29 March 2022

Bradda Head Lithium Ltd

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

Updated Basin East Mineral Resource Estimate and Exploration Target at Bradda's Basin Project

Bradda Head Lithium Ltd (AIM:BHL, OTCQB:BHLIF), the North America-focused lithium development group, is pleased to announce an updated Mineral Resource estimate ("MRE") at its Basin East ("BE") Project in Arizona resulting in a 65% increase in contained lithium carbonate equivalent ("LCE") tonnes. Furthermore, a continuous higher grade internal layer has been identified with a grade of c. 1,300ppm Li in the upper part of the deposit. SRK the highly regarded Independent geological consultants have also identified a 1Mt to 6Mt LCE Exploration Target within the Basin Project district held by Bradda Head.

Highlights:

·    Based on only 1,110m of 2021 drilling at its Basin East claim in Arizona, Bradda Head has added 120 kt of LCE to the original maiden Mineral Resource which previously totalled 185 kt LCE, for an updated total LCE content of 305 kt. The recent exploration drilling, and core logging has also identified a High-Grade zone within the resource of 58 kt at c.1,300 ppm Li. This has significant benefit in identifying and locating the next round of drilling targets.

·    The 2021 drilling programme (3 out of the 10 holes were twinned holes) has given SRK greater confidence in the estimate at Basin East. The previous MRE was contained entirely within the Inferred Mineral Resource category and now c. 23% of the updated LCE content is in the Indicated Mineral Resource category.

·    It's important to note that some 75% of the updated total LCE is in the Upper Clay which has a grade of c.850 ppm and c.20% of the updated total LCE sits within a newly defined High-Grade layer within the Upper Clay which has a grade of c.1,300ppm Li. The High-Grade and Upper Clay zones thicken towards the northwest extent of the drilled area into BHLs Basin East Extension claim and could potentially form part of a higher-grade mining operation than previously planned. This could be mined early in the mine plan as the High-Grade zone sits in the upper part of the deposit.

·    The previous drilled area only covered 1.9% (0.9km²) of Bradda's 47km² of sedimentary claims. The 2021 drill programme has only increased this drilled area to 2.4% (1.1km²) of BHLs 47km² of claims in this district (see map https://www.braddaheadltd.com/media/image-library/).

·    Importantly for future resource growth, the Mineral Resource remains open to the west and northwest of the drilled area where BHL has the adjacent Basin East Extension ("BEE") claim block and beyond into BHL's Basin North ("BN"), Basin West ("BW") and Basin West Extension ("BWE") claim blocks where geological mapping and geophysical surveys suggest that similar clay strata are present.

·    On this basis, SRK has determined an Exploration Target of between 300 to 1,300 Mt of material grading between 600 to 850 ppm Li identified covering the claims BN, BE, BEE and BW and BWE. This target is equivalent to a range of between 1 to 6 Mt LCE.

·    An extensive 30-hole drilling programme is planned for the remainder of 2022 at BEE and BN with permits in the process of being obtained and should start in Q2, also an additional 14-hole sonic drill programme has also been approved at BE.

Charles FitzRoy, CEO of Bradda Head, commented:

"The increase in LCE at Basin East and assessment of exploration potential is extremely encouraging and highlights the resource growth potential. The total drilled area at Basin East covers 2.4% of our 47km², which previously only covered just under 2%. That's an increase of 120 kt of LCE over a drilled area increase of 0.2km².   Evidence from drilling and geophysics suggests that this higher-grade Upper Clay layer could be relatively continuous, and we look forward to evaluating its potential further and following it into our other claims, where we believe it may also be present. With all the exploration work Bradda has done since its IPO last July, SRK now has the confidence to define an upgraded Exploration Target of up to 6Mt of LCE at our Basin Project.

"2022 is going to be an exciting year of resource growth for Bradda Head. With more drilling already planned at Basin East Extension and Basin North, BHL is excellently placed to take full advantage of the near-term resource growth potential at our sedimentary lithium assets in Arizona.

"We have an exciting year ahead with what we believe are a number of material catalysts and look forward to providing further updates throughout 2022. BHL is permitting at claims adjacent to Basin East (Basin North and Basin East Extension), and we expect to be drilling at these assets in Q2."

The BHL team's exploration plan was designed to extract maximum value from funds raised at pre-IPO. The decision to focus initial drilling on the already permitted Basin East asset has proven to be hugely beneficial at demonstrating the Mineral Resource growth potential, and the speed with which this has been achieved is down to the team on the ground, especially considering rig and lab shortages in the US. The Company has now generated a Mineral Resource of 305 kt of LCE, and we expect to continue adding to the resource base as exploration work continues.

MINERAL RESOURCE

The updated Mineral Resource estimate ("MRE") at Basin East which has been reported by SRK Consulting (UK) Ltd ("SRK") in accordance with the terminology and definitions given in the JORC Code (2012), comprises: an Indicated Mineral Resource of 17.6 Mt at an average grade of 912 ppm Li and 3.4% K for a total of 85 kt LCE and an Inferred Mineral Resource of 57.6 Mt at an average grade of 717 ppm Li and 3.3% K for a total of 220 kt LCE. The statement, presented in Table 1 was prepared by Mr Martin Pittuck of SRK, who is considered a Competent Person for this style of mineralisation.

SRK 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 economic extraction as required by the JORC Code. To achieve this, the Mineral Resource has been subject to a pit optimisation study and cut-off grade analysis.

The 2022 Mineral Resource update follows the completion of a 10 hole 1,110m diamond core drilling programme which was completed in November 2021 (RNS dated 17/11/2021). The 185kt LCE 2018 MRE was calculated based on a 14-hole 924m reverse circulation ("RC") programme.

The drilling coverage at BE has increased by c.20% in area since 2018 and has provided some deeper intersections to add some previously missed Lower Clay. Furthermore, newly acquired geophysical data has allowed extrapolation of the MRE further from the drillholes than was possible previously. The combination of these changes has resulted in an increase in the MRE.

2022 MINERAL RESOURCE STATEMENT

Table 1:   Mineral Resource Statement for Basin East, effective 22 February 2022.

HIGH GRADE

The updated MRE total of 305 kt LCE, includes 58 kt of LCE in a High-Grade zone within the Upper Clay zone with an average grade of some 1,300 ppm Li, the identification of this High-Grade zone gives Bradda Head further optionality, this High-Grade zone could have important economic implications for a potential future mining operation. The shallow nature of the High-Grade zone 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.

EXPLORATION POTENTIAL

In the MRE model, the Upper Clay zone and higher-grade zone are thickest at the north-western edge, and they remain open to the West and North-West and are expected to continue under cover in the adjacent BEE claim. Geological mapping and geophysical surveys indicate similar clay layers are present in Bradda Head's other claims beyond BEE in BW and BN. As such, with further drilling we see excellent potential to increase the resource base substantially.

An Exploration Target for the Basin Project of between 300 to 1,300 Mt of material grading between 600 to 850 ppm Li, equivalent to between 1 and 6 Mt LCE, has been identified covering the claims BN, BE, BEE and BW and BWE. This is based on an assessment of the updated Mineral Resource LCE per unit area, an estimated range of likely grades based on the MRE and an assessment of the extent of mapped clay and hangingwall lithologies in the undrilled parts of the Basin Project licence areas. See map (https://www.braddaheadltd.com/media/image-library/.

NEXT DRILLING STEPS

BHL's drilling area at BE covers only 2.4% of our 46.6km² of sedimentary lithium claims in Arizona comprising the Basin and Wikieup Projects. The plan at Basin in 2022 is to increase coverage to c.6% of our 46.6km² and BHL anticipates further resource growth in 2022.

The Company is currently in the process of obtaining permits for 120 holes at BEE, of which it expects to drill 20 holes in Q2 2022. The Company has also applied for permits to drill 10 holes at its BN Claim, and we anticipate that drilling will commence in Q2 2022.The difference in the scale of the programmes is that BEE is a state lease, whereas BN is a Bureau of Land Management (BLM) claim. (See map for all Basin Project claims/leases at https://www.braddaheadltd.com/media/image-library/)

An additional 14-hole sonic drill programme (1,175m) has now been approved at Basin East which will form part of the resource estimate at BEE and BN when they are permitted and drilled later this year. BEE is adjacent to Basin East, and BN joins with BEE's northern border, see map (https://www.braddaheadltd.com/media/image-library/).

RELATED TABLES

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

Comparison of updated 2022 MRE to 2018 MRE:

The following table is for information and context, it demonstrates the changes in grade and contained LCE that occur when sensitised to higher cut-off grade scenarios.

2022 model sensitivity of LCE to cut-off grade:

Table 2: Mineral Resource sensitivity* to cut-off grade

BHL Victim of Fraud

The Company has been victim of a sophisticated electronic wire impersonation fraud and is in the process of pursuing recovery of US$ 600,000 paid to an unidentified party. Pending recovery of misappropriated funds, the Company advanced a further U$ 600,000 to exercise the Cheto option as previously announced, and the transfer of the relevant permits is in the process of being completed in good order by the Arizona State Land Department. The Company understands (following a report from external IT security consultants) that the fraudulent payment was made after a third-party illegally breached and accessed the IT systems of counterparties to the transaction. All relevant law enforcement agencies have been notified and the matter is currently the subject of an active investigation. Although the Company's own IT systems were not breached, the Company has completed a review and has strengthened its IT security following the fraud. The Company has also completed a review of its payment policies and protocols which have been strengthened as a result. The Board of the Company is satisfied that the enhanced payment protocol has all necessary steps to ensure the security of all future payments. The Board deeply regrets that this has happened and understands that its stewardship of Company funds is critical to the Company retaining support of shareholders and is committed to doing everything within its powers to recover the funds or mitigate losses and to bring the perpetrators to justice. The loss has had no impact on the Company's exploration drilling program and operations.

Unfortunately, in 2022 this type of fraud is becoming more widespread and whilst regrettable the Company has taken the opportunity to focus its fiscal resources in terms of manpower and systems to better manage and mitigate this kind of potential fraud in the future.

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.

Contact:

Competent Person SRK

The Mineral Resource statement has been authored by Martin Pittuck, CEng, MIMMM, FGS who works for SRK Consulting (UK) Ltd, an independent mining consultancy. Mr. Pittuck has over 25 years' experience undertaking and reviewing Mineral Resource estimates and has worked on lithium clay estimates for over 5 years. Mr. Pittuck consents to the inclusion of the technical information in this release and context in which they appear. 

Qualified Person BHL

The information in this announcement has been reviewed by Jim Guilinger, COO Bradda Head Lithium. Mr. Guilinger is a graduate of the University of Colorado - Boulder with a BA in Geology with more than 40 years' experience in mineral exploration and mining geology and is a qualified person under the AIM Rules. Mr. Guilinger consents to the inclusion of the technical information in this release and context in which they appear. 

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 Basin Project (Basin East Project, and the Basin West Project) and the Wikieup Project.

The Basin East Project has an Indicated Mineral Resource of 17.6 Mt at an average grade of 912 ppm Li and 3.4% K for a total of 85 kt LCE and an Inferred Mineral Resource of 57.6 Mt at an average grade of 717 ppm Li and 3.3% K for a total of 220 kt LCE. In the rest of the Basin Project SRK has estimated an Exploration Target of between 300 to 1,300 Mt of material grading between 600 to 850 ppm Li which is equivalent to a range of between 1 to 6 Mt 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 and on the US OTCQB market with a ticker of BHLIF.

Technical Glossary

Exploration Target

An estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement or estimate, quoted as a range of tonnes and a range of grade (or quality), relates to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource.

Inferred Mineral Resource

That part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological grade (or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.  An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to an Ore Reserve.  It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

Indicated Mineral Resource

That part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit.  Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes, and is sufficient to assume geological and grade (or quality) continuity between points of observation where data and samples are gathered.