IMO, a lot of great news in this announcement. Initial results...

IMO, a lot of great news in this announcement.

• Initial results "AT SPEC"
• Commissioning completed.
• 80% recoveries with plant optimisation work underway to potentially increase recovery %.
• Validation by Hatch to follow to allow the finalisation of the DFS.
• First samples shipped within 2 weeks to Hatch.
• Lilac's Dave excited to expand our collaboration with Lake (minor dispute possibly settled?)
• LAKES FULLBOARD in Sydney to meet representatives from Argentinian Federal and Provincial Governments and Departments, as well as continue discussions with international and domestic investment banks and financial market participants who have been assisting Lake in developing its strategy as the company moves toward financial investment decision (FID) in 2023.

ASX & OTC ANNOUNCEMENT

Wed 2 November 2022

Lilac Solutions demonstration plant delivers “at spec” product from

Lake Resources Kachi project

• Initial test work delivers “at spec” product from Kachi demonstration plant.

• Kachi brine test work underway, commission phase completed.

• One month after wet commissioning already achieving 80 percent lithium recoveries.

• Plant optimisation work underway.

• Third Party Validation by Hatch to commence shortly to allow DFS completion.

• Continued de-risking of the project for financiers and investors.

Clean lithium developer Lake Resources NL (ASX: LKE; OTC: LLKKF) (Lake) is pleased to provide an

update on progress at the Kachi project lithium processing demonstration plant.

Completion of construction of the demonstration plant on site and the wet and dry commissioning

process took place during September and October.

The demonstration plant is now processing Kachi brines with final optimisation of the process now

nearing completion.

Lilac Solutions Executive Vice President, Bart Packer, has been on site at Kachi to oversee the final

adjustments to the plant to ensure optimisation of processes prior to continual processing getting

underway.

“Initial operations of the demo plant have already delivered product at spec, with the demonstration

plant achieving similar lithium recoveries that were achieved in the Oakland pilot plant test work in

California.

“Optimisation work continues on site; Lilac anticipate the first samples of Lithium Chloridewill be

shippedfor conversion to Lithium Carbonate within two weeks.”

Lake proposes that this final lithium product will then be qualified by a tier one battery maker to vali

date product specifications.

Lilac CEO, David Snydacker said these excellent early results validate Lilac’s ability to quickly scale up

lithium production at the Kachi site.

“Just one month after the start of wet commissioning, we are already achieving 80 percent lithium

recoveries even as we complete the commissioning process and increase recoveries.

“Cheers to our field operations team, which has been working 24/7 to achieve these results in

partnership with Lake Resource’s fantastic team at Kachi.

“We areexcited to expand our collaboration with the Lake team as we work to fast-trackcommercia

l-scaleproduction of lithium carbonate,” he said.

Lake CEO, David Dickson said Lake was delighted to see initial test results achieving anticipated

specifications.

“This validates the many years of test work that took place in Lilac’s Oakland facility during Covid

whilst access to site was impossible.

“We look forward to seeing the test work move into to steady state and then for the process to be

validated by Hatch so that work on the DFS can be completed.”

Mr Dickson said every resource project in construction phase globally had faced inevitable

challenges in recent times and he had been pleased to see the Lake and Lilac teams in Argentina

working together closely to overcome early construction challenges and to now deliver excellent

results from the initial work completed on Kachi brines.

Lake Executive Chairman Stu Crow said Lilac’s method of producing high purity lithium would disrupt

the battery materials supply industry as it was scalable, low cost, and delivers a consistent product

quality with a significant ESG benefit.

“Thenews of successful demonstration plant results is timely as Lake Resources fullboard is in

Sydneyto attend the IMARC conference this week to meet and host a strong delegationof

representativesfrom Argentinian Federal and Provincial Governments and Departments, as well as

continuediscussions with international and domestic investment banks and financialmarket

participantswho have been assisting Lake in developing its strategy as the company movestoward

financialinvestment decision (FID) in 2023,” he said.

As noted in the September Quarterly Report, Lake intends to make several new executive and board

appointments before year end as it transitions from an exploration company toward development

and production.