Ann: Mt Cattlin Shipping Update, page-2

MT CATTLIN SHIPPING UPDATE
Highlights
 First shipment of Mt Cattlin production on 2017 contract terms dispatched
 13,815wmt loaded on MV Belle Ocean bound for Chinese offtake customer
 LC in place from offtake customer and LC for July shipment already in place from second customer
 Production at the Mt Cattlin plant over the last 30 days has averaged 440dmt per day, equivalent to an annualized 160,000dmt production rate Galaxy Resources Limited (ASX: GXY) (“Galaxy” or the “Company”) is pleased to announce it has dispatched the first shipment of lithium concentrate under 2017 contract terms. The MV Belle Ocean set sail from Esperance on 10 June 2017 loaded with 13,815 wet metric tonnes (wmt) of lithium concentrate.
The Mt Cattlin operations plant utilization continues to improve with the last 30 days’ concentrate production averaging 440dmt per day, which equates to an annualized production of in excess of 160,000tpa.
The performance of the redesigned Mt Cattlin plant is now reaching steady state operation with average recovery for the same 30-day period being 54.3% with an average mica content of 1.38% well below contracted minimum levels. The MV Belle Ocean shipment is the first under 2017 contract pricing terms of US$830 per tonne at 5.5% grade lithium concentrate increasing to US$905 per tonne for 6.0% grade equivalent. Total tonnage contracted at these pricing levels for delivery in 2017 is 120,000dmt.
Final pricing will be confirmed once the final grade and moisture content have been determined. The Company is aiming to dispatch one shipment per calendar month for the balance of 2017 which will all be on 2017 contracted terms.