Galaxy Resources Ltd - Continued Production Increases at Galaxy's Jiangsu Plant

/NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO US PERSONS/

Highlights

• July lithium carbonate production increases 12% to 678 tonnes
  
• Total July product sales of 611 tonnes, up 11.5%
  
• Further increases in production and sales of battery grade lithium carbonate

PERTH, Australia, Aug. 2, 2013 /CNW Telbec/ - Galaxy Resources Ltd. (ASX: GXY) ("Galaxy" or "the Company") is pleased to announce that production at its wholly-owned Jiangsu Lithium Carbonate Plant ("Jiangsu" or "the Plant") totalled 678 tonnes in July 2013, an increase of 12% month-on-month.

Production of battery grade lithium carbonate (99.5% purity and above) also increased during July from the previous month.

Combined battery and technical grade sales reached 611 tonnes in July, up 11.5% from June. Battery grade lithium carbonate (99.5% purity and above) continued to increase as a proportion of overall sales. Testing and qualification of Jiangsu's battery grade lithium carbonate continues with a range of battery cathode makers.

Production and sales figures have continued to increase since the Jiangsu Plant was brought back online in February this year. As reported in the latest Quarterly Report, sales in Q2 were three-fold higher than Q1 this year.

Galaxy Interim Managing Director Anthony Tse said: "We are pleased with the increases in production and sales at Jiangsu, and continue to be focused on making efficiency enhancements to the Plant to improve overall output during the coming months."

About Galaxy (ASX: GXY)

Galaxy Resources Ltd. ("Galaxy") is an Australian-based global lithium company with lithium production facilities, hard rock mines and brine assets in Australia, China, Canada and Argentina. The Company is a lithium producer listed on the Australian Securities Exchange (Code: GXY) and is a member of the S&P/ASX 300 Index.

Galaxy has built an advanced and fully-automated Lithium Carbonate production facility in Jiangsu Province, China ("Jiangsu Plant"). The Jiangsu Plant has a name-plate capacity of 17,000 tpa, is primarily focused on producing battery grade lithium carbonate, and is aiming to become the largest producer in the Asia Pacific region and the fourth largest in the world.

Galaxy is currently advancing plans to develop the Sal de Vida Lithium and Potash Brine Project ("Sal de Vida") in Argentina, which is situated in the Lithium Triangle, a region where Chile, Argentina and Bolivia meet, and presently accounts for 60% of global lithium production. Sal de Vida has excellent promise as a future low cost production facility.

The Company also owns the Mt Cattlin Spodumene Mine near Ravensthorpe in Western Australia and the James Bay Lithium Pegmatite Project in Quebec, Canada.

Lithium compounds are used in the manufacture of ceramics, glass, electronics and are an essential ingredient in producing battery materials such as cathode and electrolyte, in the manufacture of long life lithium-ion batteries, which are used in consumer electronics, power tools, electric bikes, hybrid and electric vehicles. Anticipating the growing demand in coming years, Galaxy is positioning itself to become a major producer of lithium products.

Caution Regarding Forward Looking Information.

This document contains forward looking statements concerning Galaxy.

Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes.

Forward looking statements in this document are based on Galaxy's beliefs, opinions and estimates of Galaxy as of the dates the forward looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

Not For Release in US

This announcement has been prepared for publication in Australia and may not be released in the U.S. This announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States absent registration or an exemption from registration under the United States Securities Act of 1933, as amended. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the company and management, as well as financial statements.

SOURCE Galaxy Resources Ltd.