Galaxy Resources Limited wishes to announce an update of the status of its Bankable Feasibility Study (BFS) for the development of the Mt Cattlin Lithium/Tantalum project, located within the Archaean Ravensthorpe Greenstone Belt, Western Australia.

HIGHLIGHTS

∙ Selection of the final participants for the Bankable Feasibility Study (BFS) for the development of Mt Cattlin completed including the appointment of Como Engineers as consultants with respect to the concentrator plant design after reassessment of the BFS parameters to include lithium carbonate production.

∙ A major international engineering group has been selected to complete the lithium carbonate test work and process design. Final contracts are expected to be signed within the next week.

∙ Infill RC drilling program recently completed on the freehold cleared farmland.

∙ A sample of spodumene concentrate has been prepared for use in the lithium carbonate test work. In addition, a sample of concentrate tailings has been prepared for supply to Australian Tailings Consultants for test work regarding physical characteristics.

∙ Preliminary assessment of site hydrological information completed and a site program testing the water table and flow rates in existing drill holes will commence during June.

∙ Initial flora and fauna site survey has been completed over the planned mine area.

∙ Discussions with several potential strategic marketing partners with respect to marketing rights in return for BFS and project finance support progressing.

∙ Drilling at Mt Cattlin in 2007 defined an initial Mineral Resource estimate of 24.8 million tonnes at 8.2% spodumene, 0.56% Li2O and 120 ppm Ta2O5 containing an estimated 2.03 million tonnes spodumene and 6.62 million lbs Ta2O5. Included within the initial Mineral Resource is a higher grade Mineral Resource of 12.3 million tonnes at 14.7% Spodumene, 1.00 % Li2O and 135 ppm Ta2O5 (above a 4000 ppm Li2O cut off) for 1.81million tonnes spodumene and 3.80 million lbs Ta2O5. It is expected that further planned in-fill and extension drilling will expand the Mineral Resource.

∙ Current prices for spodumene concentrate grading 6% Li2O range from US$400 to US$500 per tonne, for tantalum concentrate from US$45 to US$50 per lb contained Ta2O5, and for lithium carbonate (Li2CO3) US$6000 to US$6500 per tonne.

∙ Based on current prices the resource at Mt Cattlin is estimated to have an in-situ value in excess of $1B with scope to be expanded. – Edited Press Release