Ann: Substantial Lithium Exploration Target Identified at Solaroz, page-17

Borefield Development The Olaroz project currently consists of two borefields with 200 metre deep bores with well screens over the majority of their lengths, to maximize brine inflows which extract brine from the current resource to 197m. The design of the borefields was to provide flow at 180l/s with two bores offline at any one time. The location of these borefields is shown in Figure 1, in the north east and south west of the Olaroz salar (salt lake). These bores pump brine to a series of tanks where the flows are combined before being transferred to the evaporation ponds. In order to increase the peak flow rate to above 230l/s and to allow a faster build up of lithium brine stock, the company has drilled two additional bores, P301 and P302. Additionally, in order to test the exploration potential beneath the current resource, these bores were drilled to 304m and 323m respectively rather than the normal 200m. The first hole, P301 was designed to allow the installation of 8 inch internal casing and a 6 inch diameter pump as for previous bores, whilst the second hole, P302 was designed to allow the installation of 10 inch internal casing and higher flow 8 inch pump after the results of P301. Drilling Results and Significance Hole P301 was drilled to a depth of 304 m below surface in April 2014, with an installed casing depth of 290m. This hole encountered the expected sequence from 0-200m and then intersected a sand unit from 255 m, with continuous sand from 275m to the end of the hole, confirming the extension of sandy units intersected in Cauchari into Olaroz. Because of the results of P301, P302 was designed to be drilled to a depth of 350m to further evaluate the sand unit encountered in P301 along strike and to greater depths and at a larger diameter to allow a higher pumping rate. The hole intersected a continuous sand unit from 220m to 323m before being terminated due to hole instability caused by intersecting gravel beds. Bore P302 was installed to a depth of 309m, with screen intervals beginning at 102 m from surface. These results are highly significant as this thick sand sequence may extend laterally beneath much of the defined brine resource and also to greater depths. Sands of this type have free draining porosity of between 20 and 25% based on previous testwork, and the sand unit could hold significant volumes of lithium-bearing brine which could be added to the resource base by future drilling. In addition, due to the thickness of the sand, any production bore drilled into this unit will be high yielding compared to bores only in the top 200m