Full HMW Phase 2 (21Ktpa LCE) Mining Permit Granted

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to announce that the Catamarca Ministro – Ministerio de Mineria (Mines Department Minister) has granted Galan the full Phase 2 mining permit for 21ktpa LCE production at its 100% owned HMW lithium brine project in Argentina. The grant of the permit means Galan has the ability to expand production up to 21ktpa LCE, subject to securing project finance and following the delivery of Phase 1 (up to 5.4ktpa LCE).

Highlights

• Phase 2 Hombre Muerto West (HMW) mining permit has been granted, securing the pathway for Galan’s continued development at HMW at an efficient commercial scale up to 21,000 tpa LCE
• The granted permit includes all construction activities including ponds, plant, onsite laboratory, power and other required infrastructure
• HMW Phase 2 production would be cash flow positive at today’s lithium carbonate prices. Independent benchmarking highlights HMW as being within the first quartile of the lithium industry AISC cost curve
• The granting of Phase 2 permits supports Galan’s application for the RIGI, Argentina’s new incentive regime for large scale investments

Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:

“We are delighted with the grant of the Phase 2 mining permit which continues to solidify our strong relationship with the local Catamarcan authorities. It will allow Galan to increase production over threefold from Phase 1 and produce a premium quality lithium chloride product, which is in high demand.

Importantly, HMW is positioned in the first quartile of the cost curve and Phase 2 production would be cash flow positive even at today’s prevailing lithium carbonate prices. HMW is now poised to be a long term and resilient globally significant source of lithium supply.”

Figure 1. Wood Mackenzie 2028 Lithium Cost Curve: AISC (US$/t LCE)Wood Mackenzie Disclaimer “The foregoing information was obtained from the Lithium Cost Service™ a product of Wood Mackenzie.” “The data and information provided by Wood Mackenzie should not be interpreted as advice and you should not rely on it for any purpose. You may not copy or use this data and information except as expressly permitted by Wood Mackenzie in writing. To the fullest extent permitted by law, Wood Mackenzie accepts no responsibility for your use of this data and information except as specified in a written agreement you have entered into with Wood Mackenzie for the provision of such of such data and information.” Information sourced in December 2024.

Wood Mackenzie’s emissions benchmarking service has also placed HMW within the first quartile of the industry greenhouse gas emissions curve. Strong environmental, social and governance principles have been a governing tenet of the development strategy for HMW, which focuses on the production of a lithium chloride concentrate from conventional evaporation allowing for significantly reduced energy and water consumption. In line with…