Final Galaxy Resources: Mt. Cattlin (Western Australia) Project No. 2541 NI43-101 Technical Report 31 December 2011 Office Locations This report has been prepared by Snowden Mining Industry Consultants („Snowden‟) on behalf of Galaxy Resources. Perth 87 Colin St, West Perth WA 6005 2011 AUSTRALIA PO Box 77, West Perth WA 6872 All rights are reserved. No part of this document may be reproduced, AUSTRALIA stored in a retrieval system, or transmitted in any form or by any means, Tel: +61 8 9213 9213 electronic, mechanical, photocopying, recording or otherwise, without the Fax: +61 8 9322 2576 prior written permission of Snowden. ABN: 99 085 319 562 [email protected] Brisbane Level 15, 300 Adelaide Street Prepared Robert Spiers Brisbane QLD 4000 AUSTRALIA by BSc, (Hons - DMajor Geology / Geophysics), MAIG Senior Consultant - Resource Geology .............................................................. PO Box 2207, Brisbane QLD 4001 AUSTRALIA Jeremy Peters BEng (Mining Engineering), Tel: +61 7 3231 3800 BSc, (Geology), Mine Managers Certificate, MAusIMM Fax: +61 7 3211 9815 Principal Consultant – Mining ............................................................................. ABN: 99 085 319 562 [email protected] Leon Lorenzen PhD (Metallurgical Engineering), MSc(Eng), BEng (Chemical Engineering), PrEng, Johannesburg CPEng, CEng, PrEng, FAusIMM, FSAIMM, Technology House, Greenacres Office FIChemE, FSAAE Park, Cnr. Victory and Rustenburg Group General Manager / Executive Consultant (Metallurgy) ............................. Roads, Victory Park JOHANNESBURG 2195 SOUTH AFRICA PO Box 2613, Parklands 2121 SOUTH AFRICA Tel: + 27 11 782 2379 Fax: + 27 11 782 2396 Reg No. 1998/023556/07 [email protected] Vancouver Suite 550, 1090 West Pender St, VANCOUVER BC V6E 2N7 CANADA Tel: +1 604 683 7645 Fax: +1 604 683 7929 Reg No. 557150 [email protected] Calgary Suite 850, 550 11th Avenue SW CALGARY, ALBERTA T2R 1M7 Tel +1 403 452 5559 Fax +1 403 452 5988 [email protected] Belo Horizonte Afonso Pena 2770, CJ 201 A 205 Funcionários, 30.130-007, BELO HORIZONTE MG BRASIL Tel: +55 (31) 3222-6286 Fax: +55 (31) 3222-6286 [email protected] Oxford Issued by: Perth Office Lvl 3, The Magdalen Centre 1 Robert Doc Ref: 120504_FINAL_2541_NI43-101_Galaxy.docx Robinson Avenue The Oxford Science Park OXFORD OX4 4GA Last Edited: 4/05/2012 11:24:00 AM Tel: +44 1865 784 884 Fax: +44 1865 784 888 Number of copies [email protected] Snowden: 2 Website Galaxy Resources: 2 www.snowdengroup.com Galaxy Resources: Mt. Cattlin (Western Australia) NI43-101 Technical Report 1 Summary .............................................................................................................................................. 13 1.1 Property description ................................................................................................................ 13 1.2 Geology ................................................................................................................................... 13 1.3 Mineralisation .......................................................................................................................... 13 1.4 Current status of exploration ................................................................................................... 14 1.5 Mineral resource estimate ....................................................................................................... 14 1.6 Mineral Reserve estimate ....................................................................................................... 15 1.7 Mining ...................................................................................................................................... 15 1.8 Mt. Cattlin processing plant ..................................................................................................... 16 1.9 Jiangsu lithium carbonate plant .............................................................................................. 16 1.10 General ................................................................................................................................... 17 1.11 Recommendations .................................................................................................................. 18 1.11.1 Future exploration strategy ................................................................................... 18 1.11.2 Mineral Resources ................................................................................................ 18 1.11.3 Mining .................................................................................................................... 19 1.11.4 Mt. Cattlin process plant ....................................................................................... 19 1.11.5 Jiangsu lithium carbonate plant ............................................................................ 19 2 Introduction and terms of reference ..................................................................................................... 20 2.1 Capability and independence.................................................................................................. 20 2.2 Qualified persons responsible for this report .......................................................................... 21 2.3 Scope of work ......................................................................................................................... 21 2.4 Project team ............................................................................................................................ 22 3 Reliance on other experts .................................................................................................................... 23 4 Property description and location ........................................................................................................ 24 5 Accessibility, climate, local resources, infrastructure and physiography ............................................. 27 5.1 Accessibility and infrastructure ............................................................................................... 27 5.2 Climate .................................................................................................................................... 27 6 History .................................................................................................................................................. 28 6.1 Ownership history ................................................................................................................... 28 6.2 Historical and current mining .................................................................................................. 28 6.3 Historical estimates ................................................................................................................. 29 7 Geological setting ................................................................................................................................ 30 7.1 Regional geology .................................................................................................................... 30 7.2 Property geology ..................................................................................................................... 30 7.3 Mineralisation .......................................................................................................................... 31 8 Deposit types ....................................................................................................................................... 37 8.1 Pegmatite deposits ................................................................................................................. 37 8.2 Greenbushes lithium mine ...................................................................................................... 38 8.3 Lithium brines .......................................................................................................................... 38 9 Exploration ........................................................................................................................................... 39 9.1 Geological mapping ................................................................................................................ 39 9.2 Surface sampling .................................................................................................................... 40 9.3 Remote sensing ...................................................................................................................... 40 9.4 Airborne geophysics ............................................................................................................... 41 9.5 Other exploration .................................................................................................................... 41 10 Drilling .................................................................................................................................................. 44 . Final 31 December 2011 3 of 203 Galaxy Resources: Mt. Cattlin (Western Australia) NI43-101 Technical Report 10.1 RC drilling ................................................................................................................................ 45 10.2 Diamond drilling ...................................................................................................................... 47 10.3 Grid convention ......................................................................................................................