BHL Bradda Head Lithium Limited

1 July, 2024

Bradda Head Lithium Ltd

("Bradda Head", "Bradda", "BHL" or the "Company")

 Updated Mineral Resource Expansion, Basin Clay Project 

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI), the North America-focused lithium development group, is pleased to announce a new Mineral Resource Estimate ("MRE") at the Company's 100% owned Basin Project, Arizona (see Table 1 below).  The updated MRE was prepared in accordance with Canadian National Instrument 43-101 (Standards of Disclosure for Mineral Projects) ("NI-43-101") by ABH Engineering Inc. ("ABH").

The Company is reporting a new MRE consisting of 99kt of of lithium carbonate equivalent ("LCE") at an average grade of 929 ppm lithium in Measured classification, 560kt of LCE at 860ppm Li in the Indicated classification; and 2,175kt of LCE at 808ppm Li in the Inferred classification following the completion of drilling, reception and analysis of geochemical results, and new modeling of the Basin project. As per the Gross Overriding Royalty Agreement ("Royalty Agreement") with the Lithium Royalty Company ("LRC"), the new contained LCE Tonnage surpassed the contracted threshold of 2.5Mt and has enabled the Company to trigger the payment of US$3.0 million from LRC to Bradda Head. The Company has requested this payment be made, and therefore expects to be well funded for the future, including our drilling plans at San Domingo Arizona, our near surface Spodumene bearing pegmatite opportunity.

 Highlights:

·    The total new Mineral Resource now comprises 20 million tonnes in the Measured category at 929ppm Li consisting of 99kt LCE, 122 million tonnes in the Indicated category at 860 ppm Li consisting of 560kt LCE and 506 million tonnes in the Inferred category at 808 ppm Li, carrying 2,175 kt LCE

·    The resource now contains 20 million tonnes of 929ppm lithium for 99Ktons of LCE in the Measured category, the first ever in this category at Basin

·    As per the Royalty Agreement, BHL has formally requested payment of US $3.0 million from LRC; documentation has been submitted per verification by ABH Engineering Inc. ("ABH")

·    The results of the 2024 drilling programme demonstrate extensive lateral continuity from Basin East through to Basin North, identifying impressive consistency in the stratigraphic continuity of the Upper Clay and grade profile over a 3.0 x 2.0 km area that remains open to the north, east, and west  

·    It's important to note that the Upper Clay Unit includes a continuous High-Grade layer which has an average grade of some 1,190 ppm Li, and is on average 15m thick and crops-out in Basin East potentially forming part of a phased mining processing operation that would clearly enhance early stages of mining and overall project economics

·    Five out of the eight drill holes encountered lithium mineralized "Lower Clay" which makes a significant contribution to the overall resource, particularly as the Company is able to connect the Lower Clay mineral resource from Basin East to the northern edge of Basin North, a distance of 3.0km

·    The average in-situ grade of the Inferred Basin East Mineral Resource has decreased slightly from 900 to 822 ppm Li, a 9% decrease

·    ABH applied a new cut off grade of 550ppm Li to report the Mineral Resources and demonstrate reasonable prospects of eventual economic extraction ("RPEEE"). This is the same cut off grade previously used by SRK (550 ppm; effective 28^th September 2023)

·    ABH were selected to complete the Mineral Resource Update analysis based upon their prior work in clay deposits across Nevada, having significant expertise and knowledge. They applied a robust approach to both the in-situ density measurement and the cut off grade utilised. The in-situ density measurement was based upon several hundred core sample measurements using best practices

·    Table 2 below highlights the 'grade vs. tonnage' sensitivities with the orebody and reflects a significant amount of flexibility in potential open pit mining scenarios

·    Following the 2024 drill program and new geologic mapping, the Company's understanding of the Basin project has increased significantly, resulting in renewed encouragement of extensive exploration opportunities for growth over the remainder of Basin North and all of Basin West where the Company continue working on permits

·    The complete NI43-101 Technical Report by ABH will be available on the Company's website and SEDAR by or before August 12, 2024

Ian Stalker, non-Executive Chair of Bradda Head, commented:

"This is a remarkable increase in LCE at Basin North and highlights the ever-growing potential that we continue to believe is inherent at the Basin Project. We have delivered on our objective to increase our resource to over 2.5MT, successfully triggering the US$3 million royalty payment from the LRC, which we have now formally requested be paid. The total drilled area at Basin East/Basin East Extension/Basin North covers only 4.0km² of our 20.8km² license area at Basin. The surface geology and geochemistry across the entire property strongly suggest further and extensive opportunities to continue expanding the Resource."

"We are committed to continue on our strategy of permitting drill sites at Basin West and Basin North, where we believe extensive opportunities are obvious with a view to substantially building on the MRE and further proving up what an excellent project Basin is."

 Mineral Resource Estimation

The updated 2024 Mineral Resource Estimate ("MRE") at Basin authored by ABH Engineering Inc ("ABH"), is reported in accordance with the terminology and definitions given in the Canadian Institute of Mining, Metallurgy and Petroleum guidelines, comprising: a Measured Mineral Resource of 20 million tonnes at an average grade of 929ppm for a total of 99kt of LCE, an Indicated Mineral Resource of 122 million tonnes at an average grade of 860ppm Li for a total of 560 kt LCE and an Inferred Mineral Resource of 506 million tonnes at an average grade of 808 ppm Li for a total of 2,175 kt LCE. The statement, presented in Table 1, was prepared by Mr. Damir Cukor of ABH, who is considered a Qualified Person for this style of mineralisation.

ABH has applied basic technical and economic assumptions for open pit mining (mining and selling costs, mining recovery and dilution, pit slope angles) and processing factors (Li recovery, processing costs), to determine which portion of the block model has reasonable prospects for eventual economic extraction as required by CIM. To achieve this, the Mineral Resource has been subject to a pit optimisation study and cut-off grade analysis.

2024 Mineral Resource Estimate Statement

Table 1:  Mineral Resource Statement for Basin East, Basin East Extension and Basin North effective 11 June, 2024.

o  Mineral Resource statement has an effective date of 11^th June 2024.

o  The Mineral Resource is reported using a cut-off grade of 550 ppm Li and is constrained to an optimised open pit shell, which was generated using the following assumptions: lithium carbonate metal prices of $17,200 USD/t LCE; State of Arizona royalty (selling cost) of 6%; operating costs of $35 USD/ tore; Li recovery of 72%; mining dilution and recovery of 0% and 100%; and pit slope angle of 45°.

o  Tonnages are reported in metric units.

o  Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content which are not considered material.

o  Conversion factor of Li metal to lithium carbonate equivalent (LCE) = 5.323

o  The figures above are reported on a gross basis given Bradda's 100% interest in the property

o  Bradda is the Operator at Basin and 100% owner

High Grade

Over one quarter, or 115 million tonnes of the contained LCE, is in a High-Grade zone within the Upper Clay zone with an average grade of some 1,190 ppm Li. This High-Grade zone gives Bradda Head further optionality and could have important economic implications for a potential future mining operation. The shallow nature of the High-Grade zone, which crops out in Basin East, would likely result in a low strip ratio, enabling High-Grade ore to be scheduled early in a possible mine plan as it sits in the upper part of the deposit.

Graph 1: Growth of resource, grade average, tonnes of LCE, since 2018

The graph above illustrates the growth of the Basin resource since 2018 and the near exponential growth since 2023 when the total LCE grew significantly in the inferred and indicated categories, not to mention the new measured category.. Additional growth is anticipated once additional permits are obtained for Basin West and expansion of existing permit for Basin North.

Exploration Potential

The Upper Clay, Upper Higher-Grade and Lower Clay horizons show remarkable extent and continuity throughout the drilled parts of the Basin Project and remain open to the north, west, and east indicating significant exploration potential in the overall Basin property. Geological mapping, surface samples assayed for lithium and geophysical (Ground Penetrating Radar) survey work also indicate similar clay layers are likely present throughout the majority of the Basin West license area. Recent surface mapping over Basin West has identified substantial Upper and Lower Clay horizons, separated by tuff and basalt layers, providing stratigraphic context. Both tuff and basalt layers are found above the Upper and Lower Clays, indicating strong optimism in discovering additional clays in the northwest quadrant of Basin West.  As such, with further wide-spaced drilling Bradda Head sees excellent potential to increase the resource base substantially.

Related Tables

The following table is for information and context, comparing Q4 2022, Q1 2022 and 2018 totals in relation to the areas on which work had been conducted at each time.

Comparison of updated 2024 to Q4 2023 MRE:

2024 model sensitivity of LCE to cut-off grade:

Table 2: Grade-Tonnage sensitivity* to cut-off grade

*This table does not constitute a Mineral Resource, as defined by the CIM but is an expression of the sensitivity of the

 average grade and contained tonnage of LCE to a selection of different Li cut-off grades

For further information please visit the Company's website: www.braddaheadltd.com

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Qualified Person (ABH)

The Mineral Resource statement has been authored by Mr. Damir Cukor, Qualified Person who works for ABH Engineering Inc, an independent mining consultancy. Mr. Cukor has over 28 years' experience as a professional geologist (P.G.) and 20 years as a Qualified Person (QP), undertaking and reviewing Mineral Resource Estimates and has worked on lithium clay estimates for over 5 years. Mr. Cukor consents to the inclusion of the technical information in this release and context in which it appears. 

Qualified Person (BHL)

Joey Wilkins, B.Sc., P.Geo., is Head of North America at BHL and the Qualified Person who reviewed and approved the technical disclosures in this news release. Mr. Wilkins is a graduate of the University of Arizona with a B.Sc. in Geology with more than 38 years of experience in mineral exploration and is a qualified person under the AIM Rules and a Qualified Person as defined under NI-43-101. Mr. Wilkins consents to the inclusion of the technical information in this release and context in which it appears.

Reference is made to the report entitled "Technical Report on the Mineral Resource and Exploration Target Estimates For the Basin Lithium Project, USA" (the Report) dated 1 September 2023with an effective date of 9 November, 2023. The Report was prepared by Martin Pittuck, CEng, MIMMM, FGS, and Kirsty Reynolds MSci, PhD.. The Report is available for review on SEDARplus (https://www.sedarplus.ca) and the Company's website www.braddaheadltd.com.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU No. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

ENDS

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About Bradda Head Lithium Ltd.

Bradda Head Lithium Ltd. is a North America-focused lithium development group. The Company currently has interests in a variety of projects, the most advanced of which are in Central and Western Arizona: The Basin Project (Basin East, Basin North, and Basin West targets) and the Wikieup Project. The Basin East Project has a Measured Mineral Resource of 20 million tonnes consisting of 929ppm lithium for 99kt LCE, an Indicated Mineral Resource of 122 million tonnes at an average grade of 860 ppm lithium for 560 kt LCE and an Inferred Mineral Resource of 506 million tonnes at an average grade of 808 ppm lithium for a total of 2,175 kt LCE. The Group intends to continue to develop its three phase one projects in Arizona, whilst endeavouring to unlock value at its other prospective pegmatite and brine assets in Arizona, Nevada, and Pennsylvania. All of Bradda Head's licences are held on a 100% equity basis and are in close proximity to the required infrastructure. Bradda Head is quoted on the AIM of the London Stock Exchange with the ticker of BHL, on the TSX Venture Exchange with a ticker of BHLI, and on the US OTCQB market with a ticker of BHLIF.

Technical Glossary

Forward-Looking Statements

This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "intends to", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, following: The Company's objectives, goals or future plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: failure to identify mineral resources; failure to convert estimated mineral resources to reserves; delays in obtaining or failures to obtain required regulatory, governmental, environmental or other project approvals; political risks; future operating and capital costs, timelines, permit timelines, the market and future price of and demand for lithium, and the ongoing ability to work cooperatively with stakeholders, including the local levels of government; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices; delays in the development of projects, capital and operating costs varying significantly from estimates; an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains; and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDARplus. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Nominated Adviser

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.