BCN.L Regulatory News (BCN)

26 March 2018

Bacanora Lithium plc

("Bacanora Lithium" or the "Company")

Plan of Arrangement Completed

First Day of Dealings

Bacanora Lithium plc (AIM: BCN), the London listed lithium company, is pleased to announce that, on 23 March 2018, the Plan of Arrangement to re-domicile the Bacanora Group from Canada to the UK became effective. Accordingly 134,039,872 ordinary shares of 10p each in the capital of Bacanora Lithium were admitted to trading on AIM at 8.00 a.m. today under the ticker BCN. Bacanora Lithium is now the holding company for the Bacanora Group. Its website is www.bacanoralithium.com.

Former shareholders in Bacanora Canada will not receive the new Bacanora Lithium shares to which they are entitled under the Arrangement until they deposit, in accordance with the instructions set out in the Circular, a validly completed and duly executed Letter of Transmittal with the certificates representing their Bacanora Canada Shares and such other documents as may be required. Accordingly Bacanora Canada Shareholders who have not already done so are encouraged to complete and return the validly completed and duly executed Letter of Transmittal as soon as possible.

Unless otherwise defined, all capitalised terms used but not defined in this announcement shall have the meaning given to them in the Circular sent to Bacanora Minerals Shareholders dated 16 February 2018.

For further information, please contact:

ABOUT BACANORA LITHIUM:

Bacanora Lithium is a London listed lithium exploration and development company (AIM: BCN). The Company is exploring for, and developing a pipeline of international lithium projects, with a primary focus on its 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 Project1, 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 a Measured plus Indicated Mineral Resource estimate of over 5 Mt (comprising 1.9Mt of Measured Resources and 3.1Mt of Indicated Resources) of LCE2 and an additional 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 NI 43-101) 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 addition 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 tin, tungsten and lithium at different times over the past 300 years. The strategic location of the Zinnwald Lithium Project and the Falkenhain Licence provides close geographical proximity to the German automotive and downstream lithium chemical industries.

 1 The Sonora Lithium Project is comprised of the following lithium properties: 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.

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.