LAKE RESOURCES N.L. — Capital/Financing Update 2020

Sep 1, 2020

Proposed issue of securities

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Announcement Summary

Entity name

LAKE RESOURCES N.L.

Announcement Type

New announcement

Date of this announcement

Wednesday September 2, 2020

The Proposed issue is:

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A non pro rata offer of securities under a disclosure document or product disclosure statement (PDS)

Total number of +securities proposed to be issued for a non pro rata offer of securities under a disclosure document or product disclosure statement (PDS)

Maximum Number of ASX +security code +Security description +securities to be issued LKE ORDINARY FULLY PAID 100,000

Closing date for receipt of acceptances

Thursday September 3, 2020

Proposed +issue date

Friday September 4, 2020

Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

LAKE RESOURCES N.L.

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type Registration Number ACN 079471980

1.3 ASX issuer code

LKE

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Wednesday September 2, 2020

1.6 The Proposed issue is:

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A non-+pro rata offer of +securities under a +disclosure document or +PDS

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Part 5 - Details of proposed non-pro rata offer under a disclosure document or PDS

Part 5A - Conditions

5A.1 - Are any of the following approvals required for the non-+pro rata offer of +securities under a +disclosure document or +PDS?

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+Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity No

Part 5B - Offer details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? No

Details of +securities proposed to be issued

ASX +security code and description

LKE : ORDINARY FULLY PAID

The number of +securities to be offered under the +disclosure document or +PDS

100,000

Will the offer be conditional on applications for a minimum number of +securities being received or a minimum amount being raised (i.e. a minimum subscription condition)? No

Will individual security holders be required to accept the offer for a minimum number or value of +securities (i.e. a minimum acceptance condition)? No

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Proposed issue of securities	Proposed issue of securities
Will individual security holders be limited to accepting the offer for a
maximum number or value of +securities (i.e. a maximum acceptance
condition)?
No
Offer price details
Has the offer price been determined?
Yes
In what currency will the offer be	What is the offer price per +security?
made?	AUD 0.03000
AUD - Australian Dollar
Oversubscription & Scale back details
Will the entity be entitled to accept over-subscriptions?
No
Will a scale back be applied if the offer	is over-subscribed?
No
Will these +securities rank equally in all respects from their issue date with
the existing issued +securities in that class?
Yes

Part 5C - Timetable 5C.1 Lodgement date of +disclosure document or +PDS with ASIC Tuesday September 1, 2020 5C.2 Date when +disclosure document or +PDS and acceptance forms will be made available to investors Wednesday September 2, 2020 5C.3 Offer open date Wednesday September 2, 2020 5C.4 Closing date for receipt of acceptances Thursday September 3, 2020 5C.6 Proposed +issue date Friday September 4, 2020

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Part 5D - Listing Rule requirements

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5D.1 Has the entity obtained, or is it obtaining, +security holder approval for the entire issue under listing rule 7.1? No

5D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1? Yes

5D.1b ( i ) How many +securities are proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1?

100,000

5D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? No

5D.2 Is a party referred to in listing rule 10.11 participating in the proposed issue? No

Part 5E - Fees and expenses

5E.1 Will there be a lead manager or broker to the proposed offer? No

5E.2 Is the proposed offer to be underwritten? No

5E.3 Will brokers who lodge acceptances or renunciations on behalf of eligible +security holders be paid a handling fee or commission?

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No

5E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed offer

Total fees of Offer total $6,906 consisting of legal fees, registry fees, ASIC and ASX fees

Part 5F - Further Information

5F.01 The purpose(s) for which the entity intends to use the cash raised by the proposed issue

After expenses of the Offer of approximately $6,906, there will be no net proceeds from the Offer. the expenses of the Offer (exceeding $3,000) will be met from the Company's existing cash reserves.

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5F.1 Will the entity be changing its dividend/distribution policy if the proposed offer is successful? No

5F.2 Please explain the entity's allocation policy for the offer, including whether or not acceptances from existing +security holders will be given priority

Should any shares be issued under the Prospectus, the Directors will determine the recipients of all the Shares with acceptances from existing security holders being given priority.

5F.3 URL on the entity's website where investors can download the +disclosure document or +PDS

www.lakeresources.com.au

5F.4 Any other information the entity wishes to provide about the proposed offer

The Prospectus as been issued primarily to cleanse the issue of Shares on or before the date of this Prospectus. As such it is not anticipated that the Company will issue any Shares under this Prospectus.

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