Allkem Provides Drilling Update for James Bay Lithium Project

Mr. Martin Perez de Solay reports:

BRISBANE, Australia, Aug. 02, 2023 (GLOBE NEWSWIRE) -- Allkem Limited (ASX|TSX: AKE, “Allkem” or the “Company”) is pleased to provide a drilling update for its James Bay Lithium Project in Québec, Canada.

HIGHLIGHTS

RESOURCE DELINEATION DRILLING

Between December 2022 and April 2023, Allkem undertook a resource definition drilling campaign with the aim of delineating the pegmatite dykes around the extremities of the deposit, and to test for strike extensions to the north-west. In total, 130 drill holes were completed for a total meterage of 29,124m. A significant portion of this drilling was designed to support a maiden Inferred Mineral Resource in the NW Sector, supported by an 80m x 80m drilling pattern.

Interim assay results relating to the newly discovered NW Sector were announced to the market on May 4th, 2023. The remaining assays have been received from the laboratory and are included in this announcement with a supporting plan view (Figure 1) and schematic section (Figure 2).

Assay highlights for the remaining assays from the 2023 drilling campaign include:

Managing Director and CEO, Martin Perez de Solay said, “These outstanding drilling results confirm a material extension of mineralisation at James Bay. Work is now focussed on reviewing the Mineral Resource to include the additional results from the 2023 drilling program and an update is expected by the end of the month.

“James Bay is a Tier 1 lithium asset with the potential to grow even further as the boundaries of mineralisation are tested through an additional drilling program commencing later in the year."

Figure 1: James Bay 2023 drilling program – Plan view of drill collars

All drillhole collars from the 2023 drilling campaign are tabulated in Appendix 2, and all new significant assay intervals received since the May 4th 2023 announcement are presented in Appendix 3.

Figure 2: NW Sector cross section, looking north-east.

NEXT STEPS

A Mineral Resource update is on-track for completion in August 2023, and will be announced to the market once internal checks and verifications are complete.

The Company is currently planning a significant diamond drilling campaign to start in November 2023 to expand on the additional lithium-bearing pegmatites discovered last winter. The drilling program will consist of both in-fill drilling to better understand the geometry of the pegmatites, and step-out exploration drilling to discover new pegmatites along-strike to the NW zone.

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

IMPORTANT NOTICES

This investor ASX/TSX release (Release) has been prepared by Allkem Limited (ACN 112 589 910) (the Company or Allkem). It contains general information about the Company as at the date of this Release. The information in this Release should not be considered to be comprehensive or to comprise all of the material which a shareholder or potential investor in the Company may require in order to determine whether to deal in Shares of Allkem. The information in this Release is of a general nature only and does not purport to be complete. It should be read in conjunction with the Company’s periodic and continuous disclosure announcements which are available at allkem.co and with the Australian Securities Exchange (ASX) announcements, which are available at www.asx.com.au.

This Release does not take into account the financial situation, investment objectives, tax situation or particular needs of any person and nothing contained in this Release constitutes investment, legal, tax, accounting or other advice, nor does it contain all the information which would be required in a disclosure document or prospectus prepared in accordance with the requirements of the Corporations Act 2001 (Cth) (Corporations Act). Readers or recipients of this Release should, before making any decisions in relation to their investment or potential investment in the Company, consider the appropriateness of the information having regard to their own individual investment objectives and financial situation and seek their own professional investment, legal, taxation and accounting advice appropriate to their particular circumstances.

This Release does not constitute or form part of any offer, invitation, solicitation or recommendation to acquire, purchase, subscribe for, sell or otherwise dispose of, or issue, any Shares or any other financial product. Further, this Release does not constitute financial product, investment advice (nor tax, accounting or legal advice) or recommendation, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

The distribution of this Release in other jurisdictions outside Australia may also be restricted by law and any restrictions should be observed. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.

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; the risks associated with the continued implementation of the merger between the Company and Galaxy Resources Ltd, 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 announcement that relates to Exploration Results is based on information compiled by James Purchase, P.Geo, MAusIMM (CP), a Competent Person who is both a member of L’Ordre des Géologues du Québec (License No. 2082) and a Member of The Australasian Institute of Mining and Metallurgy (with Chartered Professional status). Mr. Purchase is a full-time employee of Galaxy Lithium (Canada) Inc. Mr. Purchase has sufficient experience that is relevant to the style of mineralization 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’. Mr. Purchase consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

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 1 – JORC 2012 TABLE 1 DISCLOSURE

Section 1: Sampling Techniques and Data

Section 2: Reporting of Exploration Results

Appendix 2: All drillhole collars from the 2023 drilling program.

Appendix 3: New Significant Assay Results since announcement on May 4th, 2023.

Notes: Lower reporting cut-off 0.4% Li2O%; minimum 4m true thickness interval; maximum 2m of internal waste. Assay results are only reported within logged pegmatite intervals. Estimated true thicknesses are calculated from the intersection of the downhole surveys with three separate planes, depending on location, representing the geometry of the pegmatite dykes.

Notes: Lower reporting cut-off 0.4% Li2O% based on geological and geometallurgical parameters; minimum 4m true thickness interval; maximum 2m of internal waste. Assay results are only reported within logged pegmatite intervals. Estimated true thicknesses are calculated from the intersection of the downhole surveys with three separate planes, depending on location, representing the geometry of the pegmatite dykes.