Ann: DMS TEST WORK YIELDS EXCEPTIONAL RECOVERY TO A HIGH-QUALITY, page-6

Nice announcement - Well done GT1.

The Dec 2022 test work took a head grade of 1.1% with 0.9% iron and produced 6.0% concentrate with slightly high iron at 1.2%. While fines and middlings weren't separated, it appeared DMS recoveries were very strong but fairly high fines were crimping the recovery rate. Core Lithium has since clarified that high fines can be a major DMS issue impacting their recoveries and they have made changes including a larger crush size. This will lower DMS recoveries but also reduce fines. If the fines reduction is enough, the net result is a better overall recovery.

Fast-forward to this set of GT1 met results. The #1 thing I wanted to see was iron ore back under 1% as that's the industry standard and high iron causes problems in the hydroxide processes which is even more of an issue of you are feeding ore into your own processes!! For the Medium-High grade ore that's a big pass mark with iron down to 0.65%.

I wanted to see this without the recovery rates crashing, or a crash in the grade. Another big tick with the grade up at 6.83% and the recovery rate remaining strong at 71.61% within the Medium-High grade results.

Dwayne Sparks on twitter has previously noted that the typical technical standard for Lithium starts at over SC6.5 and with Fe2O3 around 0.15%-0.5%. Frontier Lithium plan to produce the top end of this specification with SC7.2 and iron at the bottom end of this range. They also forecast in their DFS that their average technical grade price was US$3,000/t while the chemical (battery) grade price assumption was US$1,350/t. If GT1 has the potential to get grades into the bottom end of the technical grade space they could get premiums to SC6 grade adjusted pricing.

The North Aubry resource included 5.2Mt indicated at 1.29% (0.2% cut). With these Medium High Grade results using a feed grade of 1.34%, they could be the applicable result to most of this 5.2Mt indicated volume.

The Medium-Low grade material was going to be potentially problematic to concentrate with a 0.78% Li2O grade and 1.25% Fe2O3 (and 0.69% Li2O and 1.02% Fe2O3). These concentrating to 6.70% (0.79% iron) and 6.45% (1.04% iron) is excellent news. Recovery rates were lower at 64 and 63% but it means a DMS process can basically put a lot of lower grade material in and come out with high grade outputs with acceptable recovery rates given the material. That's an excellent outcome.

Commercially grades lower than 6.5%-6.8% may be optimal on the grade/recovery/cost optionality but its certainly great to potentially have the option of producing a very high grade product, particularly for the early years of Hydroxide until skills are acquired to deal with a wider range of product.