BCN.L Regulatory News (BCN)

Bacanora Minerals Ltd

 ('Bacanora' or the 'Company')

Exercise of Warrants and Options / Issue of Equity

Exercise of Warrants

Bacanora, the Canadian and London listed (TSX-V: BCN and AIM: BCN) lithium exploration and development company focused on Sonora, Mexico, announces that the Company has issued 833,333 new common shares in the Company pursuant to the exercise of the remaining Warrants that were issued as part of the fund-raising in March 2013 at CAN$0.45 each (28p). Following this exercise the Company has no further warrants outstanding.

Exercise of Options

Furthermore, the Company announces that options over 50,000 common shares have been exercised at a price of CAN$0.25 each (15p). The options were issued in September 2012.

Issue of Equity

Application will be made for 883,333 new common shares to be admitted to trading on AIM. Admission is expected to occur on or around 4 October 2017. These shares will rank pari passu with the existing common shares in issue. Following the issue of the shares outlined above, there will be 132,789,872 Common Shares in issue. This number 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 in their interest in, the share capital of the Company.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

**ENDS**

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 NI 43-101) of 4.5 million tonnes (LCE[1]) and 2.7 million tonnes Inferred.[2] A Pre-Feasibility Study completed in Q1 2016[3] established Probable Mineral Reserve (in accordance with NI 43-101) of 2.1 million tonnes LCE and 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 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.

2 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.

3 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.