Accommodation Agreement - potential solar facility

Bradda Head Lithium Ltd (AIM: BHLL), the North America-focused lithium development company, announces that its wholly owned US subsidiary, Zenolith (USA) LLC, has entered into an accommodation agreement with PA Land Acquisitions LLC, trading as SunShare, in respect to approximately 16 acres of 136 acre mineral lease in Slippery Rock Township, Lawrence County, Pennsylvania. The agreement establishes a framework under which SunShare may develop a commercial solar facility while preserving the Company's brine lease, mineral rights and access for future brine development. The Company will receive an initial payment of US$5,000, with further payments becoming due once construction of the solar facility commences.

Founded in 2011, SunShare is a full-service, end-to-end developer, owner, and operator of community solar gardens. As the nation's oldest community solar company, SunShare's mission is to give everyone access to renewable energy solutions. Sunshare's future solar garden could provide a pathway for clean renewable power generation for a future DLE pilot plant operated by Bradda Head, fitting nicely with the companies ESG strategy.

Highlights

• Accommodation Agreement covers approximately 16 acres of 136 acre mineral lease in Slippery Rock Township, Lawrence County, Pennsylvania.
• Bradda Head retains its underlying brine lease and mineral rights while accommodating solar development within defined facility areas.
• Solar developer must coordinate activities to avoid material interference with future brine operations and maintain access outside the solar facility.
• Initial payment of US$5,000 due within 10 business days of execution.
• Additional US$20,000 option payment payable upon issuance of the Effective Notice for project development.
• If development has not commenced, SunShare may extend the agreement for up to five additional 12-month periods by paying US$5,000 for each extension.
• Following commencement of construction, SunShare will assume responsibility for the annual rental payments under the brine lease. These are currently US$1,339 per annum through 2027 and will increase to US$2,421 per annum if the lease extension is exercised from 2028.
• Operator retains emergency access rights and limited access into the solar facility where reasonably necessary for future brine development.
• The agreement will expire if the solar project does not achieve commercial operations within three years after SunShare issues the Effective Notice.
• The agreement contains customary provisions relating to indemnification, assignment, remedies and recovery of legal fees.
• Potential future clean renewable power generation for DLE pilot plant operated by Bradda Head.

Ian Stalker, Executive Chair, commented:

"This agreement enables the proposed solar development to progress while preserving the Company's brine lease, mineral rights and access for potential future development. It also provides modest near-term payments and transfers certain annual lease-rental obligations to SunShare once construction begins. The arrangement demonstrates a practical approach to managing complementary land uses without prejudicing the Company's longer-term optionality in Pennsylvania."

Effect of the Agreement

The agreement preserves the Company's subsurface brine rights and access arrangements while permitting the proposed solar development within defined areas. It therefore maintains the Company's optionality for future lithium-brine exploration and development and provides the contractual payments described above.

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

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