A$20 million Placement to Strategic Partner

PERTH, Australia, June 20, 2025 /PRNewswire/ -- Galan Lithium Limited (ASX:GLN) (Galan or the Company) is pleased to announce it has secured a binding commitment for a A$20 million placement (Placement) at A$0.11 per share, a 21% premium to the last closing price of A$0.091 as at 19 June 2025, from an existing shareholder, The Clean Elements Fund (Clean Elements). Additionally, Clean Elements will receive one unlisted option for every two shares issued under the Placement, with an exercise price of A$0.15 per option and an expiry date that is three years from the date of issue.

The Placement is subject to Clean Elements' satisfactory completion of due diligence over a period not longer than 77 days. Full completion of the Placement will require shareholder approval which will be sought at a Galan general meeting, expected to be held in early September 2025.

The Placement provides the final construction funding solution for Phase 1 (at 4ktpa LCE), of the Company's world class Hombre Muerto West project (HMW) in Argentina, which will see production of lithium chloride concentrate in H1 2026.

Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:

"We are extremely pleased to receive further support from Clean Elements. HMW is a world-class lithium project, offering exceptional scale and grade. This commitment from Clean Elements, priced at a significant premium to our last closing share price, reflects the value proposition provided by Galan.

To have executed this funding agreement whilst facing strong macro headwinds for the lithium industry is a huge achievement for Galan and further validates the unique attributes of HMW. With a clear pathway to first concentrate production, this support positions Galan to focus on execution. The next 12 months promise to be a transformational period for Galan and the team remains fully focussed on the creation of significant value for all shareholders."