16 January 2023

Bradda Head Lithium Ltd

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

Significant Resource Expansion at The Basin Project in Arizona - 22% Increase in Contained Lithium Carbonate Equivalent Tonnes

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI, 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 22% increase in contained lithium carbonate equivalent ("LCE") tonnes based on only 1,200m of drilling. Furthermore, the Indicated category of the MRE, which is all located in the upper part of the deposit, has increased by 17%.

Highlights:

·    Based on only 1,200m of majority infill and some expansion drilling (8 out of the 14 were infill, 6 were expansion) at its Basin East (BE) claim in Arizona, completed in2022. Bradda Head has added 65 kt of LCE to the Mineral Resource, for an updated total LCE content of 371 kt.

·    This exploration drilling has also expanded the Upper Clay zone within the resource by 11% to 55 Mt at an average grade of 840 ppm Li, and revealed that mineralisation is also open to the north at BE as well as to the west and northwest as previously identified. This has significant benefit in identifying the next round of drilling targets for further resource expansion potential.

·    The 2022 drilling programme has given the Company greater confidence in the estimate at BE, and notes that Indicated content of the MRE has increased by c.17%.

·    It's important to note that some 67% of the updated total LCE (367 kt LCE) is in the Upper Clay which has an average grade of c.840 ppm Li, this includes an internal High-Grade layer which has an average grade of 1,380 ppm Li, some 5% higher than previously estimated.

·    The High-Grade and Upper Clay zones thicken to the northwest extent of the drilled area towards Bradda's Basin East Extension (BEE) claim and could potentially form part of a phased mining operation. 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 1.1km² of Bradda's 41km² of sedimentary claims. The 2022 infill and expansion drill programme has increased this drilled area to 1.4km² of BHL's 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, northwest north of the drilled area where BHL has the adjacent 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 predict similar clay strata are present.

·    An extensive 30-hole drilling programme is planned for 2023 at BEE and BN with permits received, and drilling is planned to start in Q1 2023. Bradda is also permitting a 80-hole programme at BWE and BW where it expects significant resource growth stemming from geological work done to date by our geologists. BW and BWE cover an 11km² area, which is considerably larger than the BE (1.5km²), BEE (2.3km²) and BN (2.3km²).

Charles FitzRoy, CEO of Bradda Head, commented:

"The increase in LCE at Basin East highlights the resource growth potential at the Basin Project. The total drilled area at Basin East covers only 1.4km² of our 41km², which previously only covered just under 1.1km². That's an increase of 65 kt of LCE over a drilled area increase of 0.3km². Evidence from drilling and geophysics suggests that the 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, Basin East Extension and Basin North, where we will be drilling this year.

"2023 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. BHL is also permitting at Basin West and West Extension with plans to drill in Q4. The area we are permitting is over 11km², which is considerably larger than BE, BEE, and BN combined (c.6km²).

"We have a compelling year ahead with what we believe are a number of material catalysts and look forward to providing further updates in 2023. BHL is permitting at claims adjacent to Basin North and Basin East Extension (Basin West and Basin West Extension), and we expect to be drilling at these assets in late 2023."

Mineral Resource

The updated Mineral Resource Estimate ("MRE") at BE, 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 21.2 Mt at an average grade of 891 ppm Li and 3.5% K for a total of 100 kt LCE and an Inferred Mineral Resource of 73.3 Mt at an average grade of 694 ppm Li and 3.2% K (potassium) for a total of 271 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 eventual 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 Q4 Mineral Resource follows the completion of a 14 hole 1,177m sonic drilling programme which was completed in Q2 2022.

The drilling coverage at BE has increased by c.25% in area since the Q1 2022 MRE (see RNS as of 29 March), allowing expansion of the Mineral Resource towards the southwest and east. Furthermore, infill drilling has resulted in improved confidence in grade and tonnage estimates yielding a 17% increase in LCE tonnes in the Indicated category, as well as providing some deeper intersections to add some previously missed Lower Clay.  In addition to the overall 22% increase in contained LCE tonnes in the Mineral Resource, the 2022 drilling has improved the geological interpretation in the eastern part of the license, where mineralisation is now shown to be open to the north, consistent with other parts of the deposit.

2022 Mineral Resource Statement

Table 1:  Mineral Resource Statement for Basin East, effective 13 October 2022.

High Grade

The updated MRE total of 371 kt LCE includes 55 kt of LCE in a High-Grade zone within the Upper Clay zone with an average grade of some 1,380 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 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 northwestern edge, and they remain open to the west and northwest 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).

Next Drilling Steps

BHL's drilling area at BE covers only 1.4km² of our 41km² of sedimentary lithium claims in Arizona comprising the Basin and Wikieup Projects. The plan at Basin in 2023 is to increase coverage to over as much of our 41.1km² as possible and BHL anticipates further resource growth in 2023.

The Company has obtained drilling permits for 120 holes at BEE, of which it expects to drill 20 holes in early 2023. The Company also has permission to drill 10 holes at its BN Claim, and anticipate that drilling will commence in early 2023.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). BEE is adjacent to BE, and BN joins with BEE's northern border.

Bradda Head is in the process of permitting exploratory drilling at its BW and BWE claims.

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 Q4 2022 MRE to Q1 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 Q4 MRE model sensitivity of LCE to cut-off grade:

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

Royalty Payments

Bradda is targeting to grow its resources at its Basin project this year with the upcoming drill programmes at BEE and BN. Bradda has two royalty payments due from expanding its resources at its clay claims (see PR dated 22 December 2021). The next payment of US$2.5 million is paid on Bradda expanding its resource base to 1 Mt LCE (Lithium Carbonate Equivalent), and then the third payment of US$3 million is achieved when Bradda expands its resource base to 2.5 Mt LCE. Bradda is working with its geologists to hit these targets as soon as is feasible with the programmes mentioned above and the planned programmes in at Basin West and Basin West Extension.

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.

Competent Person SRK

The Mineral Resource statement has been authored by Mr. 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 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 37 years of experience in mineral exploration and is a qualified person under the AIM Rules. 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 "Independent Technical Report On The Basin And Wikieup Lithium Clay Projects, Arizona, USA" (the Report) dated October 18 2022 with an effective date of June 10 2022. The Report was prepared by Martin Pittuck, CEng, MIMMM, FGS, and Kirsty Reynolds MSci, PhD, FGS and reviewed by Nick Fox MSc, ACA, MIMMM. The Report is available for review on SEDAR (www.sedar.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.

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

The Basin East Project has an Indicated Mineral Resource of 21.2 Mt at an average grade of 891 ppm Li and 3.5% K for a total of 100 kt LCE and an Inferred Mineral Resource of 73.3 Mt at an average grade of 694 ppm Li and 3.2% K for a total of 271 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, on the TSX Ventures exchange with a ticker of BHLI, and on the US OTCQB market with a ticker of BHLIF.

Technical Glossary

Forward-Looking Statements

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. 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", "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 SEDAR. 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.