Mr. Martin Perez de Solay reports

JAMES BAY DRILLING UPDATE

Allkem Ltd. has provided a drilling update for its James Bay lithium project in Quebec, Canada.

Highlights:

• Assays continue to demonstrate thick intercepts of lithium mineralization within spodumene-bearing pegmatites in the NW sector.
• Intercepts include 114 metres of 1.73 per cent lithium oxide from 140.5 m in JBL-23-050, and 94 m of 1.87 per cent Li2O from 107 m in JBL-23-085. The reader is cautioned that these thicknesses represent downhole thicknesses and not true thicknesses. True thicknesses are estimated to be between 60 per cent and 80 per cent of downhole thicknesses.

Resource delineation drilling

Between December, 2022, and April, 2023, Allkem undertook a resource definition drilling campaign with the aim of delineating the pegmatite dikes around the extremities of the deposit and to test for strike extensions to the northwest. In total, 130 drill holes were completed for a total metreage of 29,124 metres. A significant portion of this drilling was designed to support a maiden inferred mineral resource in the NW sector, supported by an 80-metre-by-80-metre drilling pattern.

Interim assay results relating to the newly discovered NW sector were announced to the market on May 4, 2023. The remaining assays have been received from the laboratory and are included in this announcement.

Assay highlights for the remaining assays from the 2023 drilling campaign are included herein.

Managing director and chief executive officer Martin Perez de Solay said: "These outstanding drilling results confirm a material extension of mineralization at James Bay. Work is now focused on reviewing the mineral resource to include the additional results from the 2023 drilling program, and an update is expected by the end of the month.

"James Bay is a Tier 1 lithium asset with the potential to grow even further as the boundaries of mineralization are tested through an additional drilling program commencing later in the year."

Next steps

A mineral resource update is on track for completion in August, 2023, and will be announced to the market once internal checks and verifications are complete.

The company is currently planning a significant diamond drilling campaign to start in November, 2023, to expand on the additional lithium-bearing pegmatites discovered last winter. The drilling program will consist of both infill drilling to better understand the geometry of the pegmatites and stepout exploration drilling to discover new pegmatites along strike to the NW zone.

Competent person statement

The information in this announcement that relates to exploration results is based on information compiled by James Purchase, PGeo, MAusIMM (CP), a competent person who is both a member of L'Ordre des Geologues du Quebec (licence No. 2082) and a member of the Australasian Institute of Mining and Metallurgy (with chartered professional status). 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 announcement of the matters based on his information in the form and context in which it appears.

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