San Domingo Mineralogical Ore Sorting Study

Bradda Head Lithium Ltd (AIM:BHL), the North America-focused lithium development group, is pleased to announce results from the mineral particle ore-sorting study announced in October 2024. The program, supervised by ABH Engineering Inc., was conducted on a spodumene composite ore sample from San Domingo's core drilling in 2023. The interpretive and preliminary bench-scale results indicate the spodumene ore is amenable to ore sorting enhancement, which can provide significant potential cost savings during mining construction and operation, as well as identifying a low water usage quick and efficient route to sustainable operation.

Highlights:

• Results are indicative of potentially producing an in-country direct shipping spodumene ore after particle mineral sorting and separation of wall rock and waste material;
• Waste product containing virtually 0% Lithium, a sellable aggregate product for the local Arizona infrastructure demand;
• Intermediate product containing low grade lithium would be stockpiled for further treatment;
• Recommendations to implement a Phase 2 test with a representative bulk sample (300-500kg);
• Examine economic optimization including potential stockpiling; and
• Lowering resource cut-off grade.

Ian Stalker, Executive Chairman, commented:

"Bradda Head is keen to move as quickly as possible to operational mode on its San Domingo pegmatite project in Arizona, leveraging the determination of the US government to develop domestic production of strategic minerals including lithium. This was most recently demonstrated with the Presidential Executive Order issued on the 20 March, that clearly denotes benefits for junior miners such as Bradda.

To this end, these mineral processing test results are positive indications of the opportunity for potentially producing a saleable, intermediate concentrate product that can be directly shipped. It would also be expected to greatly reduce potential upfront capex costs and permitting demands.

Integrating mineral sorting early in the process can increase the grade, reduce the amount of mining equipment, infrastructure, and time to produce a saleable product. The results build on the previously announced study (PR November 20, 2023) that also highlighted the opportunity for the production of a saleable Lithium 6.0% and/or Lithium 5.5% concentrate product via a gravity process route, again at minimum capex demand and potential low operating costs. The further benefit, unveiled by these results, of producing a lower grade "ore sorted" concentrate is the minimum usage of water.

Bradda head continues to push ahead with its San Domingo Pegmatite project in Arizona, USA not only to benefit from the ongoing 'America first' approach to strategic minerals supply in country, but also to be in a position to be operationally ready when the uptick comes in the lithium market in general."

As a study in advance of resource definition and future Preliminary Economic Assessment ("PEA") investigations, this particle sorting work was enacted to determine if the spodumene mineralization at San Domingo is amenable to particle sorting. Additionally, this study can be used to identify potential cost savings if mining is considered whilst incorporating new technology by upgrading spodumene ores with minimal cost to the Company. While not definitive, it provides BHL with the knowledge that our material could present significant cost savings and upgradeable, saleable material.

Employing mineral ore sorting technology at San Domingo using either XRT ("X-ray transmission") or XRF ("X-ray fluorescence") can potentially accomplish the following:

• Material submitted for analysis has great heterogeneity, producing a sharp high-grade to low-grade drop off;
• Sorting can lower the overall capital expenditures by reducing crushing equipment;
• Anticipated lower water usage due to dry process, limited washing;
• Potential to produce a direct shipping ore at >2.0% Li2O, no DMS ("Dense Medium Separation") considered;
• Potential to economically capture cesium and rubidium along with the lithium in a single three-way sorting step at low capital and operating costs;
• Financial model uses hypothetical tonnage of 2.5M tonnes at 0.80% Li2O, 14-year mine life;
• Mineral sorting can potentially upgrade run-of-mine material to above 2% Li2O, and create either a waste or a low-grade stockpile;
• Waste material created from the sorting process can be used as aggregate; and
• Primary rock crushing to <15cm needed under an XRF scanning model, limiting aggressive crushing.

Sample Data Summary

BHL selected material from the San Domingo project in Arizona to investigate optionality and benefits of early stage spodumene ore sorting. BHL decided to analyze roughly 15kg of 15-30mm crushed spodumene ore, composited from drill holes on the Jumbo target. This material was unused from our initial metallurgical study on Jumbo drill core, published November 20, 2023. The 2023 metallurgical study determined our medium grade spodumene ore, running at 1.03% Li2O can produce a 6.0% Li2O concentrate from ¼" crushed material using DMS and 50.3% lithium recovery, see PR for further details.

This study commenced with 117 hand selected samples that were initially scanned with an XRF by consultants ABH Engineering, followed by XRT scanning at the Saskatchewan Research Council ("SRC") laboratory with a Tomra COM Tertiary sorter. Samples were subsequently analyzed by sodium peroxide fusion (with ICP-MS finish) at SGS Laboratories in Burnaby, B.C. Canada. The geochemical results from SGS are exceptional, reporting a combined average is 1.57% Li2O (7,273 ppm Li), including 17 samples that were deliberately selected for their wall rock waste material characteristics. Excluding the 17 wall rock samples, the remaining 100 samples average 1.84% Li2O (8,560ppm Li) having a range of 10 to 31,621 ppm Li (0.002 to 6.81% Li2O). The selection process for the 100 samples was partly subjective such that 10 samples were selected with obvious clean spodumene, 10 samples of obvious low-grade pegmatite material, then the remaining 80 samples selected randomly.

Other elements worth mentioning with exceptional high values are cesium (2 samples at >1.0%), beryllium, and rubidium (15 samples at >1000 ppm), all of which could be considered by-products given the ability to discriminate during ore sorting. There is the potential to capture these three elements using the XRF mineral sorting, producing a separate stockpile, and adding significant value to the project.

XRF Analysis

The multi-element XRF readings were used to predict the presence and absence of lithium in samples. Lithium cannot be detected directly by current XRF sorting technologies, therefore elements with atomic number higher than 20 that are associated with lithium are used to generate a multi-element XRF algorithm using positive correlation of lithium with tin, and an inverse correlation of lithium with iron and rubidium readings. Two scans per sample were taken with the values averaged to obtain the multi-element XRF readings. The results from the XRF scanning are preliminary but show a great potential for using the sensor to high grade run-of-mine material and remove waste.

XRT Analysis

The XRT analysis was conducted with a TOMRA COM Tertiary sorter machine which utilizes AI-enhanced algorithms to interpret the results. The 117 samples were individually scanned using the Tomra machine, creating X-ray images with pixels of each particle that are classified into 11 density categories (0 to 9) based on the particle's density. There are minor but detectable differences in density within the pegmatite samples, and a clear difference between the pegmatite and greenstone wall rock.

The results indicate both XRT and XRF work very well by discriminating the difference between ore and waste, critical for ore sorting. As the hypothetical feed grade used in this study is 0.80% Li2O, the actual grade of the material in this study is 1.6%, thus, was corrected to match the hypothetical feed grade of 0.80%. Preliminary results strongly support utilization of mineralogical ore sorting using either method although one potential advantage with the XRF is its ability to analyze for other elements such as cesium, rubidium, and beryllium. All three of these elements are locally very anomalous to ore-grade and could be recovered as byproducts to the lithium. Integration of the XRF sorting technology could achieve this in a single three-way sorting step.

QAQC

Metallurgical samples were originally sent to SGS Lakefield, Ontario, Canada where they were crushed to 3/8th inch sizes. The sample were in custody at SGS since June, 2023. The bulk sample was subsequently sent to ABH Engineering in February for grain segregation and sample selection. Each sample was analysed with an ElvaX Prospector 3 Advanced instrument and data recorded per sample number. The individual sample grains were then placed in sealed plastic baggies and labelled twice to avoid sample mix-up. The samples were sent to the Saskatchewan Research Council (SRC) for XRT analysis of each sample. Once completed, the samples were shipped by SRC directly to SGS Laboratories in Burnaby, B.C., Canada where samples were prepped and analysed using sodium peroxide fusion combined ICP-AES and ICP-MS, method GE_ICM90A50. Mr. Wilkins consents to the inclusion of the technical information in this release and context in which it appears.

Qualified Person (Bradda Head)

Glossary of Terms

• Heterogeneity: The quality or state of being diverse in character or content
• XRT: X-Ray: Transmission
• XRF: X-Ray: Fluorescence
• Spodumene: Lithium inosilicate, pyroxene family, chemical formula: LiAlSi2O6
• Capex: Capital Expenditure
• DMS: Dense Media Separation
• ICP-MS: Induced coupled plasma-mass spectrometer
• TOMRA ROM Tertiary Sorter: Brand and maker of mineral sorter, Run-Of-Mine applicationshttps://www.tomra.com/mining/products/machines/com-xrt-2
• ElvaX Prospector 3 Advanced: https://elvatech.com/products/prospector-3/

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

About Bradda Head Lithium Ltd.