MT CATTLIN DRILLING DELIVERS MORE HIGH GRADE INTERCEPTS

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1 8 December 2009 MT CATTLIN DRILLING DELIVERS MORE HIGH GRADE INTERCEPTS Highlights Latest drill results show excellent intercepts for lithium WMC Costean Zone shows near surface mineralisation with the best result 1.91% Li 2 O North Ravensthorpe Zone returns high grade intercepts with best result 2.10% Li 2 O Grade control drilling at the Dowling Pit confirms it is an excellent pit to commence the operation Emerging lithium producer, Galaxy Resources Limited (ASX: GXY), has completed a 9,260m RC drilling program aimed at upgrading and extending resources at the Mt Cattlin Spodumene Project with latest drill results showing excellent intercepts. The overall resource grade for Mt Cattlin is 1.08% Li 2 O so intercepts above this level are considered significant. Highlights: WMC Costean Zone Resource upgrade drilling in the WMC Costean Area to the east of Floater Road intersected some excellent near surface mineralisation. Intercepts include 1.71% Li 2 O in GX984 and 1.91% Li 2 O in GX986. North Ravensthorpe Some very high grade intercepts over wide zones have been returned, including 1.88% Li 2 O in GX1008, 2.06% Li 2 O in GX1007 and 2.10% Li 2 O in GX1009. This area also showed some very high grade tantalum results, including 5,513 ppm Ta 2 O 5 in GX1037 compared with an overall tantalum resource grade of 153 ppm Ta 2 O 5. Dowling Pit Area Close spaced drilling in the Dowling Pit area has returned some excellent intercepts, including 3.37% Li 2 O in GX921, 2.07% Li 2 O in GX996 and 2.42% Li 2 O in GX1002.

2 ASX ANNOUNCEMENT / MEDIA RELEASE Figure 1. Location of Zones (Recent drill hole collars in red) WMC Costean Area Resource upgrade drilling in the WMC Costean Area to the east of Floater Road (see Figure 1) has intersected some excellent near surface mineralisation. This drilling was designed to upgrade resources from inferred to measured and indicated, and thereby increase reserves. Some historic drilling in this area was not assayed for lithium or was drilled using inappropriate techniques for resource estimation, so additional drilling was required. High grade intercepts were returned from some areas that previously showed gaps in the resource or low grades, due to insufficient drilling or interpolation from surrounding lower grade drill holes (see Figure 2). Intercepts include 1.71% Li2O in GX984 and 1.91% Li2O in GX986 (from surface). Significant results from this area are included below in Table 1.

3 Table 1. Significant intercepts, WMC Costean Area Area Hole East North From (m) To (m) Width (m) Li2O (%) Ta2O5 (ppm) WMC Costean GX WMC Costean GX WMC Costean GX WMC Costean GX WMC Costean GX WMC Costean GX WMC Costean GX WMC Costean GX WMC Costean GX WMC Costean GX WMC Costean GX WMC Costean GX WMC Costean GX WMC Costean GX WMC Costean GX WMC Costean GX WMC Costean GX WMC Costean GX Figure 2. WMC Costean Area

4 North Ravensthorpe Area Drilling in the North Ravensthorpe area (see Figure 1), which was not assayed for lithium in most historic holes, has also been completed. The mineralisation shows excellent grade and continuity. Some very high grade intercepts over wide zones have been returned, including 1.88% Li 2 O in GX1008, 2.06% Li 2 O in GX1007 and 2.10% Li 2 O in GX1009. This area also showed some very high grade tantalum results, including 5,513ppmTa 2 O 5 in GX1037. Results from this area, in addition to the WMC Costean area is expected to significantly upgrade the Mt Cattlin reserve base. Significant results from the recent North Ravensthorpe drilling are included in Table 2 below. Table 2. Significant intercepts, North Ravensthorpe Area Area Hole East North From (m) To (m) Width (m) Li2O (%) Ta2O5 (ppm) North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX North Ravy GX

5 Dowling Pit Area A 10m x 10m grade control pattern over a small area of the Dowling pit was also completed. This work was carried out to investigate short range continuity of mineralisation, aid in grade control planning, and to gain further information on rock hardness and blasting characteristics. The drilling has returned some excellent intercepts, including 3.37% Li 2 O in GX921, 2.07% Li 2 O in GX996 and 2.42% Li 2 O in GX1002. It should be noted that some of the intercepts from this area, in addition to North Ravensthorpe, include a small proportion of the lithium-bearing mineral lepidolite, in addition to spodumene. Significant tantalum was reported from hole GX1059, which returned 1,074 ppmta 2 O 5. A full list of significant intersections is given in Table 3 below. Table 3. Significant intercepts, Dowling Pit Area Hole East North From (m) To (m) Width (m) Li2O (%) Ta2O5 (ppm) Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX

6 Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Grade Control GX Note: Coordinates are in projection GDA 94, Zone 51 to an accuracy of <1m. Holes are vertical and since the mineralised pegmatite is sub-horizontal, intercept widths approximate true thickness. Intercepts are weighted averages calculated using a lower cut of 0.4% Li 2 O from 1 metre riffle split samples of RC percussion chips. No top cut has been applied. Analysis by SGS Australia Pty Ltd using AAS for Li (converted to Li2O) and XRF for Ta (converted to Ta2O5). The May 2009 Mt Cattlin resource model is now being updated, with a new resource model and reserve statement expected to be announced in early ENDS For more information, please contact: Iggy Tan Jon Snowball Managing Director FD Third Person Competent Persons The information in this report that relates to Exploration Results is based on information compiled by Mr Philip Tornatora who is a full time employee of the Company and who is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr. Tornatora has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity 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 Tornatora consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Caution Regarding Forward Looking Statements Statements regarding Galaxy's plans with respect to its mineral properties are forward-looking statements. 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 mineralisation 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.

7 About Galaxy (ASX: GXY) Galaxy is an Australian mining and chemical company focusing on lithium and tantalum production. Galaxy has completed a definitive feasibility study (DFS) which suggests the Mt Cattlin Lithium / Tantalum project (Ravensthorpe, Western Australia) is commercially viable based on a processing rate of 1 million tonnes per annum over a 15 year mine life. The Company is planning to commence the development of the mine and the construction of the mineral processing plant in Q with first concentrate production scheduled for Q3, The company has also commenced a pre feasibility study into the value adding downstream production of lithium carbonate (Li2CO3). The company plans to establish a 17,000 tpa lithium carbonate plant in China due to lower associated capital and operating costs, as well as being close to the strategic growing battery markets in Asia. Lithium concentrate and lithium carbonate raw materials are forecast to be in short supply and face high future demand growth due to advances in long life batteries and sophisticated electronics in hybrid and electric vehicles, mobile phones and computers.