GALAN LITHIUM LIMITED — Audit Report / Information 2012

Mar 12, 2012

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To the Board of Directors

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This declaration is made in connection with our review of the financial report of Dempsey Minerals Limited and Controlled Entities for the half-year ended 31 December 2011 and in accordance with the provisions of the Corporations Act 2001 .

We declare that, to the best of our knowledge and belief, there have been:

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• no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review;

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• no contraventions of the Code of Professional Conduct of the Institute of Chartered Accountants in Australia in relation to the review.

Yours faithfully

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BENTLEYS Chartered Accountants

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----- Start of picture text ----- RICHARD JOUGHIN CADirector----- End of picture text -----

DATED at PERTH this 12[th] day of March 2012

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We have reviewed the accompanying half-year financial report of Dempsey Minerals Limited (“the Company”) and Controlled Entities (“the Consolidated Entity”) which comprises the consolidated statement of financial position as at 31 December 2011, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors’ declaration.

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The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

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Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Consolidated Entity’s financial position as at 31 December 2011 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Dempsey Minerals Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

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Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Dempsey Minerals Limited and Controlled Entities is not in accordance with the Corporations Act 2001 including:

• a. Giving a true and fair view of the Consolidated Entity’s financial position as at 31 December 2011 and of its performance for the half-year ended on that date; and

• b. Complying with Accounting Standard AASB 134: Interim Financial Reporting and Corporations Regulations 2001.

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----- Start of picture text ----- BENTLEYSChartered Accountants----- End of picture text -----

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RICHARD JOUGHIN CA Director

DATED at PERTH this 12[th] day of March 2012