BHL Bradda Head Lithium Limited

03 September, 2024

Bradda Head Lithium Ltd

("Bradda Head" or the "Company")

Significant drill targets developed following channel sample results at San Domingo Pegmatite Project

Share Option Repricing

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI,), the North America-focused lithium development group, is pleased to announce the results from surface channel samples at the San Domingo ("SD") pegmatite project in central Arizona. The Dragon target contains 8.80 meters of 0.97% Lithium Oxide ("Li₂O") and 10.40 meters of 0.68% Li₂O, sampled from two separate prospects on the same pegmatite. Elevated cesium ("Cs") is also consistently present and elevated in the channel and rock chip samples, an important element for the Department of Energy ("DOE") and Cs is of significant economic value.

Channel Sample Highlights:

·    8.80m @ 0.97% Li₂0 with 174 ppm Cs at Dragon South

·    10.40m @ 0.68% Li₂O with 341 ppm Cs at Dragon South

·    4.80m @ 0.41% Li₂O with 336 ppm Cs at Dragon North

·    9.00m @ 0.29% Li₂O with 325 ppm Cs at Dragon North

·    4.70m @ 0.28% Li₂O with 176 ppm Cs at Dragon North

·    1.90m @ 0.29% Li₂O with 609 ppm Cs at Dragon South

Highlights

·    Significant new drill tagetes developed at San Domingo following on from a detailed surface channel sampling programme

·    A total of 84 channel samples were collected from Dragon South and North targets at the San Domingo project and an additional 83 grab rock chip samples from across the project;

·    The Dragon channel sampling focused on historic prospects where exposure was fair to excellent;

·    Dragon South contains an excellent exposure on a northeast trending pegmatite where sampling was conducted across its two prospects, one of which is a large cut exposing abundant coarse spodumene crystals and bordered by massive quartz, typical LCE pegmatite zoning;

·    Elevated Cs is also noted across the Dragon targets with channel samples running as high as 994 ppm and grab samples up to 1,317 ppm, important as the DOE considers Cs a strategic and critical metal and actively seeking it;

·    Three open cuts at Dragon North were sampled, some of which consist of very coarse spodumene and lepidolite, containing 4.80m at 0.41% Li₂O;

·    A geographically dispersed set of 52 mica samples were collected from pegmatites and analyzed with Libs, several revealing highly fractionated pegmatites with robust lithium content and excellent K/Rb ratios, fractionation across pegmatite swarms implicates higher degree of  lithium development;

·    The Company has commenced drill hole permitting on the Dragon targets, proposing up to 40 drill sites to thoroughly test shallow lithium mineralization;

·    The Company continues building additional geochemical and geological data across the project with an emphasis on supporting shallow drilling at Midnight Owl, Lone Giant, Thunder, White Ridge, Lower Jumbo, and Morning Star.

Ian Stalker, Executive Chair, commented:

"These surface channel samples collected at the Dragon targets highlight just a few of the objectives the Company is building for the next drilling program and gaining encouragement on the extent of lithium mineralization across the entire property. As we explore new or orphaned areas, we continue to uncover new targets worthy of drill testing and hope to continue bringing value to the San Domingo pegmatite project."

The Dragon target is broken into two areas, North and South (Figure 1, Table 1). The Dragon South target (Figure 2) contains several historic prospects sunk on lithium-bearing pegmatites, mineralization that exhibits an abundance of large spodumene crystals, >1.0m. Prior surface rock chip samples contain upwards of 7.99% Li₂O and several >500 Cs (overlimits not assayed), spurring interest to identify the nature of mineralization and establish a mapping and sampling program. This led to commencing a channel sampling program for better information on the lengths of potential lithium mineralization in outcrop and possible development of drill targets.

Figure 1. Location map of property, geology, drilling, Dragon North and South targets to lower left of map

The channel sampling targeted both naturally outcropping pegmatite, dozer cut pegmatite, and historically excavated/mined pegmatite across both Dragon South and North. Naturally exposed samples returned lower lithium values likely due to surface weathering, but new (since 1945) exposures detected better lithium values as the fresher spodumene reveals less exposure to weathering. The best interval contains 8.80m at 0.97% Li₂O with 174 ppm Cs, and 131 ppm tin ("Sn") and was collected from an excavated pit above a larger open cut on the Dragon South target (Table 1, Figure 3). The lower cut contains 10.40m at 0.68@ Li₂O with a high of 2.13% Li₂O over 1.5m and the entire interval contains 341 ppm Cs, 107 ppm Sn, and 89 ("Tantalum Pentoxide") Ta₂O₅. The overall apparent width of mineralized pegmatite at this location is at least 12 meters, although the full exposure is 20 meters in width.

Figure 2. Dragon South channel and rock chip samples, geology, access routes

Several exposures are found at Dragon North (Figure 4) and courtesy of historic mining plus excavation on lithium bearing pegmatites. The south end of the northeast-southwest trending pegmatite contains spodumene>lepidolite whereas the northern extent has lepidolite>spodumene, noting the very coarse nature of muscovite (pink lepidolite) intergrown with quartz and minor feldspar. Recent excavations contain 4.80 meters at 0.41% Li₂O, 336 ppm Cs, and 121 ppm Ta₂O₅ in a lepidolite dominated zone adjacent to a 9.00m interval containing 0.29% Li₂O, 325 ppm Cs, and 134 Ta₂O₅. A separate pegmatite 30 meters to the northwest has excavations exposing lithium bearing pegmatite with channel samples running 4.70m at 0.28% Li₂O with 176 ppm Cs and 103 ppm Ta₂O₅. Further to the north on the same pegmatite, a small prospect contains minor spodumene and lepidolite, carrying 2.50 meters at 0.19% Li₂O, 27 ppm Cs, 134 ppm Sn, and 534 ppm Ta₂O₅, revealing localized very elevated tantalum values.

Figures 3a & 3b above. Dragon South Li2O ppm (left) in channel samples 8.80m @ 0.97% Li₂O upper left channel, 10.40m @ 0.68% Li₂O lower right, and Cs ppm (right) in channel samples, upper left 8.80m, 174ppm Cs, lower right 10.40m, 341 ppm Cs

Figure 4. Dragon North channel and rock chip samples, geology, access routes

Additional and new surface grab rock samples include 2.40%, 1.72%, 1.64%, 1.51%, 1.30% and 1.20% Li₂O from various outcrops across both Dragon South and North targets. Other elements of significant interest are Cs with values up to 1,317 ppm, Sn up to 358 ppm, and Ta up to 437 ppm from select samples across Dragon. Surface sampling continues across the property to support the potential for channel sampling.

Dozens of muscovite ("mica") samples were collected across the project and scanned by a third party with a Libs hand-held scanning device, resulting in identification of several highly fractionated pegmatites, including the Dragon area pegmatites. Libs are widely used across the industry and provide lithium, potassium, and rubidium geochemistry of mica minerals within pegmatites. The Libs data helps identify and prioritize the targets across the project. Further work into the results will continue and possibly expanded where rock geochemistry is inconclusive.

Table 1.

QAQC

Channel samples were cut in the field under the supervision of Joey Wilkins. Sample location sites were labelled, rock channels were bagged, tied-off, then transported to the core shed under lock and key. Samples were shipped by the Company directly to SGS Laboratories in Burnaby, B.C., Canada where SGS prepped then analysed all samples using sodium peroxide fusion combined ICP-AES and ICP-MS, method GE_ICM90A50. Certified standards were inserted into the sample stream and reviewed by the Qualified Person. Mr Wilkins consents to the inclusion of the technical information in this release and context in which it appears.

Qualified Person (Bradda Head)

Joey Wilkins, B.Sc., P.Geo., is Chief Operating Officer at Bradda Head 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 38 years of experience in mineral exploration and is a qualified person under the AIM Rules and a Qualified Person as defined under NI-43-101. Mr Wilkins consents to the inclusion of the technical information in this release and context in which it appears.

Share Option Repricing

The Company also announces that pursuant to its share option plan, it has reduced the exercise price of 9,000,000 outstanding share options ("Existing Options").

The repricing applies to Existing Options previously granted to, amongst others, certain Directors and Management of the Company pursuant to the Company's share option plan. The Existing Options will be repriced from an exercise price of £0.06 (CA$0.10), £0.09 (CA$0.15), £0.105 (CA$0.15), and £0.18 (CA$0.29), as applicable, per ordinary share to £0.017 (CA$0.03) per ordinary share.  No other terms of the Existing Options are being amended. The repricing is being taken in response to the current market challenges impacting the lithium sector, a reduction in the ensuing Company's share price, and to better align with the recent share options granted to certain officers and directors of the Company.

The repricing of the Existing Options is subject to the approval the TSX Venture Exchange, as well as by a majority of votes cast at a meeting of shareholders of the Company, excluding the votes cast by shareholders who are subject to the repricing of the Existing Options.  In the event that any of such approval is not obtained, the Existing Options will not be repriced.  No Options may be exercised until such approvals are obtained.  Disinterested shareholder approval is expected to be sought at the Company's next annual and special meeting of shareholders, anticipated to be held in November 2024. 

Directors and persons discharging managerial responsibilities ("PDMRs") included in the repricing are detailed in the table below:

The repricing of the Existing Options previously issued to insiders of the Company constitutes a "related party transaction" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101").  The repricing is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to subsection 5.5(b) of MI 61-101 as no securities of the Company are listed on certain exchanges specific by MI 61-101.  It is also exempt from the minority shareholder approval requirements of Section 5.6 of MI 61-101 pursuant to Section 5.7(a) of MI 61-101 insofar as the fair market value of such repricing is less than 25% of the Company's market capitalisation (as such term is defined in MI 61-101).

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.

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

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 a Measured Mineral Resource of 20 Mt at an average grade of 929 ppm Li for a total of 99 kt LCE and an Indicated Mineral Resource of 122 Mt at an average grade of 860 ppm Li and an Inferred Mineral Resource of 499 Mt at an average grade of 810 ppm Li for a total of 2.81 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 TSX Venture Exchange with a ticker of BHLI.

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", "intends to", "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 SEDARplus. 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.

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.