Ann: LAKE RESOURCES KACHI PROJECT PHASE ONE DEFINITIVE FEASIBILIT, page-146

IMHO, Lilac’s DLE Technology remains a significant risk to the success of Kachi. Lake continue to misrepresent the current maturity of the commercial sized IX vessels and modules to be used in the project.

Evidence that Lilac’s DLE commercial scale technology have been technically and economically proven has not been provided nor referenced by this feasibility study.
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I provide some examples to support my opinion:

2.2) PROJECT OWNERSHIP

The sections PRECEDING DEVELOPMENT ACTIVITIES, BENCH AND PILOT SCALE TESTING and DEMONSTRATION SCALE TESTING only provided high level qualitative summaries and referred to existing vague ASX announcements.

4.1) MINERAL RESOURCE - Cut Off Grade

This section states without supporting reference that“The proposed DLE technology has been demonstrated to operate cost-effectively at much lower lithium concentrations (e.g., less than 75 mg/L).”

7.1) METALLURGICAL TESTWORK

This section states that “Hazen Research Inc. completed independent bench-scale test work to validate the chemistry of

the BOP flowsheet at their Golden, Colorado laboratory facilities with reference to a 2020 ASX announcement. This pre dates the Kachi Demonstration Phase, indicating demonstration and hencecommercialDLE modules may require revalidation.

This section also states without reference that Saltworks Technologies conducted demonstration-scale test work converting lithium chloride eluate from the Kachi Demonstration Plant into battery grade lithium carbonate at their Richmond, British Columbia, Canada facilities. Saltworks produced over 1,300 kg of battery grade lithium carbonate from Kachi brine.

7.1) METALLURGICAL TESTWORKDIRECT LITHIUM EXTRACTION

This section states that “Lilac has performed bench-scale, mini-pilot, pilot-scale, and demonstration-scale testing to show efficient lithium extraction from the Kachi Project brine. Results from this test work demonstrate economical lithium extraction from Kachi brine.” This makes reference to the 26 & 28 September 2023 ASX announcements which instructed that “Investors should not rely on this data until the Company releases the full test results”. I note that a subset of summary results are provided in Table 7-1

8) PROCESS PLANT DESIGN - Design Basis contains Tables 8-1 and 8-2 of parameters used in the project design. Parameter variability and the associated effects on operation is not discussed. Risk PRO10-D in Table B-5 does identify the risk of changes inlithium chemistry in the brine,

8) PROCESS PLANT DESIGN - Figure 8-2 depicts an item labelled as “RSA”. The purpose of RSA is not discussed and not listed in the glossary and if it relates to the DLE or other processes.

8) PROCESS PLANT DESIGN - Direct Lithium Extractionindicates that the design allows for 8 modules to produce 25ktpa LCE. Specifications on what a module is, can do, and what one needs to operate are not provided.

8) PROCESS PLANT DESIGN - SPENT BRINE HANDLING

This section only states “Spent brine will be transferred from the DLE system to the spent brine storage pond. The spent brine will be transferred from the storage pond to the reinjection well system.”there is no discussion on further treatment or quality control prior to reinjection.

DYOR