Latin Resources Limited – $2.5 MILLION OPTIONAL FINANCING AGREEMENT TO ADVANCE LITHIUM PROJECTS IN BRAZIL

Limited Latin resources (ASX: LRS) (“Latin” or “the Company”) is pleased to announce that it has entered into an Options Funding Agreement (“OFA”) to receive funding from $2,500,000 (nominal value $2,750,000) from Lind Asset Management XII, LLCan entity managed by new York based The Lind Partners, LLC (set ‘Lind’). The financing provides a source of capital to enable the Company to fund its program of project development and exploration of its exciting portfolio of lithium projects in Brazilwhile avoiding dilutive equity raising.

STRONG POINTS

$2.5 million signing of an options funding agreement using LRSOC “in the money” options.

If all LRSOC options are exercised, they would generate up to $5.1 million as proceeds from the exercise of options for the Company.

Latin will repay the financing gradually with the proceeds of the LRSOC options as they are exercised, or sooner, at Latin’s option.

The funds will be used to accelerate activity on Latin’s lithium projects in Braziland for general corporate and working capital purposes.

General manager Chris Gale commented: “This innovative financing facility provided by our financing partner, Lind, provides the company with the working capital necessary to continue drilling the newly discovered spodumene pegmatites in our Brazilian portfolio without the need for an equity investment, thereby reducing dilution for existing shareholders. We expected to be able to add a lot of value, very quickly in Brazil with these funds. “Society has good reason to expect more $5 million cash will be received from the exercise of its LRSOC options, and this funding, backed by the option cash, is now accelerating our drilling program. This financing constitutes a profitable source of capital for the Company.’

Philippe Vallieregeneral manager at Lind Partnerssaid, “Lind is extremely pleased to invest in Latin Resources for a third time. They have an exciting pipeline of lithium projects targeting the battery metals sector, which we hope will deliver growth and shareholder value to all LRS shareholders.

Funding Details

The OFA will be advanced to the Company, and Latin shall use all funds received from the exercise of the options (exercisable @ $0.012 – exercise date December 31, 2022) to repay monies owed, allowing OFA to be gradually repaid over the next 10 months (December 31, 2022). The Company has 428,962,607 LRSOC $0.012 options and anticipates that a significant number will be exercised prior to their expiration on December 31, 2022. If so, it will generate approximately $5.1 million liquidity for the Company allowing the Company to comfortably repay the Lind facility and fund other activities. The initial investment will provide funds, including for further drilling in Company’s Salinas Lithium Project in Brazil where the Company recently announced that its current drill program has discovered several spodumene-bearing pegmatites (see ASX announcement of February 16, 2022). The Company intends to build on the current drilling program from 2,000 meters to 5,000 meters, with the intention of advancing the project towards estimating a JORC Mineral Resource on the Salinas Lithium Project. Additionally, the Company will begin defining drill targets on its other lithium leases in the Salinas and Banana Valley areas of Brazil. Once these drill targets are defined, permits will be applied for and drilling will then commence.

The key terms of the Options Funding Agreement are set out below:

Immediate $2,500,000 in cash paid to Latin Resources (“Outgoing Amount”) Term of 14 months with a face value of $2,750,000. * Where the Company receives any proceeds from the exercise of any of the LRSOC Options, except for proceeds received from options exercised by the principal shareholder of the Company and any director of the Company, the Company must immediately pay the proceeds LRSOC to the Investor in immediately available form. funds in reduction of the unpaid amount.

If the Company has not paid to the Investor at least AUD 500,000 in LRSOC proceeds by the date falling 180 days after closing, the Company must pay to the Investor the amount corresponding to the total LRSOC proceeds paid by the Company to the Investor before that date. date are less than AU$500,000.

Although there is an unpaid amount, if the company receives the full proceeds from the issuance of any equity interest in the company, it must pay 20% of the total proceeds to the investor in immediately available funds in reduction of the unpaid amount.

On the Closing Date, the Company must grant and deliver to the Investor or its nominee 35,000,000 unlisted options with an exercise price $0.05 and the expiration date of March 2026.

During the Closing, the Company must pay a Commitment Fee of 3% of the financing amount ($75,000) to the Investor, which will be deducted from the loan proceeds.

The Company may elect to prepay any unpaid amount without penalty. This announcement has been cleared for release to ASX by the Board of Directors Latin Resources.

Contact:

Chris Gale

Executive Director

Limited Latin resources

Phone. : +61 8 6117 4798

Andrew Rowell

Senior Communications Advisor

White noise communications

Phone. : +61 8 6374 2907

Email: [email protected]

WEB: www.latinresources.com.au

On Latin Resources

Limited Latin resources (ASX: LRS) is an Australia-based mining exploration company with projects in Australia and South America, which develops commodity mining projects that advance global efforts toward net zero emissions. Australian projects include the Cloud Nine Halloysite-Kaolin deposit. Cloud Nine Halloysite is being tested by CRC CARE with the goal of identifying and refining the use of halloysite in emissions reduction, specifically for the reduction of methane emissions from livestock. In Latin America the Company is focusing on its two Lithium projects, one in the State of Minas Gerais, Brazil and the other, the Catamarca Lithium Project in Argentina in which lithium is highly sought after as a critical mineral for electric vehicles and battery storage.

On Lind Partners

Lind partners manages institutional funds that are leaders in providing growth capital to small and mid-cap companies listed on the United States, Canada, Australia and the UK. Lind funds make direct investments ranging from $1 for $30 million, invest in syndicated equity issues and buy selectively in the market. Having made more than 100 direct investments totaling more than 1 billion US dollars in transaction value, Lind funds have been flexible and supportive financial partners for beneficiary companies since 2011

Forward-looking statement

This ASX announcement may include forward-looking statements. These forward-looking statements are not historical facts, but rather are based on Latin Resources Ltd. current expectations, estimates and assumptions regarding the industry in which Latin Resources Ltd works, and the beliefs and assumptions about Latin Resources Ltd. future performance. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “potential” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are only predictions and are not guaranteed, and are subject to known and unknown risks, uncertainties and assumptions, some of which are beyond the control of Latin Resources Ltd. Past performance is not necessarily indicative of future performance and no representation or warranty is made as to the likelihood of occurrence or the reasonableness of any forward-looking statement or other forecast. Actual values, results or events may differ materially from those expressed or implied in this ASX announcement. Given these uncertainties, recipients are cautioned not to rely on any forward-looking statements. All forward-looking statements contained in this announcement speak only as of the date of this announcement. Subject to any continuing obligations under applicable law and ASX listing rules, Latin Resources Ltd assumes no obligation to update or revise any information or any of the forward-looking statements contained in this announcement or any change in events, conditions or circumstances on which such forward-looking statement is based.

Declaration of competent person

The information contained in this report regarding geological data and exploration results is based on information compiled by Mr. Anthony Greenwaywho is a member of the Australian Institute of Mining and Metallurgy. Mr Greenway sufficient experience which is relevant to the style of mineralization and type of deposit being investigated and to the activity they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Greenway consents to the inclusion in this report of material based on its information, and information presented to it, in the form and context in which it appears.

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