15 November 2021

Bradda Head Lithium Ltd.

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

Royalty Agreement with Lithium Royalty Corporation

Bradda Head Lithium Ltd. (AIM: BHL), the North America-focused lithium development group, announces that it has entered into a binding letter of intent (the "LOI") in connection with a proposed royalty agreement between the Company and Lithium Royalty Corporation (LRC) for a 2% Gross Overriding Royalty (GOR) over its sedimentary lithium claims in Central Arizona; the LOI contains the agreed commercial terms of the proposed royalty agreement, completion of which is subject to the satisfaction of certain conditions precedent, including satisfactory due diligence ("DD") and a site visit from LRC.

Highlights:

·    Total value of the royalty with LRC is US$8 million and will allow for a 2% GOR over only Bradda Head's sedimentary lithium claims in Arizona. Leaving the pegmatite and brine projects unencumbered.

·    Royalty value will be paid to Bradda Head at three predetermined milestones.

·    LRC will also invest US$2 million via a private placement alongside the royalty closing, at the 10-day volume-weighted average price (VWAP) prior to the signing of the LOI.

·    Funds from the royalty will be used to develop Bradda's 47km² of sedimentary claims in Arizona

·    DD is scheduled to be completed by the 3^rd of December and the Royalty Agreement to be signed by the 21^st of December.

Subject to due diligence, Bradda Head will enter into a royalty agreement with LRC for a 2% GOR, totalling US$8 million, with payments scheduled upon completion of the three following milestones:

·    US$2.5 million on Closing

·    US$2.5 million once Bradda Head has obtained a 1 million tonne (Mt) lithium carbonate equivalent (LCE) resource with a minimum lithium grade of 800 parts per million (ppm)

·    US$3 million once Bradda Head has obtained a 2.5Mt LCE resource with a minimum lithium grade of 800 parts per million (ppm)

LRC will also invest an additional US$2 million as a private placement on Closing, at the 10-day VWAP (7.7p) prior to the signing of the LOI (12 November 2021 at market close).

Charles FitzRoy, CEO of Bradda Head, commented:

"We are delighted that Lithium Royalty Corporation has chosen to partner with us. This agreement further endorses the confidence in and inherent value that we believe our assets have; as well as in the future potential of the Company and our strategy given LRC's investment in Bradda.

The importance of this investment cannot be understated for Bradda Head, this will allow us to develop our sedimentary claims to an initial technical study level and progress our metallurgical testwork without a need for further funds from the market for our clay assets.

LRC's stamp of approval reinforces what our geologists believe about the potential at Wikieup and Burro Creek. Work is underway at all our assets and significant newsflow is coming.

This is another significant step towards our end-goal of becoming a battery-grade lithium provider to the lithium-hungry US market."    

Use of Proceeds

·    Proceeds from the royalty payments will be used to develop Bradda's 47km² of sedimentary claims in Arizona, which includes c.24km² of claims added since IPO.

·    Proceeds from the royalty will enable Bradda to produce an early-stage technical study; work undertaken will likely include drill programmes across all 47km², further metallurgical testing, baseline studies and social outreach programmes.

·    Proceeds from the US$2m placement have no limitations placed on them and can be used to develop the company's pegmatite and brine projects.

Key Terms of the LOI

1.    LRC to be issued with 1,185,687 Warrants at Completion.

2.    LRC will pay to Bradda upon closing the sum of USD $2.5 million (the "Initial Purchase Price") for granting of the Royalty. The Purchaser will pay to the Seller an additional USD$2.5 million upon the Seller publicly reporting a 1 million tonne lithium carbonate equivalent (LCE) Mineral Resource with a minimum lithium grade of 800 parts per million (ppm). The Purchaser will pay to the Seller an additional USD$3 million upon the Seller publicly reporting a 2.5 million tonne LCE Mineral Resource with a minimum lithium grade of 800ppm.

3.    Gross Revenue definition including but not limited to: i. Gross Revenue being the aggregate gross Proceeds received by the Seller for the sale of products, minerals, materials, or any other item (collectively, "Minerals") whether processed on or off the property comprising the Projects, ii. in no event shall the calculation of Gross Revenue deduct any costs from the amount of such revenue, including the cost of mining, milling, leaching, smelting, refitting, concentrating or any other processing costs, or costs associated with transportation, insurance, storage selling, marketing, brokerage, taxes, or royalties, paid or payable by the Seller. there shall be some permissible deductions for State related royalties, and iii. if Minerals are sold to a non-arm's length party, then a mutually agreed third-party reference price shall be used as the deemed market price

4.    Closing is expected to be the date on which the Royalty Agreement and other related documents are entered into.

About LRC

Lithium Royalty Corp (LRC) is a North American royalty corporation focused on investing in high quality low-cost projects in the battery materials sector with an emphasis on lithium. LRC was founded in 2018 and has now established itself as a leading financier in the lithium industry having completed 14 royalties since inception exclusive of this transaction. Its investments are diversified across the world with exposure in Australia, Argentina, Brazil, Canada, and Serbia. LRC is a signatory to the United Nations Principles for Responsible Investing and seeks to invest in companies with high environmental, social, and governance standards.

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 in close proximity to the required infrastructure.

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