Lake Resources NL: Pilot Plant Processing Brines

Brisbane, Australia - Lithium explorer and developer Lake Resources NL (ASX:LKE) (FRA:LK1) provides this update on ongoing test work and commissioning of the Lilac Solutions ion exchange pilot plant module.

As shareholders are aware, ~20,000 litres of brine samples are being transported from Kachi and are currently on the west coast and expected to arrive in 10 days to the docks in Oakland, California. These brine samples will be initially used to complete the commissioning of a Lilac Solutions pilot-scale ion exchange module. High-purity lithium chloride will be produced for conversion to battery-grade lithium carbonate. Deliveries of lithium carbonate samples to downstream groups are being planned to start the qualification process with off takers.

In the lead up to this test program, Lake and Lilac Solutions are currently testing ~5,000 litres of 'replicate brine' through the ion exchange pilot plant as commissioning in preparation for the arrival and testing of the Kachi brines and to ensure the technology is consistent and fully functional.

The replicate samples are expected to produce very similar results as the initial Kachi brines and Lake and Lilac will report on the outcomes from this test work.

Lake's Managing Director Steve Promnitz said: "Our key focus at this time is to prove conclusively that the Lilac Solutions pilot-scale ion exchange module can consistently process the Kachi brines into high purity, battery grade lithium carbonate at volume. The rationale for processing these replicate brines is to ensure the pilot plant testing of the actual Kachi brines is completed without a 'hitch'.

"This is a transformational moment in the industry. Lake has an almost unique opportunity to deliver more sustainable lithium products with very low impurities - what EV makers and battery makers are increasingly seeking. The Kachi brines will arrive at Lilac in the next 10 days and testing will commence shortly thereafter. This is a critical program for Lake and Lilac and we look forward to providing updates as the test work unfolds."

Lake aims to produce at Kachi a high quality, low impurity product capable of attracting premium pricing. The PFS which is almost completed is anticipated to show production costs in the lower part of the global cost curve.

The direct extraction process, together with the Kachi project, offers a sustainable solution for the downstream battery makers by extracting lithium from brines using ion exchange without traditional evaporation ponds. Brine is returned to the aquifer once the lithium has been extracted without changing the brine chemistry.

This addresses increasing interest from electric vehicle makers (OEM's) and battery makers to demonstrate they have access to a sustainable scalable supply chain for raw materials.

To view the release, please visit:
https://abnnewswire.net/lnk/2KWOTC2D

About Lake Resources NL:

Lake Resources NL (ASX:LKE) is a lithium exploration and development company focused on developing its three lithium brine projects and hard rock project in Argentina, all owned 100%. The leases are in a prime location among the lithium sector's largest players within the Lithium Triangle, where half of the world's lithium is produced. Lake holds one of the largest lithium tenement packages in Argentina (~200,000Ha) secured in 2016 prior to a significant 'rush' by major companies. The large holdings provide the potential to provide consistent security of supply demanded by battery makers and electric vehicle manufacturers.

The Kachi project covers 69,000 ha over a salt lake south of FMC's lithium operation and near Albemarle's Antofalla project in Catamarca Province. Drilling at Kachi has confirmed a large lithium brine bearing basin over 20km long, 15km wide and 400m to 800m deep. Drilling over Kachi (currently 16 drill holes, 3100m) has produced a maiden indicated and inferred resource of 4.4 Mt LCE (Indicated 1.0Mt and Inferred 3.4Mt) within a 8-17 Mt LCE exploration target (refer ASX announcement 27 November 2018).

A direct extraction technique is being tested in partnership with Lilac Solutions, which has shown 80-90% recoveries and lithium brine concentrations in excess of 3000 mg/L lithium and is planned to be trialled on site in tandem with conventional methods as part of a PFS to follow the resource statement. Scope exists to unlock considerable value through partnerships and corporate deals in the near term.

Source:

Lake Resources NL

Contact:

Steve Promnitz Managing Director Lake Resources NL T: +61-2-9188-7864 E: steve@lakeresources.com.au