BCN.L Regulatory News (BCN)

28 April 2016

Bacanora Minerals Ltd.

("Bacanora" or the "Company")

Director Appointment and Option Grant

BACANORA MINERALS LTD. (AIM and TSX-V: BCN), the London and Canadian listed lithium and borates company focused on Mexico, is pleased to confirm the previously announced appointment of Mark Hohnen as a Director of the Company with immediate effect (see the Company's announcement released on 27 November 2015).

Mark Ainsworth Hohnen (aged 66) has been involved in the mineral business since the late 1970s. He has had extensive international business experience in a wide range of industries including mining and exploration, property, investment, software and agriculture. He has held a number of directorships in both public and private companies and was founding Chairman of Cape Mentelle and Cloudy Bay wines, as well as the oil and coal company Anglo Pacific Resources Plc. Mr. Hohnen was also a director of Kalahari Minerals and Extract Resources, having successfully negotiated the sale of both companies to Taurus (CGN). He remains on the board of Swakop Uranium, which is developing the world's second largest uranium mine and the largest mine development in southern Africa. He is also a director of ASX-listed Salt Lake Potash Limited.

Set out below are details of Mr. Hohnen's current directorships and those that he has held within the last five years.

Concurrent with his appointment as a director of the Company, an aggregate of 2,000,000 options to acquire common shares in the capital of the Company have been granted to Mr. Hohnen, each such option being exercisable into one common share at a price of £0.9625 per share for a period of twenty-four months from the vesting date. Of the foregoing options, the first 1,000,000 options shall vest and become exercisable on the date that is the earlier of: (i) 12 months from Mr. Hohnen's appointment as a director of the Company; and (ii) either: (a) the entering into by the Company of an offtaker agreement with a customer that has been procured by Mr. Hohnen OR the participation by a potential offtake partner that has been procured by Mr. Hohnen in an equity financing of the Company that results in such party holding in excess of three percent (3%) of the voting shares of the Company; or (b) the provision by a potential offtake partner that has been procured by Mr. Hohnen of funding for project development as approved by the Board of Directors of the Company. The remaining 1,000,000 options shall vest and become exercisable on the date that is the earlier of: (i) 18 months from Mr. Hohnen's appointment as a director of the Company; and either: (a) the Company commences commercial production of lithium products; and (b) the Company's shares trade on the AIM Market of the London Stock Exchange at a volume weighted average price (VWAP) of not less than £1.25 for five consecutive trading days. In addition to the foregoing, Mr. Hohnen has an interest in a private company that has entered into a consultancy agreement with the Company and has been granted a further 1,000,000 options to acquire common shares in the capital of the Company, such options being exercisable at a price of £0.77 per share (for further details regarding such consultancy agreement and prior option grant, see the Company's announcement released on 25 January 2016).

Mr. Hohnen also has an interest in 606,666 common shares in the capital of the Company.

There is no further information on Mr. Hohnen, which is required to be disclosed under Schedule Two, paragraph (g) of the AIM Rules for Companies.

For further information, please contact:

ABOUT BACANORA:

Bacanora is a Canadian and London listed minerals explorer (AIM and TSX-V: BCN). The Company explores and is developing industrial mineral projects, with a primary focus on its lithium project. The Company's operations are based in Hermosillo in northern Mexico. The main assets of Bacanora are: 

· 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 NI 43-101) of 4.46 Mt LCE1 contained in 259 Mt of clay at a Li grade of 3,200 ppm and an Inferred Mineral Resource of 2.74 Mt LCE contained in 160 Mt of clay at a Li grade of 3,200 ppm.

· The Magdalena Borate Project, covering 16,503 hectares in Sonora state, Mexico, where the Company's main borate zone, El Cajon, has an Indicated Resource (in accordance with NI 43-101) of 1.17 mt of B2O3, at an eight per cent. cut-off grade. The Company has completed a number of measures to determine the geological and commercial potential of the project and is undertaking a pre-feasibility exercise to determine the economic benefit of developing the mine and constructing a processing plant on site in order to become a supplier of boric acid.

1LCE = 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.