Cauchari Mineral Resource and Ore Reserve Update and Project Update

BRISBANE, Australia, Sept. 24, 2023 (GLOBE NEWSWIRE) -- Allkem Limited (ASX|TSX: AKE) (“*Allkem”* or “*the* *Company”*) is pleased to announce a project update to its wholly owned Cauchari lithium brine project located in Jujuy Province in Argentina. Allkem has reviewed and updated the project Mineral Resources and Ore Reserves, project cost and schedule estimates, and project economics from the October 2019 Technical Report (*“previous study”*) released before Orocobre Limited acquired 100% of Advantage Lithium Corporation in April 2020.

*HIGHLIGHTS *

*Financial Metrics*

· 25,000 tonnes per annum of lithium carbonate production capacity
· Material ~200% increase in Pre-tax Net Present Value (“*NPV*”) to US$2.52 billion from US$0.84 billion in the previous study at a 10% discount rate. The Post-tax NPV at 10% discount rate is US$1.37 billion.
· Cash operating margin stayed constant at ~85%, with the increased realised price projections being proportionally offset by increased operating costs. Operating costs increased from US$3,560 per tonne LCE to US$4,081 per tonne lithium carbonate equivalent (“*LCE*”) due to material increases in the price of soda ash, lime, natural gas and employment costs since the previous study*Mineral Resource and Ore Reserve*

· Total Mineral Resource Estimate of 5.95 million tonnes (“*Mt*”) LCE, a 6% decrease from the previous estimate in 2019 due to slight changes in mining parameters
· Total Ore Reserve Estimate of 1.13 Mt LCE supporting a 30-year project life based on Ore Reserves only, a 11% increase from the previous statement due to a revised point of reference for Ore Reserve reporting of ‘brine pumped to the evaporation ponds’

*Project Cost and Schedule Update*

· Increase in the development capital cost estimate (*“CAPEX”*) from US$446 million in the previous study to US$659 million, for mechanical completion, representing a 48% increase
· Substantial mechanical completion, pre-commissioning and commissioning activities are expected by H1 CY27 with first production expected in H2 CY27 and ramp up expected to take 1 year

*Managing Director and Chief Executive Officer, Martin Perez de Solay commented
*“The updated study results clearly demonstrate the value of the Cauchari Project on a stand-alone basis. With the study update being based on the historic work performed by Advantage Lithium Corporation we do see substantial opportunities to integrate this asset into our Olaroz complex. These opportunities would likely reduce capital and operating costs and these are being explored as part of our Olaroz Stage 3 expansion studies.”

*PROJECT BACKGROUND*

Allkem is developing the Cauchari Project (*“the project”*) on the Cauchari Salar which is located in the Puna region, 230 kilometres west of the city of San Salvador de Jujuy in Jujuy Province of northern Argentina at an altitude of 3,900 metres (m) above sea level. The property is to the south of Olaroz near a paved Hwy that connects to the international border with Chile (80 km to the west) and the major mining centre of Calama and the ports of Antofagasta and Mejillones in northern Chile, both major ports for the export of mineral commodities and import of mining equipment. The Cauchari deposit lies within the “lithium triangle”, an area encompassing Chile, Bolivia and Argentina that contains a significant portion of the world’s estimated lithium resources (Figure 1).*Figure 1: Cauchari project location
*https://www.globenewswire.com/NewsRoom/AttachmentNg/75f6a06e-d24a-4bff-a46b-a53136318557

The Cauchari tenements cover 28,906 ha and consist of 22 minas which were initially applied for on behalf of South American Salars (“*SAS”*). SAS is a joint venture company with the beneficial owners being Advantage Lithium (“*AAL*”) with a 75% interest and La Frontera with a 25% stake. La Frontera and AAL are 100% owned by Allkem Limited. The Project is not known to be subject to any environmental liabilities.

The Project is a planned lithium brine mining and processing facility that will produce lithium carbonate. Allkem has reviewed and updated the project Mineral Resources and Ore Reserves, project cost and schedule estimates, and project economics from the previous technical report dated October 2019 released before Orocobre Limited acquired 100% of Advantage Lithium Corporation in April 2020. This project update of the Cauchari Mineral Resource and Ore Reserves indicate potential for a 25,000 tonne per annum (“*tpa”*) lithium carbonate processing facility with a life expectancy of 30 years.

The wellfield, brine distribution, evaporation ponds, waste (wells and ponds) and process plant cost estimates are Association for the Advancement of Cost Engineering (*“AACE”*) AACE Class 4 +30% / - 20% with no escalation of costs. Lithium production has not commenced at the Cauchari site, however an update to the pre-feasibility study (“*PFS*”) has been completed for Cauchari.

*GEOLOGY & MINERALISATION *

Salar de Cauchari is a mixed style salar, with a halite nucleus in the centre of the Salar overlain with up to 50 m of fine grained (clay) sediments. The halite core is interbedded with clayey to silty and sandy layers. The Salar is surrounded by relative coarse grained alluvial and fluvial sediments. These fans demark the perimeter of the actual Salar visible in satellite images and at depth extend towards the centre of the Salar where they form the distal facies with an increase in sand and silt. At depth (between 300 m and 600 m) a deep sand unit has been intercepted in several core holes in the SE Sector of the Project area.

The brines from Salar de Cauchari are solutions nearly saturated in sodium chloride with an average concentration of total dissolved solids (*“TDS”*) of 290 g/l. The average density is 1.19 g/cm3. Components present in the Cauchari brine are potassium, lithium, magnesium, calcium, chloride, sulphate, bicarbonate and boron.

*MINERAL RESOURCE AND ORE RESERVE ESTIMATES *

*Brine Mineral Resource Estimate*

Atacama Water was engaged to estimate the lithium Mineral Resources and Ore Reserves in brine for various areas within the Salar de Cauchari basin in accordance with the 2012 edition of the JORC code (“*JORC 2012*”). Although the JORC 2012 standards do not address lithium brines specifically in the guidance documents, Atacama Water followed the NI 43-101 guidelines for lithium brines set forth by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM 2014) which Atacama Water considers complies with the intent of the JORC 2012 guidelines with respect to providing reliable and accurate information for the lithium brine deposit in the Salar de Cauchari.

A lithium cut-off grade of 300 mg/L was utilised based on a projected lithium carbonate price of US$20,000 per tonne over the entirety of the LOM. The total revised Mineral Resource estimate of 5.95 Mt LCE (detailed in Table 1) reflects a 5.6% total decrease to the prior Mineral Resource of 6.30 Mt LCE (Table 2). This decrease relates to the use of a cut-off grade in the estimation of mineral resources.

The different Mineral Resource categories were assigned based on available data and confidence in the interpolation and extrapolation possible given reasonable assumptions of both geologic and hydrogeologic conditions. Measured, Indicated and Inferred Mineral Resource; totalling 160.9 km^2, are displayed in Figure 2.

*Figure 2: Location section of Measured, Indicated and Inferred Lithium Mineral Resources*

https://www.globenewswire.com/NewsRoom/AttachmentNg/9141126e-a63f-415a-82dc-885cdd879155

*Table 1: Cauchari Mineral Resource Estimate at August 2023 *

*Category* *Brine volume * *Average Li * *In Situ Li * *Li*[*2*]*CO*[*3*]
*Equivalent * *Li*[*2*]*CO*[*3*]
*Variance to 2019 * m^3 mg/l tonnes Tonnes %
Measured 6.5 x 10^8 527 345,000 1,850,000 0%
Indicated 1.1 x 10^9 452 490,000 2,600,000 -12%
*Measured & Indicated* 1.8 x 10^9 476 835,000 *4,450,000* -7%
Inferred 6.0 x 10^8 473 285,000 1,500,000 0%
*Total * *2.4 x 10*^*9* *475* *1,120,000* *5,950,000* -6%
1. The Competent Person(s) for these Mineral Resources and Ore Reserves estimate is Atacama Water
2. Comparison of values may not add up due to rounding or the use of averaging methods
3. Lithium is converted to lithium carbonate (Li2CO3) with a conversion factor of 5.323
4. The cut-off grade used to report Cauchari Mineral Resources is 300 mg/l
5. Mineral Resources that are not Ore Reserves do not have demonstrated economic viability, there is no certainty that any or all of the Mineral Resources can be converted into Ore Reserves after application of the modifying factors

*Table 2: Cauchari Mineral Resource Estimate at April 2019 *

*Category* *Brine volume * *Average Li * *In Situ Li * *Li*[*2*]*CO*[*3*]
*Equivalent * m^3 mg/l tonnes Tonnes
Measured 6.5 x 10^8 527 345,000 1,850,000
Indicated 1.2 x 10^9 452 550,000 2,950,000
*Measured & Indicated* 1.9 x 10^9 476 900,000 *4,800,000*
Inferred 6.0 x 10^8 473 280,000 1,500,000
*Total * *2.5 x 10*^*9* *475* *1,180,000* *6,300,000*
Note: The reader is cautioned that Mineral Resources are not Ore Reserves and do not have demonstrated economic viability. Values are inclusive of Ore Reserve estimates, and not “in addition to”Additional information for the resource estimation can be found in the Annexures.

*Brine Ore Reserve Estimate*

Proved Reserves were derived from the Measured Resources in the NW wellfield area during the first seven years of production (with production in the NW extending for 9 years). Lithium Ore Reserves derived after Year 7 from the Measured and Indicated Mineral Resources in the NW and SE wellfield areas were categorized as Probable Reserves. Results of a separate model simulation to evaluate the potential effect of the proposed neighbouring LAC brine production (according to LAC Updated Feasibility Study of January 2020) showed that there is no material impact on the Cauchari Reserve Estimate. Table 3 shows the Ore Reserve Estimate for the Cauchari Project.

It is the opinion of the CP that the FEFLOW model provides a reasonable representation of the hydrogeological setting of the Project area and that the model is adequately calibrated to be an appropriate tool to estimate the Proved and Probable Reserves reported hereinafter. To the extent known by the CP, there are no known environmental, permitting, legal, title, taxation, socioeconomic, marketing, political or other relevant factors that could affect the Ore Reserve estimate which are not discussed in this Report.

The revised Ore Reserve Estimate of 1.13 Mt LCE supporting a 30-year project life based on Ore Reserves only, an 11% increase from the previous statement due to a revised point of reference for Ore Reserve reporting of ‘brine pumped to the evaporation ponds.’ Process efficiency factors were considered in the previous estimate, while the current reserve is reported from a point of reference of brine pumped to the evaporation ponds.

*Table 3: Cauchari Project Reserve Estimate at 30 June 2023*

*Category* *Year* *Brine Vol (Mm*^*3**)* *Average Lithium Grade (mg/L)* *Lithium (kt)* *Li*[*2*]*CO*[*3*]* Equivalent (kt)*
Proved 1-7 76 571 43 231
Probable 8-30 347 485 169 897
*Total* *1-30* *423* *501* *212* *1,128*

1. The Competent Person(s) for these Mineral Resources and Ore Reserves estimate is Atacama Water.
2. Comparison of values may not add up due to rounding or the use of averaging methods.
3. Lithium is converted to lithium carbonate (Li2CO3) with a conversion factor of 5.323.
4. The cut-off grade used to report Cauchari Ore Reserves is 300 mg/l.
5. Mineral Resources that are not Ore Reserves do not have demonstrated economic viability, there is no certainty that any or all of the Mineral Resources can be converted into Ore Reserves after application of the modifying factors.
6. The Lithium Ore Reserve Estimate represents the lithium contained in the brine produced by the wellfields as input to the evaporation ponds. Brine production initiates in Year 1 from wells located in the NW Sector. In Year 9, brine production switches across to the SE Sector of the Project.
7. Approximately 25% of M+I Mineral Resources are converted to Total Ore Reserves.
8. Potential environmental effects of pumping have not been comprehensively analysed at the PFS stage. Additional evaluation of potential environmental effects will be done as part of the next stage of evaluation.
9. Additional hydrogeological test work will be required in the next stage of evaluation to adequately verify the quantification of hydraulic parameters in the Archibarca fan area and in the Lower Sand unit as indicated by the sensitivity analysis carried out on the model results. Ore Reserves are derived from and included within the M&I Mineral Resources in the Mineral Resource Table 1 above.Indicated Mineral Resources of 894,000t LCE contained in the West Fan Unit are not included in this PFS production profile. There is a reasonable prospect that through additional hydrogeological test work Inferred Resources in the Lower Sand Units will be converted to M+I Mineral Resources.

*BRINE EXTRACTION AND PROCESSING*

*Brine Extraction *

Lithium bearing brine hosted in pore spaces within sediments in the salar will be extracted by pumping using a series of production wells to pump brine to evaporation ponds for its concentration. Extraction of brine does not require open pit or underground mining.

Based on the results of the pumping tests carried out for the Project, the brine extraction from Salar de Cauchari will take place by installing and operating two conventional production wellfields. The brine production will take place initially from a wellfield in the NW Sector immediately adjacent to the evaporation ponds on the Archibarca Fan from Year 1 through to Year 9. After Year 9 it is planned that the brine production will shift to a second wellfield constructed in the SE Sector (Figure 3).

*Figure 3: Location map of NW and SE wellfield
*https://www.globenewswire.com/NewsRoom/AttachmentNg/0842b0b5-62ae-4c3a-a8f8-bdb3040aedce

The combined production from the NW wellfield will ramp up from 170 l/s in Year 1 to approximately 460 l/s in Year 8. It is expected that pumping rates of individual wells in the NW wellfield will vary between 20 l/s and 30 l/s so that up to 22 wells may be required to meet the overall brine production requirements. The NW production wells are located on the main access roads between the evaporation ponds and will be drilled and completed to a depth of approximately 360 m in the lower brine aquifer of the Archibarca fan. The upper part of the production wells through the Archibarca fresh to brackish water aquifer will be entirely cemented and sealed to an approximate depth of 140 m to avoid any freshwater inflow into the wells. Below 140 m depth the wells will be completed with 12-inch diameter production casing. The wells will be equipped with submersible pumping equipment. It is planned that the NW production wells will discharge immediately into evaporation ponds No 1 and No 2 without intermediate boosting or storage requirements.

As a general overview of the process, the brine that feeds the lithium carbonate (Li[2]CO[3]) Plant is obtained from the two brine production wellfields.

The brine is pumped to the evaporation ponds, designed to crystallize mainly halite and some glauber salt, glaserite, silvite and borate salts. At certain points slaked lime is added to the brine, which removes a large part of the Magnesium (Mg) as magnesium hydroxide. The Calcium (Ca) is precipitated as gypsum, thus also removing dissolved sulphate (SO[4]). After the evaporation ponds, the brine is fed to the Li[2]CO[3] plant, where, through a series of purification processes, solid lithium carbonate is obtained, to be shipped according to the final customer requirements. A general process flow diagram is shown in Figure 4.

*Figure 4: Process Overview Diagram
*https://www.globenewswire.com/NewsRoom/AttachmentNg/5b58d7ac-8e71-45c1-990b-fbda65e579ca

The brine is concentrated until it reaches a Li concentration of 7,000 mg/l. An overall evaporation ponds and lithium carbonate plant recovery of 66% for lithium is modelled based on industrial operational results. A more detailed description of the process for both the evaporation ponds and the lithium carbonate plant are presented below.

The Cauchari Project will include the design and installation of production wells, evaporation ponds and a processing plant to obtain 25,000 tpa of battery grade lithium carbonate (Li[2]CO[3]). A general block diagram of the process is shown in Figure 5.

*Figure 5: General Block Diagram for the Process
*https://www.globenewswire.com/NewsRoom/AttachmentNg/425fad04-0d97-45f7-97d6-9ace3e28d521

The lithium carbonate plant is a chemical facility that receives the concentrated brine from the evaporation ponds and, through a series of chemical processes, generates lithium carbonate battery grade in a solid form. All impurities that are still left in the brine after the evaporation ponds are removed in the lithium carbonate plant, through specific stages described below.

The first stage of the lithium carbonate plant is the calcium and magnesium removal stage. A solution of soda ash and slaked lime are added to the concentrated brine from the evaporation ponds in an agitated reactor. Mg and Ca will precipitate as magnesium hydroxide (Mg(OH)[2]) and calcium carbonate (CaCO[3]). The slurry is then filtered, and the Mg and Ca free brine is sent to the next stage. The solids obtained from the filtering stage are re-pulped and sent directly to the first sludge pond.

The lithium rich brine is fed to an ion exchange stage, to remove remaining calcium, magnesium, and any other di/tri valent metals in the brine. The impurity free brine is then sent to carbonation reactors. Here the addition of a soda ash solution and high temperatures result in lithium carbonate precipitating (technical grade), which is filtered on a belt filter, repulped and centrifuged. This can be directly dried and sold as technical grade. In order to obtain battery grade, the pulp is transported to another purification stage. The mother liquor generated from the belt filter is recycled to the ponds in order to recover the remaining lithium.

The purification stage consists of the generation of lithium bicarbonate through the reaction in agitated reactors of the solid lithium carbonate and gaseous CO[2] at low temperature. The lithium bicarbonate is much more soluble in water than lithium carbonate, allowing the separation from any residual soluble and insoluble impurities. With the use of an IX stage utilizing a specific selective resin, any boron and/or di/tri valent metals left in the solution are removed, and a highly pure bicarbonate solution is fed to a desorption stage. With the increase of temperature (up to 80°C) the CO[2] is desorbed, and solid lithium carbonate is re-precipitated. The slurry is centrifuged, dried, reduced in size (milled) and packaged in maxibags, to be finally transported to clients.

*SITE LAYOUT & INFRASTRUCTURE*

Physical areas included on the Project are shown in Figure 6 and Figure 7:

· NW and SE evaporation ponds and Liming Plant
· NW brine wellfield (Archibarca location)
· SW brine wellfield
· Alluvial production wells are located southeast of the Project area
· Liming plant ponds (decantation ponds)
· Industrial facilities area
· Harvested salt stockpile areasThe brine production wellfields will be located on two sectors of the Salar de Cauchari, one in the Archibarca area, near and among the initial evaporation ponds and another located south-east of this location. Initially, and up to year four (4) of the operation, the evaporation ponds will cover an area of approximately 10.5 million m^2. The brine lithium concentration decreases from 580 mg/l to 545 mg/l by Year 5 of the operation, and an increase to 11.3 million m^2 in pond area is required. By Year 10, the average brine lithium concentration decreases to 491 mg/l and requires the final increase of the evaporation ponds area to 12.2 million m^2.

*Figure 6: Main physical areas and roads of the Project
*https://www.globenewswire.com/NewsRoom/AttachmentNg/7bb92b14-e9f5-46e9-963a-f991078bd9fd

Temporary and permanent facilities are contemplated in the Project for the industrial area. The industrial facilities area for the Project will be located in the NW Sector of the Project on the Archibarca fan, and will include:

· Lithium carbonate plant
· Auxiliary services:

· Reagent storage
· Plant supply storage (gas, CO[2], compressed air, fuel)
· Water Treatment Plant
· Access control area
· Electrical rooms (Electrical generators)
· Boiler room

· Warehouses
· Truck workshop
· Administrative building and laboratory
· Workers’ camp
· Temporary contractors’ installations

*

*

*Figure 7: Detail of main installations for the Project
*https://www.globenewswire.com/NewsRoom/AttachmentNg/0655c5a5-483e-475d-bf97-84d93b333dcb

*FINANCIAL PERFORMANCE *

*Development Capital and Operating Costs *

Project CAPEX for 25,000 tpa lithium carbonate is estimated to be US$659 million. Further details are summarised in Table 4.

Costs estimates and economic assessments for the 25,000 tpa processing facility are at a AACE Class 4 +30% / - 20% level with no escalation of costs.

The Cauchari Project is at Pre-Feasibility Study phase.

The capital cost estimate was prepared by Worley Chile S.A. and Worley Argentina S.A. (collectively, Worley) in collaboration with Allkem. The estimate includes capital cost estimation data developed and provided by Worley, Allkem, and current estimates.

The capital cost was broken into direct and indirect costs.

*Table 4: Summary of Development Capital Cost*

*Development Capital Cost * *Units* *Total *
*Direct Cost*    
Brine Extraction Wells US$M *16*
Evaporation Ponds US$M *146*
Brine Treatment Plant US$M *18*
Lithium Carbonate Plant US$M *105*
General Services US$M *110*
Infrastructure US$M *40*
Additional Camps US$M *15*
*Total Direct CAPEX * *US$M* *450*
EPCM + Owners Cost + Others + Contingency US$M *209*
*TOTAL CAPEX* *US$M* *659*    

Operating cost is estimated to be US$4,081 per tonne LCE. No inflation or escalation provisions were included. Subject to the exceptions and exclusions set forth in this Report, the aggregate annual Operating Cost for Cauchari is summarised in Table 5. Reagents represent the largest operating cost category, then labour followed by operations and maintenance.

*Table 5: Summary of Operating Cost*

*Operating Cost * *Units* *Total *
Reagents US$/t LCE *2,158*
Labour US$/t LCE *674*
Energy US$/t LCE *235*
General and Administration US$/t LCE *596*
Consumables and Materials US$/t LCE *243*
Transport and Port US$/t LCE *175*
*TOTAL OPERATING COST* *US$/ t LCE* *4,081*
Minor discrepancies may occur due to rounding    

*Lithium carbonate price forecast * 

Lithium has diverse applications including ceramic glazes, enamels, lubricating greases, and as a catalyst. Demand in traditional sectors grew by approximately 4% CAGR from 2020 to 2022. Dominating lithium usage is in rechargeable batteries, which accounted for 80% in 2022, with 58% attributed to automotive applications. Industry consultant, Wood Mackenzie (“*Woodmac*") estimates growth in the lithium market of 11% CAGR between 2023-2033 for total lithium demand, 13% for automotive, and 7% for other applications. 

Historical underinvestment and strong EV demand have created a supply deficit, influencing prices and investment in additional supply. Market balance remains uncertain due to project delays and cost overruns. The market is forecast to be in deficit in 2024, have a fragile surplus in 2025, and a sustained deficit from 2033.  

Prices have fluctuated in 2022-2023, with factors like plateauing EV sales, Chinese production slowdown, and supply chain destocking influencing trends. Woodmac notes that battery grade carbonate prices are linked to demand growth for LFP cathode batteries and are expected to decline but rebound by 2031. Lithium Hydroxide’s growth supports a strong demand outlook, with long-term prices between US$25,000 and US$35,000 per ton (real US$ 2023 terms).

*PROJECT ECONOMICS *

An economic analysis was developed using the discounted cash flow method and was based on the data and assumptions for capital and operating costs detailed in this report for brine extraction, processing and associated infrastructure. The evaluation was undertaken on a 100% equity basis.  

The basis of forecast lithium carbonate pricing was provided by Woodmac for the period 2023 to 2035, with a longer-term price of US$28,000/t and US$26,000/t used for battery grade and technical grade lithium carbonate from 2035 onwards.

The current Jujuy Provincial Mining royalty is limited to 3% of the mine head value of the extracted ore, calculated as the sales price less direct cash costs related to exploitation and excluding fixed asset depreciation.

The key assumptions and results of the economic evaluation are displayed in Tables 6 below.

*Table 6: Key assumptions utilised in the project economics*

*Assumption * *Units* *Stage 1 *
Project Life Estimate Years 30
Discount Rate (real) % 10
Provincial Royalties^ 1,2 % of LOM net revenue 3.0
Corporate Tax^2 % 35
Annual Production^3 tonnes LCE 25,000
CAPEX US$M 659
Operating Cost US$/tonne LCE 4,081
Average Selling Price^4 FOB US$/tonne LCE 27,066

^1 Provincial royalty agreement at 3.%, export duties, incentives and other taxes are not shown.
^2There is a risk that the Argentina Government may, from time to time, adjust corporate tax rates, export duties and incentives that could impact the Project economics.
^3 Based on 100% battery grade lithium carbonate production.
^4 Based on price forecast provided from Wood Mackenzie and targeted production grades stated in Footnote 3 above.

The study update demonstrates strong financial outcomes with a pre-tax NPV at a 10% discount rate of US$2.52 billion, this represents a ~200% increase from US$0.84 billion in the previous study.

Further project economics are summarised in Table 7.

*Table 7: Summary of financials over a 30-year project life*

*Financial Summary * *Units* *Total *
NPV @ 10% (Pre-tax) US$M *2,523*
NPV @ 10% (Post-tax) US$M *1,366*
IRR (Pre-tax) % *32.6*
IRR (Post-tax) % *23.9*
Payback Period^1 Years *3.3*
Development Capital Intensity US$ / tpa LC *26,376*

^1 Payback period is from date of first commercial production

*Sensitivity Analysis *

As displayed in Table 7 above, the Cauchari pre-feasibility study update demonstrates strong financial outcomes with a post-tax NPV at 10% discount rate of US$1,366 million and post-tax IRR of 23.9%. Figure 8 analyses the impact on post-tax NPV when pricing, operating cash costs and development CAPEX fluctuate between +/- 25 %.

*Figure 8: NPV Sensitivity Analysis
*https://www.globenewswire.com/NewsRoom/AttachmentNg/db3dae9b-c28b-4226-aa73-d0842df5301b

*Funding
*Funding is expected to be provided through one or more of the following:

· existing corporate cash;
· existing or new corporate debt or project finance facilities;
· Cashflow from operations

*ENVIRONMENTAL AND SOCIAL IMPACTS *

*Environmental Liabilities*

The Project tenements are not subject to any known environmental liabilities. There have been historical ulexite / borax mining activities adjacent to the Project in the north of the Salar. These mining operations are generally limited to within three metres of the surface, and it is assumed that these borax workings will naturally be reclaimed when mining is halted due to wet season inflows.

*Base line studies*

The Project has successfully completed various environmental studies required to support its exploration programs between 2011 and the present. The last Environmental Impact Assessment approval was in 2017 for the exploration stage.

In September 2019 the Project submitted an Environmental Baseline for the Exploitation stage which to date is under evaluation by the provincial mining authority.

All the Environmental Impact Assessments are submitted to the Provincial Mining Directorate and subject to a participatory evaluation and administrative process with provincial authorities (Indigenous People Secretariat, Water Resources Directorate, Environmental Ministry, Economy, and Production Ministry, among others) and communities of influence, until the final approval resolution is obtained.

In the case of Cauchari, the evaluation process is carried out with the participation and dialogue of the indigenous communities of Manantiales de Pastos Chicos, Olaroz Chico, Huancar, Termas de Tuzgle de Puesto Sey, Catua, Paso de Jama and Susques.

The Project has submitted an initial mine closure plan within the Exploitation Environmental Impact Assessment which is still under evaluation.

*Permit Status*

Exploration and mining activities are subject to regulatory approval following an environmental impact assessment (“EIA”), before initiating disturbance activities. The CPs understand that Allkem (previously Advantage Lithium) obtained all required approvals for the exploration drilling and testing programs in the Salar.

Allkem is currently in the process of renewing and maintaining required exploration-related permits while awaiting approval of exploitation permitting. Further permits will be required once exploitation is initialised.

There are no insurmountable risks identified at this time that could cause the project to not proceed into potential exploitation.

This release was authorised by Mr Martin Perez de Solay, CEO and Managing Director of Allkem Limited.

*Allkem Limited*

ABN 31 112 589 910

Level 35, 71 Eagle St
Brisbane, QLD 4000 *Investor Relations & Media Enquiries*

Andrew Barber
*M: +*61 418 783 701 *E: *Andrew.Barber@allkem.co

Phoebe Lee
*P: *+61 7 3064 3600* E**:* Phoebe.Lee@allkem.co *Connect *

info@allkem.co
+61 7 3064 3600
www.allkem.co    

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Past performance information given in this Release is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

*Forward Looking Statements*
Forward-looking statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performances or achievements expressed or implied by such forward-looking statements, including but not limited to, the risk of further changes in government regulations, policies or legislation; risks that further funding may be required, but unavailable, for the ongoing development of the Company’s projects; fluctuations or decreases in commodity prices; uncertainty in the estimation, economic viability, recoverability and processing of mineral resources; risks associated with development of the Company Projects; unexpected capital or operating cost increases; uncertainty of meeting anticipated program milestones at the Company’s Projects; risks associated with investment in publicly listed companies, such as the Company; and risks associated with general economic conditions.

Subject to any continuing obligation under applicable law or relevant listing rules of the ASX, the Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements in this Release to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statements are based. Nothing in this Release shall under any circumstances (including by reason of this Release remaining available and not being superseded or replaced by any other Release or publication with respect to the subject matter of this Release), create an implication that there has been no change in the affairs of the Company since the date of this Release.

*Competent Person Statement *
The information in this report that relates to Cauchari’s Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Frederik Reidel, CPG, who is a Competent Person (#11454) and a Registered member of the American Institute of Professional Geologist (AIPG) and Competent Person (# 390) with the Chilean Mining Commission (CCCRRM) a ‘Recognised Professional Organisation’ (RPO) included in a list posted on the ASX website from time to time. Frederik Reidel, an Atacama Water SpA employee has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Frederik Reidel consents to the inclusion in this announcement of the matters based on their information in the form and context in which it appears.

The scientific and technical information contained in this announcement has been reviewed and approved by Frederik Reidel, CPG (Atacama Water SpA) as it relates to geology, modelling, and Mineral Resource and Ore Reserve estimates; Marek Dworzanowski, FSAIMM, FIMMM, Chartered Engineer with the Engineering Council of the United Kingdom registration (Metallurgical Engineer, Independent Consultant), as it relates to processing, facilities, infrastructure, project economics, capital and operating cost estimates. The scientific and technical information contained in this release will be supported by a technical report to be prepared in accordance with National Instrument 43-101 – Standards for Disclosure for Mineral Projects. The Technical Report will be filed within 45 days of this release and will be available for review under the Company’s profile on SEDAR at www.sedar.com.

*Not for release or distribution in the United States*
This announcement has been prepared for publication in Australia and may not be released to U.S. wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction, and neither this announcement or anything attached to this announcement shall form the basis of any contract or commitment. Any securities described in this announcement have not been, and will not be, registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States except in transactions registered under the U.S. Securities Act of 1933 or exempt from, or not subject to, the registration of the U.S. Securities Act of 1933 and applicable U.S. state securities laws.*APPENDIX A*

*JORC Table 1 – Section 1 Sampling Techniques and Data related to Cauchari exploration drilling *(Criteria in this section apply to all succeeding sections.)

*Criteria* *JORC Code explanation* *Commentary*
*Sampling techniques* · Nature and quality of sampling (eg 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 (eg ‘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 (eg submarine nodules) may warrant disclosure of detailed information.

· Holes which were drilled using rotary drilling or diamond drilling techniques. Core was collected from diamond drill holes to prepare "undisturbed" samples of porosity. Depth-representative brine samples were collected via bailer in all holes. Drill cuttings were collected on production well drilling.
· Core holes had recovery measured for each run and was collected using polycarbonate (Lexan) tubes. Core drilling was carried out using brackish water from margins of the Salar as drilling fluid with organic tracer dye included. Samples with dye contamination were discarded. On brine samples, 3 full well volumes of brine were bailed prior to brine sampling.
· Brine samples were handled by experienced geoscientists with a rigorous QA/QC program in place. An accredited laboratory was selected as the primary laboratory to assay the brine samples, and 5 secondary QA/QC labs were used throughout the drilling programs.
· Samples were not collected for assay from the cuttings, as the primary objective of the holes was to confirm the geology to the depth of drilling and install production wells. Cuttings were used to describe the lithology. Samples for brine analysis were taken from the production wells when cleaned up and pumped. Qualitative changes in brine conditions were also evaluated during drilling.
- 25 diamond holes were drilled in the two programs, with core samples collected in polycarbonate (Lexan) tubes and selected intervals analysed for porosity laboratory in an independent lithology.
- Brine samples were collected using a bailer and following protocols developed by Allkem (Previously Orocobre) for resource drilling at the Allkem operated Olaroz Project, Olaroz is a lithium carbonate producing property. The Olaroz property has been extensively studied and has been producing lithium carbonate products since 2015. Brine samples were taken at 3 m intervals during the 2011 program and at 6 m to 12 m intervals (due to deeper holes) during the 2017/18 program. Up to 3 well volumes of brine were bailed from the hole prior to sampling. The bailed brine volume was adjusted based on the height of the brine column at each sampling depth.

*Drilling techniques* · Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg 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).

· -Five Boart Longyear HQ (7.6cm) and NQ core (5cm) holes were drilled between a depth of 46 and 249m for a total of 721 m in 2011 using polycarbonate (Lexan) tubes as opposed to a split triple tube.
- One rotary test hole was done at 31cm diameter to 150m. Rotary drilling of five test production wells were drilled between 348 and 480m at 31cm in the upper part of the hole and 24cm in the lower part of the hole.
- Twenty Boart Longyear HQ holes were drilled between a depth of 238 and 619m using polycarbonate (Lexan) tubes as opposed to split triple tube.
- All holes were drilled vertical.

*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.

· -Core recovery was measured for each run. The retrieved core was subsampled by cutting off the bottom 15 cm of alternating 1.5 m length lexan tubes (nominal 3 m intervals) for porosity analysis. When cores were recovered to surface the lexan tube was pumped from the core barrel using water and a plug separating tube and water. Upon release from the core barrel tight fitting caps were applied to both ends of the lexan tube. The lexan tube was then cleaned, dried, and labeled. Thereafter, cores were split, and the lithology was described by the on-site geological team.
-A total of 2,052 m was drilled with the rotary method during which cutting samples were collected at 2 m intervals for geological logging using a hand lens and binocular microscope. Cuttings were stored in chip trays.
· Sample recovery in core holes was done using the lexan liners as opposed to the split triple tubes.
· Cutting samples were not analysed chemically and descriptions were a qualitative evaluation of the lithologies encountered in the hole. There is no relationship between sample recovery and ion concentrations in the brine in this case. Core sample recovery for the two drilling programs was 76% and 70% in the 2011 and 2017/18 programs, respectively. Core sampling is enhanced by use of polycarbonate (Lexan) triple tubes. Unconsolidated salt lake sediments have much lower core recoveries than hard rock deposits.

*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.

· Core and drill cuttings were described by experienced geoscientists on site. A detailed QA/QC program for accuracy, precision and potential contamination of the brine sampling and analytical process was implemented. Deviations are within the acceptable ranges for different elements from the QA/QC program. This is provided a consistent stratigraphy, supporting Mineral Resource estimation and mining studies.
· -The core holes are qualitative and quantitative. It allows the geoscientist to qualify the lithology, while quantitatively providing porosity measurements.
· -Cutting logging is of a qualitative nature and results were compared with the quantitative geophysical logs to interpret the lithologies encountered in the hole.
· All intersections with sample recovery were logged.

*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.

· Core samples were systematically sub-sampled for laboratory analysis, by hand saw the lower 15 cm of core from the polycarbonate core sample tube and capping the cut section and taping the lids tightly to the core.
The remaining core was stored following Allkem (Previously Orocobre) protocols in wooden core boxes at the Project’s on-site warehouse.
· Brine samples were taken using a bailer following protocols developed by Allkem (Previously Orocobre) for resource drilling.
-Brine samples were taken using a bailer on 3m intervals in the 2011 program and 6-12m in the 2017/18 program.
-Sub samples of core were created by pumping the lexan tube when it reached the surface and labelling/storing the sample. Cutting lengths from the bottom of each lexan liner was done for porosity testing. Prior to taking water samples, up to three well volumes of brine were bailed from the hole prior to sampling.
· Prior to taking brine samples, up to three well volumes of brine were bailed from the hole prior to sampling. The bailed brine volume was adjusted based on the height of the brine column at each sampling depth. Core drilling was carried out using brackish water from the margins of the Salar as drilling fluid. This fluid has a Li concentration of less than 20 mg/L. Fluorescein, an organic tracer dye was added to the drilling fluid to distinguish between drilling fluid and natural formation brine. Detection of this bright red dye in samples provided evidence of contamination from drilling fluid and these samples were discarded.
· Duplicates, Standards and Blanks were used in the QA/QC program as well as up to 5 external laboratories to verify the data.
· As samples are liquid based, they are appropriate for the material.

*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 (i.e. lack of bias) and precision have been established.

· The chemical analysis of brine samples from the production wells and exploratory drilling holes were carried out by the primary (NorLab) and secondary labs (ASAMen and University of Antofagasta). Analysis was conducted using analytical methods based on the Standards Methods for the Examination of Water and Wastewater, published by the American Public Health Association (APHA) and the American Water Works Association (AWWA), 21st edition, 2005, Washington DC.
· All tools used were in accordance with the ISO 9001 accreditation and consistent with ISO 17025 methods at other laboratories.
-For the 2011 sampling program, a suite of inter-laboratory check samples was analysed at the University of Antofagasta. These samples showed generally low RPD values between the ASAMen and University of Antofagasta laboratory, suggesting ASAMen analyses have an acceptable level of accuracy as well as precision. Overall, the ASAMen results are considered of acceptable accuracy and precision.
-For the 2018 sampling program, checks analyses were conducted at ASAMen on 5% of the primary brine samples consisting of 42 external duplicate samples. The results of standard duplicate and blank samples analyses are considered to be adequate and appropriate for use in the resource estimation described herein.

*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.

· Duplicate brine samples were presented to the laboratories.
· A qualified individual reviewed the protocols for drilling, sampling and testing procedures at the initial planning stage as well as during the execution of the 2017/18 drilling and testing programs in Salar de Cauchari. The qualified individual spent a significant amount of time in the field during the 2017/18 field campaign overlooking the implementation and execution of drilling, testing, and sampling protocols.
· No adjustments to assay data are recorded.

*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 holes were located initially with a hand-held GPS and are subsequently surveyed by a certified surveyor. Production wells and diamond holes are drilled with a variable spacing of 2-7 km between holes. The Project location is in zone 3 of the Argentine Gauss Kruger coordinate system with the Argentine POSGAR 94 datum.

*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) and classifications applied.
· Whether sample compositing has been applied.

· -Exploration holes and wells are spaced between 2 and 7 km, drilling to a depth of 46 and 249m in 2011, and between a depth of 238 and 619m in 2017/18.
-Rotary drilling of five test production wells were drilled between 348 and 480m.
· The CP considers that brine and core samples have been collected in an acceptable manner, and the analysis of QA/QC samples indicate that the results of the lithium concentration and drainable porosity analyses are accurate and reliable for the use in the resource estimate described for the Project.
· The samples taken during the pumping tests are composite samples, sourced from a single well, but pulled from multiple well screens within that one well.

*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.

· The salar deposits that host lithium-bearing brines consist of sub-horizontal beds and lenses of sand, silt, halite, clay and minor gravels, depending on the location within the salar. Drill holes are vertical and essentially perpendicular to these units intersecting close to their true thickness.

*Sample security* · The measures taken to ensure sample security.

· - Brine samples were taken using bailer, packer and drive point methods. In addition, a second sampling was carried out once drilling was finished using Low Flow Sampling (LFS) equipment inside the 3-inch diameter PVC slotted casing installed in each of the DD boreholes. Prior to bottling, the sample was transferred to a bucket, which had been rinsed with the same brine as the sample. When necessary fine sediment was allowed to settle in the bucket before the brine sample was transferred from the bucket to two 1 litre plastic bottles. The bottles were rinsed with the brine and then filled to the top of the bottle removing any airspace and capped. Bottles were labelled with the borehole number and sample depth with permanent marker pens, and labels were covered with transparent tape, to prevent labels being smudged or removed. Samples with fluorescein contamination were noted at this point and except in specific circumstances these were not sent for laboratory analysis, due to the interpreted sample contamination.
-A volume of the same brine as the bottled sample was used to measure the physical parameters: density (with a picnometer), temperature, pH, Eh and in some samples dissolved oxygen. Details of field parameters were recorded on paper tags, which were stuck to the bottle with transparent tape when completed with sample information.
-Samples were transferred from the drill site to the field camp where they were stored in an office out of direct sunlight. Samples with suspended material were filtered to produce a final 150 ml sample for the laboratory. Before being sent to the laboratory the 150 ml bottles of fluid were sealed with tape and labelled with a unique sample ticket number from a printed book of sample tickets. The hole number, depth, date of collection, and physical parameters of each sample number were recorded on the respective pages of the sample ticket book and in a spreadsheet control of samples. Photographs were taken of the original 1-liter sample bottles and the 150 ml bottles of filtered brine to document the relationship of sample numbers, drill holes and depths.

*Audits or reviews* · The results of any audits or reviews of sampling techniques and data.

· No audits or reviews have been conducted at this point in time outside of the qualified individual.

*
*

*Section 2 - Reporting of Exploration Results*

(Criteria listed in the preceding section also apply to this section.)

*Criteria* *JORC Code explanation* *Commentary*
*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 obtaining a licence to operate in the area.

· -Cauchari (latitude 23° 29’ 13.19” South, longitude 66° 42’ 34.30” West), which is located immediately south of, and has similar brine characteristics to, Olaroz, wholly owned by Allkem. Cauchari is located in the Puna region, 230 kilometres west of the city of San Salvador de Jujuy in Jujuy Province of northern Argentina and is at an altitude of 3,900 meters above sea level. The property is to the south near paved Hwy. 52 that connects with the international border with Chile (80 km to the west) and the major mining centre of Calama and the ports of Antofagasta and Mejillones in northern Chile, both major ports for the export of mineral commodities and import of mining equipment.
-The Cauchari tenements cover 28,584 ha and consist of 23 mining/exploitation permits which were initially applied for on behalf of South American Salars (SAS). There is an agreement between the vendors of these tenements and SAS.
-SAS is a joint venture company with the beneficial owners being Advantage Lithium (AAL) with a 75% interest and La Frontera with a 25% stake. La Frontera is an Argentine company 100% owned by Orocobre Ltd. Orocobre acquired all outstanding shares of AAL on February 19, 2020, and gained the full (100 %) control of the Project. Orocobre merged with Galaxy Lithium to form Allkem Limited on 21 August 2021. Allkem indirectly owns 100% of the Cauchari tenements.
-The Argentine federal government regulates the ownership of Mineral Resources, although mining properties are administered by the provinces. Therefore, and in accordance with the Jujuy Provincial Constitutional Law, Provincial Law 5791/13, Resolution 1641-DPR-2023 and other related regulatory decrees and complementary rules, SAS will be required to pay monthly royalties as consideration for the minerals extracted from its concessions. Monthly royalties are equivalent to 3% of the mine head value of the mineral extracted, calculated as the sales price less direct cash costs related to exploitation and excluding depreciation of fixed assets. SAS expects to pay to the Province of Jujuy a royalty of the type, once the approval of the Exploitation Environmental Impact Assessment has been approved and the exploitation and production activities have effectively started.
*Exploration done by other parties* · Acknowledgment and appraisal of exploration by other parties.

· -The properties were not subject to any exploration for lithium prior to Allkem (Previously Orocobre) obtaining the properties.
- Significant exploration has been conducted to the east and north of the Cauchari properties by Minera Exar, resulting in a large resource and related reserve and a brine pumping project is currently in construction. Further north is the Olaroz Project, Allkem Limited has defined a 15.7 Mt LCE Mineral resource in Measured and Indicated categories and 7.3 Mt of Inferred Mineral Resources. These three projects are all developed on different parts of the same lithium brine body.

*Geology* · Deposit type, geological setting and style of mineralisation.

· - The project is a lithium salt lake deposit, located in a closed basin in the Andean mountain range in Northern Argentina
- The sediments within the salar consist of halite, clay, silt, sand and gravel which have accumulated in the salar from terrestrial sedimentation from the sides of the basin. Brine hosting dissolved lithium is present in pore spaces and fractures within unconsolidated sediments.
- Evaporation of brines entering and within the salt lake generates the concentrated lithium that is extracted by pumping out the brine.
-The sediments are interpreted to be essentially flat lying with unconfined aquifer conditions close to surface and semi-confined to confined conditions at depth.
- Geology was recorded during drilling of the hole if rotary and after the core reached the surface if a diamond drill hole.

*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:

1. easting and northing of the drill hole collar
2. elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar
3. dip and azimuth of the hole
4. down hole length and interception depth
5. 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.

· The holes are located in the mining properties covering the Cauchari salt lake, centred around approximately 7377500N/ 3425000E and approximately 3900 m elevation, in Zone 3 of the Argentine Gauss Kruger grid system, using the Posgar 94 datum. The drill holes are all vertical, (dip -90, azimuth 0 degrees). On the salt lake brine is present from within ~1 m of surface to the base of drilling.
https://www.globenewswire.com/NewsRoom/AttachmentNg/27191334-f43d-4e45-90f7-c19084b65394

*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.

· The pumping well samples are composite samples that reflect inflows from different levels within the wells, which are screened at multiple levels throughout their depth. The lithium concentration in the pumped samples is an average of the concentration from different units with relatively higher and lower values than the average. More permeable units contribute a higher proportion of the brine in the pumped samples.

*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, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).

· The sediments hosting brine are interpreted to be essentially perpendicular to the vertical drill holes, representing true thicknesses in drilling. The entire thickness of sediments is believed to be mineralized with lithium brine, with the water table within approximately 1 metre of surface. Lithium is hosted in brine in pores within the different terrestrial sedimentary units in the salt lake sequence.

*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.

https://www.globenewswire.com/NewsRoom/AttachmentNg/98809563-a3e6-41d9-b1e9-4cd4a81db659
Location map of boreholes.

https://www.globenewswire.com/NewsRoom/AttachmentNg/ced5a720-2ae9-46cb-b0e3-b878e7853600
W-E section looking north through the Cauchari JV geological model.

https://www.globenewswire.com/NewsRoom/AttachmentNg/e62c4656-0334-48e1-b11d-ebd92170e87e
W-E section looking north, showing the progressive inter-fingering of the Archibarca fan with the Clay and Halite units.

https://www.globenewswire.com/NewsRoom/AttachmentNg/eff51b2d-dabf-4dcb-95ba-028dcd986019
W-E section looking north between boreholes CAU16D and CAU10R.

https://www.globenewswire.com