Ann: Lake responds to online report, page-518

The only thing that is laughable here are some of you "self appointed experts" who think you have done enough research to speak authoritatively on this subject when, in fact, you are highlighting your own ignorance! Read my comments below and go some way into being educated on the topic....because, now matter how much front and bravado you think you are showing, you aren't fooling anybody!

Point by point:

1) I have nothing against the Lilac process per se, my issue(s) are more around spruiking of numbers by both the company and this forum. The PFS is old. The revised PFS is the last official document containing the outlined data. It will be superseded by the DFS which will be released in H2, 2022. What else are you going to go on prior to the DFS? Original numbers are from 2020. A PFS is accurate to +-30%. Alot has happened in the world in the past 2 years, one of which is inflation, the other is timelines. Both have blown up. The updated CAPEX and timelines will no doubt be spelled out in the upcoming DFS. That's why we have a DFS....to narrow down the detail and adjust the information presented after the passage of time. The company and LKE HODLers continue to spruik data from 2020. Yes, and that is what normally happens until the Company releases the DFS or any relevant updated data in announcements. I don't know what you are expecting to be used.

2) I don't believe nor trust that the CAPEX nor OPEX numbers are remotely accurate. RISK Your opinion - based on what? Do you have better information available on this than the Company does? Are you some kind of subject matter expert? If so, feel free to share...but the real answer is NO, you don't.

3) The process is at pilot stage. No, it's not. The Pilot Plant has been operating at increased scale (over benchtop) in Oakland, California for a number of years and that data is feeding into the DFS. They are now at Demonstration Plant stage and this will be up and running in weeks. They have yet to have a pilot running on site and timelines have completely blown out. RISK. The Pilot Plant was located in California to avoid as many Covid delays as possible whilst progressing the project. The only significant change was the location. Production is still planned for H2, 2024...and 2024 has been the plan for quite some years now.

4) The pilot is for 10tpa. The Pilot Plant may have been for 10Tpa....but the Demonstration Plant is for 40Tpa. The company is spruiking 50,000tpa. SO they are talking about a 5,000x increase. Yes, they are talking about 50,000Tpa - a 1250x increase to the Demonstration Plant. The modular construction of the Final Plant means that scaling up is achieved by adding more modules.....modules that have been proven to work already - just more of them. The scaling then just becomes an exercise around hydraulics and feeding the higher levels of brine through many more modules. This actually means LESS risk - not more! One word RISK, RISK, RISK That's three words.

5) Neither the management of this company, nor the CEO of Lilac have brought a new process to market. RISK Lilac are the process experts. Lake have pulled things together to get us where we are now - bringing together a world class (Top 10) resource and the innovative Lilac DLE process. The new CEO with the appropriate skills to bring all of this to market is being finalised as we speak. He/she will lead this project to the market....and yes, they will likely be someone with that experience as this will be one of the search criteria.

6) Data from the response from LKE indicate that the beads last 500 not 1000 cycles. "Bead efficiency is consistent for > 500 cycles and testing shows potential for > 1000 cycles". If you are going to quote something, make sure you get it right. So 50% reduction. No, so a 333-667% INCREASE in what JCap were touting. Again, OPEX will increase. RISK No, it won't. OPEX (around the $4000/T) has been calculated on the correct efficiency data achieved with Lilac testing - so there is no OPEX increase to discuss as Lilac had the right figures all along.

7) The resource is low-grade and they haven't completely drilled or updated the resource. You are really showing your lack of understanding here. The resource IS NOT low grade when using Lilac DLE as the use of DLE makes "grade" as you have defined it (and as used by evaporators) completely irrelevant. Its early days. Also, have they tested Lilac across the whole salar? Why don't you check where the drill holes are across the salar and ask Lilac whether they've done this testing. The acquifer extends over huge areas under the salar and individual samples were taken at a number of locations. They have not extensively drilled Kachi at this stage - and that is why there is so much more potential to increase the resource....8-17MT wasn't it? What is the process variation? Why does there need to be a process variation? The brines sampled have been demonstrated to be relatively "clean" and Lilac have confirmed that they do not need to pre-treat the brines before putting them through their DLE process. The key to this is that the Lilac beads target the Lithium and not any other impurities.

8) The company does not have an MD/CEO, yet they are reiterating they will get drilling, DFS, funding, offtake ESIA all done in the next 6 months, and then be in production in 2024. This is laughable. Not at all. Ambitious...maybe. Impossible....no. Production commencement may drift into H1, 2025, but not to 2026 and beyond as some ignorant posters here have noted. The new CEO/MD is weeks away at worst and drilling, financing, the DFS, offtake finalisation and the ESIA are already all progressing regardless. What, do you think we need to wait for a new CEO to be appointed and get up to speed to progress any of these items? Don't forget that appointing a new CEO has been part of the plan for 4-5 months now.

9) There is a complete lack of data about the lilac process, the outputs of the process, the process sensitivities, waste, CO2, energy consumption. All of these things will be needed for DD Firstly, Lilac is a private Company that has lead these innovations in DLE using ion exchange (specifically targeted to use very little water in this dry, arid environment). Do you think they are dumb enough to let all of their competitors know the finer details? All of the current data around specific outputs (LiCl for example), sensitivities, waste, CO2, energy consumption, etc. will be kept "in house" and shown to potential Offtakers, Financiers, the Bolivian Government, etc. only when they need to be and under NDA's. These selected parties will know enough of the detail to enable them to undertake their DD and make educated decisions related to the project without that information being released to the public domain. Lake have also stated that there will be a specific Environmental Report released that will disclose things like water usage, energy usage, waste, CO2 footprint, etc. This information will be released to the public domain and it will demonstrate the far improved ESG credentials of the Lake/Lilac partnership for all to see. You could expect to see this within the next 3-6 months - once a number of other key things in the plan are finalised.

So, I've put as much time into this conversation with you as I'm willing. I won't be arguing any points with you because the information above speaks for itself. Over and out.