LAKE RESOURCES N.L. — Interim / Quarterly Report 2015

Jul 29, 2015

LAKE RESOURCES NL

QUARTERLY REPORT APRIL – JUNE 2015

SUMMARY

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As previously reported, Lake Resources entered into an Exclusivity Agreement and associated Shareholders Agreement and Share Subscription Agreement (CRME Joint Venture) with Colt Resources Middle East and Aamir Resources Consultants whereby CRME can earn a majority interest in Lake’s three Chagai exploration licenses in Balochistan, Pakistan. Pursuant to these agreements, Lake Resources surrendered its three exploration licences in Balochistan, effective 6 May 2015, conditional upon new exploration licences covering the same areas as the surrendered licences being granted to the Pakistan-incorporated operating entity, Chagai Resources (Pvte.) Limited.

Subsequently, new exploration licences were granted to Chagai Resources for a period of 3 years, effective 12 June 2015. The licence documents specify that the company will “…sign an agreement with Government of Balochistan regarding participation/entry of the Government of Balochistan in the said licence/project with 12.5% share on 100% discount i.e. without any investment or 25% share with investment in accordance with the Latest Policy of the Government.”

Pakistan

Lake Resources (Lake) is exploring for porphyry copper-gold and epithermal gold deposits in the Chagai District of Balochistan (see p.2 for details). Significant mineral deposits in the region include the Saindak porphyry coppergold mine and the Reko Diq copper-gold project of Tethyan Copper Company (TCC) (owned 50:50 by Antofagasta Plc and Barrick Gold Corporation). Following the submission of a feasibility study to Government of Balochistan in August 2010, for development of the Reko Diq project, TCC submitted an application for a mining lease. In November 2011 the Government of Balochistan rejected the application. TCC is pursuing international arbitrations in order to protect its legal rights.

During the quarter, pursuant to the terms of the CRME Joint Venture, Lake Resources conditionally surrendered its three exploration licences (ELs). These ELs were replaced by new exploration licences that were granted to Chagai Resources for a period of 3 years, effective 12 June 2015. Details are set out in Table 1 and Figure 1 below.

	Table1:Chagai ResourcesBalochistan Tenements	Table1:Chagai ResourcesBalochistan Tenements	Table1:Chagai ResourcesBalochistan Tenements
Tenement	**Amalaf **	**Dasht-i-Gauran **	**Koh-i-Sultan **
**EL Number **	(143)/2801-02	(144)/2803-4	(145)/2805-6
Area (sq km)	46.7	29.1	85.1
Lake Interest	(see Exploration section)	(see Exploration section)	(see Exploration section)
Grant Date	12/06/2015	12/06/2015	12/06/2015
Expiry Date	11/06/2018	11/06/2018	11/06/2018

A condition of the new licences is that the Balochistan Government should have up to a 25% interest in the licences – the government previously advised that preparation of a draft agreement was under way.

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Figure 1: Location and tenement map.

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Lake Resources N L, Quarterly Report, April - June 2015

The Amalaf area adjoins the northern boundary of the Saindak copper-gold mine. The exploration target is large tonnage - low grade copper amenable to low-cost open-pit mining and trucking to the Saindak mine. In late 2005, one of two holes drilled by Lake to test part of this target intersected significant low-grade copper-molybdenum over the length of the hole with minor gold (12 -120m, 108 m @ 0.17%Cu & 94 ppm Mo).

The Dasht-i-Gauran area is situated to the west of copper mineralisation reported by TCC from drilling at its Sor Baroot Prospect at the Reko Diq Project, and covers a number of possible alteration zones identified from interpretation of satellite images.

At Koh-i-Sultan , Lake is exploring an extensive system of intensely altered breccia and volcanics covering an area of more than five square kilometres on the margin of an extinct volcanic caldera (See Fig. 2). The company has undertaken 3 phases of drilling at Koh-i-Sultan.

In late 2005, strong gold mineralisation was intersected in one of 2 percussion holes (LRM-01) drilled on the western margin of the system in late 2005.

In 2008, a five-hole diamond drilling program totaling 2284 m (see Figs. 2 & 3 for drillhole locations) resulted in two new discoveries:

• porphyry-type copper-gold mineralisation in drillhole LRMDDH-002 (392 – 520 m, 128 m @ 0.14%Cu and 0.19 ppm Au) and

• a very large, variably-altered and mineralised breccia complex, intersected in all five drillholes, over a width of more than 700 m and a north-south extent of more than 400 m. Geologically significant gold values were intersected in the breccia in four of the five drillholes. It is believed that the southern extension of this breccia also hosts the gold mineralisation intersected in drillhole LRM-001.

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Figure 2: Plan showing Koh-i-Sultan alteration zones (green) and 2005 & 2008 drill sites.

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Lake Resources N L, Quarterly Report, April - June 2015

In early 2012, a 17-hole reverse circulation (RC) percussion drilling program totaling 2,070 m was undertaken within an area approximately 1,000 m east-west by 1,500 m north-south, along Miri Nala, southwest of Nawah Caldera (Figure 2). Drillhole collar location and hole traces are shown in Figure 3 below.

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Figure 3: Koh-i-Sultan drillhole collar locations and drill traces – 2005 (LRM-01 – 02), 2008 (LRMDDH-001 – 005) & 2012 (LRMRC-003 – 019).

As previously reported (see report for Q3/2012) the results of the 2012 RC percussion drilling indicate potential for:

• a significant gold target, with possible supergene copper in the LRM001 – LRMRC003/005/018/019 area. The copper-gold association in some of these holes could indicate potential for porphyry copper-gold mineralization beneath this area.

• a large porphyry copper-gold target associated with the porphyry copper-gold intersection in 2008 drillhole LRMDDH002, supported by the intersections of elevated levels of molybdenum, copper and patchy gold in RC percussion holes LRMRC010 – 017.

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Lake Resources N L, Quarterly Report, April - June 2015

Exploration

As previously reported, Lake Resources has entered into an Exclusivity Agreement and associated Shareholders Agreement and Share Subscription Agreement (CRME Joint Venture) with Colt Resources Middle East and Aamir Resources Consultants whereby CRME can earn a majority interest in Lake’s three Chagai exploration licenses in Balochistan, Pakistan. Key provisions of these agreements are set out below.

• There are 3 parties, Lake Resources N.L. (Lake) through its Pakistan incorporated subsidiary Lake Mining Pakistan (Pvt.) Limited, Colt Resources Middle East (CRME) through its Pakistan incorporated subsidiary Balochistan Chaghi Mining Resources (Pvt.) Limited (BCMR) and Aamir Resources Consultants (Pvt.) Limited (ARC) a Pakistan-based resources consulting group.

• The operating entity will be a Pakistan incorporated company, Chagai Resources (Pvt.) Limited, into which Lake Resources’ exploration licences will be transferred, subject to approval by Government of Balochistan.

• The initial shareholders in Chagai Resources will be BCMR 60%, Lake Mining Pakistan 27.5% and ARC 12.5%.

• BCMR will subscribe a minimum of USD1.9 million to Chagai Resources (Pvt.) Limited (Equity Contribution 1) to be expended on exploration of the licences with 3 years.

• IF BCMR fails to invest Equity Contribution 1 and /or Chagai Resources fails to expend Equity Contribution 1 on exploration of the licence areas within 3 years, then BCMR and ARC will transfer their entire shareholdings in Chagai Resources to Lake Mining Pakistan.

• BCMR will subscribe a further USD3.1 million to Chagai Resources (Pvt.) Limited (Equity Contribution 2) to be expended on exploration of the licence areas with 3 years from the date of completion of Equity Contribution 1,and the resultant shareholdings in Chagai Resources will be BCMR 72.5%, Lake Mining Pakistan 15% , and ARC 12.5%.

• IF BCMR fails to invest Equity Contribution 2 and /or Chagai Resources fails to expend Equity Contribution 2 on exploration of the licence areas within 3 years from the date of completion of Equity Contribution 1, then the shareholdings of Chagai Resources will revert to CRME 51%, Lake Mining Pakistan 40% and ARC 9%.

• For subscriptions and expenditure above USD5 million, Lake Mining Pakistan and ARC will be diluted until their respective equities are 10% and Lake Mining Pakistan’s interest will revert to a 10% carried interest repayable from 80% of Lake’s share of net profits. ARC, on diluting to 10% will revert to a 5% free carried net profits interest.

Pursuant to these agreements, Lake Resources surrendered its three exploration licences in Balochistan, effective 6 May 2015, conditional upon new exploration licences covering the same areas as the surrendered licences being granted to the Pakistan-incorporated operating entity, Chagai Resources (Pvte.) Limited.

Subsequently, new exploration licences were granted to Chagai Resources for a period of 3 years, effective 12 June 2015. The licence documents specify that the company will “…sign an agreement with Government of Balochistan regarding participation/entry of the Government of Balochistan in the said licence/project with 12.5% share on 100% discount i.e. without any investment or 25% share with investment in accordance with the Latest Policy of the Government.”

No field work was undertaken during the reporting period. However preparation of a program and budget for resumption of exploration of the exploration licences commenced.

The company continues to review new investment opportunities.

Cash Position

Net cash on hand was A$ 128,000 at the end of the June 2015 quarter.

30 July 2015

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J.G. Clavarino (M AusIMM) Exploration Director

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Lake Resources N L, Quarterly Report, April - June 2015

The information in this report that relates to Exploration Results, is based on information compiled by Jim Clavarino who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Clavarino is Exploration Director of Lake Resources NL and is employed by Argent Resources Pty Ltd. Mr. Clavarino has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Clavarino consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

CONTACT INFORMATION

Office Address 3 Maud Street, Newstead, Brisbane, Queensland, Australia, 4006 Postal Address GPO Box 1239, Brisbane, Queensland, Australia, 4001 Telephone Peter Gilchrist (61) (7) 3257 1111 Jim Clavarino (61) (7) 3252 0255 Fax (61) (7) 3257 2122 E-mail lakeresources@lakeresources.com.au Web site www.lakeresources.com.au

Share Registry

Lake Resources' share registry is managed by Link Market Services Limited (formerly ASX Perpetual Registrars), Level 15, 324 Queen Street, Brisbane, Queensland, 4000

Shareholder matters including changes of address should be directed to:

• Link Market Services Limited, Locked Bag A14, Sydney South, NSW 1235

• General shareholder enquiries, Phone: 1300 554 474 or (02) 8280 7111

• Email: registrars@linkmarketservices.com.au

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