Lithium Australia NL (ASX: LIT, ‘the Company) is pleased to...

Lithium Australia NL (ASX: LIT, ‘the Company) is pleased to provide details of a gold- focused farm-out joint venture (‘the Agreement’) entered into with Okapi Resources Limited (‘Okapi’) (ASX: OKR) for the Company’s Mount Day and Medcalf tenements, located at Lake Johnston in Western Australia (‘WA’).

HIGHLIGHTS

•  Gold-focused Okapi to earn into seven of the Company’s granted exploration tenements (‘the Tenements’), comprising in total an area of 450 square kilometres (‘km2’).

•  The Tenements extend, by 4 kilometres, a gold anomaly identified by Okapi’s geochemist and reported by him as having a total strike length of at least 10 km. Other gold anomalies occur within the Tenements.

•  The Company retains all lithium rights and a significant 25% interest in any gold and nickel discoveries on the Tenements.

•  In addition, the Company is free carried for all gold and nickel expenditure until completion of a definitive feasibility study (‘DFS’).

  Terms of the joint venture

•  Okapi will pay the Company a $20,000 deposit to secure the option and has 10 business days from the date of the Agreement to complete legal due diligence.

•  Okapi has 30 days from the date of the Agreement to complete the technical due diligence. Upon satisfaction of the legal and technical due diligence, Okapi may exercise the option to proceed with the farm-in.

•  Okapi will undertake a minimum expenditure of A$150,000 on the Tenements.

•  By undertaking exploration expenditure of not less than $1,200,000 (inclusive of the $150,000 minimum expenditure) on the Tenements within 60 months of the date that the option is exercised Okapi will be entitled to earn a 75% interest in the Tenements.

•  If Okapi acquires the farm-in Interest, it must free carry the Company until completion of a DFS.

  The Tenements

  Centrally located within the of the 2700-2600 Ma-aged Eastern Goldfields Superterrane (‘EGS’) of the Yilgarn Craton in WA, the Tenements cover geological units typical of the EGS, including Archaean supracrustal sequence (greenstones) dominated by mafic volcanic rocks. Most of the belt has been metamorphosed to greenschist-facies assemblages and is strongly deformed. The greenstones have been intruded by at least three generations of granitic rocks, including pegmatites, among them the spodumene pegmatites at the Company’s Medcalf project.