentine Government approved the Régimen de Incentivo para Grandes Inversiones (RIGI) for HMW in July 2025. This mark ed a significant milestone for Galan, as HMW bec ame only the second mining project in Argentina (outside of Rio’s Rincon project) to receive the RIGI. The framework provides long - term fiscal stability, including a reduced corporate income tax rate, customs and tariff exemptions, and improved foreign exchange access for imports and repatriation. The approval underscores the Government’s recognition of HMW’s strategic importance to Argentina’s lithium sector. Galan continued to strengthen its collaboration with the Catamarca Government and local stakeholders. Authium Limited’s (Authium) Founder and Director Cameron Stanton, together with Managing Director JP Vargas de la Vega and members of Galan’s Legal and Community Relations teams met with Governor Raúl Jalil and Mining Minister Marcelo Murúa to discuss progress at HMW and the benefits arising from the RIGI approval. The Catamarca Government has promoted the development of a sealed road between Antofagasta de la Sierra and the Hombre Muerto Salar as priority initiative. Galan, together with industry partners, will contribute towards the development of the road, which is the primary road to Galan’s HMW operations. For personal use only
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Figure 2. Meeting between Juan Pablo Vargas de la Vega (Galan), Cameron Stanton (Authium) and Raúl Jalil (Governor of Catamarca) Project Execution – Hombre Muerto West Phase 1 construction activities at HMW advanced steadily throughout the quarter. Detailed design and procurement for Pond 4 construction was completed and scheduled site civil engineering works are underway. Authium and Galan have been working closely together on engineering design, construction planning and the development of project schedules to support efficient project execution. To assist with project execution, Authium representatives have recently undertaken a site visit to HMW where the site preparation works for the nano-filtration plant have commenced. Authium progressed fabrication of the nano -filtration plant in Sydney, completing structural steelwork and major equipment orders. Laboratory testing confirmed excellent impurity rejection (99% sulphate removal) and strong filtration performance. Commissioning of the nano-filtration plant remains scheduled for early 2026, with first production from HMW on track for the first half of 2026. For personal use only
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Figure 3. Nano-filtration site, adjacent to Pond 3, cleared in preparation for plant foundations Figure 4. Assembly of Nano-filtration plant and filters in Sydney. For personal use only
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Greenbushes South Galan strategically expanded its Western Australian exploration portfolio through the grant of exploration licence E70/4889 and associated prospecting licences. The new tenure is located approximately 2 km along strike and closest to, the world -class Greenbushes Lithium Mine and lies directly over the mineralising fault zone controlling this Tier 1 deposit. This position provides Galan with compelling targets to test structural continuity between its Greenbushes South holdings and the main Greenbushes system. Planned work includes stakeholder engagement, reinterpretation of geophysics, ground -based surveys, geochemical sampling and follow-up drilling, with timing and budgets to be finalised. Figure 5. Drone photo showing new tenements relative to the Greenbushes Mine While Galan’s primary focus remains on Phase 1 construction and development of the HMW project in Argentina, this acquisition creates an opportunity to advance targeted exploration in Australia in parallel. The Company is actively evaluating strategic options to accelerate value from Greenbushes South and its James Bay interests, including potential joint ventures, divestments or a spin-off. These pathways would only be pursued where they enhance shareholder value and align with Galan’s disciplined capital allocation strategy. Other Projects No material work was undertaken on the Company’s 50% owned James Bay projects in Canada during the quarter. Financial Position As at 30 September 2025, Galan held approximately $1 1 million in cash and liquid assets. The Company remains debt-free and on receipt of Tranche 2 Clean Elements funds, will be funded to complete Phase 1 construction activities. Payments to related parties during the quarter totalled approximately $0. 35 million for director and consulting fees. For personal use only
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The Galan Board has authorised the release of this September 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 About Galan Galan Lithium Limited (ASX:GLN) is an ASX -listed lithium exploration and development business. Galan’s flagship assets comprise two world -class lithium brine projects, HMW and Candelas, located on the Hombre Muerto Salar in Argentina, within South America’ s ‘lithium triangle’. Hombre Muerto is proven to host lithium brine deposition of the highest grade and lowest impurity levels within Argentina. It is home to the established El Fenix lithium operation, Sal de Vida (both projects are operated by Rio Tinto) and Sal de Oro (POSCO) lithium projects. Galan also has exploration licences at Greenbushes South in Western Australia, just south and closest to the Tier 1 Greenbushes Lithium Mine. 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. 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 For personal use only
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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. 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, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the original market announcement continue to apply and have not materially changed. 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 Li 2CO3 value in per cent. Use of LCE assumes 100% recovery and no process losses in the extraction of Li2CO3. 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 Statements The information contained herein that relates to the latest Mineral Resource estimation approach at Hombre Muerto West was compiled by Mr. Carlos Eduardo Descourvieres. Mr. Descourvieres is an employee of WSP Chile and a Member of the Australian Institute of Mining and Metallurgy. He has sufficient experience relevant to the assessment of this style of mineralisation to qualify as a Competent Person as defined by the ’Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves – The JORC Code (2012)’. Mr. Descourvieres consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. The information contained herein that relates to the latest Mineral Resource estimation approach at Candelas was compiled 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. He has sufficient experience 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. 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. For personal use only
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INTEREST IN MINING TENEMENTS AT 30.9.25 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 (granted 17.10.25) Delmira, Demira I P70/1702 to P70/1704 Don Martin P70/1698 to P70/1701 (Pending) Pata Pila E70/6263 (Pending) Pucara del Salar Rana de Sal I, II, III & IV Canada (James Bay project) – 50% interest Salinas I-IV James Bay – Claim Nos Santa Barbara VII, VIII, X, XXIV CDC2662038-CDC2662057 CDC2660890-CDC2660897 Taiga – Claim Nos CDC2661464-CDC2661493 For personal use only
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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 30 September 2025 Consolidated statement of cash flows Current quarter $A’000 Year to date $A’000 1. Cash flows from operating activities 130 130 1.1 Receipts from customers 1.2 Payments for - - (a) exploration & evaluation (b) development - - (c) production - - (d) staff costs - - (e) administration and corporate costs (934) (934) 1.3 Dividends received (see note 3) - - 1.4 Interest received 66 66 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) 10 10 1.9 Net cash from / (used in) operating activities (728) (728) 2. Cash flows from investing activities - - 2.1 Payments to acquire or for: (a) entities (b) tenements - - (c) property, plant and equipment - - (d) exploration & evaluation (5,762) (5,762) (e) investments - - (f) other non-current assets - - For personal use only
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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 200 200 (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 (5,562) (5,562) 3. Cash flows from financing activities 12,495 12,495 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 49 49 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 12,544 12,544 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4,448 4,448 4.2 Net cash from / (used in) operating activities (item 1.9 above) (728) (728) 4.3 Net cash from / (used in) investing activities (item 2.6 above) (5,562) (5,562) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 12,544 12,544 For personal use only
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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 (119) (119) 4.6 Cash and cash equivalents at end of period 10,583 10,583 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 1,893 4,317 5.2 Call deposits - - 5.3 Bank overdrafts - - 5.4 Other (provide details) USD bank acc 8,690 131 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 10,583 4,448 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 1 183 6.2 Aggregate amount of payments to related parties and their associates included in item 2 161 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. For personal use only
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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. 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. Galan is currently in negotiations to finalise funding sources to support its Hombre Muerto West, Phase 1 project in Argentina. Funding is expected to include a combination of equity funding, secured and unsecured debt, prepayment funding to fund the balance of Galan’s cash requirements for the year. 8. Estimated cash available for future operating activities $A’000 8.1 Net cash from / (used in) operating activities (item 1.9) (728) 8.2 (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) (5,762) 8.3 Total relevant outgoings (item 8.1 + item 8.2) (6,490) 8.4 Cash and cash equivalents at quarter end (item 4.6) 10,583 8.5 Unused finance facilities available at quarter end (item 7.5) - 8.6 Total available funding (item 8.4 + item 8.5) 10,583 8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 1.63 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 slowed the rate of expenditure at its Argentina project ahead of the receipt of Tranche 2 placement funds of $10m due from Clean Elements in November 2025. 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: Tranche 2 placement funds of $10m is due from Clean Elements in November 2025 (as announced on 25 August 2025). Shareholder approval for the placement was received at a general meeting held on 22 August 2025. For personal use only
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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. 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 receipt of the Tranche 2 placement funds is expected to provide cashflow to meet the company’s business objectives. 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. 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: 31 October 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) For personal use only
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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. For personal use only