Company Announcements

05 May 2022

Bradda Head Lithium Ltd

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

Basin North Drilling Permits Received

Bradda Head Lithium Ltd (AIM:BHL, OTCQB:BHLIF), the North America-focused lithium development group, announces that it has received conditional permission to begin a drilling programme (the "Programme") at its Basin North (BN) sedimentary claims in Arizona.

Highlights:

·    Bradda Head has received permission to commence a 10-hole drilling programme at its BN claim, pending a 30-day bond payment adjudication.

·    Following on from the successful 2021 drill programme at Basin East (BE), which led to an increase in the contained lithium carbonate equivalent ("LCE") tonnes by 65%, and the identification of an exploration target of up to 6Mt LCE at its Basin Project, Bradda Head earlier this year applied for and has now been issued conditional drilling permission at its BN claim.

·    Due to the resource growth potential seen at Bradda's Basin Project, the Company has planned an extensive 44-hole drilling programme for the remainder of 2022 covering parts of its BE, Basin East Extension (BEE) and BN claims which should feed into a revised resource estimate towards the end of 2022.

·    20 holes are planned at BEE and BN with permits in the process of being obtained at BEE; both programmes should start in Q2. An additional 14-hole sonic drill programme has also been approved at BE.

·    See PR dated 29^th March 2022 for more information on the updated Mineral Resource estimate ("MRE") at Basin East, and map at https://www.braddaheadltd.com/media/image-library/ for more information on the Basin Project in Arizona.

Charles FitzRoy, CEO of Bradda Head Lithium, commented:

"We are delighted to have received conditional drilling permits at Basin North where evidence from drilling at Basin East and geophysics suggests that the higher-grade Upper Clay layer seen at BE 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 believe it may also be present. With all the exploration work Bradda has done since its IPO last July, alongside the updated MRE (RNS dated 29 March 2022) SRK had the confidence to define an upgraded Exploration Target of up to 6Mt of LCE at our Basin Project.

"

"The increase in LCE at Basin East and assessment of exploration potential is also 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, and we now have a 6Mt LCE exploration target at the Basin Project.

"With more drilling planned in Q2 at Basin East Extension and Basin North we have a number of material catalysts planned for 2022 and believe that 2022 is going to continue to be an exciting year of resource growth for Bradda Head. BHL is excellently placed to take full advantage of the near-term resource growth potential at our sedimentary lithium assets in Arizona and we look forward to providing further updates throughout the year."

Background

BN and BEE are in close proximity to BE (see map: https://www.braddaheadltd.com/media/image-library/), the Company has an updated Resource at BE.

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 2022 Mineral Resource update followed 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.

In the MRE model, the Upper Clay zone and higher-grade zone are thickest at the northwestern edge, whilst remaining 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.

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 BHL's BEE 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.

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/).

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 received conditional permission to drill 10 holes at its BN Claim, and anticipates 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: https://www.braddaheadltd.com/media/image-library/).

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

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.