12 January 2022

Bradda Head Lithium Ltd.

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

Phase 1 of the Company's Metallurgical Test-work Programme Highlights Positive Pre-Concentration Upgrading and 99% Lithium (Li) Extraction from Low Temp Acid Leach Approach

Bradda Head Lithium Ltd (AIM: BHL), the North America-focused lithium development group, is pleased to announce positive results from its preliminary metallurgical test-work programme that it has completed with SGS Canada ("SGS"), the well-known and respected international metallurgical test-work laboratory, on samples from its 100%-owned Burro Creek East lithium deposit. Burro Creek East already has a JORC compliant resource identified, and an updated resource is expected in Q1 2022.

Highlights:

•     The results have shown that it is possible to upgrade the Li content in the proposed feed fraction by approximately 15%, by selecting only the -11micron size fraction.

·   Impressive acid leach results indicate a 99% lithium extraction to solution within 1-hour utilising a 90 degrees Centigrade, sulphuric acid leach at atmospheric pressure approach.                                                                                                                                                                                    

·   Significantly, only low levels of accessory minerals were extracted (levels of Al, Fe, K and Na) during the leaching step.

·   The above results highlight an opportunity to lower potential process plant Opex and Capex costs and compares favourably with other previous results on extracting lithium from claystone mineralisation.

·   The Company's primary aim is to develop a suitable process flowsheet with a minimum carbon footprint, whereby the target processing cost of Li extraction is less than US$4,000/t LCE (Lithium Carbonate Equivalent), allowing it to be competitive in a more challenging Lithium Carbonate pricing environment. Current spot prices are over US$40,000/t.

·    Bradda is continuing its metallurgical process test-work to potentially further upgrade Li contents in Li clay using mini-cyclone for classification, and froth flotation.

·    Following on from above, more detailed metallurgical test-work will be undertaken to produce battery-grade Lithium Carbonate Equivalent (LCE).

·    During the ongoing test-work programme Bradda is also considering the recovery of co-products from the feed material. The potential recovery of co-products may add substantially to the cash flow of the company and differentiates Bradda from other developers in this field.

Charles FitzRoy, CEO of Bradda Head, commented:

"Bradda Head Lithium (BHL) is logically progressing the development of its Lithium assets in Arizona on all fronts. Following on from our consistently reported exploration results we are now delighted to highlight encouraging test-work results from our new look metallurgical test work programme with core from our 2021 Burro Creek East drill programme.  These results demonstrate the potential for a simple low-temperature sulphuric acid leach approach at atmospheric pressure, utilising standard extraction equipment. We look forward to continuing our test-work programme with SGS (Canada), particularly now that we are well-funded via the recent Royalty Agreement (PR dated 22 December 2021).                                                                         

"Alongside this timely new test-work initiative on our 'Lithium in Clay' deposits, Bradda Head is pushing ahead to add further tonnes to the existing JORC Resource in Q1 2022, as well as reporting a preliminary resource at our Wikieup site in Q2. Work is underway on all three separate Lithium Projects in Arizona and Nevada (the Li Pegmatite opportunity at San Domingo Arizona, the Li in Brine opportunity Nevada, as well as the Li in Clays in Arizona); with results being reported as they become available.

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

Previous metallurgical test-work conducted by Bradda in 2016 to 2018 proved that it was possible to extract 78% to 91% of the contained lithium from Burro Creek East clays, using acid-leach technology at 70 degrees Centigrade, into an intermediate product. An 80% recovery was identified using an alternative roasting technology.

These new test results demonstrate the rationale for follow-up metallurgical studies to develop on the initial exciting results.

Bradda has over 47km² of sedimentary claims (with the bulk of its sedimentary assets stretching over 25km) (https://www.braddaheadltd.com/media/image-library/2021-claim-staking/) around it's 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, as only 2% of the licence area was drilled prior to 2021.

Bradda's Wikieup project, where drilling commenced in Q4 2021, 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 battery-purity lithium carbonate from its ore (https://www.braddaheadltd.com/media/image-library/wikieup-2021-drilling-programme/).

Background

In light of the recent results from the 2021 Burro Creek drill programme, and developments in clay processing technology by its peers, Bradda undertook a fresh metallurgical test-work programme 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 supplied SGS with samples from its 2021 Burro Creek East drill programme. The samples were blended to form a representative sample from the same hole. The head sample was then assayed for full elemental analysis for lithium and all other impurity elements by ICP, XRF methods.

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

Mineralogical analysis using XRD by SGS Canada confirmed that most of the Li is in Swinefordite mineralogy with a small fraction in Petalite form. As is well known, Swinefordite form can be easily digested with acid without any calcination, or costly mineral processing processes.

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

The PSD analysis showed that it is possible to upgrade Li content in the Li clay by approximately 15% by choosing -11 micron, which could easily be achieved by any classification process such as cyclones (mineral processing equipment used to separate coarse and fine particles according to their size and density) and will not involve heavy mineral processing costs.

This was followed by lithium extraction of a small sample to determine the extraction rate of lithium (99% within 1 hour) and other acid-soluble-associated impurities by acid-leach. The results of this test-work have helped 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. Acid consumption will improve further on beneficiation of Li content in Li clay. However, currently also it is within manageable levels.

As is evident from the initial assays, the possible acid consumers such as Mg, Al, Fe, Ca etc. are present in varying amounts in our lithium-mineralised clay. The beneficiation of Li clay will help in reducing these acid consuming gangue materials.

Interestingly, Li extraction at 99% by acid leach suggests that Li not only from Swinefordite form, but also from Petalite form is digested.  It appears that fluorine present in Li clay in small quantities has helped to catalyse to convert the crystal structure of Petalite, and digested Li under normal acid leach. Bradda is working to try to understand this mechanism of action but is happy to report extraction of nearly all Li from the Li clay.

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

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Notes to Editors

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 Burro Creek Project (the 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 a ticker of BHL.