LRS-Latin Resources explorer -MONSTER IN THE MAKING!!

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Highlights from quarterley today

HIGHLIGHTS

Latin Resources Limited (ASX: LRS) (“Latin” or “the Company”) is pleased to report on its activitiesat its 100% owned Salinas Lithium Project (“Salinas” or “the Project”) in Minas Gerais, Brazil, for thethree months ending 30 June 2024.

Activities completed in the second quarter confirm the Salinas Lithium Project as one of the world’sbest undeveloped lithium projects and important near-term source of high quality spodumene concentrate. The Company is focussed on project development activities in H2 2024 ahead of a finalinvestment decision (‘FID’) in Q4 2024, subject to necessary regulatory approvals and funding.

Key developments as follows:
• CORPORATE: A$21 million cash at 30 June 2024 and fully funded to FID in Q4 2024. Explorationfor Q2 2024 totalled A$18 million and has now concluded following the updated MRE. With the conclusion of exploration drilling, the Company has significantly reduced the cash burn rate forthe rest of the year. Funding will now support development activities including completing thedefinitive feasibility study (‘DFS’) and an early works program.

• NON-CORE ASSETS: process commenced to spin-off non-core assets (Peru, Argentina, Australia).

• PROJECT FUNDING: The company is progressing offtake discussions with a shortlisted group oftier-one parties (from > 30), with prepayment funding attached, for approximately 50 per centof Salinas’ production for its first five years. Additionally, Latin is in discussions with debtproviders to complement its strategy to deliver a low cost of capital for the Salinas project.

• DEFINITIVE FEASIBILITY STUDY: technical inputs largely complete with release expected in Q32024. Among a number of advancements, the DFS will confirm a material reduction in strip ratiogiven refined orebody knowledge and mine plan optimisation work completed. The DFS willdemonstrate the Salinas Project as a large, low-capital intensity and low-operating cost sourceof spodumene concentrate against global peers.

• MINERAL RESOURCE ESTIMATE (‘MRE’): growth to 77.7Mt at 1.24% Li2O with 95% of the ColinaMRE classified as Measured and Indicated under JORC; sufficient to support a high-value, high volume (>0.5Mtpa SC5.5 once ramped-up) and long-life mine plan.

• PLANALTO: maiden MRE expected Q3 2024. Global near-term resource > 100Mt targeted. Latin considers Planalto to offer strong potential to increase resource tonnes with planning well underway in preparing a maiden MRE for Planalto in the September quarter, pending receipt of all relevant assay results.

• PERMITTING: environmental and development permits progressing with approvals anticipatedprior to FID in Q4 2024 and construction remains on track to commence Q1 2025.

The significant progress delivered in Q2 2024 positions the Company to achieve further success forthe remainder of year. FID for Salinas is targeted for Q4 2024 conditional upon the confirmation oftechnical studies, permitting, offtake and funding requirements.