Name of the Project
Sal de Vida lithium/potash project.

Location
The project is located on the Salar del Hombre Muerto, in north-west Argentina.

Client
Galaxy Resources.

Project Description
An updated definitive feasibility study (DFS) has validated Sal de Vida as a technically superior, highly profitable long-life and low-cost lithium/potash project.

Sal de Vida plans to produce battery-grade lithium carbonate and potash products through the treatment of lithium-enriched brine from the Salar de Hombre Muerto.

The project has a Joint Ore Reserves Committee-compliant mineral reserve of 1.1-million tonnes of recoverable lithium carbonate equivalent and 4.2-million tonnes potassium chloride equivalent, supporting a long initial project life with production of 25 000 t/y of lithium carbonate and 94 000 t/y of potash.

The project has an estimated mine life of 40 years.

The project also holds significant potential for future upside from further resource definition and subsequent reserve upgrade.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated post-tax net present value, at an 8% (real) discount rate, of $1.48-billion and an internal rate of return of 26.9%, with a post-tax payback of about three years from first production.

Value
Capital expenditure is estimated at $474-million, or $443-million excluding the potash circuit.

Duration
The DFS models and operation with an initial three-year ramp-up to full planned lithium carbonate production. Potash production is deferred for two years after the start of lithium carbonate production.

Latest Developments
Galaxy Lithium has confirmed a binding agreement with Korean major Posco for the $280-million sale of a package of tenements located on the northern portion of Sal de Vida project.

The two companies announced the transaction over the northern tenement package in May this year.

Galaxy has said that it will retain full interest in the tenements on the southern area of the Salar de Hombre Muerto, which are included in the updated feasibility study for the Sal de Vida project.

The proceeds from the transaction will be used to advance the development of the project, with the transaction expected to settle in the fourth quarter of this year, subject to the completion of the relevant tenement transfer and the registration procedures in Argentina.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Galaxy Resources, tel +61 8 9215 1700, fax +61 8 9215 1799, or email reception@galaxylithium.comor info@galaxylithium.com.