Mr. Martin Perez reports

JAMES BAY MINERAL RESOURCE INCREASED BY 173% TO 110.2 MILLION TONNES

Allkem Ltd. has provided an updated mineral resource estimate (MRE) for its James Bay lithium project in Quebec, Canada.

Highlights:

• An updated mineral resource of 110.2 million tonnes at 1.30 per cent Li2O (lithium oxide) includes 54.3 million tonnes at 1.30 per cent Li2O in the indicated category and an additional 55.9 million tonnes at 1.29 per cent Li2O in the inferred category, solidifying the status of the James Bay lithium deposit in Quebec as a Tier 1 lithium pegmatite mineral resource and long-life asset;
• The maiden inferred mineral resource in the northwest sector remains open along strike and at depth with excellent growth potential;
• A significant campaign of infill and extensional drilling is planned during the Canadian winter to test for along-strike and downdip extensions of the pegmatite dikes beyond the area included in this MRE.

Managing director and chief executive officer Martin Perez de Solay said: "James Bay is now one of the largest spodumene lithium assets and clearly has the potential to grow even further as the boundaries of mineralization are tested through an additional drilling program commencing later in the year.

"The size and grade of this resource is amongst the best in the world and will underpin Allkem plans for future production and processing of lithium in Quebec."

Mineral resource update

The MRE outlined in this announcement is a culmination of two drilling campaigns conducted on the project since early 2022, adding approximately 37,500 metres of delineation drilling to the deposit since the release of the previous feasibility study. The deposit remains open both along strike and at depth, and Allkem has implemented a resource growth strategy to continue to grow the MRE with additional drilling.

SLR Consulting (Canada) Ltd., an independent mining consultancy based in Toronto, Canada, was engaged to update the MRE based on a drilling database dated May 19, 2023. The pegmatite dikes have been classified based on a 40-metre to 50-metre spacing for indicated mineral resources and approximately an 80-metre spacing for inferred mineral resources.

The updated mineral resource for the James Bay lithium project, effective Aug. 9, 2023, is presented in an attached table. In addition, the mineral resource has been presented by sector.

Notes:

• The independent competent person, as defined by the JORC Code 2012, responsible for the preparation of this MRE is Luke Evans, PEng, a full-time employee of SLR Consulting (Canada) Inc. Mr. Evans is a member of L'Ordre des Ingeniers du Quebec, a recognized professional organization defined by the JORC Code 2012.
• The effective date of the mineral resource is Aug. 9, 2023.
• The mineral resource estimate has been reported within a conceptual pit shell at a cut-off grade of 0.50 per cent Li2O.
• The mineral resources are inclusive of ore reserves.
• The conceptual pit shell used to constrain the MRE has been defined using a spodumene concentrate price of $1,500 (U.S.) per tonne, a Canadian-dollar-to-U.S.-dollar exchange rate of 1.33, a total ore-based cost of $33.92 per tonne, a mining cost of $4.82 per tonne, a concentrate transport cost of $86.16 per tonne and a metallurgical recovery of 70.1 per cent.
• The statements of mineral resources conform to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 edition.
• Mineral resources are not mineral reserves as they do not demonstrate economic viability.
• The competent persons are not aware of any problem related to the environment, permits or mining titles, or related to legal, fiscal, socio-political, commercial issues or any other relevant factor that could have a significant impact on this MRE.
• The number of tonnes has been rounded to the nearest 100,000 tonnes, with any discrepancies observed in the totals due to rounding effects.
• All tonnages reported are dry metric tonnes.

The mineral resources are reported using a cut-off grade of 0.50 per cent Li2O, based on both geological and metallurgical considerations. The mineral resource is reported inside a pit shell using a spodumene concentrate price of $1,500 (U.S.) per tonne, which satisfies the requirements for reasonable prospects for eventual economic extraction (RPEEE), as defined in the JORC Code (2012), and is potentially minable by open-cut methods.

Importantly, the inferred mineral resource in the northwest sector is higher grade than the remainder of the deposit and represents a potential opportunity to improve the grade profile of the future operation. The reader is cautioned that mineral resources are not mineral reserves as they do not demonstrate economic viability. There is no guarantee that the inferred mineral resources described in this announcement will convert to indicated category or convert further to mineral reserves.

A description of the major factors contributing to the changes between the December, 2021, MRE and the August, 2023, MRE are:

• Addition of 37,500 metres of exploration and delineation drilling over two drilling campaigns since the last mineral resource update, increasing the extent of pegmatite dikes by 800 metres to the northwest;
• Changes in resource classification, notably the addition of tonnage associated with the pegmatites discovered in the northwest sector in the inferred category;
• Changes in economic assumptions resulting in a deeper RPEEE pit shell (updated mining and processing costs and updated spodumene concentrate sale price);
• Reduction of the reporting cut-off to align with new economic assumptions and metallurgical considerations.

A comparison between the December, 2021, MRE and the June, 2023, MRE is presented in an attached table.

Due to the relatively consistent distribution of lithium grade within the pegmatites, the mineral resource is generally insensitive to Li2O cut-off grades in the range of 0.2 per cent to 0.6 per cent (see attached table).

Further metallurgical test work is required to demonstrate acceptable metallurgical recoveries below the current 0.5 per cent Li2O cut-off grade, and the company is considering this as an opportunity to be addressed in future studies.

Next steps

The company is currently planning an additional drilling campaign to start in mid-November, 2023, to expand on the updated MRE presented in this announcement. The drilling program will have the following objectives:

• Infill drilling in the northwest sector to convert mineral resources currently in the inferred category to indicated category;
• Infill drilling at depth to convert any blocks of inferred category within the new RPEEE pit shell to indicated category;
• Stepout exploration drilling to the northwest with the objective of discovering new pegmatites beneath thin glacial overburden.

James Bay resource estimate -- summary information required by Listing Rule 5.8.1

Mineral tenement and land tenure status

The project comprises two contiguous packages of mining titles located on NTS map sheet 33C03, covering an area of approximately 11,130 hectares (Figure 3). The 224 claims are classified as "map designed claims", also known as CDC-type claims under the Quebec governments mining title classification system and provide the holder the exclusive right to explore for mineral substances on the land subject to the claims. The claims are registered under either Galaxy Lithium (Canada) Inc. ("GLCI"), Galaxy Lithium (Ontario) Inc. ("GLOI") or Select Lithium Corp. Both GLCI and GLOI are wholly owned subsidiaries of Allkem. As of the date of this announcement, 131 claims registered under Select Lithium Corp. acquired by GLCI on May 2, 2023, located to the north and south of the project are currently being transferred to GLCI. The transaction between Select Lithium Corp. and GLCI closed on June 22, 2023. All claims are in good standing, with expiry dates between June 12, 2024, and November 2, 2025.

As of August 9th, 2023, two net smelter return ("NSR") royalties remain on the James Bay Lithium Project:

• 0.50 per cent NSR royalty previously held by Gerard Robert, which was subsequently sold to Ridgeline Royalties Inc. Portions of the mineral resources subject to this royalty are located on six claims (claim numbers: 2329097, 2329098, 2238480, 2238478, 2329101 and 2329100) of the James Bay project.
• 1.50 per cent NSR royalty previously held by Resources d'Arianne Inc., subsequently sold to Lithium Royalty Corp. Allkem has the right to buy back 0.5 per cent of the NSR for $500,000 Canadian dollars, reducing the royalty to 1.00 per cent. Portions of the mineral resources subject to this royalty are located on two claims (claim numbers: 2126988 and 2126860) of the James Bay project.

Geology and Geological Interpretation

The Project is found in the northeastern part of the Superior Province. The site lies within the Lower Eastmain Group of the Eastmain greenstone belt, which consists predominantly of amphibolite grade mafic to felsic metavolcanic rocks, metasedimentary rocks and minor gabbroic intrusions. The James Bay Lithium Deposit is located at a major tectonic break between the La Grande sub-province to the north, and the Nemiscau sub-province to the south.

The property is underlain by the Auclair Formation, consisting mainly of paragneisses, of probable sedimentary origin, which surround the pegmatite dikes to the northwest and southeast. Volcanic rocks of the Komo Formation occur to the north and east of the pegmatite dikes. The greenstone rocks are surrounded by Mesozonal to Catazonal migmatite and gneiss. Paleoproterozoic diabase dikes traverse the area, cutting the stratigraphy north-south, with some northwest-southeast orientations.

As of August 2023, a total of 67 individual pegmatite dikes have been identified within the deposit (Figure 4). The pegmatite dikes are located within a "deformation corridor" that has been identified in drilling and outcrop along a strike length of over 5 km. The dikes present as en-echelon orientations, varying in length from 200 m to 400 m, and perpendicular to the strike of the deformation corridor. The dikes have been traced to depths of up to 500 m vertically from surface and are mostly open at depth.

Spodumene is the dominant lithium-bearing mineral identified within the pegmatites (Figure 5). Concentrations of spodumene within the pegmatite dikes vary between 2 per cent up to 40 per cent, with most crystals between 1 cm and 8 cm in length. Some minor occurrences of lepidolite have been visually noted in drill core, however these observations are rare and significant accumulations of lepidolite have not been identified in laboratory test work. Trace holmquistite has been observed within discrete veins in the encasing paragneiss in proximity (< 1 metre) to pegmatite contacts.

Drilling Techniques

Drilling at the James Bay Lithium Project has been conducted by two previous operators: Lithium One and Galaxy Lithium. Drilling has been conducted exclusively using diamond drilling methodologies, with some channel sampling of surface outcrops using mechanized methods.

Since the December 2021 Mineral Resource, two significant drilling campaigns have occurred on the Project. Both campaigns were completed by Major Drilling, who provided personnel and equipment to complete the drilling campaigns.

Between February 28th and March 31st 2022, a small resource delineation drilling campaign was undertaken to close-off the perimeters of the dikes to the north of the known outcrops, and to test for IP geophysical anomalies. A total of 50 drill holes totalling 8,255 m was drilled. NQ diameter drill core was obtained, and downhole surveys were collected every 3 m using a multi-shot REFLEX EZ-TRAC tool and/or a gyroscopic tool. Drill hole collars were surveyed using RTK methods by a local contractor in UTM Zone 18N, NAD83 datum.

Between December 2nd, 2022 and April 12th, 2023 a large exploration and resource delineation drilling campaign was undertaken to test for extensions of the deposit to the northwest and to infill areas of the deposit where gaps existed in the drill spacing. A total of 130 drill holes for 29,124 m was drilled, which includes four condemnation drill holes and three exploration holes to the east of the deposit. NQ diameter drill core was obtained, and downhole surveys were collected every 3 m using a multi-shot REFLEX EZ-TRAC tool. Drill hole collars were surveyed using RTK methods by a local contractor in UTM Zone 18N, NAD83 datum.

For both campaigns, drill core was processed at Allkem's onsite core facilities by local geological contracting firms. Drill core was logged by qualified geologists, or geologists in-training under the supervision of qualified geologists registered in the Province of Quebec. Samples were obtained from lengths of sawn half-core varying between 0.5 m and 1.5 m depending on logged lithological contacts.

Sampling, Analysis Method, and QA/QC

Core samples were shipped to ALS Minerals in Val-d'Or for preparation and analyses. The laboratory is accredited ISO/IEC 17025:2005 by the Standards Council of Canada for various testing procedures, however, the scope of accreditation does not include the specific testing procedure used to assay lithium.

Sample preparation involved the sample material being weighed and crushed to 70 per cent passing 2 mm. A sample split was taken using a riffle splitter to obtain a 250 g sub-sample. The crushed sub-sample was then pulverized to 85 per cent passing 75 microns before being analysed. Frequent QAQC tests were undertaken on the granulometry during the process.

At ALS Minerals Vancouver, prepared samples were assayed for mineralization grade lithium by sodium-peroxide fusion and inductively coupled plasma - atomic emission spectrometry (ICP-AES) finish (method code ME-ICP81). The method used has a lower detection limit of 0.001 per cent lithium and an upper limit of 10 per cent lithium. Lithium grades were converted to Li2O grades using a factor of 2.153.

In the 2022 and 2023 drilling campaigns, Allkem implemented external analytical quality control measures including the insertion of control samples (blanks, certified standards, and field duplicates) at an overall QA/QC insertion rate of 11 per cent, with sample batches submitted for assaying at ALS Minerals. Considering the recommendations of previous studies, a sodium-peroxide fusion with ICP-AES finish analysis route was chosen (previously a 4-acid digest) to ensure full digestion of all refractory minerals. QA/QC results were monitored actively during the drilling campaign, and no failures were observed (outside of 3 standard deviations of the expected assay value).

No geophysical or portable XRF tools were used to identify or determine concentrations of mineralization.

Estimation Methodology

Assays were composited to 1.5 m run lengths, with any residuals less than 0.25 m-long absorbed into the previous interval. All unassayed intervals were assigned a zero Li2O grade. No capping was applied to the Li2O assays before compositing.

A sub-blocked and rotated block model was produced using Leapfrog Edge v2022.1.1. The parent block size was set at 3 m (X) by 5 m (Y) by 5 m (Z) with each dimension sub-blocked by a factor of 4. The sub-blocks were triggered using the pegmatite dike wireframes, topography, and the base of overburden interpretation.

For the purposes of variography, pegmatite dikes were grouped based on morphology (similar dip and strike) and location. Experimental variograms were calculated and interpreted using spherical variogram models with two structures with major-axis ranges varying generally between 120 m and 150 m.

Considering the quality of the variograms and the consistency of the lithium grade continuity within the pegmatites, Ordinary Kriging ("OK") was selected as the interpolation method.

Grade estimation was conducted into the parent blocks using a four-pass estimation strategy. For the first two passes, a minimum of 4 composites and a maximum of 12 composites were required. The search ellipse dimensions were based on variogram model ranges and represent approximately 50 per cent and 80 per cent of the average variogram range. For the third and fourth passes, a minimum of one composite and a maximum of 12 composites were required, with search ellipse representing 120 per cent and 200 per cent of the variogram range. For all passes, a maximum of three composites was allowed from each drill hole.

Hard boundaries were used for all pegmatite domains. Blocks outside the pegmatites were assigned a zero Li2O grade.

Validation of Li2O block grades was undertaken using both local and global methods. Swath plots were interrogated in all three dimensions, and grade estimates were compared to both Inverse Distance Squared ("ID2") and Nearest Neighbour ("NN") interpolation methods. The block grades were found to be a good representation of the composite grades, and are shown in Figure 6.

Bulk density was coded into the pegmatite blocks using a regression curve with Li2O grades based on 128 analyses, and mean bulk densities were applied to waste blocks depending on lithology.

Classification Criteria

The block model was classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (May 2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (November 2019). These classifications are consistent with those outlined in the JORC Code (2012).

The block classification was based primarily on drill hole spacing, geological and grade continuity and the average distance of composites to a given block. The block classification was subsequently manually modified to ensure a coherent, contiguous classification suitable for mine planning purposes. Within the pegmatite dike wireframes, the following criteria was used:

• No Measured Mineral Resources were identified.
• Indicated Mineral Resources were identified in areas supported by drill spacings up to approximately 50 m.
• Inferred Mineral Resources were identified in areas supported by drill spacings up to approximately 80 m.

Cut-off grades and modifying factors

The block model was re-blocked to 3 m x 5 m x 5 m block size before input into GEOVIA Whittle software. To demonstrate Reasonable Prospects for Eventual Economic Extraction ("RPEEE"), the Mineral Resource was constrained and reported within an optimised pit shell using the following parameters:

The lower cut-off was raised from 0.16 per cent Li2O to 0.50 per cent Li2O due to geological and metallurgical recovery considerations.

RESOURCE AND RESERVE CONTROLS & GOVERNANCE

Allkem ensures that quoted Mineral Resource and Ore Reserve estimates are subject to internal controls, peer review and validation at both project and corporate levels. Mineral Resource and Ore Reserves are estimated and reported in accordance with the 2012 edition of the JORC Code.

Allkem stores and collects exploration data using industry standard software that contains internal validation checks. Exploration samples from drilling have certified reference material standards introduced to the sample stream at set ratios. These are reported as necessary to the relevant Competent Persons to assess both accuracy and precision of the assay data applied to resource estimates. In resource modelling, block models are validated by checking the input drill hole composites against the block model grades by domain.

The Company has developed its internal systems and controls to maintain JORC compliance in all external reporting, including the preparation of all reported data by Competent Persons who are members of the Australasian Institute of Mining and Metallurgy or a 'Recognised Professional Organisation'. As set out above, the Mineral Resource and Ore Reserve statements included in this announcement were reviewed by suitably qualified Competent Persons (below) prior to their inclusion, in the form and context announced.

Competent Person Statement

The information in this announcement that relates to Exploration Results pertaining to the James Bay Project is based on information compiled by James Purchase, P.Geo, MAusIMM (CP), a Competent Person who is both a member of L'Ordre des Geologues du Quebec (License No. 2082) and 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 announcement of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Mineral Resources pertaining to the James Bay Project is based on information compiled and supervised by Luke Evans, P.Eng, a Competent Person who is a member of L'Ordre des Ingenieurs du Quebec (License No. 105567). Mr. Evans is a full-time employee of SLR Consulting (Canada) Inc. Mr. Evans 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. Evans consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

Technical information relating to the Company's James Bay project contained in this release is derived from, and in some instances is an extract from, the technical report entitled "NI 43-101 Technical Report Feasibility Study James Bay Lithium Project, Quebec, Canada" released on January 11th, 2022 (Technical Report) which has been reviewed and approved by James Purchase, P.Geo, MAusIMM (CP) (who is an employee of Galaxy Lithium (Canada) Inc.) as it relates to geology, drilling, sampling, exploration, QA/QC and mineral resources in accordance with National Instrument 43-101 - Standards for Disclosure for Mineral Projects. The Technical Report will be available for review under the Company's profile on SEDAR at www.sedar.com.

We seek Safe Harbor.