BRITISH VIRGIN ISLANDS / ACCESSWIRE / January 22, 2024 / Bradda Head Lithium Ltd (AIM:BHL)(TSX-V:BHLI), the North America-focused lithium development group, is pleased to announce that it has today published its unaudited financial results for the nine and three-months ended 30 November 2023, and the Management's Discussion and Analysis for the same period.

Both of the above have been posted on the Company's website www.braddaheadltd.com and are also available on SEDARplus (www.sedarplus.ca/landingpage).

Financial and operational highlights

· The Company released an updated Mineral Resource Estimate ("MRE") on 28 September 2023, which includes a total Inferred LCE content of 1.0 Mt.

· The total new MRE now comprises 17.0 million tonnes in the Indicated category at 940 ppm carrying 85kt LCE, and 210 million tonnes in the Inferred category at 900 ppm, carrying 1,000 kt LCE.

· The average in situ grade of the Inferred Basin East Mineral Resource has increased from 694 to 900 ppm Li, a 30% increase.

· Following the release of an updated MRE and as per the Royalty Agreement with the Lithium Royalty Corporation ("LRC"), Bradda Head formally requested payment of US$ 2.5 million from LRC, with funds being received during October 2023.

· Drilling continued at our San Dominog pegmatite asset, with first assay results being received where grades of up to 0.83% Li2O over 6.35m and 1.03% Li2O over 3.05m were identified.

Ian Stalker, Chairman of Bradda Head, commented:

"This quarter has been one that reflects the efforts we are putting into all our USA Lithium Projects, with positives steps made at our San Domingo lithium in pegmatite asset, our Basin Sedimentary Lithium Clay Project and a re-evaluation of our Lithium in Oli Brines in Texas and Pennsylvania. This project effort is allied to our own house keeping efforts to ensure Bradda Head treasury is solid going forward. Staff numbers have been reduced without impact on our operational performance and unnecessary corporate expenditure reduced or removed. The Board recognizes that the quality of the Projects we own in the USA demand that we prepare ourselves in such a way as to be ready to move quickly and efficiently for the undoubted next wave of Lithium demand and uptick in pricing. We are well set to achieve this strategy.

Drilling continued through the quarter at San Domingo with the first set of assay results highlighting the potential of the area. These results increased our knowledge of the intriguing spodumene-rich pegmatite district, and the drill hole geochemistry provides an improved understanding of the pegmatite characteristics and mineralogical zoning at San Domingo, particularly at the Midnight Owl and Bolt targets. Assay results received post period end support our view of the near surface potential spodumene lithium resource in the Central section of our San Domingo property.

Over at our lithium in clay Basin Project, we are moving closer to finalising the next drill programme, expected to commence during H1 2024.

The pace of development will continue, and we look forward to updating our shareholders as we receive exploration results."

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU No.596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.

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

For further information, please contact:

About Bradda Head Lithium Ltd.
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 Mt at an average grade of 940 ppm Li and 3.4% K for a total of 85 kt LCE and an Inferred Mineral Resource of 210 Mt at an average grade of 900 ppm Li and 2.8% K (potassium) for a total of 1.0 Mt LCE. In the rest of the Basin Project SRK has determined an Exploration Target of 250 to 830 Mt of material grading between 750 to 900 ppm Li, which is equivalent to a range of between 1 to 4 Mt contained 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 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 TSX Venture Exchange with a ticker of BHLI.

Forward-Looking Statements

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "intends to", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties, and other factors involved with forward-looking information could cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, following: The Company's objectives, goals, or future plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: failure to identify mineral resources; failure to convert estimated mineral resources to reserves; delays in obtaining or failures to obtain required regulatory, governmental, environmental or other project approvals; political risks; future operating and capital costs, timelines, permit timelines, the market and future price of and demand for lithium, and the ongoing ability to work cooperatively with stakeholders, including the local levels of government; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices; delays in the development of projects, capital and operating costs varying significantly from estimates; an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains; and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDARplus. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.

Bradda Head Lithium Limited

Management discussion and analysis for the nine and three-month period ended November
30, 2023

This management's discussion and analysis ("MD&A") reports on the operating results and financial condition of the Company for the nine and three-month period ended November 30, 2023, and is prepared as of January 22, 2024. The MD&A should be read in conjunction with Bradda Head Lithium Limited's (the "Company" or "Bradda Head") audited consolidated financial statements for the year ended February 28, 2023, and the notes thereto which were prepared in accordance with International Financial Reporting Standards ("IFRS").

All dollar amounts referred to in this MD&A are expressed in United States dollars except where indicated otherwise.

(a) Overview

Bradda Head Lithium Limited (the "Company") is a company domiciled in the British Virgin Islands. The address of the Company's registered office is Craigmuir Chambers, Road Town, Tortola, British Virgin Islands. The Company and its subsidiaries together are referred to as the "Group". The Company has one business segment, being mineral exploration. The Company is focused on appraising and developing lithium mining projects within North America and currently has interests in a variety of projects in the United States.

Corporate and Exploration Highlights

Exploration Highlights

Set forth in this section is a description of the Company's material mineral projects. All scientific and technical data contained in this MD&A has been reviewed and approved by Joey Wilkins, B.Sc., P.Geo., who is Chief Operating Officer at Bradda Head and a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

Arizona Sedimentary Hosted Lithium Projects

Basin Project

Following completion of the drill programme, as announced on August 23, 2023, the drill results were fed into an updated Mineral Resource Estimate, released on 28 September 2023.

Based on 2,355.20m of sonic drilling completed as part of the 2023 Basin drill programme, Bradda Head added 729 kt of Lithium Carbonate Equivalent ("LCE") to the Inferred Mineral Resource, for an updated total Inferred LCE content of 1.0 Mt. The total new Mineral Resource now comprises 17.0 million tonnes in the Indicated category at 940 ppm carrying 85kt LCE, and 210 million tonnes in the Inferred category at 900 ppm, carrying 1,000 kt LCE.

Mineral Resource Statement for Basin East, Basin East Extension and Basin North effective 1 September 202

· Mineral Resource statement has an effective date of 1 September 2023.

· The Mineral Resource is reported using a cut-off grade of 550 ppm Li and is constrained to an optimised open pit shell, which was generated using the following assumptions: lithium carbonate metal prices of 22,000 USD/tLCE; State of Arizona royalty (selling cost) of 6%; operating costs of 40 USD/ tore; Li recovery of 72%; mining dilution and recovery of 0% and 100%; and pit slope angle of 45°.

· Tonnages are reported in metric units.

· Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content which are not considered material.

· Conversion factor of Li metal to LCE = 5.323

· The figures above are reported on a gross basis given Bradda's 100% interest in the propert

The average in situ grade of the Inferred Basin East Mineral Resource has increased from 694 to 900 ppm Li, a 30% increase.

SRK were selected to complete the Mineral Resource Update analysis and applied a stringent approach to both the in-situ density measurement and the cut-off grade utilised. A lower in situ density and higher cut-off grade than previously reported resulted in a more robust estimate. A significant and pragmatic building block to develop the on-going test-work plan.

The recent drill results on BEE and BN solidify Bradda Head's belief in a widespread and continuous lithium-rich stratigraphic sequence, with potential further into BN and across to BW that the Company believes will lead to significant resource growth and opportunity to become a Tier 1 lithium deposit. More drilling is being planned at BN where a low impact Notice of Intent level exploration permit is in place and BW upon receipt of the Environmental Assessment ("EA") from the Bureau of Land Management, expected during in H2 2024. The area being permitted is over 11km², which is considerably larger than BE, BEE, and BN combined (c.6km²).

Wikieup Project

No significant work has been undertaken on this project during the 3-month period.

Arizona Pegmatite District
San Domingo Project

On November 13, 2023, the first set of assay results was released from core drilling at San Domingo. Assays were received from only 14 holes totalling 993m, with grades of up to 0.83% Li₂O over 6.35m and 1.03% Li₂O over 3.05m identified.

Table 1: San Domingo North Drill Hole Highlights

These results increased our knowledge of the intriguing spodumene-rich pegmatite district. This initial batch of drill hole geochemistry provides an improved understanding of the pegmatite characteristics and mineralogical zoning at San Domingo, particularly at the Midnight Owl and Bolt targets.

As announced on January 16, 2024, the drill programme completed on December 2, 2023, with final assays results being received, supporting our view of a near surface potential spodumene lithium resource in the Central section of our San Domingo property.

Nevada Lithium Brine Projects

Wilson Project

No significant work has been undertaken on this project during the 3-month period.

Eureka Project

No significant work has been undertaken on this project during the 3-month period.

Corporate Highlights

On 8 September 2023, the Company's principal Canadian regulator, the British Columbia Securities Commission, withdrew the Management Cease Trade Order it had previously granted to the Company on 29 June 2023, under National Policy 12-203 - Management Cease Trade Orders, as the Company successfully completed all requisite filings for its audited financial statements for the year ended 28 February 2023 and interim financial statements for the quarter ended 31 May 2023

On 28 September 2023, the Company announced an updated Mineral Resource Estimate ("MRE") at the Company's Basin Project, Arizona. As per the Gross Overriding Royalty Agreement with the Lithium Royalty Company ("LRC"), this new contained LCE Tonnage, which was well over the contracted threshold of 1 million tonnes LCE, enabled the Company to trigger the payment of US$2.5 million from LRC, which was received by the Company on 5 October 2023.

Post period-end on 1 January 2024, the Company delisted from the US OTCQB Market, due to share trading liquidity expectations not having been met and cost saving in this current market environment. The Company's shares continue to trade on the London AIM Market and on the Canadian TSX Venture Exchange.

(b) Selected Financial Information

The following table sets forth selected financial information with respect to the Company for the nine and three-month period ended November 30, 2023 and the year ended February 28, 2023. The selected financial information has been derived from the audited financial statements for the period indicated. The following should be read in conjunction with the said financial statements and related notes that are available on the Company's website - www.braddaheadltd.com.

The annual financial statements and interim financial statements are presented in US dollars and are prepared in accordance with IFRS, See "Summary Financial Data" and "Currency Information".

MANAGEMENT DISCUSSION AND ANALYSIS: QUARTER ENDED NOVEMBER 30, 2023

(c) Introduction

(d) This interim Management Discussion and Analysis (the "interim MD&A") should be read in conjunction with the audited financial statements of the Company for the year ended February 28, 2023, and related notes. This MD&A is made as of January 22, 2024.

(e) Results of Operations for the nine and three-months ended November 30, 2023

The Company's net loss after tax for the nine-month period to November 30, 2023 was US$ 819,577, compared to a loss of US$ 3,074,862 for the comparative period ended November 30, 2022. The major expenses for the nine-month period ended November 30, 2023 were operational expenses incurred on the Company's exploration projects, and are broken down in the respective projects as follows:

During this nine-month time period, the Company incurred and capitalised exploration expenditures of US$ 3,673,417, compared to US$ 2,434,450 for the comparative nine-month period to November 30, 2022.

The capitalized exploration costs for the nine-month period ended November 30, 2023 have been allocated amongst the Company's exploration projects in approximately the following amounts:

The exploration expenditures have been primarily costs associated with drilling, assaying, resource and mining consultants, metallurgical testing, environmental studies, project team fees, acquisition of new leases, and annual renewal of existing leases.

General and administrative expenses for the nine-month period to November 30, 2023 totalled US$ 3,479,824, compared to US$ 4,242,520 for the comparative nine-month period to November 30, 2022. General and administrative expenses are broken down as follows:

During the nine-month period to November 30, 2023, there have been no changes in financial performance or other elements that relate to non-core business activities and operations.

(f) Cash flows

During the nine-month period ended November 30, 2023, the Company had net cash outflows of US$ 6,346,605, compared to inflows of US$ 4,531,077 during the comparative nine-month period to November 30, 2022. Net cash outflows for the current three-month period ended November 30, 2023, include placing cash amounts on short term deposits and receipt of cash from matured deposits, totalled US$ 104,227. The cash flows for the two periods are shown below:

* includes net US$ 1,506,090 placed on short term deposit during the nine-month period ended November 30, 2023, and net US$ 79,502 placed on short term deposit during the three-month period ended November 30, 2023.

(g) Liquidity and Capital Resources

As at November 30, 2023, the Company had cash and cash equivalents (including short term cash deposits) of US$ 2,906,004, and a working capital surplus of US$ 2,740,574. As of February 28, 2023, the Company had cash and cash equivalents of US$ 7,746,519, and a working capital surplus of US$ 7,135,119.

(h) Outstanding Share Data

As of November 30, 2023, the following securities were outstanding:

The Company's objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders, benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

The capital structure of the Company includes cash and cash equivalents, equity attributable to equity holders comprised of contributed equity, reserves and accumulated losses. In order to maintain or adjust the capital structure, the Company may issue new shares, sell assets or adjust the level of activities undertaken by the Company.

The Company monitors capital based on cash flow requirements for operational, exploration and evaluation expenditures. The Company has no debt or other borrowings as at the date of this Application. The Company will continue to use capital market issuances to satisfy anticipated funding requirements.

The availability of equity capital, and the price at which additional equity could be issued, is dependent upon the success of the Company's exploration activities, and upon the state of the capital markets generally. Additional financing may not be available on terms favourable to the Company or at all. If the Company does not receive future financing, it may not be possible for the Company to advance the exploration and development of its mineral exploration properties. If the Company is not able to fund these minimum expenditures, it may not be able to maintain part or all of its mineral exploration property interests. See "Risk Factors".

(i) Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements.

(j) Transactions with Related Parties

The Company has conducted transactions with officers, directors and persons or companies related to directors or officers and paid or accrued amounts as follows:

Edgewater Associates Limited ("Edgewater")

During the nine-month period ended 30 November 2023, Directors and Officers insurance was obtained through Edgewater, which is a 100% subsidiary of Manx Financial Group ("MFG"). James Mellon and Denham Eke are Directors of MFG and Denham Eke is a Director of Edgewater.

During the period, the premium payable on the policy was US$ 88,824 (year ended 28 February 2023: US$ 49,318), of which US$ 22,325 was prepaid as at the period end (28 February 2023: US$ 14,497).

(k) Critical Accounting Estimates

The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions affect the carrying value of assets, and impact decisions as to when exploration and development costs should be capitalized or expensed.

As at November 30, 2023, the Company had incurred total capitalised exploration expenditures, including capitalised licence and permit costs, of US$ 13,247,683. Changes in management's judgment as to the prospective nature, assessment of the existence or otherwise of economically recoverable reserves, technical feasibility and/or commercial viability of the relevant tenements and the Company's intentions with respect to the relevant tenements, could affect the assessment of the recoverable amount.

The Company regularly reviews its estimates and assumptions: however, actual results could differ from these estimates and these differences could be material.

Bradda Head Lithium Limited

Unaudited Condensed Consolidated Interim Financial Statements

For the nine and three-month period ended November 30, 2023

Condensed Interim Consolidated Statement of Comprehensive Income

for the period ended 30 November 2023

The notes on pages 12 to 19 form an integral part of these condensed consolidated interim financial statements.

Condensed Interim Consolidated Statement of Financial Position

as at 30 November 2023

The notes on pages 12 to 19 form an integral part of these condensed consolidated interim financial statements.

These financial statements were approved by the Board of Directors on 22 January 2024 and were signed on their behalf by:

Denham Eke
Director

Condensed Interim Consolidated Statement of Changes in Equity

for the period ended 30 November 2023

The notes on pages 12 to 19 form an integral part of these condensed consolidated interim financial statements.

Condensed Interim Consolidated Statement of Changes in Equity

for the period ended 30 November 2023 (continued)

The notes on pages 12 to 19 form an integral part of these condensed consolidated interim financial statements

Condensed Interim Consolidated Statement of Cash Flows

for the period ended 30 November 2023

The notes on pages 12 to 19 form an integral part of these condensed consolidated interim financial statements.

1 Reporting Entity

The Company is a lithium exploration Group focused on developing its projects in the USA.

These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the last annual consolidated financial statements as at and for the year ended 28 February 2023 ("last annual financial statements"). They do not include all of the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements.

The financial information in this report has been prepared in accordance with the Company's accounting policies and in consistency with the last annual financial statements. Full details of the accounting policies adopted by the Company are contained in the financial statements included in the Company's annual report for the year ended 28 February 2023, which is available on the Group's website: www.braddheadltd.com. These unaudited condensed consolidated interim financial statements should be read in conjunction with the audited Consolidated Financial Statements for the year ended 28 February 2023.

2 General and administrative

The Group's general and administrative expenses include the following:

3 Other income

On 21 December 2021, the Company completed a royalty agreement with the Lithium Royalty Corporation ("LRC"). Key terms of the royalty agreement are:

- LRC will pay to the Company upon closing the sum of US$ 2.5 million for granting of the Royalty. LRC will pay to the Company an additional US$ 2.5 million upon the Company publicly reporting a 1 million tonne lithium carbonate equivalent (LCE) Mineral Resource with a minimum lithium grade of 800 parts per million (ppm). LRC will pay to the Company an additional US$ 3 million upon the Company publicly reporting a 2.5 million tonne LCE Mineral Resource with a minimum lithium grade of 800ppm.

On 28 September 2023, the Company announced an updated MRE at its Basin East project, hitting the next 1 million tonne LCE. This triggered the next milestone payment of US$ 2.5 million from LRC, with the cash funds being received on 24 October 2023.

3 Other income (continued)

Reconciliation of gain on sale

4 Deferred mine exploration costs

The schedule below details the exploration costs capitalised to date:

The recoverability of the carrying amounts of exploration and evaluation assets is dependent on the successful development and commercial exploitation or sale of the respective area of interest, as well as maintaining the assets in good standing. The Group assessed the DMEC relating to areas for which licenses and permits are held, for impairment as at 30 November 2023. The Board concluded that no facts and circumstances have been identified which suggest the recoverable amount of these assets would not exceed the carrying amount and, as such, no impairment was recognised during the period.

During the year ended 28 February 2023, an impairment charge of US$ Nil was recognised.

5 Exploration permits and licences

The schedule below details the exploration permit and licence costs capitalised to date:

The Group assessed the carrying amount of the licences and permits held for impairment as at 30 November 2023. The Board concluded that no facts and circumstances have been identified which suggest the recoverable amount of these assets would not exceed the carrying amount and, as such, no impairment was recognised during the period.

During the year ended 28 February 2023, an impairment charge of US$ 19,470 was recognised as a result of project licences and permits that were not renewed.

6 Investment in subsidiary undertakings

As at 30 November 2023, the Group had the following subsidiaries:

* Held directly by the Company. All other holdings are indirectly held through Bradda Head Limited

** Formed on 8 May 2023

As at 28 February 2023, the Group had the following subsidiaries:

* Held directly by the Company. All other holdings are indirectly held through Bradda Head Limited

The condensed interim consolidated financial statements include the results of the subsidiaries for the full interim period from 1 March 2023 to 30 November 2023, and up to the date that control ceases

7 Trade and other payables

8 Trade and other receivables and advances and deposits

Non-current

Current

9 Plant and equipment

10 Share premium

Authorised

The Company is authorised to issue an unlimited number of nil par value shares of a single class.

11 Equity settled share based payments

The cost of equity settled transactions with certain Directors of the Company and other participants ("Participants") is measured by reference to the fair value at the date on which they are granted. The fair value is determined based on the Black-Scholes option pricing model.

Options and warrants

The total number of share options and warrants in issue as at the period end is set out below.

11 Equity settled share based payments (continued)

The amount expensed in the income statement has been calculated by reference to the fair value at grant date of the equity instrument and the estimated number of equity instruments to vest after the vesting period.

The inputs used in the measurement of the fair values at grant date of the equity-settled share-based payment plans issued during the period are as follows:

April 2023 options

Terms of the issued options are as follows:

- 4,800,000 options have been granted that vest fully on grant date. All un-exercised options expire after a period of 5 years from admission date. It is assumed that options are exercised within 5 years from date of grant. The applied volatility is based on historical volatility.

12 Warrants

The cost of equity warrants granted during the period are measured by reference to the fair value at the date on which they are granted. The fair value is determined based on the Black-Scholes option pricing model.

During the nine-month period ended 30 November 2023, no new warrants were issued (period ended 30 November 2022: 73,195,560 warrants).

The total number of warrants in issue as at the period end is set out below.

Guidance as per IAS 32: Financial Instruments has been applied in classifying these as a financial liability. This is due to the exercise price and the Company's functional currency being different. As a result, the fair value applied to the shareholder warrants has been classified as a financial liability. At period end, the warrant liability has been re-measured to fair value, with a corresponding entry to profit and loss of US$ 210,061 (period ended 30 November 2022: US$ 3,711,264) within Warrant Fair Value Re-Measurement.

Reconciliation of warrant liability fair value:

13 Basic and diluted loss per share

The calculation of basic profit per share of the Company is based on the loss for the period of US$ 819,577 (nine-month period to 30 November 2022: loss of US$ 3,074,862) and the weighted average number of shares of 390,609,439 (at 30 November 2022: 379,122,544) in issue during the period.

Diluted loss per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares such as warrants and options. An adjustment for the dilutive effect of share options and warrants in the current period has not been reflected in the calculation of the diluted loss per share, as the effect would have been anti-dilutive, due the Company recognising a loss for the period.

14 Related party transactions and balances

Edgewater Associates Limited ("Edgewater")

During the nine-month period ended 30 November 2023, Directors and Officers insurance was obtained through Edgewater, which is a 100% subsidiary of Manx Financial Group ("MFG"). James Mellon and Denham Eke are Directors of MFG and Denham Eke is a Director of Edgewater.

During the period, the premium payable on the policy was US$ 88,824 (year ended 28 February 2023: US$ 49,318), of which US$ 22,325 was prepaid as at the period end (28 February 2023: US$ 14,497).

15 Commitments and contingent liabilities

The Group has certain obligations to expend minimum amounts on exploration works on mining tenements in order to retain an interest in them, which would be approximately US$ 350,000 during the next 12 months. This includes annual fees in respect of licence renewals. These obligations may be varied from time to time, subject to approval and are expected to be filled in the normal course of exploration and development activities of the Company.

16 Events after the reporting date

No post balance sheet events have occurred that require disclosure.

ENDS

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SOURCE: Bradda Head Lithium Limited