Company Announcements

20 April 2022

Bradda Head Lithium Ltd

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

Commencement of Drilling at Eureka

Issue of Options

Bradda Head Lithium Ltd (AIM:BHL, OTCQB:BHLIF), the North America-focused lithium development group, announces that following the receipt of drilling permits (PR dated 16/03/2022), drilling has now commenced at the Company's Eureka project in Nevada, as well as awarding certain members of the Board and management share options.

Highlights:

·    Drilling commenced on Tuesday 19^th April on a 23-hole programme, designed to test the shallow clay potential at Eureka.

·    Previous surface sampling carried out by Bradda Head geologists identified grades of up to 550ppm Li at Eureka. This programme is designed to test the potential for a shallow clay project at surface, similar to Bradda's other clay assets in Arizona (Wikieup and Basin).

·    Previous geophysics surveys were carried out by Zonge Engineering and Terravision Exploration (PR dated 24/01/2022), results of which demonstrate the potential presence of both brine and clay deposits at Eureka, which is located in Central Nevada, not far from Tesla's Gigafactory and Albemarle's existing Silver Peak Lithium mine, notably the only US lithium mine in operation currently.

·    Surveys in 2016 also showed geothermal potential at Eureka, which could be used to lower the carbon footprint of lithium production at Eureka.

·    Issue of 9,200,000 options to certain Directors and Management at an exercise price of 18 pence per Share.

Charles FitzRoy, CEO of Bradda Head Lithium, commented:

"We are delighted to start drilling at Eureka, our third drill programme since IPO, where we have some promising geophysical data, and surface sampling results indicating potential for a clay deposit as well as potentially a brine deposit. This reiterates our position as an explorer developing our unique exposure across multiple lithium deposit types.

"Additionally at Eureka, there is some very advantageous geothermally-heated water with anomalous lithium levels at surface, which also presents opportunities for lower carbon lithium production, aligning very well with our ESG objectives.

"2022 has already been a very strong year for Bradda Head, with the updated Basin MRE indicating an exploration target of up to 6Mt LCE, the positive metallurgical testwork results from Basin East demonstrating the potential to extract 99% of lithium from leach and our recent US$12.9m fundraise to help fast-track our exploration programmes.

"This continues to be a very busy and exciting time for all of us at Bradda Head as we push forward in this lithium-hungry market space and with our goal of supplying low-carbon lithium to the US battery sector."

Bradda Head commenced drilling at Eureka on 18^th April, this 23-hole exploration drilling programme at its Eureka asset in central Nevada, is not far from Tesla's Gigafactory and Albemarle's existing Silver Peak Lithium mine, notably the only US lithium mine in operation currently.

Zonge Engineering's MT survey previously the presence of a potential brine reservoir at varying depths (300m to 2,000m) over a 12km strike length, and the GPRplus^TM survey has also shown the presence of potential clay material, like that seen at Bradda's other sedimentary assets (Basin and Wikieup Projects) down to a depth of c.100m. Previous limited and shallow surface sampling returned grades of up to 550ppm at Eureka. The findings of these surveys led to plans for a shallow drilling programme to test clay potential, and a deeper programme to test the lower basin.

The surveys also showed geothermal potential at Eureka, which can potentially be used to lower the carbon footprint of lithium production operations at the asset. Geothermally heated water with anomalous lithium levels is seen at surface near Eureka, which were previously tested in 2016.

Background

Bradda Head commissioned two geophysical surveys (MT and GPRplus^TM) over its Eureka project to understand more about how the lithium is contained there. Bradda Head had previously undertaken a surface sampling programme, indicating the presence of lithium at surface of up to 550ppm Li, and testing of hot springs at surface had indicated an anomalous lithium content in the water at surface.

In late 2021 Bradda Head conducted remote sensing to understand more about the lithium footprint at Eureka, this led the Company to stake 16km² of claims over the area which we believe has the potential for a shallow lithium-in-clay project, similar to what the Company is developing in Arizona at Wikieup and the Basin Project. Bradda has an updated JORC resource expected shortly at Basin East, and the Company is currently drilling at Wikieup where results are expected in Q2.

Award of Options

As set out in the Company's AIM Admission Document, recognising the performance of members of the management and executive team in recent months in, amongst other matters raising up to a total of US$12.9m for the Company, and to additionally incentivise management during the Company's upcoming exploration programmes, the Board has resolved to issue a total of 9,200,000 options to acquire ordinary shares (the "Options") at an exercise price of 18.0p to management and certain Board members, with the exercise price representing a premium of 22% to the closing share price of 14.7p on 19 April 2022.

Options for management and directors, are subject to the following conditions:

-      Options issued in three equal traches based on certain criteria, as further detailed below, being met; the initial tranche vest immediately;

-      Are exercisable for a period of five years from date of issue; and

-      The options issued to each participant should lapse upon any participant no longer being an employee or connected person remunerated by the Company.

Directors included in the award are detailed in the table below:

The total number of Options in the Company is now 32,806,304 representing 6.5% of the Company's fully diluted share capital.

The Options will be issued in three equal tranches on hitting certain performance based milestones. Given the Company has been contemplating the issue of the Options for some time, the first performance milestone has been reached already, with the successful funding of Bradda's operations into 2023, and therefore the Board have agreed these options will vest immediately.

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 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 17.6Mt at an average grade of 912ppm Li and 3.4%K for a total of 86kt LCE and an Inferred Mineral Resource of 57.6Mt at an average grade of 717ppm Li and 3.3%K for a total of 220kt LCE. In the rest of the Basin Project SRK has estimated an Exploration Target of between 300 and 1,300Mt of material grading between 600 and 850ppm Li which is equivalent to a range of between 1 and 6Mt 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.

Director and PDMR Shareholding Disclosures