5 February 2021

Bacanora Lithium plc

("Bacanora" or the "Company")

Further Ganfeng investment

Bacanora Lithium plc (AIM: BCN), a lithium development company, announces that the Board of directors of its cornerstone investor and offtake partner, Ganfeng Lithium Co., Ltd ("Ganfeng"), has today approved a board resolution to exercise its pre-emptive right and to increase its holding in the Company.  Ganfeng will subscribe for a total of 53,333,333 new Ordinary Shares at the Placing Price of 45p per share, representing gross proceeds of approximately US$31 million.  Completion of this investment from Ganfeng is conditional upon obtaining certain approvals and consents from authorities in the People's Republic of China. On Completion of their investment, the Company will have 384,144,901 shares in issue and Ganfeng will have an ownership level of 28.88%.

Peter Secker, CEO of Bacanora said:

"We are delighted that our cornerstone partner, Ganfeng, has shown yet more commitment to Bacanora and the Sonora Lithium Project, located in Mexico, retaining its position as the Company's largest shareholder. This additional funding further solidifies our financial position as we head towards the start of construction.  We look forward to providing more updates in the coming period on the final parts of the engineering design and the start of site work preparation."

A further announcement will be made in due course in relation to the proposed investment.

This Announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR"). Upon the publication of this Announcement, this inside information is now considered to be in the public domain.

For further information please visit www.bacanoralithium.com or contact:

Notes to editors

Bacanora Lithium Plc is an AIM-listed (ticker 'BCN') lithium development company. The Company is focused on building, in collaboration with its major shareholder and offtake partner, Ganfeng Lithium (the world's largest lithium metals producer), a 35,000 tonne per annum open pit lithium carbonate operation at its flagship asset, the Sonora Lithium Project in Mexico. The Sonora Lithium Project has 8.8 million tonnes of lithium carbonate (Li₂CO₃) equivalent resources, with an approximate 250-year resource life, as detailed in its December 2017 Feasibility Study.

Sonora Lithium Ltd ("SLL") is the operational holding company for the Sonora Lithium Project and owns 100% of the La Ventana concession. The La Ventana concession accounts for 88% of the mined ore feed in the Sonora Feasibility Study which covers the initial 19 years of the project mine life. On completion of this option exercise, SLL will be owned 50% by Bacanora and 50% by Ganfeng Lithium Co., Ltd. SLL also owns 70% of the El Sauz and Fleur concessions. 

Bacanora also owns 44.3% of Zinnwald Lithium Plc (AIM: ZNWD), which in turn owns a 50% interest in the Zinnwald Lithium Project and the Falkenhain and Altenberg Licences in southern Saxony, Germany.