Ann: Quarterly activities report and quarterly cash flow report, page-2

30 April 2021

Lithium Australia quarterly activities report – March 2021

Lithium Australia NL (ASX: LIT, ‘the Company’) is pleased to provide the following update on the business activities of it and its subsidiaries for the quarter.

HIGHLIGHTS

 Corporate – the funding position is strong (cash as of 31 March '21 of $13.3 million with no debt) and the share price traded at a 2-year high during the quarter, with strong trading volumes.

 Recycling (Envirostream Australia Pty Ltd, 90% Company-owned):

•  implementation of the national Battery Stewardship Scheme (‘BSS’) is expected to significantly increase the volume of end-of-life (‘EOL’) batteries available for recycling;

•  the BSS is also expected to significantly increase margins on the Company’s recycling operations, and

•  the fertiliser micronutrient field trial programme has been completed.  Batteries (VSPC Ltd, 100% Company-owned):

•  the lithium ferro phosphate (‘LFP’) battery market is forecast to expand more than fivefold by 2030;

•  VSPC Ltd's patent for the manufacture of LFP cathode powder has been accepted, and

•  a pre-feasibility study ('PFS') for the production of LFP cathode powder is complete and the Company will proceed to definitive feasibility immediately.

   Batteries (Soluna Australia Pty Ltd, 50% Company-owned) – a distribution partnership with Legend Corporate Services Ltd ('Legend') has been secured and the supply of new, Clean Energy Council approved 10K Pack HV BESS subsequent to the end of the quarter.

   Lithium chemicals – the Company’s patent application for its first-generation SiLeach® lithium extraction technology has been granted in the US and it is preparing to pilot-test its LieNA® spodumene conversion process at the ANSTO facilities in Sydney, New South Wales. Subsequent to the end of the quarter the Company entered into a commercialisation and licence agreement with Deutsche Rohstoff AG providing exclusive LieNA® licensing rights in Europe.

   Raw materials

•  A data review has enhanced the prospectivity of the Greenbushes South Project

  (Company 20%, Galan Resources Ltd (ASX: GLN) 80%).

•  The Company’s Sadisdorf licence (Germany) has not been renewed.

•  Exploration assets have been rationalised to reduce both expenditure and risk; however, significant lithium commodity exposure has been retained by way of minority project equity.

ASX ANNOUNCEMENT Lithium Australia

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