BCN.L Regulatory News (BCN)

Bacanora Minerals Ltd.

("Bacanora Minerals" or the "Company")

Megalit Lithium Joint Venture

BACANORA MINERALS LTD. ("Bacanora" or the "Company") is pleased to announce that its joint venture partner, Rare Earth Minerals plc ("REM"), has instructed the delivery of $US1,000,000 to Bacanora in connection with the exercise of its second stage option in respect of the REM Agreement 2. Upon receipt of such funds (which are en route via wire transfer), REM will have fulfilled all of its obligations in connection with the exercise of its second stage option and REM's ownership in Megalit S.A. de C.V. (the company holding the Buenavista, Megalit and San Gabriel concessions that form part of the Sonora Lithium Project in Mexico) will be increased from 10% to 30%. Bacanora will continue to own the remaining 70% interest in Megalit following the receipt of the foregoing funds. For further information on the REM Agreement 2, please refer to the Company's Admission Document dated 21 July 2014.

The funds being delivered by REM to Bacanora will be used for exploration and drilling expenditures over the following year on the concessions held by Megalit. The Company is collecting surface bulk samples from trenches excavated in lithium-bearing clay horizons on the Buenavista concession in order to determine lithium solubility and recovery from the clays there. Contingent upon the success of that work an initial program of drill testing of the clay units on the Buenavista concession will be undertaken. Prospecting, geological mapping and rock sampling of lithium bearing clay horizons on the San Gabriel and large Megalit concessions are ongoing, with the focus of delineating basin configuration and planning the next drilling campaign to test the lithium-bearing clays found as a result of this work.