Galaxy Resources Limited: James Bay Drilling Delivers Thick High Grade Results

Perth - Galaxy Resources Ltd. ("Galaxy" or the "Company") (ASX:GXY) (OTCMKTS:GALXF) is pleased to announce its first assays from its 2017 drilling campaign at its James Bay lithium pegmatite project in Quebec, Canada.

In late March, Galaxy's James Bay team commenced a ~31,000m diamond drilling campaign to extend and develop the existing James Bay resource. Phase 1, which completed 20,245 meters, is now complete and the drill program has shown the resource to be open at depths below -100m and the existing recoverable resource was reported to an average of -110m (maximum -200m) below surface. All intercepts are reported below.

The Phase 2 drilling program is ongoing and expected to be completed by the end of July 2017. Further results will be released over the coming weeks.

Galaxy's Managing Director and CEO, Anthony Tse, commented: "The new phase of drilling at James Bay was put in place to reinforce the scale of the pegmatite and the significant potential for further growth. James Bay's proximity to local infrastructure, including the accessible road networks, water and power supply are all natural advantages and key to the development of the Project. The Project Team will now focus on concluding the activities required on the resource upgrade campaign, in addition to progressing the work in relation to the Feasibility Study, both for the upstream mine and concentrator plant, as well as the downstream lithium conversion facility."

- The first ten drill holes returned significant intercepts including:

o Drill hole JBL17-04, from 73.17m, 38.8m @ 1.65 Li2O %
o Drill hole JBL17-08, from 12.85m, 48.10m @ 1.56 Li2O%
o Drill hole JBL17-07, from 138.45m, 38.1m @ 1.50 Li2O %
o Drill hole JBL17-11, from 118.9m, 48.60m @ 1.64 Li2O %
Including
-- from 118.9m, 1.40m 3.30 Li2O %
-- from 120.3m, 1.50m, 4.37 Li2O %
-- from 121.8m, 1.50m, 3.10 Li2O %
-- from 129.3m, 1.50m, 4.41 Li2O %

Assays (see Table 1 in the link below) have been received for 10 diamond holes for 1,205m of NQ drilling (collars, Table 2, in the link below).

In addition, three drill holes, JBL17-16, JBL 17-17, and JBL 17-18 (see Table 2 in the link below) above, have discovered two new pegmatite dykes, which bring the total number of dykes in the James Bay pegmatite swarm to 33. Assay for these are not yet received.

ABOUT THE JAMES BAY PROJECT

The James Bay Pegmatite swarm is located It is 2 kilometers south of the Eastmain River and 100 kilometers east of James Bay. The property is accessible by paved road from the James Bay Road (highway) which cuts through the property close to the 381km road marker on the highway Route/109 from Val d'Or, Quebec, Canada. Val d'Or is approximately 526km westward from Montreal, Quebec. A large, multi-service truck stop is located at marker 381. The James Bay Lithium project is located 1,850 road kilometers from Montreal and 1,650 road kilometers from Quebec City.

Discovered in the 1960's and then known as the Cyr property it consists of a swarm of 33 pegmatite dykes of the zoned LCT (lithium-cesium-tantalum) type. Two new pegmatite dykes have been discovered in this current campaign. The lithium bearing mineral is spodumene and the pegmatites are the typical zoned type. The pegmatites intrude the Eastmain greenstone belt (Lower Eastmain Group), These consist of amphibolite-grade mafic to felsic metavolcanics, meta-sediments and minor gabbroic intrusions. A classified resource was reported (see Note 1 below) at cut-off grade of 0.75% Li2O of 11.75Mt @ 1.30% Li2O (Indicated) and 10.47Mt @ 1.20% Li2O (Inferred) within a conceptual pit shell using a lithium carbonate price of USD 6,000, metallurgical and process recovery of 70%, mining and process costs of USD 64 per tonne and overall pit slope of 45 degrees. The current resource is based on 14,457m of diamond drilling and 201.3m of horizontal channel sampling. The pegmatite swarm strikes N 103 degrees E., dips steeply at ~60 d egrees westward and forms a corridor of discontinues dykes of about 4km length and 300m wide. These outcrop to about 15-20m above the surrounding muskeg/swamp. Two exploration holes located within the 500m gap between dyke 15 and dyke 14 (at the western-end of the property) have discovered and unearthed two large pegmatites 38m and 42m thick respectively.

Note 1: Galaxy Resources Ltd. Annual report, 2016.

To view tables and figures, please visit:
http://abnnewswire.net/lnk/57916830

About Galaxy Resources Limited:

Galaxy Resources Ltd. (ASX:GXY) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.

Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.

Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products



Contact:

Corporate Nick Rowley Director - Corporate Development
M: +61-455-466-476 T: +61-8-9215-1700
E: nick.rowley@galaxylithium.com

Media Enquiries (Australia)
John Gardner Citadel-MAGNUS
M: +61-413-355-997 or T: +61-8-6160-4901
E: jgardner@citadelmagnus.com

Media Enquiries (International)
Heidi So Strategic Financial Relations Ltd
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E: heidi.so@sprg.com.hk