ABN Newswire

Galaxy Resources Limited (ASX:GXY) Galaxy Sells First Lithium Carbonate from Jiangsu

newsroom@abnnewswire.net — Thu, 24 May 2012 08:26:00 GMT

Galaxy Resources Limited (ASX:GXY) is pleased to announce the sale of the first batch of lithium carbonate product (Li2CO3) from its wholly-owned Jiangsu Lithium Carbonate Plant ("Jiangsu" or "the Plant") in China, marking the first revenue stream from the Plant.

The lithium carbonate was produced using spodumene concentrate from Galaxy's wholly-owned Mt Cattlin mine in Western Australia ("Mt Cattlin").

The first seven tonnes of lithium carbonate from Jiangsu was sold to a Chinese customer as technical grade lithium carbonate, despite the product exceeding expectations by meeting battery grade level purity. Galaxy said the quality of the first sales batch averaged 99.5% purity Li2CO3. In addition, sodium, magnesium, iron, and sulphate impurity levels were lower-than-expected.

Galaxy said achieving battery grade level purity was a major achievement, particularly as the purification units installed to achieve battery grade quality and remove impurities (purification plant and removal ion-exchange units) were not used at this stage. The purification units will be brought on line and optimised in the next few weeks as part of the ramp up schedule.

The Company said it had achieved continuous lithium carbonate production and plant stability after achieving first production last month. All areas of the Plant are performing well and according to expectations.

Galaxy Managing Director, Iggy Tan said: "This first sale represents the first cash flow from the processing of Mt Cattlin concentrate into lithium carbonate at the Jiangsu operation and is another step forward with our business plan of developing Galaxy as a fully integrated lithium company.

"We continue to improve operations at Jiangsu to ensure the quality of the product reaches the highest grade specifications desired by the lithium-ion battery sector, although it was very satisfying that even in the early ramp up phase we successfully produced 99.5% grade product. We continue to ramp up throughput and lithium carbonate production and remain on track to reach the 17,000 tonne per annum design capacity within 12 months," Mr Tan said.

The A$100 million Jiangsu Plant is the first fully-automated lithium carbonate plant in China and one of the most highly sophisticated plants of its kind in the world. Galaxy has long term offtake framework agreements signed with 13 major cathode producers in China and Mitsubishi Corporation of Japan (5,000 tpa) for 100% of Jiangsu's design capacity.

Galaxy Resources Limited
T: +61-8-9215-1700
F: +61-8-9215-1799
WWW: www.galaxyresources.com.au

Galaxy Resources Limited (ASX:GXY) EL and C Ballieu Research Report

newsroom@abnnewswire.net — Tue, 22 May 2012 11:30:00 GMT

Galaxy Resources Limited (ASX:GXY) is pleased to announce that an initiation of coverage company report has been completed by EL & C Baillieu Research, on Galaxy following the Company's proposal to merge with Lithium One Inc (CVE:LI).

The research report is now available on our website at http://www.galaxylithium.com.

Galaxy Resources Limited
T: +61-8-9215-1700
F: +61-8-9215-1799
WWW: www.galaxyresources.com.au

Galaxy Resources Limited (ASX:GXY) Welcomes Further Lithium Product Price Increases

newsroom@abnnewswire.net — Wed, 16 May 2012 08:57:00 GMT

Galaxy Resources Limited (ASX:GXY) welcomes the announcement by Rockwood Holdings Inc's. (NYSE:ROC) lithium division Rockwood Lithium ("Rockwood") regarding its decision to lift global lithium salts prices by US$1,000 per metric tonne.

In a statement, Rockwood (formerly Chemetall Lithium) said all salt prices would be lifted, especially lithium carbonate and lithium hydroxide, effective 01 July 2012.

Analysts First Analysis Securities Corporation said it estimated US$1000/tonne would equate to an approximate 22% increase in prices, based on a basket of lithium commodity products, and with some variations on each product.

"We believe this [price increase] suggests relatively tight supply and demand in the lithium industry, which is reasonable considering FMC remains in the midst of a slightly disruptive capacity expansion and SQM recently indicated its capacity utilization had improved. We expect FMC will follow with a price increase of its own; SQM may or may not announce an increase, but we would be surprised if it didn't play along, as it appears to have since the mid-2011 increases from ROC and FMC." - First Analysis Securities Corp - Research Note 14 May 2012.

It is the second time Rockwood has hiked lithium salt product prices in as many years after announcing a 20% increase in prices in June 2011.

Rockwood is one of the world's largest manufacturers and suppliers of lithium-based compounds and a global price setter in the lithium market. Rockwood added the price increases would allow it to fund investment projects and expansion plans and cited the electric vehicle market as a future growth area for lithium products.

Galaxy Resources Managing Director, Iggy Tan, said it was an encouraging sign for the potential prices the Company will be able to receive for output from its wholly-owned Jiangsu Lithium Carbonate Plant (Jiangsu Plant) in China.

Galaxy commenced operations at the Jiangsu Plant in April 2012, which will produce 17,000 tonne per annum of battery (high purity) grade lithium carbonate at full capacity.

Galaxy Resources Limited
T: +61-8-9215-1700
F: +61-8-9215-1799
WWW: www.galaxyresources.com.au

Galaxy Resources Limited (ASX:GXY) Lithium One (CVE:LI) Merger Information Circular

newsroom@abnnewswire.net — Tue, 15 May 2012 09:08:00 GMT

Galaxy Resources Limited (ASX:GXY) is pleased to advise that the Special Meeting of Securityholders of Lithium One Inc (CVE:LI) will be held on June 18, 2012. Attached is the Notice of Special Meeting and Management Proxy Circular ("NOM") where resolutions are to be voted on by Lithium One Securityholders relating to the merger of Galaxy and Lithium One as announced to the ASX on March 30, 2012.

The NOM was lodged in Canada by Lithium One at www.sedar.com. Galaxy is also releasing the NOM in Australia for the purpose of facilitating equal dissemination of information in the Canadian and Australian markets and, to the extent necessary, to meet Galaxy's continuous disclosure obligations.

To view the complete Merger Information Circular, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-GXY-589814.pdf

Galaxy Resources Limited
T: +61-8-9215-1700
F: +61-8-9215-1799
WWW: www.galaxyresources.com.au

Galaxy Resources Limited (ASX:GXY) Raises $2.25 Million Through Share Purchase Plan

newsroom@abnnewswire.net — Tue, 1 May 2012 14:29:00 GMT

Galaxy Resources Limited (ASX:GXY) is pleased to announce it has raised A$2.25 million via a Share Purchase Plan ("SPP"), which was launched in conjunction with a A$30 million Placement ("Placement") to support the Company's recommended merger ("Proposed Merger") with Lithium One Inc (CVE:LI) ("Lithium One").

Galaxy said it received applications for a total of 2.92 million ordinary shares from existing eligible shareholders, and that the SPP was now closed.

Together with the Placement proceeds, existing funds available to the merged entity, and Lithium One's A$10 million in cash reserves, the SPP funds will be used for working capital for the Mt Cattlin Mine and Jiangsu Lithium Carbonate Plant, to accelerate development of the Sal de Vida Lithium Project in Argentina, debt servicing, capital raising fees and merger costs.

Galaxy Managing Director Iggy Tan said: "The Galaxy Board wishes to acknowledge the support of shareholders in the Share Purchase Plan."

Galaxy added the allotment of the shares had occurred and holding statements would be despatched to shareholders shortly.

Merger Update

Galaxy said the Proposed Merger with Lithium One was progressing as planned on both sides, with Target Circular to be finalised in the next fortnight.

The Proposed Merger, which is unanimously recommended by both the Galaxy and Lithium One Boards, and is supported by key shareholders of both companies, requires Lithium One shareholder approval 1 at a shareholder meeting. The meeting is expected to be held in early June 2012.

Galaxy shareholders will also be asked to vote on certain resolutions relating to the Proposed Merger at an Extraordinary General Meeting (EGM) presently intended to be held before the Lithium One shareholder meeting also in early June 2012.

Galaxy Resources Limited
T: +61-8-9215-1700
F: +61-8-9215-1799
WWW: www.galaxyresources.com.au

Galaxy Resources Limited (ASX:GXY) Quarterly Activities and Cashlow Report - March 2012

newsroom@abnnewswire.net — Mon, 30 Apr 2012 08:21:00 GMT

Galaxy Resources Limited (ASX:GXY) is pleased to provide its Quarterly Activity Report for the quarter ended 31 March 2012.

HIGHLIGHTS

- Merger offer made for Canada's Lithium One Inc
- Merger to Create Significant Global Lithium Company
- Successful A$30 M Placement To Support Merger
- Jiangsu Lithium Carbonate Plant Officially Opened
- Jiangsu Hot Commissioning Progressed (completed subsequent to quarter)
- First Lithium Carbonate Produced at Jiangsu (subsequent to quarter)
- Lithium Hydroxide Expansion Study Commenced
- Mt Cattlin Exceeded Design Output
- Fourth Spodumene Shipment Due in Mid May 2012

CORPORATE DIVISION

Proposed Merger with Lithium One

The Company announced that it had entered into an agreement to effect a merger ("Proposed Merger") of Galaxy and Canadian lithium and potash exploration and development company Lithium One Inc. (CVE:LI). Lithium One owns the highly prospective Sal de Vida lithium and potash brine project in Argentina ("Sal de Vida"), for which a preliminary economic assessment ("PEA") completed in October 2011 estimated a net present value of US$1.07 billion (at 8% discount). Lithium One also owns the James Bay lithium pegmatite project in Quebec ("James Bay"), in which Galaxy has an existing 20% stake under a farm-in arrangement.

The Proposed Merger with Lithium One represents an excellent opportunity for Galaxy to boost its global lithium resource base and become a major global lithium company. Galaxy has spent the last 18 months searching the world for a high quality, undeveloped lithium brine deposit and believes Sal de Vida fits that criterion. The Sal de Vida brine chemistry is highly favorable, with high levels of lithium and potash, and low levels of magnesium and sulphate impurities. Sal de Vida is located adjacent to FMC Lithium's El Fenix lithium operation in the Salar del Hombre Muerto, which has been in operation for the last 15 years.

Galaxy will require more lithium resources over the next few years, and Sal de Vida along with James Bay would significantly add to its existing Australian resource inventory and give it ample resources to continue to grow the lithium business and drive the long term value of the Company.

The Proposed Merger is not only a good strategic fit for Galaxy, it also represents an opportunity for Lithium One shareholders to become part of a lithium producing company with hard rock and brine assets around the world.

With Galaxy's expertise across project development and lithium mining, processing and marketing, the Company believes it would be able to fast track development of Sal de Vida as it did at the Mt Cattlin lithium mine and Jiangsu Lithium Carbonate Plant ("Jiangsu Plant").

In addition, Galaxy plans to retain Lithium One's current management team and incorporate it into Galaxy's successful business.

The Galaxy Board of Directors unanimously support the Proposed Merger and recommend that Galaxy shareholders vote in favour of it at the Annual General Meeting, which is intended to be held in May 2012.

The Proposed Merger is also unanimously supported by the Lithium One Board of Directors, which recommends that Lithium One shareholders vote in favour accordingly.

Lithium One Chairman, Martin Rowley, said this offer from Galaxy was attractive and represented an outstanding opportunity for Lithium One shareholders to realise the value of their investment.

To view the complete Galaxy Resources Quarterly Report, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-GXY-587408.pdf

Galaxy Resources Limited
T: +61-8-9215-1700
F: +61-8-9215-1799
WWW: www.galaxyresources.com.au

Galaxy Resources Limited (ASX:GXY) Seymour Pierce Research Report

newsroom@abnnewswire.net — Thu, 26 Apr 2012 08:27:00 GMT

Galaxy Resources Limited (ASX:GXY) is pleased to announce that a research report has been completed by Seymour Pierce Equity Research, one of the UK's leading independent investment banks, on Galaxy following the Company's proposal to merge with Lithium One Inc (CVE:LI).

The research report is now available on our website at http://www.galaxylithium.com.

Galaxy Resources Limited
T: +61-8-9215-1700
F: +61-8-9215-1799
WWW: www.galaxyresources.com.au

Galaxy Resources Limited (ASX:GXY) Reports High Lithium Oxide Grades at James Bay

newsroom@abnnewswire.net — Tue, 24 Apr 2012 08:25:00 GMT

Galaxy Resources Limited (ASX:GXY) Galaxy Resources Ltd (ASX: GXY, "Galaxy" or "the Company") is pleased to announce that geochemical analysis from channel samples taken at its 20% owned James Bay Pegmatite Project ("James Bay") in Quebec has revealed high lithium oxide grades (Li2O) with low impurity levels.

The highest grade was 1.77% Li2O from channel sample 8.32.

The analysis was taken from 83 samples submitted from a recent 160 metre infill channel sampling program at James Bay.

James Bay is an extensive high-grade spodumene pegmatite deposit that occurs at surface and the latest channel samples were taken across four separate pegmatites.

The breakdown of samples comprised 67 from pegmatites, 8 from country rock and 8 quality control standards and check samples. All samples were analysed for Li2O and 14 other oxides, 39 trace elements and LOI (Loss on Ignition). See summary of the sample analysis (Table 1) and the location of the channel samples (Figure 1).

Significantly, the channel sampling data revealed that the spodumene-bearing pegmatite samples were similar to the ore at Galaxy's wholly-owned Mt Cattlin mine in Western Australia.

Table 1 - Summary of the Li2O intercept results
------------------------------------------------------------------------
Channel ID   Li2O(%)  Length(m)  From(E)    From(N)    To(E)     To(N)
------------------------------------------------------------------------
CS-12.11      1.59      17.2     358,117   5,789,462  358,098  5,789,467
CS-10.30      1.18       1.5     358,418   5,789,416  358,414  5,789,415
CS-10.31      1.12       5.5     358,426   5,789,432  358,421  5,789,433
CS-10.40      1.44       4.5     358,398   5,789,437  358,394  5,789,436
CS-9.12       1.39      8.05     358,522   5,789,401  358,515  5,789,409
CS-8.61       1.73      34.5     358,630   5,789,309  358,607  5,789,334
CS-8.32       1.77       8.9     358,701   5,789,377  358,687  5,789,287
CS-8.10       1.49       5.9     358,720   5,789,228  358,712  5,789,232
------------------------------------------------------------------------

Galaxy currently owns 20% of James Bay under a farm-in agreement with Lithium One Inc. (CVE:LI). The completion of a Definitive Feasibility Study (DFS) - currently underway - would increase Galaxy's stake in the project to 70%.

Galaxy announced on 30 March 2012, that it had entered into an agreement to effect a proposed merger between Galaxy and Lithium One Inc. Lithium One also owns (70%) the highly prospective Sal de Vida lithium and potash brine project in Argentina ("Sal de Vida"). If the merger is successful, Galaxy will own 100% of James Bay and 70% of Sal de Vida.

The channel sampling data will be incorporated into an updated Mineral Resource Estimate for James Bay and will be utilised in a current metallurgical testwork program on bulk samples previously collected from James Bay (being undertaken at Lakefield SGS).

To view the complete Galaxy Resources announcement including Figure 1, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-GXY-586658.pdf

Galaxy Resources Limited
T: +61-8-9215-1700
F: +61-8-9215-1799
WWW: www.galaxyresources.com.au

Galaxy Resources Limited (ASX:GXY) Lithium One (CVE:LI) Merger Advances to Next Stage

newsroom@abnnewswire.net — Thu, 19 Apr 2012 09:59:00 GMT

Galaxy Resources Limited (ASX:GXY) is pleased to announce that in respect of its proposed merger ("Proposed Merger") with Lithium One Inc (CVE:LI) and following the announcement of Galaxy's capital raising, Lithium One's Board of Directors has maintained its recommendation to the holders of Lithium One securities that they vote in favour of the Proposed Merger. Lithium One has received an updated opinion from BMO Capital Markets (financial advisors to Lithium One), that, as of the date of such opinion and subject to the assumptions, limitations and qualifications stated in such opinion, the consideration to be received by the Lithium One shareholders pursuant to the terms of Proposed Merger is fair, from a financial point of view, to such shareholders.

Galaxy announced on 12 April 2012 that it had successfully raised A$30 million (before costs) via a placement ("Placement") to institutional and sophisticated investors. The Placement will now settle on 23 April 2012.1 In addition, Galaxy is seeking to raise a maximum of A$3 million via a Share Purchase Plan, which is open to existing shareholders of the Company.

The Proposed Merger, which is unanimously recommended by both the Galaxy and Lithium One Boards, and enjoys the support of key shareholders of both companies, requires Lithium One shareholder approval2 at a shareholder meeting. The date of this meeting is expected to be in late May 2012. Lithium One shareholders / option holders holding approximately 13% of the fully diluted capital of Lithium One have executed binding commitments to support the Proposed Merger, in the absence of a superior proposal.

Galaxy shareholders will also be asked to vote on certain resolutions relating to the Proposed Merger at the Galaxy AGM and / or an EGM, which is presently intended to be held before the Lithium One shareholder meeting in early June 2012.

Galaxy shareholders holding approximately 16% of the undiluted issued capital of Galaxy have confirmed their intention to vote in favour of the Proposed Merger.

Galaxy Resources Limited
T: +61-8-9215-1700
F: +61-8-9215-1799
WWW: www.galaxyresources.com.au

Galaxy Resources Limited (ASX:GXY) Share Purchase Plan Offer Document

newsroom@abnnewswire.net — Fri, 13 Apr 2012 08:29:00 GMT

Galaxy Resources Limited (ASX:GXY) - On behalf of the Board, I am pleased to offer you the opportunity to apply for New Shares in Galaxy under the Offer.

On 30 March 2012 Galaxy announced it had entered into an agreement to effect a merger of Galaxy and Canadian lithium and potash exploration and development company Lithium One Inc (Lithium One). Under the agreement, Galaxy will acquire 100% of the outstanding securities of Lithium One via a plan of arrangement whereby Lithium One shareholders will receive 1.96 Galaxy shares for each Lithium One share held.

On 12 April 2012 Galaxy announced it had successfully raised A$30 million (before costs) via a Placement (Placement) to institutional and sophisticated investors to support Galaxy's recently announced proposed merger with Lithium One and offering eligible existing shareholders the opportunity to participate in a Share Purchase Plan (SPP) to a maximum of A$3 million.

The Placement was completed to sophisticated and institutional clients of Azure Capital, Casimir Capital, Renaissance Capital and Seymour Pierce. The Placement will settle on or around 23 April 2012 and is subject to the Board of Lithium One not changing its current recommendation that shareholders vote in favour of the Proposed Merger with Galaxy, if its financial advisor, BMO Capital Markets (BMO), decides to vary its fairness opinion within 5 business days after the public announcement of the results of the Placement. As announced on 30 March 2012, BMO has provided an opinion to the Board of Lithium One that, among other things (including that Galaxy complete the previously proposed equity financing ) the consideration proposed to be received by the Lithium One shareholders pursuant to the Plan of Arrangement is fair from a financial point of view to such shareholders.

The Placement proceeds include a subscription by Galaxy's Chairman being a related party (A$0.5 million) and the conversion of merger advisory fees to shares at the Placement price (A$0.6 million) in the event that the Proposed Merger with Lithium One is successful, both of which are subject to Galaxy shareholder approval.

The funds raised from the Placement and SPP (together with existing funds available to the merged entity, and Lithium One's A$10 million in cash reserves) will be used for working capital for the Mt Cattlin Mine and Jiangsu Lithium Carbonate Plant, to accelerate development of the Sal de Vida Lithium Project in Argentina, debt servicing, capital raising fees and merger costs. The Offer is not conditional on, and will continue even if the proposed merger with Lithium One does not proceed.

The Offer will open on 13 April 2012 and will remain open until 5.00 pm (WST) on 23 April 2012.
Under the Offer you can acquire up to $15,000 worth of New Shares without paying any brokerage or other related charges.

The Offer Price is $0.77 per New Share, which represents a 13% discount to the closing price on 29 March 2012, being the last day on which Shares traded on ASX prior to the announcement of the merger.

If Galaxy receives Applications in excess of the $3 million sought under the Offer, Galaxy reserves the ability to scale back applications and excess funds will be returned to applicants without interest.

Participation in the Offer is optional and is open to Eligible Shareholders who are holders of Shares in Galaxy at 4.00 pm (WST) on 29 March 2012 and whose registered address is in Australia or New Zealand.

Full details of the Offer and how to participate are contained in the terms and conditions of this document, which I encourage you to read and consider carefully.

If you have any questions, please contact the Company's share registry, Computershare Investor Services Pty Limited on 1300 850 505 (within Australia) or +61-3-9415-4000 (outside Australia), or Mr Andrew Meloncelli - Company Secretary on +61-8-9215-1700 or email ir@galaxylithum.com, or consult your financial or other professional adviser.

Thank you for your continued support of Galaxy.

Craig Readhead
Chairman

To view the complete Galaxy Resources Share Purchase Plan Offer Document, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-GXY-585463.pd

Galaxy Resources Limited
T: +61-8-9215-1700
F: +61-8-9215-1799
WWW: www.galaxyresources.com.au