Everlight Resources is focused on the development of its Gallego lithium project, located on the Salar del Hombre Muerto in the Salta province of Argentina.

The Gallego Project area was the subject of exploration programs since the late 2000s by local, well known qualified companies who have worked on various lithium projects in the region.

From an independent technical review of the Project and historical exploration work by Behre Dolbear Australia, the previous exploration program has identified a JORC inferred resource of of 91,000 tonnes of lithium carbonate equivalent ("LCE") with an exploration target set by management of 400,000 tonnes of LCE in the proposed exploration program to be carried out during 2016

The mineral resource statement for the project appears in the table below;

Mineral Resource Statement for the Gallego Project – March 2016

The resource is estimated to have an average grade of 684mg/L Li and contain 17kt of lithium, equivalent to 91kt of lithium carbonate. Potassium is also an important resource in the brines, with grades up to 1%. Mg levels are relatively low, which is an advantage in terms of Li processing and purification; the surface pit samples give an average Mg:Li ratio of 1.4:1 which compares favorably with a 4:1 ratio in the major Chilean brine producing area, Salar de Atacama or the 20:1 ratio from the Salar de Uyuni in Bolivia. Lower magnesium to lithium ratio’s provides significant production cost benefit.