Mr. Martin Perez de Solay reports

JAMES BAY DRILLING UPDATE -- NEW HIGH GRADE ZONE IDENTIFIED IN NW

Allkem Ltd. has provided an update on the exploration and resource definition drilling program at its James Bay project in Quebec, Canada.

Highlights:

• The company has discovered an additional swarm of spodumene-bearing pegmatite dikes located directly northwest of known mineralization.
• Highlighted intercepts include 125 metres at 1.7 per cent lithium oxide from 68 m in drill hole JBL-23-048, and 72 m at 1.89 per cent Li2O from 11 m in drill hole JBL-23-024. The reader is cautioned that these thicknesses represent down-hole thicknesses and not true thicknesses. True thicknesses are estimated to be between 60 per cent and 80 per cent of down-hole thicknesses.
• Infill and delineation drilling in the eastern portion of the deposit has confirmed both continuity and lithium grade of spodumene-bearing pegmatite dikes.

2022/2023 winter drilling program

The winter diamond drilling program concluded on April 13, 2023, and consisted of:

• Infill and delineation -- drilling within the eastern portion of the deposit at depth to satisfy the drill spacing required for indicated mineral resources;
• Exploration -- drilling targeting newly identified outcropping pegmatites to the east of the deposit, induced polarization geophysical anomalies and deep proof-of-concept drilling targeting pegmatites at depths greater than 500 m;
• Systematic stepout -- drilling to the northwest of the known extents of the deposit targeting the extension of the deformation corridor that hosts the deposit.

A total of 130 drill holes were completed between the end of November, 2022, and mid-April, 2023, for an aggregate of 29,164 metres.

As of April 29, 2023, approximately 6,700 assays have been received from the drilling program, mostly relating to the infill and delineation drilling within known extents of the deposit. Approximately 2,400 assays remain pending in the laboratory and are expected to be received shortly.

Allkem managing director and chief executive officer Martin Perez de Solay said, "The significant grade and thickness of these drill results is outstanding, and the addition of a new zone of mineralization to the northwest of the current resource provides scope for potential additions to resources and reserves as we further drill out this area."

Based on the wide-spaced drilling, the current geological interpretation suggests that the individual dikes are oriented approximately north-south, with a 70-degree dip toward the west. The dikes vary between four and 30 metres thick (true thickness), with some dikes coalescing up to 85 m true thickness in the core of the pegmatite swarm.

This northwest sector of the project is located under between five and 15 metres of glacial till, with no outcrop visible in this area of the project.

Drill core observations suggest that lithia (Li2O) mineralization is hosted predominantly within coarse-grained, green spodumene with grain sizes varying between 0.5 centimetre and 40 cm. Trace amounts of lepidolite and zinnwaldite have been observed. Minor holmquistite has also been observed within the host metasediments in close proximity to the pegmatite dikes.

Highlights from the northwest sector (intercepts greater than 15 m true thickness) are included in an attached table.

The northwest sector has been drilled to a nominal 80 m by 80 m drill spacing, which is expected to allow the inclusion of this new discovery into an updated mineral resource estimate planned for release midyear 2023.

Next steps

After the receipt of final assays, Allkem intends to update the James Bay MRE, incorporating all new drilling results. Work is already under way to update the geological model in preparation for the receipt of final assays.

Additional site activities are planned during the North American summer to better understand the geometry of the pegmatite dikes discovered in the northwest sector, including trials of down-hole televiewer technology and mineralogical studies. In addition, a detailed aeromagnetic drone survey is planned to trace the extents of the pegmatites under glacial till cover, and to better understand the litho-structural setting of this new sector.

Tenure update

Over the past six months, Allkem has progressively increased its tenement holdings in and around the James Bay project via the staking of new claims (29 claims totalling 1,531 hectares) and non-material acquisitions (131 claims for 6,913 hectares).

Competent person statement

The information in this release that relates to exploration results is based on information compiled by James Purchase, PGeo, MAusIMM, a competent person, a member of L'Ordre des Geologues du Quebec (licence No. 2082), a member of the Australasian Institute of Mining and Metallurgy. Mr. Purchase is a full-time employee of Galaxy Lithium (Canada) Inc. Mr. Purchase has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a competent person, as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Purchase consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

We seek Safe Harbor.