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Galaxy's Jiangsu Plant achieving stable production

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION 
IN THE UNITED STATES/ 
Highlights  


    --  Jiangsu Plant has been at full operation with stable production
    --  Producing battery grade lithium carbonate, meeting all
        specifications
    --  Sales of technical and battery grade lithium carbonate
        recommence
    --  Jiangsu ramp-up program recommences

PERTH, Australia, Feb. 26, 2013 /CNW Telbec/ - Following the recommencement of 
operations at the Jiangsu Lithium Carbonate Plant ("Jiangsu" or "the Plant") 
on 8 February 2013, Galaxy Resources Ltd (ASX: GXY) ("Galaxy" or "the 
Company") advises that the Plant has been fully operational and producing 
battery grade lithium carbonate product without any major disruptions. Sales 
of both technical grade and battery grade lithium carbonate have also 
recommenced.

Production at Jiangsu is stable and testing has shown that the lithium 
carbonate is meeting the tight quality and purity specifications demanded by 
battery cathode manufacturing customers. The kiln at the front end of the 
Plant has been very stable with 100% online time since the recommencement of 
operations. The recently installed kiln lifters are also allowing the kiln to 
operate at close-to-design feed rates and with improved levels of natural gas 
usage. The precipitation plant has also been re-established and is achieving 
production rates reached prior to the November 2012 accident, and will 
continue to be ramped-up in the coming weeks.

Galaxy Managing Director Iggy Tan said that it has been a very difficult and 
emotional quarter for Jiangsu and Galaxy staff, but it is a credit to the 
Jiangsu team to have brought Jiangsu back online so quickly and efficiently.

"Jiangsu is now producing at a stable rate and, importantly, producing the 
desired battery grade lithium carbonate. We will now continue to increase 
production and sales as part of Jiangsu's ramp-up program," Mr Tan said.

About Galaxy (ASX: GXY)

Galaxy Resources Ltd ("Galaxy") is an Australian-based global lithium company 
with lithium production facilities, hard rock mines and brine assets in 
Australia, China, Canada and Argentina. The Company is an integrated lithium 
mining, chemicals and battery company listed on the Australian Securities 
Exchange (Code: GXY) and is a member of the S&P/ASX 300 Index.

Galaxy wholly owns the Mt Cattlin project near Ravensthorpe in Western 
Australia where it mines lithium pegmatite ore and processes it on site to 
produce a spodumene concentrate and tantalum by-product. At full capacity, 
Galaxy will process 137,000 tpa of spodumene concentrate which will feed the 
Company's wholly-owned Jiangsu Lithium Carbonate Plant in China's Jiangsu 
province. The Jiangsu Plant has commenced production and will produce 17,000 
tpa of battery grade lithium carbonate, the largest producer in the Asia 
Pacific region and the fourth largest in the world.

Galaxy is also advancing plans to develop the Sal de Vida (70%) lithium and 
potash brine project in Argentina situated in the lithium triangle (where 
Chile, Argentina and Bolivia meet) which is currently the source of 60% of 
global lithium production. Sal de Vida has excellent promise as a future low 
cost brine mine and lithium carbonate processing facility. The Company also 
owns the James Bay (100%) Lithium Pegmatite Project in Quebec, Canada.

Lithium compounds are used in the manufacture of ceramics, glass, electronics 
and are an essential cathode material for long life lithium-ion batteries used 
to power e-bikes and hybrid and electric vehicles. Galaxy is bullish about the 
global lithium demand outlook and is positioning itself to achieve its goal of 
being involved in every step of the lithium supply chain.

Caution Regarding Forward Looking Information.

This document contains forward looking statements concerning Galaxy.

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.

Not For Release in US

This announcement has been prepared for publication in Australia and may not 
be released in the U.S. This announcement does not constitute an offer of 
securities for sale in any jurisdiction, including the United States, and any 
securities described in this announcement may not be offered or sold in the 
United States absent registration or an exemption from registration under the 
United States Securities Act of 1933, as amended. Any public offering of 
securities to be made in the United States will be made by means of a 
prospectus that may be obtained from the issuer and that will contain detailed 
information about the company and management, as well as financial statements.

Corporate Iggy Tan Managing Director Galaxy Resources Ltd Tel (office): +61 
(0)8 9215 1700 Email:ir@galaxylithium.com

Media Contact Jane Munday FTI Consulting Tel (office): +61 (0)8 9485 8888 Tel 
(mobile): + 61 (0)488 400 248 Email:jane.munday@fticonsulting.com

SOURCE: Galaxy Resources Limited

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/February2013/25/c8176.html

CO: Galaxy Resources Limited
NI: MNG CHM COS 

-0- Feb/25/2013 21:30 GMT


 
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