LAKE RESOURCES N.L. — Capital/Financing Update 2018

Sep 23, 2018

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LAKE RESOURCES N.L. (ASX:LKE)

ASX Market Announcements Office

24 September 2018

FINANCING OF REMAINING OPTIONS

• $1 million financing of remaining 10c options secured.

• Options converted at a premium with a New York based investor and current shareholders.

Argentine-focused lithium exploration and project development company Lake Resources NL (ASX: LKE) (Company) is pleased to confirm that the $1 million financing of almost all of the remaining 10c options has now closed.

New York investor, Long State Investments (Long State), has provided the $1 million finance for the remaining options. Long State is an investment group with a strategic focus on energy, mining and growth sectors and seek to add value by working closely with management. Long State will also assist in introducing LKE and its value proposition to potential offtakers and strategic investors, and these services are fee-based, common in the industry.

The conversion of the options at a slight premium to market has been seen as a strong vote of confidence in the Company and the upcoming news flow. Lake Resources wishes to thank current and new shareholders for their support.

Lake plans to initiate a three hole drilling campaign at the Cauchari Lithium project which is anticipated to show a likely extension to the high grade lithium brines in adjacent properties include 620mg/L lithium close to the lease boundary (see LKE release 6 Sept 2018). A maiden resource estimate is anticipated over the Kachi Lithium project in late October which should help to advance strategic partner discussions underway in China, Korea and Japan.

Managing Director Steve Promnitz said: “Lake is pleased to secure further investor support as the company is about to commence drilling at Cauchari. We are well on track for mobilization and commencement works. We will be drilling approximately 400-500 metres away from nearby high grade results which we aim to repeat.”

In order to enable the Company to secure additional, non-dilutive funding, the Company has further agreed an equity participation arrangement of $575,000 per quarter with Long State. The potential funding receivable by the Company under this arrangement, based upon the performance of its Shares, has no upper limit. The Company's participation will be determined and payable in 2 settlement tranches payable quarterly as measured against a Benchmark Price of $0.115 per share. If the measured share price exceeds the Benchmark Price, for that quarter, the Company will receive quarterly settlement on a pro rata basis, and vice versa should the measured share price be below the Benchmark Price.

On 27 August 2018, LKE announced that approximately $0.8 million had been provided to the Company through the conversion of the LKEO 10c options. The underwriting agreement could not be completed as planned due to the average share price at the time trading under the conversion price.

For further information please contact:

Steve Promnitz Follow Lake Resources on Twitter: Managing Director https://twitter.com/Lake_Resources +61 2 9188 7864 steve@lakeresources.com.au http://www.lakeresources.com.au

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Released through: Ben Jarvis, Six Degrees Investor Relations: +61 (0) 413 150 448

Lake Resources N.L. (ABN 49 079 471 980) ASX:LKE Suite 2, Level 10, 70 Phillip St, Sydney, NSW 2000, Australia T: +61 2 9188 7864 E: lakeresources@lakeresources.com.au

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About Lake Resources NL (ASX:LKE)

Lake Resources NL (ASX:LKE, Lake) is a lithium exploration and development company focused on developing its 3 lithium brine projects and 1 hard rock project in Argentina, all owned 100%. The leases are in a prime location among the lithium sector’s largest players within the Lithium Triangle where half of the world’s lithium is produced. Lake holds one of the largest lithium tenement packages in Argentina (~180,000Ha) secured in 2016 prior to a significant ‘rush’ by major companies. The large holdings provide the potential to provide security of supply demanded by battery makers and electric vehicle manufacturers.

The two flagship lithium brine projects are Kachi and Olaroz/Cauchari, located adjacent to major world class brine projects either in production or being developed in the highly prospective Jujuy and Catamarca Provinces. The Olaroz-Cauchari project is located in the same basin as Orocobre’s Olaroz lithium production and adjoins SQM/Gangfeng/Lithium Americas Cauchari project, with high grade lithium (600 mg/L) with high flow rates drilled immediately across the lease boundary. Drilling is planned to commence in early October 2018 Cauchari with a three hole programme to intersect and extend the same lithium brine aquifers identified in the adjoining world-class lithium resource. Lake Resources aims to repeat the same high grade lithium results in its leases as the recent geophysics shows the likely extension of the same horizon into Lake’s leases. Drilling will follow later at Olaroz once the methodology is proven at Cauchari.

The Kachi project covers 50,000 Ha over a salt lake south of FMC’s lithium operation and near Albemarle’s Antofalla project. Drilling at Kachi has confirmed a large lithium brine bearing basin over 22km long and over 400m deep. Drilling over Kachi is aimed to produce a resource statement in 2018, anticipated in Oct 2018. A new direct extraction method is being tested in partnership with Lilac Solutions which promises far higher recoveries and in significantly shorter timelines, which will be trialled in tandem with conventional methods as part of a PFS after the resource statement. Scope exists to unlock considerable value through partnerships and corporate deals in the near-term.

Significant corporate transactions continue in adjacent leases with development of SQM/Gangfeng/Lithium Americas Cauchari project. Gangfeng recently announced a US$237 million transaction to acquire 37% of the project from SQM, with a two year timeline to initial production. Projects nearby to Kachi and FMC’s Hombre Muerto were recently acquired via a takeover offer of C$265 million for Lithium X, completed in March 2018, and the northern half of Galaxy’s Sal de Vida resource, purchased for US$280 million by POSCO in June 2018. Major players in the lithium supply chain continue to secure prime projects in the best locations globally.

The demand for lithium continues to be strong for lithium ion batteries in electric vehicles, according to recent data from the leading independent battery minerals consultant - Benchmark Mineral Intelligence. Supply continues to be constrained suggesting good opportunities for upstream lithium companies for many years.

Lake Resources N.L. (ABN 49 079 471 980) ASX:LKE Suite 2, Level 10, 70 Phillip St, Sydney, NSW 2000, Australia T: +61 2 9188 7864 E: lakeresources@lakeresources.com.au

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