galaxy achieves mechanical completion at jiangsu … · 06/12/2011 · galaxy is bullish about the...

GALAXY RESOURCES LIMITED (ABN: 11 071 976 442)

Level 2, 16 Ord Street, West Perth, WA 6005 T: +618 9215 1700 F: +618 9215 1799 www.galaxylithium.com

ASX ANNOUNCEMENT / MEDIA RELEASE

meeting a lithium future

6 December 2011

GALAXY ACHIEVES MECHANICAL COMPLETION AT JIANGSU PROJECT

Highlights Jiangsu mechanically complete, one month ahead of revised schedule Construction completion certificates received for all plant areas Construction workforce to be de-mobilised, minimum ‘punch list’ workforce in place Cold commissioning of packaging, microniser units now complete, ahead of schedule Cold commissioning of remainder of plant commenced First production at Jiangsu expected Q1 2012

Galaxy Resources Limited (ASX: GXY, Galaxy) is pleased to announce it has achieved mechanical completion of its wholly-owned Jiangsu Lithium Carbonate Project (Jiangsu or the Project) in China, a month ahead of the revised schedule. The Company received Construction Completion Certificates with associated exceptions and punch lists for all areas of the plant from EPCM contractor, Hatch Engineering. Galaxy said the construction effort at Jiangsu had been accelerated and the mechanical completion, ahead of schedule, was a very important milestone. Under a revised project schedule, announced July 2011, Galaxy had targeted completion by the end of Q4 2011. The Company said Project costs were expected to close in line with previous budget estimates. Galaxy Resources Managing Director, Iggy Tan said: “The large construction workforce is in the process of being de-mobilised, with only a skeleton crew to remain on site to complete the exceptions and final punch list items. The majority of the Hatch EPCM personnel have also been de-mobilised. “Galaxy is processing applications for final production approvals and licenses with relevant government departments and is targeting first production during first quarter of 2012,” Mr Tan said. Significantly, the Company had also commenced cold commissioning, which it said would take approximately two months. Cold commissioning involves checking and ensuring the integrity of plant, equipment, electrical, instrumental and control systems. Once it is completed, hot commissioning of the plant and equipment will commence, followed by the introduction of process materials and the start-up phase. Galaxy said some parts of the plant, like the packaging and microniser units, had already been cold commissioned ahead of schedule. These units have been handed over to Galaxy operation ready for the final stage of commissioning and start-up.

--ENDS-- Pictorial Update Below

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For more information, please contact: Corporate Australia Media Contact Hong Kong Media Contact Iggy Tan Jane Grieve Cindy Lung Managing Director FTI Consulting Strategic Financial Relations Limited Galaxy Resources Tel (office): 08 9386 1233 Tel (office): (852) 2864 4867 Tel (office): 08 9215 1700 Tel (mobile): 0488 400 248 Tel (mobile): (852) 9282 4640 Email: [email protected] Email: [email protected] Email: [email protected]

About Galaxy (ASX: GXY) Galaxy Resources Ltd (“Galaxy”) is an Australian-based integrated lithium mining, chemicals and battery company listed on the Australian Securities Exchange (Code: GXY) and is a S&P/ASX 300 Index Company. Galaxy wholly owns the Mt Cattlin project near Ravensthorpe in Western Australia where it mines lithium pegmatite ore and processes it on site to produce a spodumene concentrate and tantalum by-product. At full capacity, Galaxy will process 137,000 tpa of spodumene concentrate and 56,000 lbs per annum of contained tantalum. The concentrated spodumene is shipped to Galaxy’s wholly-owned Lithium Carbonate Plant in China’s Jiangsu province. Once complete, the Jiangsu plant will produce 17,000 tpa of battery grade lithium carbonate, the largest producer in the Asia Pacific region and the fourth largest in the world. Galaxy is also advancing plans for a lithium-ion battery plant, to produce 350,000 battery packs per annum for the electric bike (e-bike) market. The Company also has a farm in agreement with TSX-listed Lithium One Inc to acquire up to 70% of the James Bay Lithium Pegmatite Project in Quebec, Canada. Lithium compounds are used in the manufacture of ceramics, glass, electronics and are an essential cathode material for long life lithium-ion batteries used to power e-bikes and hybrid and electric vehicles. Galaxy is bullish about the global lithium demand outlook and is positioning itself to achieve its goal of being involved in every step of the lithium supply chain.

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Company also has a farm in agreement with TSX-listed Lithium One Inc to acquire up to 70% of the James Bay Lithium Pegmatite Project in Quebec, Canada. Lithium compounds are used in the manufacture of ceramics, glass, electronics and are an essential cathode material for long life lithium-ion batteries used to power e-bikes and hybrid and electric vehicles. Galaxy is bullish about the global lithium demand outlook and is positioning itself to achieve its goal of being involved in every step of the lithium supply chain. For more information, please contact:

Corporate Australia Media Contact Hong Kong Media Contact Iggy Tan Jane Grieve Cindy Lung Managing Director FD Strategic Financial Relations Limited Tel (office): 08 9215 1700 Tel (office): 08 9386 1233 Tel (office): (852) 2864 4867 Email: [email protected] Tel (mobile): 0488 400 248 Tel (mobile): (852) 9282 4640 Email: [email protected] Email: [email protected]

About Galaxy (ASX: GXY) Galaxy Resources is a Western Australian S&P / ASX 300 Index company which plans to become one of the world’s leading producers of lithium compounds – the essential component for powering the world’s fast expanding fleet of hybrid and electric cars. Galaxy wholly-owns and operates the Mt. Cattlin mine, which is currently producing spodumene concentrate. Galaxy’s Jiangsu lithium carbonate plant, once completed, will have a design capacity of 17,000 tpa of lithium carbonate, which Galaxy expects would make it one of the largest plants in China converting hard rock lithium mineral concentrates into lithium compounds and chemicals. Lithium compounds such as lithium carbonate are forecast to be in high future demand due to advances in long life batteries and sophisticated Galaxy Resources has positioned itself to meet this lithium future by not only mining the lithium, but also by downstream processing to supply lithium carbonate to the expanding Asian market.

Microniser plant – cold comissioning completed and handed over to Galaxy operations

Packaging plant – cold comissioning completed and handed over to Galaxy operations

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Final product packaging machine being commissioned

Reagents and utilities plant

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Final product bins and sodium sulphate crystalliser

Punch list generation at construction completion handover

Digestor tanks at purification plant

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Lithium carbonate production area

Packaging plant and bag stacker First material being micronised during hot commissioning

Purification crystalliser and digestor tanks

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Microniser units Cold comissioning by Galaxy workforce

Purification area Maintenance workshop

Final product storage bins and sodium sulphate crystalliser

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East side of plant

Leaching and water treatment plant

Sodium sulphate plant

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galaxy achieves mechanical completion at jiangsu … · 06/12/2011 · galaxy is bullish about the...

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