Bradda Head Lithium - Exploring for Lithium in the United States

• Bradda Head Lithium is a lithium explorer listed in the UK, US, and TSXV with projects in Arizona and Nevada. Notable projects include the San Domingo pegmatite District and Basin project, both in Arizona.
• There was an auditing delay in filing the TSXV accounts due to a change in the auditor. However, the company remains on track to file its accounts on time.
• The company has been actively drilling in the Basin project in Arizona, with plans to release an updated resource statement soon. This drilling aims to potentially book millions of tons of lithium to trigger a royalty payment.
• Bradda Head Lithium believes in the potential of its projects, particularly the San Domingo pegmatite project, and sees a positive outlook for the lithium market. They also highlight the convenience of their location near end-users like LG Chem's battery facility.
• The company acknowledges current market challenges but is optimistic about potential catalysts, including non-dilutive cash inflows and project developments, which could boost investor confidence and share price.

Bradda Head Lithium is a UK, US and Canadian-listed lithium exploration company focused on developing lithium projects in the western US states of Arizona and Nevada. With the electric vehicle revolution gaining momentum globally, there is increasing demand for battery metals like lithium, presenting significant opportunities for lithium exploration companies like Bradda Head.

The company has three main lithium projects:

• The San Domingo pegmatite project in Arizona
• The Basin clay project in Arizona
• Lithium brine projects in Nevada

Financial PositionThe company has weathered the downturn in lithium equities over the past year. While the share price has declined significantly from its 2021 peak, the company maintains a reasonable cash balance of around $7 million as of March 2022. This provides funding for Bradda's key exploration programs for the remainder of 2022 and into early 2023. With drilling underway at the San Domingo pegmatite project, investors can expect a steady stream of exploration updates over the coming months. Additionally, an updated resource statement for the Basin clay project could act as a catalyst for the share price, with Bradda entitled to a $2.5 million royalty payment once the project achieves a one million tonne lithium resource.

San Domingo Pegmatite Project

The San Domingo pegmatite project in Arizona is Bradda's flagship exploration project. Pegmatites are intrusive igneous rocks that often contain high concentrations of lithium-bearing minerals. Simple quarrying and processing methods can extract lithium from pegmatites relatively quickly and at a lower cost compared to brines or clays.

Bradda Head has been actively exploring San Domingo over the past year across two phases of drilling. A third phase is now underway, targeting shallow lithium mineralization amenable to open cut mining. The goal is to delineate an initial lithium resource to underpin technical studies and demonstrate San Domingo's potential to become a strategic lithium producing asset.

Highlights from the previous drilling include an intersection of 32 meters at 1.6% Li2O, confirming the project's prospectivity. While most intersections have been relatively narrow to date, Bradda has significantly improved its targeting through soil geochemistry and structural mapping programs. Over 380 new outcropping pegmatites have been identified across the project area.

Up to 10,000 meters of drilling is budgeted for the current program, providing solid coverage to delineate a maiden resource. Further geophysics and drilling will also test for depth extensions of mineralization. Investors can expect a steady flow of drill results over the coming months. Demonstrating continuity of mineralized pegmatites and building tonnage will be key to advancing the project up the value curve.

Basin Clay Project

In addition to the San Domingo pegmatites, Bradda Head is also advancing the Basin clay lithium project located in Arizona. Recent drilling has expanded the company's understanding of lithium distribution and geometry ahead of an updated resource statement expected soon.

While lithium clay projects generally take longer to advance than pegmatites, successful delineation of one million tonnes of lithium resources at Basin will trigger a $2.5 million royalty payment to Bradda Head. This provides a non-dilutive source of funding as the company continues to advance its portfolio of projects.

Additionally, hitting the resource target will allow Bradda Head to commence preliminary economic studies on the Basin project. Having both pegmatite and clay assets provides the company with a diversity of lithium development pathways suited to different timeframes. Investors can expect ongoing news flow from both the San Domingo and Basin projects over the coming year.

Bradda Head Lithium provides exposure to lithium exploration and development in the United States, strategically located near major automotive hubs and battery factories currently under construction.

With drilling underway and funded by existing cash reserves, investors can expect regular news flow over the coming year from the company's San Domingo pegmatite project and Basin clay project. Positive drill results demonstrating the continuity of lithium mineralization at San Domingo would be a key catalyst for the company to start outlining an initial lithium resource. This would elevate the project's profile and could draw the interest of larger producers seeking to acquire lithium assets in the United States.

Bradda Head offers speculative investors leveraged exposure to rising lithium demand in a premier location, with drilling about to ramp up significantly. One to watch closely over the coming year.

Here are 5 key takeaways for investors considering Bradda Head Lithium:

1. Financial position - Bradda Head has $7 million cash, providing funding for current exploration programs. No need to raise additional capital in the near term.
2. Leveraged to lithium demand - Projects located strategically amid surging lithium demand in the US. Well-positioned if demand continues rising.
3. Diversified lithium exposure - San Domingo pegmatites offer a faster pathway to production, while Basin clays provide longer-term growth potential. Combination de-risks reliance on a single asset.
4. Exploration stage - Projects still in the exploration phase. While early results are encouraging, uncertainty remains until further drilling and study work is completed.
5. Speculative investment - As a small exploration company, Bradda is high-risk and suitable only for speculative portions of investment portfolios. Cautious investors should wait for more definitive results.

The key risks appear manageable at this stage, with funding secured for exploration work that could act as share price catalysts. However, prudent investors would be wise to wait for more concrete results before making significant investment commitments. Bradda offers leveraged upside potential but requires patience and tolerance of risk.