BCN.L Regulatory News (BCN)

2 May 2017

Bacanora Minerals Ltd ('Bacanora' or the 'Company')

Completion of Hanwa Equity Placing

Bacanora Minerals LTD (AIM: BCN and TSX-V: BCN), the London and Canadian listed lithium exploration and development company focused on building an international lithium group, is pleased to announce the issue of 12,333,261 new common shares of no par value ('New Common Shares') to Hanwa Co., LTD ('Hanwa'), a leading Japan-based global trading company and one of the larger traders of battery chemicals in the Asian region. The New Common Shares represent 10.0% of the enlarged issued share capital of the Company and are being issued at a price of 82.5 pence per share to raise approximately £10,175,000 for Bacanora pursuant to the Company's offtake agreement with Hanwa for battery grade lithium carbonate at its Sonora lithium project in Mexico (for details regarding the offtake agreement, please refer to the Company's news release dated 10 April 2017).

Application has been made for the New Common Shares to be admitted to trading on AIM and dealings are expected to commence on or around 5 May 2017. The New Common Shares will rank pari passu with the existing common shares in issue.

Following the issue of the New Common Shares, the total number of common shares in issue is 123,332,614 common shares, each with voting rights. There are no shares held in treasury. Therefore, the total number of voting rights in the Company is 123,332,614. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest under the Company's articles of association.

The equity placing to Hanwa was completed in reliance upon exemptions from applicable prospectus and registration requirements. Accordingly, any trades of securities issued under the placing that occur in Alberta or to a purchaser in Alberta would be subject to a hold period equal to four months and one day from the date of issuance (being September 3, 2017). Trades of securities occurring through the CREST system among non-Alberta residents will not be subject to this restriction. All of the shares acquired by Hanwa under the placing will be deposited under the CREST system.

**ENDS**

For further information, please contact:

ABOUT BACANORA:

Bacanora is a Canadian and London listed lithium exploration and development company (TSX-V: BCN and AIM: BCN). The Company is exploring for, and developing a pipeline of international lithium projects, with a primary focus on the Sonora Lithium Project. The Company's operations are based in Hermosillo in northern Mexico. The Company is led by a team with lithium expertise and proven mine development, construction and operations experience.

The Sonora Lithium Project, which consists of ten mining concession areas covering approximately 100 thousand hectares in the northeast of Sonora State. The Company, through drilling and exploration work to date, has established an Indicated Mineral Resource (in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")) of 4.5 million tonnes (LCE2) and 2.7 million tonnes Inferred3. A Pre-Feasibility Study completed in Q1 20161 demonstrated the economics associated with becoming a 35,000 tpa lithium carbonate and 50,000 tpa SOP producer in Mexico.

In addition to the Sonora Lithium Project, the Company also has a 50% interest in the Zinnwald Lithium Project in southern Saxony, Germany. The Zinnwald Lithium Project is located in a granite hosted Sn/W/Li belt that has been mined historically for tin, tungsten and lithium at different times over the past 300 years. The strategic location of the Zinnwald Lithium Project allows immediate access to the German automotive and downstream lithium chemical industries.

1 See Technical Report on the Pre-Feasibility Study for the Sonora Lithium Project, Mexico, 15 April 2016. The authors of the PFS are Ausenco Limited, SRK and Independent Mining Consultants Inc. A copy of this report is available under Bacanora's corporate profile at www.sedar.com.

2 LCE = lithium carbonate (Li2CO3) equivalent; determined by multiplying 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.

3 See Amended Mineral Resource Estimate for the Sonora Lithium Project, Mexico, April 2016. The lead author of the amended report is Mr. Martin Pittuck (MSc., C.Eng., FGS, MIMMM) of SRK Consulting (UK) Limited ('SRK'). A copy of this report is available under Bacanora's corporate profile at www.sedar.com.