Issuance of Options, RSUs & Historic RSUs Vesting

2 October 2020

Bacanora Lithium plc

("Bacanora" or the "Company")

Issuance of Options and RSUs and Vesting of Historic RSUs

Bacanora Lithium plc (AIM: BCN), a lithium exploration and development company, announces the grant of a total of 1,258,009 Options and 466,805 Restricted Share Units ("RSUs") under the Company's Long-Term Incentive Plans. The Options and RSUs are being granted to Directors and Executive Management on the following basis. The Company also announces the issuance of 833,846 new shares in relation to the vesting of RSUs granted in September 2017.

The Options to acquire ordinary shares in the capital of the Company have been granted at a price of 24.4p, being the closing share price on 1 October 2020. Such options vest as to 1/3 on the date of grant and an additional 1/3 on each of the first and second anniversaries of the date of grant and are exercisable for a period of three (3) years. The Options are being granted to Directors and Executive Management on the following basis:

The RSUs will vest three years from the date of grant, being 2 October 2023, and the related shares (or cash alternative at the Company's discretion) will be issued on that date. The RSUs are being granted to Directors and Executive Management on the following basis

These grants of Options and RSUs will be the last to be granted under the Company's old incentive schemes. The Company has adopted new incentive schemes effective from 1 January 2020, the details of which are outlined in the Company's Interim Accounts to 30 June 2020. These schemes will be put forward for approval by the shareholders at the Company's next AGM.

Issue of Equity & Total Voting Rights 

The first tranche of RSUs originally issued in September 2017 have now reached their vesting date, and in accordance with the rules of the scheme will vest at a price of 24.4p being the higher of the closing price on 1 October 2020 or the 5 day closing VWAP to 1 October 2020. At its discretion, the Board has elected to pay the net amount due under these awards in shares rather than cash. Accordingly, 497,596 shares will be issued to Mark Hohnen and 336,250 shares will be issued to Peter Secker.

Application has been made for the 833,846 new ordinary shares to be admitted to trading on AIM ("Admission"). Admission is expected to occur on or around 7 October 2020. These new ordinary shares will rank pari passu with the existing ordinary shares in issue. Following admission of the new ordinary shares, there will be 223,815,683 ordinary 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.

For further information please visit www.bacanoralithium.com or contact:

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014

Notes to editors

Bacanora Lithium Plc is an AIM-listed (ticker 'BCN') lithium development and exploration company. The Company owns assets in Mexico and Germany. It is focused on building, in collaboration with its major shareholder and offtake partner, Ganfeng Lithium (the world's largest lithium metals producer), a 35,000 tonne per annum open pit lithium carbonate operation at its flagship asset, the Sonora Lithium Project in Mexico. The Sonora Lithium Project has 8.8 million tonnes of lithium carbonate (Li2CO3) equivalent resources, with an approximate 250-year resource life, as detailed in its December 2017 Feasibility Study.

Sonora Lithium Ltd ("SLL") is the operational holding company for the Sonora Lithium Project and owns 100% of the La Ventana concession. The La Ventana concession accounts for 88% of the mined ore feed in the Sonora Feasibility Study which covers the initial 19 years of the project mine life. SLL is owned 77.5% by Bacanora and 22.5% by Ganfeng Lithium Ltd. SLL also owns 70% of the El Sauz and Fleur concessions. 

In addition, the Company has a 50% interest in the Zinnwald Lithium Project and the Falkenhain and Altenberg Licences in southern Saxony, Germany.

Cautionary Statement Regarding Forward-Looking Information

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: commodity price volatility; general economic conditions in the UK, the United States, Mexico, Germany and globally; industry conditions, governmental regulation, including environmental regulation; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Important notice

The contents of this announcement have been prepared by and are the sole responsibility of Bacanora.