Sydney, Australia (ABN Newswire) – Lake Resources NL (ASX:LKE) (FRA:LK1) (OTCMKTS:LLKKF) is advancing project delivery, extraction technology and operations to serve critical supply chains around the world. North America and Asia. Its flagship Kachi project, located in Argentina’s Catamarca province, is a globally significant lithium resource.

A recent report by J Capital, a short seller, presents incorrect information on technical issues and inaccurate claims about Lake Resources’ progress to date with its technology partner Lilac Solutions.

The Lilac operations team arrives at the Kachi project site on July 14, 2022, with the demonstration plant modules delivered to site by July 20, 2022, when commissioning will begin.

The report description of DLE processes does not relate to Lilac’s ion exchange technology. This is criticizing the wrong process.

There are over 50 direct extraction processes used across industries and Lake considered a number of different processes to select Lilac Solutions. Using Lilac’s proprietary ion-exchange chemistry process, Lake intends to efficiently supply the large volumes of high-quality lithium chemicals needed by battery manufacturers. Lilac worked extensively with Kachi brine, generating the data needed for engineering studies.

Importantly, lithium can be produced cleanly and in a way that respects and involves local communities and protects the environment.

On Lilac Solutions proprietary ion exchange technology:

Lake believes DLE will become the primary method of lithium mining, as it is the only practical way to increase lithium supply in a sustainable manner and in a manner consistent with increasing ESG scrutiny of lithium projects. . The chemical techniques employed are already well established in the water industry and direct ion exchange extraction is also widely used in the uranium sector.

However, in the lithium industry, not all DLE processes are the same. That’s why Lake has taken the time to identify the process that is not only the most efficient, but also delivers a product that represents the most socially and environmentally sustainable approach to lithium exchange extraction. DLE ions and managed brine re-injection.

Kachi’s chemical process was clearly defined in the Pre-Feasibility Study (PFS) in 2020, in which Lilac participated.

Lilac has carried out extensive test work in support of PFS to facilitate high quality capital and operating cost estimates.

Allegations of high costs, high water consumption and toxic waste do not apply to Lilac technology.

Lilac’s proprietary ion exchange technology is a chemical process by which the targeted ion (lithium) in the brine is exchanged for hydrogen in a charged medium in the form of a ceramic bead. The ion exchange process can be operated with zero net use of fresh water by using small amounts of brackish water that is not fit for human consumption or agriculture and is widely available. quantity on the Kachi site. Pre-treatment of the brine to remove magnesium or calcium is not necessary as these ions are rejected in the ion exchange process. The ball is then stripped of lithium using hydrochloric acid to produce an aqueous solution of lithium chloride. Test work with Kachi’s natural brine consistently demonstrates over 500 cycles with these beads while maintaining high lithium recoveries, and the beads have demonstrated an ability to exceed 1,000 cycles with Kachi and other brines. Spent brine is returned to the aquifer by controlled reinjection.

The brine is filtered and processed in the direct extraction plant, which recovers and concentrates the lithium into a lithium chloride eluate stream by ion exchange. The lithium-depleted brine from this stage is reinjected into the Salar to maintain the brine aquifer and protect freshwater resources.

The concentrated lithium chloride eluate is transformed into lithium carbonate by a standard treatment by mixing with soda ash (soda ash). The only other by-product is small amounts of chemically inactive solid. Process water is recycled and reused throughout the process so only small amounts of make-up water are needed.

Pilot module test work on Kachi brine has been undertaken by Lilac in California since 2020, which demonstrated a clean lithium chloride eluate, which was converted by an independent third party, Hazen, to a lithium carbonate product. 99.97% lithium. There is also potential for lithium hydroxide production at this stage.

The front end of Kachi’s process flow sheet involves a brine production wellfield and Lilac’s modular direct lithium extraction ion exchange technology. Expanding Lilac’s drilling field and modular components is simple and cost effective compared to expanding brine evaporation ponds or mining projects.

The Kachi site is close to a major highway, airstrip, hospital and two small towns. The location of the site is relatively low at 3,000 meters and has no effect on chemical processes. The site is ideal for project-scale solar power, which is the preferred power source and is being planned.

COVID closed international borders and as soon as possible in March 2022 a modular demonstration plant was built in California, packed in shipping containers and shipped to Argentina.

Lake now employs nearly 300 people in Argentina, and federal and state governments support the development of environmentally friendly lithium.

On the declaration of share transactions:

The company has a clear stock trading policy and on one occasion there was inadvertent non-compliance regarding trades made during a closed period when the market was otherwise fully informed. Lake immediately informed the market.

As noted in Form 3Y, Stephen Promnitz traded certain shares of Lake on April 20, 21 and 22, 2022. The quarterly report was filed on April 21.

To trade in a closed period, Mr. Promnitz was required, under the stock trading policy, to notify both the president and the secretary of Lake and obtain written authorization to do so.

The president did not authorize Mr. Promnitz to sell before selling. The president passed him the trade policy section regarding blackout periods and suggested that Mr. Promnitz could sell the day after the quarterly was released. Mr. Promnitz sought permission from the President after the sales took place on the 25th. The President approved the sale on the 26th.

Due to an oversight, Mr. Promnitz did not notify a secretary.

The administrative errors consisted of not notifying both the president and a secretary and obtaining written authorization before the negotiation.

Lake has undertaken a review of the various agreements with past and current directors and is taking steps to update all employment and appointment “agreements” with a view to ensuring that all directors and senior management are fully aware various statutory and ASX obligations. Duties and Obligations Related to the Rules.

Lake also intends, as it grows and appoints more employees in Australia, Argentina and elsewhere, to hold periodic internal meetings with staff and board members to ensure that ‘they are both familiar with and aware of the obligations under the various company policies and also familiar with the consequences that may arise in the event of non-compliance.

Lake is currently in the process of updating its various agreements and letters with members of the board of directors, with a view to implementing more comprehensive notification requirements for directors with respect to, among other things, transactions on titles of the company.

The lawsuit filed by the company earlier this year concerned whether a cleanup statement should in fact be issued to allow the secondary sale of certain securities. The case was highly technical and, out of an abundance of caution, Lake was seeking available curative orders for the benefit of his investors as soon as possible.

Options for brokers:

Lake has, as a publicly traded company, from time to time appointed brokers and corporate advisers. In line with common practice, the agreed mandates involved the provision of options within the framework of the fee agreements.

Lake expects these brokers to comply with their market and regulatory disclosures when publishing research.

Memoranda of understanding:

Although the leaked MoUs are largely non-binding, they were entered into with globally recognized companies for the long-term supply of a critical material to their supply chains. The nature of the memorandums of understanding and Lake’s ongoing negotiations and dialogue towards the terms of the agreement with these companies gives Lake reasonable confidence that there will be results that will help move the Kachi project forward.

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About Lake Resources NL:

Lake Resources NL (ASX: LKE) (OTCMKTS: LLKKF) is a clean lithium developer using clean, direct mining technology to develop sustainable high-purity lithium from its flagship Kachi project, as well as three other lithium brine projects in Argentina. The projects are located in a prime location within the Lithium Triangle, where 40% of the world’s lithium is produced at the lowest cost.

This method will enable Lake Resources to be an efficient, responsible, environmentally friendly and competitive supplier of high purity lithium that is easily scalable and in demand by EV and Tier 1 battery manufacturers.

Lake NL Resources