Further Drilling at Flagship Kachi Project Reveals Large Lateral and Vertical Expansion of Lithium-Bearing Brine

• Drilling program continues to confirm the large scale and quality of lithium-bearing brine for the Kachi Lithium Brine Project.
• Deeper drilling at K23D40 reveals lithium-bearing brine continues between 400 and 610 meters below ground surface at K23D40
• Step out drilling reveals lithium-bearing brines are more extensive than previously understood.
• Results show brines returning grades of 209-254 mg/L lithium over 322 metres (288 – 610 m) in drillhole K23D40 with best results from 288 to 322 meters below ground surface (m bgs) averaging grades of 254 mg/L lithium.
• Higher permeability sands and gravels intercepted.
• Drilling continues in the Southern sector of the project area with diamond drillholes at Platforms K24 and K25.

SYDNEY, Aug. 22, 2023 /PRNewswire/ -- Clean lithium developer Lake Resources NL (ASX: LKE; OTC: LLKKF) ("LAKE" or "the Company") reports that deeper drilling at the Kachi lithium brine Project ("Kachi" or the "Project") in Catamarca Province, Argentina indicates significantly larger horizontal and vertical extents of the lithium-bearing brine than previously understood.

In Lake's resource update on June 15, 2023, the Company reported that future drilling was targeting additional step out holes and exploring the deeper resource beyond 400m bgs. This update provides highlights from drillhole K23D40 which is the first hole at the Project drilled beyond 430 m bgs to a total depth of 610 m bgs.^[1] The data from this drillhole will be used to support planned resource updates and the hydrogeologic models being developed to simulate the extraction and injection wellfields as part of the Project's Definitive Feasibility Study (DFS) for Phase 1.

"The latest drilling intercept results indicate that this resource is much larger than initially anticipated as the known lithium brine extent continues to expand laterally and vertically ," commented Michael Gabora, Director of Geology and Hydrogeology of Lake Resources.

"The K23D40 hole represents the first time Lake has drilled significantly beyond 400 m to over 600 m. Even more exciting is that average lithium grades in all brine samples collected between 400 and 600 m are above 209 mg/L, proving that the brine extends at depth to over 600 m at K23. This has big implications for what may be present in the central resource area at these depths."

Lake CEO David Dickson commented, "In drilling 180 m deeper than we have before, we are excited to find lithium-bearing brine the whole way down, increasing the extent of known brine in the vertical dimension by 30%."

"These findings could have a major impact on the resource if it is also present at these depths in the remainder of the brine footprint. This work will contribute to further resource updates, which we expect to provide in September, in support of the completion of our Phase 1 DFS."

The Kachi Project has shown continual increases in mineral resource estimates since the maiden estimate of 4.4 Mt of contained battery grade Lithium Carbonate Equivalent (LCE) in Inferred and Indicated categories was announced in November 2018^[2]. The resource was significantly upgraded in January 2023 with a Measured and Indicated resource of 2.2 Mt of LCE and approximately 3.1 Mt of LCE of Inferred mineral resources^[3]. The total resource was again increased in June of 2023^[4] with more than 2.9 Mt LCE in Measured and Indicated and approximately 5.3 Mt of LCE in the Inferred category for a total resource estimate of more than 8.1 Mt of LCE^[5]. As reported in the the Company's June 15, 2023 ASX announcement, the lithium grade of the Measured Resource (0-400m) across the salar is 210 mg/L lithium, the Indicated Resource immediately southeast is 174 mg/L lithium, and the surrounding Inferred Resource (0-400m) has a concentration of 199 mg/L lithium.^[6] Recent extraction and injection testing^[7] has built on the existing knowledge around the large lithium brine resource and demonstrated that the reservoir in the resource area is permeable and that productive wells can be drilled and constructed. The additional drilling and testing results from K23D40 provided in this announcement demonstrate that the resource is present significantly further west and north of the core resource area and extends to more than 600m, which is significantly deeper than previously defined.

The full release can be found here: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02700164-2A1467818?access_token=83ff96335c2d45a094df02a206a39ff4 

About Lake Resources NL (ASX:LKE OTC:LLKKF ) 

Lake Resources NL (ASX:LKE, OTC: LLKKF) is a responsible lithium developer utilising state-of-the-art ion exchange extraction technology for production of sustainable, high purity lithium from its flagship Kachi Project in Catamarca Province within the Lithium Triangle in Argentina. Lake also has three additional early-stage projects in this region.

This ion exchange extraction technology delivers a solution for two rising demands – high purity battery materials to avoid performance issues, and more sustainable, responsibly sourced materials with low carbon footprint and significant ESG benefits.

Forward Looking Statements:

Certain statements contained in this announcement, including information as to the future financial performance of the projects, are forward-looking statements. Such forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Lake Resources N.L. are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results, expressed or implied, reflected in such forward-looking statements; and may include, among other things, statements regarding targets, estimates and assumptions in respect of production and prices, operating costs and results, capital expenditures, reserves and resources and anticipated flow rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions and affected by the risk of further changes in government regulations, policies or legislation and that further funding may be required, but unavailable, for the ongoing development of Lake's projects. Lake Resources N.L. disclaims any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words "believe", "expect", "anticipate", "indicate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward-looking statements. All forward-looking statements made in this announcement are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Lake does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

[1] This announcement reports testing results only. No exploration or production targets, nor new estimates of inferred mineral resources, indicated mineral resources or measured mineral resources in relation to the Kachi Project are being reported in this announcement, and the mineral resources last reported in the announcement on June 15, 2023 have not materially changed since that date.

[2] November 27 2018 ASX announcement  - Maiden 4.4 Mt Resource Estimate – Kachi Lithum Brine Project

[3] January 11 2023 ASX announcement - Kachi M&I resource doubled to 2.2 million tonnes Lithium Carbonate Equivalent with 3.1 million tonnes Inferred resource

[4] See Table 2 for details of the individual categories of 'Inferred', 'Indicated' and 'Measured' regarding the JORC Mineral Resource estimate, which was first reported in the announcement on June 15, 2023 and has not changed since that date.

[5] June 15 2023 ASX announcement - - Lake Resources Provides JORC Update on its Flagship Kachi Project

[6] June 15 2023 ASX announcement - - Lake Resources Provides JORC Update on its Flagship Kachi Project.

[7] August 15 2023 ASX announcement - Lake Resources Completes Intermediate Milestone to Achieve DFS with Successful Extraction and Injection Tests at its Flagship Kachi Project