General Discussion Banter GLN, page-15544

The most important thing Galan currently needs (apart from a lot of money) is first-class legal advice in the areas of

- Contract drafting Joint Venture, etc.

- RIGI Membership, etc

An article published on 13 May 2024 (before the approval of the Ley Bases- RIGI) mentions export rights:

It is noteworthy that the programme provides for a tendency to export primary products without additional processing and removes the obligation to give priority to the domestic market. Reddit.

Original:

Derechos de exportación

Es de destacar que el programa presenta una inclinación hacia la exportación de productos primarios sin procesamiento adicional, y elimina la obligación de satisfacer prioritariamente al mercado interno. Luz roja.

The article published on 11 June 2024 (after the approval of the Ley Bases- RIGI) mentions the issue of royalties

In this way, Art. 112 amends Art. 22 of the Mining Investment Law No. 24.196, which was formulated as follows: "The provinces that comply with the regulation of this law and receive or opt to receive royalties may not charge a percentage of more than five per cent (5%) on the "mine head" value of the mineral extracted."

Original

El tema de las Regalías

De tal modo, el Art. 112 modifica el Art. 22 de la Ley de Inversiones Mineras N° 24.196, quedó redactado del siguiente modo: “Las provincias que adhieran al régimen de la presente ley y que perciban regalías o decidan percibir, no podrán cobrar un porcentaje superior al cinco por ciento (5%) sobre el valor ‘boca mina’ del mineral extraído”.

These two articles above are very interesting and exciting for Galan:

· On 22 April, the company made the following announcement:

Galan has signed a commercial agreement with the Catamarca Government in support

of the grant of permits to enable the commercialisation of lithium chloride

concentrate to be sold locally or exported internationally

· The agreement includes an increase in the proposed royalty rate to 7% and potential

advance payments

As I understand it, lithium chloride is one of the primary products mentioned without further processing for which a change in export rights was originally planned in the RIGI.

In April, the provincial government agreed a licence payment of 7% (instead of 3% for lithium carbonate, for example) with the company.

The change in the final version of the Ley Bases or RIGI includes the 5% cap.

If the maximum limit now renders the agreement at provincial level obsolete

paradoxically, the following situation has now arisen:

The agreement made in good faith and by mutual consent between Galan and the provincial government is not compliant with RIGI!

Instead of pushing ahead with the export of lithium chloride and rapid economic extraction, a kind of blockade has now arisen.

· If Galan Lithium joins RIGI, there will be a conflict with the higher fees agreed at the provincial level

· If the company does not join RIGI, it will forgo the other benefits of RIGI

Good legal advice, diplomacy and solutions at provincial level are required.

· Legal advice does not necessarily have to be provided by internal resources

· Internal legal expertise could perhaps take another look at the Glencore deal? Or would it be better to get external advice?

· Would excellent external legal advice be worth for e.g. $1,100,000 to me as a company?

· Would I, as a board member, make a positive "change of Director’s Interest Notice" in good conscience, knowing that the legal situation still needs to be clarified, which will take time?

· The first companies have already joined RIGI as it is a no brainer for them, Galan has not (yet) announced its membership. Why is that?