Bacanora Minerals : Update on Financing Strategy for Sonora Project

RNS Number : 1619T Bacanora Lithium PLC 02 July 2018

Bacanora Lithium plc / Index: AIM / Epic: BCN / Sector: Natural Resources

2 July 2018

Bacanora Lithium Plc ("Bacanora" or the "Company")

Update on Financing Strategy for the Sonora Lithium Project

Bacanora Lithium plc,the London listed lithium company, provides an update on its financing strategy to develop the Sonora Lithium Project in Mexico ('the Project'). The Company is in the final stages of talks with a number of financing and o3ake partners. As these nego4a4ons con4nue, the Company will provide updates to shareholders with its plan for the full funding for the construction of Stage 1 of the Project.

This announcement contains inside informa on as s pulated under the market abuse regula on (eu no. 596/2014).

Upon the publica on of this announcement via a regulatory informa on service, this inside informa on is now considered to be in the public domain.

**ENDS**

For further information please visitwww.bacanoralithium.com or contact:

Notes to Editors

Bacanora Lithium is a London listed lithium explora4on and development company (AIM: BCN). The Company's primary focus is on the Sonora Lithium Project. The Company's opera4ons are based in Hermosillo in northern Mexico. The Company is led by a team with lithium exper4se and a track record in mine development and production.

The Sonora Lithium Project consists of seven mining concession areas covering approximately 100 thousand hectares in the northeast of Sonora State. The Company, through drilling and explora4on work to date, has established a Measured plus Indicated Mineral Resource es4mate of over 5 Mt (comprising 1.9Mt of Measured Resources and 3.1Mt of Indicated Resources) of LCE2 and an addi4onal Inferred Mineral Resource of 3.7 Mt of LCE. The Company's Feasibility Study (which was announced 12 December 2017) has established Proven Mineral Reserves (in accordance with Na4onal Instrument 43-101 - Standards of Disclosure for Mineral Projects) of 1.67 MT and Probable Mineral Reserves of 2.85 Mt LCE and confirmed the economics associated with becoming a 35,000 tpa lithium carbonate and 30,000 tpa SOP producer in Mexico. In addi4on to the Sonora Lithium Project, the Company also has a 50% interest in the Zinnwald Lithium Project and the Falkenhain Licence in southern Saxony, Germany. Each of the Zinnwald Lithium Project and the Falkenhain Licence are located in a granite hosted Sn/W/Li belt that has been mined historically for 4n, tungsten and lithium at different 4mes over the past 300 years. The strategic loca4on of the Zinnwald Lithium Project and the Falkenhain Licence provides close geographical proximity to the German automo4ve and downstream lithium chemical industries.

1 The Sonora Lithium Project is comprised of the following lithium proper4es: La Ventana lithium concession, which is 100 percent owned by Bacanora and El Sauz and Fleur concessions, which are held by Mexilit S.A. de C.V. ('Mexilit') which is owned 70 percent by Bacanora and 30 percent by Cadence Minerals Plc.The Project also includes three other lithium concessions, Buenavista, San Gabriel and Megalit, which do not form part of the Feasibility Study, and are held by Megalit S.A. de C.V, which is owned 70 percent by Bacanora and 30 percent by Cadence Minerals Plc.

2 LCE = lithium carbonate (Li2CO3) equivalent; determined by mul4plying Li value in percent by 5.324 to get an equivalent Li2CO3 value in per cent. Use of LCE is to provide data comparable with industry reports and assumes complete conversion of lithium in clays with no recovery or process losses.

FORWARD LOOKING STATEMENTS:

Except for statements of historical fact, this news release contains certain "forward-looking informa on" within the meaning of applicable securi es law. Forward-looking informa on is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "an cipate", "es mate" and other similar words, or statements that certain events or condi ons "may" or "will" occur. Although we believe that the expecta ons reflected in the forward-looking informa on are reasonable, there can be no assurance that such expecta ons will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking informa on is based on the opinions and es mates of management at the date the statements are made, and are subject to a variety of risks and uncertain es and other factors that could cause actual events or results to differ materially from those an cipated in the forward-looking informa on. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking informa on include, but are not limited to: commodity price vola lity; general economic condi ons in Canada, the United States, Mexico and globally; industry condi ons, governmental regula on, including environmental regula on; unan cipated opera ng events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authori es; stock market vola lity; compe on for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other risk factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

This announcement is not for publica on or distribu on, directly or indirectly, in or into the United States of America.

This announcement is not an offer of securi es for sale into the United States. The securi es referred to herein have not been and will not be registered under the U.S. Securi es Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemp on from registra on. No public offering of securi es is being made in the United States.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contactrns@lseg.com or visitwww.rns.com.

END

UPDKMGGNRMGGRZM