Fundraising

Bradda Head Lithium Ltd (AIM: BHL), the North America-focused lithium development group, is pleased to announce a placing (the "Placing") and subscription ("Subscription") of 94,296,998 new ordinary shares of no par value each ("Ordinary Shares" with the Ordinary Shares issued pursuant to the Placing and the Subscription being the "Fundraise Shares") at an issue price of 2.25 pence per share (the "Issue Price"), raising gross proceeds of approximately £2.12 million (before fees and expense) (the "Fundraise").

The Placing was led by Shard Capital Partners LLP ("Shard") as sole bookrunner, with Greenwood Capital Partners Limited ("Greenwood") supporting as Placing Agent. Alongside, the Fundraise, the Company will also launch a retail offer pursuant to a separate announcement to be published shortly after this announcement ("Retail Offer").

The Company will issue warrants to subscribe for new Ordinary Shares ("Warrant") to all participants in the Fundraise and the Retail Offer on the basis of one Warrant for every two Ordinary Shares subscribed for in the Fundraise. Each Warrant will grant the holder the right to subscribe for one additional new Ordinary Share at 5 pence per share (the "Warrant Price") and will be exercisable for a period of 2 years from the date of issue of the Warrants (the "Warrant Exercise Period"). The issue of the Warrants is subject the successful admission of the Warrants to settlement in uncertificated form through CREST. It is also anticipated that the Warrants will be eligible for CREST settlement approximately a month after Admission. The Warrants will not be admitted to trading on AIM or any other regulated market.

Alongside the Fundraise, the outstanding loans (together with all accrued interest) advanced to the Company by Galloway Limited ("Galloway") and Promaco Limited ("Promaco") pursuant to convertible loan agreements ("CLAs") announced by the Company on 27 January 2026 are to be converted into Ordinary Shares ("Conversion Shares"). Under the terms of the CLAs, and as approved by Shareholders on 17 February 2026, a total balance of US$ 1,873,547.05 (comprised of principal loans of US$ 1,775,000 and accrued interest) will convert into 68,488,298 Conversion Shares at an issue price equal to 90% of the Issue Price (being 2.03 pence per share (the "Conversion Price")) (the "Conversion").

Certain directors and key employees of the Company have also served exercise notices on the Company in respect of share options previously granted to them at prices of 1.5 pence and 2 pence as further detailed below (the "Option Exercise"), with aggregate subscription monies payable to the Company of £113,750 for the issue of 7,250,000 Ordinary Shares ("Option Shares").

KEY HIGHLIGHTS

• Equity Fundraise of approximately £2.12 million (c.US$ 2.86 million), comprising a conditional Placing and a conditional Subscription.
• Retail Offer to be launched shortly following this Announcement giving retail investors the opportunity to participate in the Fundraise on the same terms.
• Conversion of loans made to the Company by Galloway and Promaco to put the Company into a debt-free position.
• Galloway, a company indirectly wholly owned by Jim Mellon, a Director of the Company, has also participated in the Fundraise, subscribing for 32,888,889 Fundraise Shares.
• Funding also to be provided to the Company through the Option Exercise.
• Conversion of the loans, Galloway's participation in the subscription and the Option Exercise demonstrate the board and senior management's commitment to support the Company.
• Total proceeds raised from the Fundraise and the Option Exercise will be approximately £2.235 million.
• Net proceeds of the proposed Fundraise will be used to:

o Commence the Whistlejacket drilling programme;

o Further exploratory drilling at the San Domingo Project;

o Continue advancement towards NI 43-101 technical reports across the Arizona hard rock portfolio; and

o Continued evaluation of opportunities within the critical minerals sector.

• Issue Price of 2.25 pence per Fundraise Share.

Ian Stalker, Executive Chair, commented:

"Bradda has made significant progress this year on its mission to develop U.S. lithium for U.S. markets. The Joint Venture with Rio Tinto's Kennecott on the highly attractive Whistlejacket project in Arizona is hugely significant event for the Company and further cements our position as an emerging player in the U.S. space. Lithium is increasingly recognised as essential for multiple critical and growing industries, and developing secure, domestic supply is a vital part of U.S. strategy going forward. Bradda is at the forefront of this movement.

The funds we are proposing to raise will enable us to further accelerate programmes at both Whistlejacket and our San Domingo pegmatite project that are designed to support initial NI 43-101 technical reports and maiden Mineral Resource Estimates, pushing us toward a Production Decision in early 2027. We believe that this will further prove up the inherent value that we have always maintained our portfolio holds and further endorse our decision to acquire the Whistlejacket project.

This is a hugely exciting time for the Company, as we have a portfolio of assets we are prepared to move quickly on, with the potential to make a real difference to U.S. domestic lithium supply."

Background to, and reasons for, the Fundraising

Following the acquisition of the Whistlejacket ("WJ") project and joint venture with Rio Tinto's Kennecott, the Company intends to move swiftly on advancing the WJ project. This will include phase 3 drilling, metallurgical studies, sample assays and preliminary engineering studies, with a drilling programme being designed to support the preparation of the project's initial NI 43-101 technical report.

This fundraising will provide the Company with sufficient cash resources to complete the phase 3 drilling programme and associated exploration costs, thereby advancing the Whistlejacket project to the next stage of development and the Company meeting its initial first-year Phase 1 earn-in obligations.

Details of the Fundraise

The Fundraise has raised approximately £2.12 million (before expenses) for the Company comprising the issue of 60,251,109 Fundraise Shares pursuant to the Placing which has raised gross funds of £1.356 million, and the issue of 34,045,889 Fundraise Shares pursuant to the Subscription which has raised gross funds of £0.766 million with all Fundraise Shares being issued at the Issue Price.

The Issue Price represents a discount of approximately 2 per cent. to the closing price of 2.3 pence per Ordinary Share on 16 July 2026, being the last practicable date prior to announcement of the Fundraise.

All of the Fundraise Shares are being placed or subscribed for (as applicable) conditional, inter alia, on admission of the Fundraise Shares to trading on AIM. It is expected that the Fundraise Shares will be admitted to trading on AIM at 8.00 a.m. on 28 July 2026.

The Company has entered into a placing letter with Shard pursuant to which Shard has agreed, on behalf of placees (and Greenwood as placing agent), to subscribe for 60,251,109 Fundraise Shares pursuant to the Placing.

Subscribers have each entered into subscription letters with the Company to pay approximately £0.766 million to subscribe for 34,045,889 Fundraise Shares at the Issue Price. Galloway, a company owned by Jim Mellon, has entered into a subscription agreement with the Company pursuant to which it will participate in the Subscription at the Issue Price. The Company has received some small additional interest to take part in the Fundraise and awaits receipt of the signed Subscription letters which are expected shortly; the Company hopes to announce confirmation of these subscriptions shortly, or around the time the WRAP offer concludes.

In connection with the Placing, and conditional upon Admission the Company will issue 997,244 warrants to Shard, and 155,833 warrants to Greenwood, both exercisable at £0.03375 (being a 50% premium to the Issue Price) at any time in the 36 months following the date of the Placing.

The Fundraise is not underwritten by Shard, Greenwood or any other person.

Details of the Retail Offer

The Company values its Shareholder base and believes that it is appropriate to provide its eligible Retail Investors in the United Kingdom the opportunity to participate in the Retail Offer. The Company will be shortly launching a Retail Offer, with the proceeds of the Retail Offer being utilised in the same way as the proceeds of the Fundraise. A further announcement will be made by the Company shortly regarding the Retail Offer and its terms and conditions.

Details of the Conversion

On 27 January 2026, the Company entered into the CLAs with each of Galloway and Promaco pursuant to which bridging loans of US$ 1,775,000 were made to the Company (when aggregated with a previous Galloway loan). It has been agreed that the amounts outstanding under the CLA's will be converted into Ordinary Shares at the Conversion Price pursuant to the terms of the CLAs, as follows:

Galloway is a company indirectly wholly owned by Jim Mellon, a Director of the Company, and which is the Company's largest shareholder. Promaco is indirectly wholly owned by John Ian Stalker, the Executive Chair of the Company.

The Conversion Price represents a discount of approximately 12 per cent. to the Closing Price of 2.3 pence per Ordinary Share on 16 July 2026, being the last practicable date prior to announcement of the Fundraise.

Details of the Option Exercise

The following Directors and senior management have served exercise notices in respect of share options awarded to them by the Company:

The Option Exercise will raise gross proceeds of £113,750.

Broker shares

The Company has agreed to issue Greenwood with 2,222,222 Ordinary Shares at the Issue Price in respect of aggregate fees of £50,000 ("Broker Shares").

Related Party Transactions

The Directors' participation in the Fundraising through Galloway, a company indirectly wholly owned by Jim Mellon, a Director of the Company, constitutes a related party transaction for the purposes of AIM Rule 13. The independent Directors for the purposes of these transactions, being the Board with the exception of Jim Mellon and Denham Eke considers, having consulted with Beaumont Cornish, the Company's nominated adviser, that the terms of such matters are fair and reasonable in so far as Shareholders are concerned.

Admission to trading

Application will be made for the Fundraise Shares, Conversion Shares, Option Shares, Retail Offer Shares and Broker Shares totalling to be admitted to trading on the AIM market of the London Stock Exchange ("Admission"). Admission is expected to occur on or around 28 July 2026. The total number of new Ordinary Shares to be issued will be confirmed in due course upon closing of the Retail Offer.

The new Ordinary Shares issued will rank pari passu in all respects with the existing Ordinary Shares.

About Bradda Head Lithium Ltd.

The San Domingo Project comprises 248 claims covering approximately 1850 acres, located primarily on BLM land, along with two Arizona State Land Department claims. To date, 108 drill holes totalling 13,089 m of core drilling have been completed across three drilling campaigns. The project area hosts more than 1,000 mapped pegmatites, of which 18 have been identified as priority targets, with six tested by drilling. The area currently holds two active Notices of Intent (NOI) permits, and updated drilling plans are in place that can be implemented once all required permits for the pegmatite targets are secured. The objective of the next exploration phase is to further delineate the most prospective areas and advance them toward potential Mineral Resource Estimation (MRE) and NI 43-101 compliant reporting.

The Whistlejacket Project comprises nine Arizona State Land Department Mineral Exploration Permits (MEPs), covering a total of 4,486.07 hectares. The project is subject to a definitive Option to Joint Venture agreement with Kennecott Exploration Company (KEX) and targets spodumene-bearing pegmatites. KEX previous exploration include 19 drilled diamond drill holes totalling 4,188 meters, with all holes intersecting lithium mineralization. Notable results include 51.0 meters at 1.11% Li₂O in hole WSTL0009 and 19.47 meters at 1.66% Li₂O in hole WSTL0008. In addition, the project has benefited from extensive surface mapping, sampling, airborne geophysics, and the acquisition of high-resolution aerial imagery, significantly enhancing the geological understanding and overall value of the asset.

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.