Name of the Project
Sal de Vida lithium/potash project.

Location
The project is located on the Salar del Hombre Muerto, in north-west Argentina.

Client
Galaxy Resources.

Project Description
An updated definitive feasibility study (DFS) has validated Sal de Vida as a technically superior, highly profitable long-life and low-cost lithium/potash project.

Sal de Vida plans to produce battery-grade lithium carbonate and potash products through the treatment of lithium-enriched brine from the Salar de Hombre Muerto.

The project has a Joint Ore Reserves Committee-compliant mineral reserve of 1.1-million tonnes of recoverable lithium carbonate equivalent and 4.2-million tonnes potassium chloride equivalent, supporting a long initial project life with production of 25 000 t/y of lithium carbonate and 94 000 t/y of potash.

The project has an estimated mine life of 40 years.

The project also holds significant potential for future upside from further resource definition and subsequent reserve upgrade.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated post-tax net present value, at an 8% (real) discount rate, of $1.48-billion and an internal rate of return of 26.9%, with a post-tax payback of about three years from first production.

Value
Capital expenditure is estimated at $474-million, or $443-million excluding the potash circuit.

Duration
The DFS models an operation with an initial three-year ramp-up to full planned lithium carbonate production. Potash production is deferred for two years after the start of lithium carbonate production.

Latest Developments
Galaxy Resources has completed the sale of the northern tenements of its Sal de Vida project, in Argentina, to Korean major Posco.

Posco earlier this year struck a deal with Galaxy to acquire a package of tenements on the northern portion of Sal de Vida for $280-million. Galaxy would retain full ownership of the tenements at the southern area of the Salar del Hombre Muerto.

Galaxy has previously said that proceeds from the transaction would be used to advance the development of the Sal de Vida project.

The company has said that the transfer of brine extraction rights over an additional five tenements remained subject to the completion of certain conditions precedent. It was expected that these conditions and the transfer of the brine rights would also be completed by the end of November, releasing a deferred $15-million payment.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Galaxy Resources, tel +61 8 9215 1700, fax +61 8 9215 1799, or email reception@galaxylithium.comor info@galaxylithium.com.