13 October 2021

Bradda Head Lithium Ltd.

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

Metallurgical Test Work Underway with SGS Laboratories Canada

Bradda Head Lithium Ltd (AIM: BHL), the North America-focused lithium development group, is pleased to announce that its planned initial and preliminary metallurgical testwork programme has commenced with SGS Canada ("SGS") on samples from its 100%-owned Burro Creek East lithium deposit. Burro Creek East already has a JORC-compliant resource identified and further drilling to add to this resource is already underway.

Highlights:

·    Bradda Head Lithium has commenced a metallurgical test work programme with the highly-regarded SGS Laboratory in Canada. This programme will build on existing metallurgical work from its 2016 to 2018 programmes and utilise recent developments in lithium clay processing technology.

·    The Company's primary aim is to develop a suitable process flowsheet, whereby the target processing cost of Li extraction is less than US$4,000/t LCE (Lithium Carbonate Equivalent). The Company views this level as a suitable goal, noting that current lithium forecasts are pricing the long-term lithium carbonate market at upwards of US$12,000/t, and current spot prices are close to US$25,000/t.

·    The programme will also focus on identifying an appropriate path to produce a low-carbon footprint battery-grade lithium product.

·    Previous metallurgical test work conducted in 2016 to 2018 by J.E. Litz and Hazen Research proved that it was possible to extract 78% to 91% of the contained Lithium from Burro Creek East clays, using acid-leach technology, into an intermediate product. An 80% recovery was identified using an alternative roasting technology.

·    The early test work was undertaken assuming smectite-type clay mineralogy. However, the initial results of the Company's 2021 drill programme at Burro Creek East indicate that the dominant clay minerology is likely zinnwaldite or possibly tainiolite (pending detailed petrology and Scanning Electron Microscopy (SEM)), which may have a significant beneficial variation in the composition of gangue materials in the lithium clay.

·    Bradda has over 47km² of sedimentary claims (with the bulk of its assets stretching over 25km) (https://www.braddaheadltd.com/media/image-library/2021-claim-staking/) around its Burro Creek and Wikieup licences. These license areas appear to have shared/similar lithium minerology. This license package is expected to provide a significant increase in our future resource growth profile in this lithium district.

·    Bradda's Wikieup project, where drilling is due to commence this quarter, is adjacent to Arizona Lithium Ltd.'s (previously known as Hawkstone Mining Ltd.) Big Sandy project where metallurgical testing has demonstrated the viability to produce a 99.8%-purity lithium carbonate from its ore (https://www.braddaheadltd.com/media/image-library/wikieup-2021-drilling-programme/).

Charles FitzRoy, CEO of Bradda Head, commented:

"We are delighted to have engaged SGS Canada and to commence a new-look metallurgical test work programme with core from our 2021 Burro Creek East drill programme. This coincides, with our push on the ground in Arizona, to add further tonnes to our existing JORC resource.

"Alongside this timely new testwork initiative on our 'Lithium in Clay' deposits, Bradda Head is pleased to confirm that work is now underway on all three separate Lithium Projects in Arizona and Nevada in the USA. Results will be reported as they become available.

"This is a very exciting time for all of us at Bradda Head as we push forward in this lithium-hungry market space, particularly in the USA."

Background

In light of the recent results from the 2021 Burro Creek drill programme, and developments in clay processing technology by its peers, Bradda is undertaking fresh metallurgical test work to test mineralogy, PSD (particle size distribution), and lithium extraction rates by simple acid leach of lithium clay, and by rendering gangue materials as refractory (inactive/non-acid consuming) by using proprietary technology being developed by Bradda Head and its consultants to reduce acid consumption, lower processing costs and keep the carbon footprint of its future operations as low as possible.

Bradda has supplied SGS with samples from its 2021 Burro Creek East drill programme. The samples will be blended to form a representative sample from the same hole. The head sample will then be assayed for full elemental analysis for lithium and all other impurity elements by ICP, XRF methods.

Mineralogical testing will then be carried out by XRD (X-Ray Diffraction) process to identify the mineral constituents.

The head sample will then be screened to determine PSD (particle size distribution) and the various size fractions will be weighed and analysed. This will be helpful to determine the future course of action to concentrate the lithium in our clay.

This will be followed by lithium extraction of a small sample to determine the extraction rate of lithium and other acid-soluble-associated impurities by acid-leach. The results of this test work will determine the acid consumption of all the acid-soluble elements in our mineralised clay. This will be helpful for us to determine the future course of action to reduce acid consumption.

As is evident from the initial assays, the possible acid consumers such as Mg (and possibly Al, Fe, Ca etc.) are present in varying amounts in our lithium-mineralised clay; the test work has been extended to observe if a proprietary process to render these gangue materials fully or partially inactive may work in this type of lithium mineralised clay. After trying to render these gangue materials as being as inactive as possible, the sample will be acid leached to determine acid consumption levels. This test work will utilise roasting as well, to reduce acid consumption.

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

Contact:

Notes to Editors

Bradda Head Lithium Ltd. is a North America-focused lithium development group. The Company currently has interests in a variety of lithium projects, the most advanced of which are in Central and Western Arizona: The Burro Creek project (Burro Creek East Project, and the Burro Creek West Project) and the Wikieup Project.

The Burro Creek East Project has an estimated an Inferred Mineral Resource (JORC) of 42.6 Mt of lithium bearing clays at an average grade of 818 ppm of lithium for 185,000 tonnes of lithium carbonate equivalent (LCE). The Burro Creek East Project also has additional exploration potential for extensions to the current model of between 50,000 to 300,000 tonnes of lithium carbonate equivalent.

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 Bradda Head's licences are held on a 100% equity basis and are near the required infrastructure.

Bradda Head is listed on the AIM market of the London Stock Exchange with the ticker of BHL.