Galaxy Resources Limited : - Multiyear offtake extension with long term major customer Sichuan Yahua Industrial Group

Galaxy Resources Limited (ASX: GXY) ('Galaxy') advises that it has varied its existing Offtake Agreement with Yahua International Investment and Development Co., Ltd ('Yahua') to extend its term by a further three years to 31 December 2025.

The contract extension is conditional upon Yahua continuing to meet the terms of the current agreement up to 31 December 2022 and the parties agreeing a pricing mechanism for the period from 2023 to 2025.

Yahua has agreed to purchase a further 30,000 dmt of 6% Li2O spodumene concentrate during the remainder of 2020 and 120,000 dmt per annum of 6% Li2O spodumene concentrate from Mt Cattlin for each calendar year from 2021 to 2025 on a take or pay basis. Pricing for spodumene shipments sold up to the end of 2022 will be agreed between the parties on a spot cargo CIF (Cost, Insurance and Freight) basis. A pricing formula for the 2023 to 2025 period is to be agreed prior to the end of 2022.

This extended offtake arrangement with Yahua supplements Galaxy's existing spodumene concentrate offtake agreements with: Meiwa Corporation (Meiwa) for 55,000 dmt (+/- 10%) per annum of 5.7% spodumene concentrate up to 31 December 2022 on a take or pay basis and Yi Chun Yin Li New Energy Co., Ltd (Jiangte) for 45,000 dmt (+/- 10%) per annum of 6% Li2O spodumene concentrate in 2020 and 60,000 dmt (+/- 10%) per annum of 6% Li2O spodumene concentrate in 2021 and 2022 on a take or pay basis.

Pricing for spodumene shipments sold to Meiwa and Jiangte will be agreed between the parties on a CIF basis. The market continues to experience an extended period of weak demand across the entire lithium value chain. As previously advised, in order to maintain relationships with its valuable, long term customers who are also experiencing challenges in this market, Galaxy's near-term sales volumes and shipping schedules are dictated by the pace these customers can work through their existing inventory levels.

Contact:

Phoebe Lee

Tel: +61 (8) 9215 1700

Email: info@gxy.com

About Galaxy (ASX: GXY)

Galaxy Resources Limited ('Galaxy') is an international company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate. Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of more than 40% of global lithium production.

Sal de Vida has excellent potential as a low-cost brine-based lithium carbonate production facility. Galaxy's diversified project portfolio also consists of the wholly owned James Bay lithium pegmatite project in Quebec, Canada. James Bay will provide additional expansion capacity to capitalize on future lithium demand growth. Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.

About Sichuan Yahua Industrial Group Co., Ltd

Sichuan Yahua Industrial Group Co., Ltd. is a China-based company principally engaged in the manufacture and sales of civil explosives. The Company's main products include industrial explosives, industrial detonators, industrial cords, customized civil explosive products and others. The Company's products are mainly applied in mining, hydropower, transportation construction, urban renewal, geological exploration and national defense industries. Through its subsidiaries, the Company is also engaged in the manufacture and sales of lithium carbonate, lithium hydroxide and other lithium salt products. The Company distributes its products in the domestic Chinese market and to overseas markets.

Caution Regarding Forward Looking Information

This document contains forward looking statements concerning Galaxy. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes.

Forward looking statements in this document are based on Galaxy's beliefs, opinions and estimates of Galaxy as of the dates the forward-looking statements are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. There can be no assurance that Galaxy's plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that Galaxy will be able to confirm the presence of additional mineral deposits, that any mineralization will prove to be economic or that a mine will successfully be developed on any of Galaxy's mineral properties. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements. Data and amounts shown in this document relating to capital costs, operating costs, potential or estimated cashflow and project timelines are internally generated best estimates only. All such information and data is currently under review as part of Galaxy's ongoing operational, development and feasibility studies.