A$40 Million Institutional Placement to Support 30% Expansion of Phase 1 Hombre Muerto West (HMW)

Highlights:

• Galan has received firm commitments to raise A$40 million (before costs) via an institutional placement at A$0.41 per share, a 2% premium to the 5-day VWAP

• Directors of the Company have separately committed to subscribe for an additional A$1 million subject to shareholder approval

• Placement was strongly supported by existing substantial shareholder Clean Elements as well as global institutional and sophisticated investors

• Proceeds of the capital raising will be used to expand production at HMW from current planned 4 ktpa LCE to 5.2 ktpa LCE, fund exploration activities at Greenbushes South and for working capital

• Phase 1 construction works at HMW continue to progress with first production targeted for H1 2026

PERTH, AU / ACCESS Newswire / January 28, 2026 / Galan Lithium Limited (ASX:GLN) (Galan or the Company) is pleased to announce it has received firm commitments from institutional and sophisticated investors, including major shareholder the Clean Elements Fund (Clean Elements) for a placement of A$40 million at an issue price of A$0.41 per share (Institutional Placement). Directors of the Company have also committed to subscribe for an additional $1 million on the same terms as the Institutional Placement, subject to shareholder approval (Director Placement).

Together with existing cash reserves, the proceeds from the equity raising will be used to complete Phase 1 construction activities, expand Phase 1 production capacity from 4 ktpa LCE to 5.2 ktpa LCE, undertake exploration activities at Greenbushes South and for working capital purposes.

First lithium chloride concentrate production to come out of a current inventory of circa 9,500 t LCE in evaporation ponds remains targeted for 1H 2026.

Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:

“An accelerated recovery in lithium prices has provided Galan with an opportunity to expand HMW Phase 1 production capacity by 30%. Undertaking a Phase 1 expansion at this time will realise operational synergies for Galan, specifically saving on equipment and contractor mobilisation costs and cost savings in procurement.

“The equity raising has been very well supported with pricing at a premium to 5, 10 and 15 day VWAPs, which reflects that investors have recognised that Galan is well placed to take advantage of a higher lithium pricing environment, with first lithium chloride production targeted for the first half of 2026.

“On behalf of the Board of Directors, I would like to thank our shareholders for their ongoing support, which includes Clean Elements, and to welcome new high-caliber institutional investors from around the world to our register.”

Details of the Equity Raising

Galan has received firm commitments to raise a total of $40 million under the Institutional Placement and an additional $1 million under the Director Placement (together the “Equity Raising“), at an issue price of $0.41 per share.

The Equity Raising will be undertaken in two tranches:

• Tranche 1: Comprising the issue of approximately 86.6 million new fully paid ordinary share (“New Shares“) to institutional, professional and sophisticated investors under Galan’s placement capacity under ASX Listing Rules 7.1 and 7.1A.

• Tranche 2: Comprising the issue of 13.4 million New Shares to Clean Elements and Directors of Galan, subject to shareholder approval under ASX Listing Rule 10.11 which will be sought at an Extraordinary General Meeting (EGM) to be held in Mid-March 2026. The date and details of the EGM will be communicated to shareholders on the ASX platform in due course.

The Equity Raising issue price of A$0.41 per New Share represents a:

• 13% discount to the last closing price of A$0.470;

• 2% premium to the 5-day VWAP of A$0.403;

• 4% premium to the 10-day VWAP of A$0.395; and

• 6% premium to the 15-day VWAP of A$0.386;

The New Shares will rank equally with existing Galan shares. The Institutional Placement is not underwritten.

Canaccord Genuity acted as Lead Manager and Bookrunner to the Placement.

Indicative Timetable ^1,2

The Galan Board has authorised this release.

For further information contact:

SOURCE: Galan Lithium Limited

View the original press release on ACCESS Newswire