JAMES BAY RESOURCE UPDATE Mineral Resource 40.8 Mt @ 1.4% Li20...

JAMES BAY RESOURCE UPDATE
Mineral Resource 40.8 Mt @ 1.4% Li20 Highlights
• Significant increase in the mineral resource to 40.8 Mt @1.40% Li20, all classified as Indicated (JORC 2012)
• Current mineral resource is west of the James Bay Road and it remains open to the east and in the west at depths greater than - 335m below surface
• Numerous untested pegmatite’s outcrop and sub-crop elsewhere within the claim area of the project
• Metallurgical test work for process design already well advanced in Perth, Western Australia
• Further drilling for infrastructure sterilization has commenced
• Mine design and planning work has been awarded to Mining Plus
• Feasibility Study preparation ongoing, upgrade of resources to reserves expected in H1 of 2018. Galaxy Resources Limited ("Galaxy" or the "Company")
(ASX: GXY) is pleased to announce a significant mineral resource upgrade resulting from the 2017 drilling campaign at the James Bay Project in Quebec, Canada.
The current JORC 2012 recoverable mineral resource is reported below in Table 1, as is the prior mineral resource in Table 2. Factors used to demonstrate “reasonable prospects for eventual economic extraction” are listed in Table 3. The mineral resource estimate was completed by SRK Consulting (Canada) Inc. who are independent of the issuer for both JORC 2012 and Canadian NI-43-101 reporting standards. Additional reporting to the Canadian standard is mandatory in Canada for project development.

Table 1: JORC 2012 Mineral resource Classified Recoverable James Bay Mineral Resource – November 2017 - JORC 2012 JORC Classification Million Metric Tonnes Grade (Li2O) % Contained Metal (t) Indicated 40.82 1.40 571,200 Inferred - - - Total 40.82 1.40 571,200 Reported at cut-off grade of 0.62 % Li20 and within a conceptual open pit shell formulated to demonstrate “reasonable prospects of eventual economic extraction as tabulated (Table 3) below. All figures rounded to reflect the relative accuracy of the estimates. Mineral resources are not mining reserves and do not yet have demonstrated economic viability Table 2: JORC 2004 Mineral resource Prior Classified Recoverable James Bay Mineral Resource –
December 2010 - JORC 2004 JORC Classification Million Metric Tonnes Grade (Li2O) % Contained Metal (t) Indicated 11.8 1.3 152,750 Inferred 10.4 1.2 125,640 Total 22.2 1.3 278,390 AS ASX ANNOUNCEMENT / MEDIA RELEASE GALAXY RESOURCES LIMITED ABN: 11 071 976 442 Level 4 / 21 Kintail Road Applecross WA 6153 T: +61 (8) 9215 1700 F: +61 (8) 9215 1799 www.galaxylithium.com Reported at cut-off grade of 0.75% Li20 and within a conceptual open pit shell formulated to demonstrate “reasonable prospects of eventual economic extraction” with factors as tabulated (Table 3) below. Table 3: Modifying factors Factor 2010 Value Unit 2017 Value Off Site Cost (Marketing, etc.) 2.5 percent price 2.5 Mining Cost 4 US$/tonne mined 5 Processing 50 US$/tonne of feed 50 General and Administration 10 US$/tonne of feed 12 Mining Dilution 10 percent 5 Mining Loss 5 percent 10 Overall Pit Slope 45 degrees 50 Process Rate 1 Mt tonne feed/year 2 Li2O Process Recovery 70 percent 70 In Situ Cut-Off-Grade 0.75 percent Li2O 0.62 Galaxy Resources’ Managing Director, Anthony Tse said the increase in resource confirms the James Bay project as a world class hard rock lithium asset, as highlighted by the grade, quality and scalability of the deposit. “One of the key attributes of the James Bay project is that due to its high grade, scale, low stripping ratio and superior location, it will be one of the lowest cost hard rock lithium projects in the world. The pegmatite system is substantial in size and the deposit remains open at depth and also open to the east, which offers significant potential for growth, both in terms of the resource and ultimately future ore reserve.”