Unaudited Interim Results

Bradda Head Lithium Ltd

21 October 2026

 

21 October 2026

Bradda Head Lithium Ltd

("Bradda Head", "Bradda", or the "Company")

Unaudited Interim Results for the six-month period ended 31 August 2026

Bradda Head Lithium Ltd (AIM: BHL), the North America-focused lithium development group, is pleased to announce that it has today published its unaudited financial results for the six-months ended 31 August 2026. 

The interim results have been posted on the Company’s website www.braddaheadltd.com.

Operational Summary:

-           Entered into a definitive Option to Joint Venture agreement with Kennecott Exploration Company (“KEX”), a subsidiary of Rio Tinto, over the Whistlejacket lithium project;

-           Completed a three-phase rock-chip sampling program, with 303 surface samples returning grades of up to 4.24% Li₂O at the Whistlejacket project;

-           Commenced the Phase 3 drilling program, the first under Bradda Head, at the Whistlejacket project;

-           Completed a PEG technical study, with the workflow identifying Dragon, Midnight Owl and Ruby Soho as high-priority lithium targets;

-           Post period end, entered into a conditional agreement to acquire Uranium licences in Tanzania, complementing our core US lithium assets and diversifying Bradda Head into a critical mineral company.

The Company also completed a fundraise, raising total gross funds of £2.4 million, with certain Directors of the Company participating, through a direct subscription and exercise of share options, for total proceeds of US$ 1.1 million. This has strengthened our balance sheet and provided the Company with funding to complete its Phase 1 commitment at the Whistlejacket project. 

Ian Stalker, Chair of Bradda Head, commented:

“As the summer ends, we look back on the significant operational progress we have made over the last six months. We entered a definitive Option to Joint Venture with KEX at the Whistlejacket project, secured exploration permits, completed extensive rock-chip sampling that returned grades up to 4.24% Li₂O, and commenced our first Phase 3 drilling programme. Early assay results have confirmed continuity of high-grade spodumene mineralisation. Parallel technical work by SRK at San Domingo has reinforced the quality of our priority targets, while we advanced lease renewal at Basin East and strengthened our U.S. battery-supply-chain partnerships.

In July 2026 we successfully completed a fundraise that raised total gross cash of £2.4 million, strengthening the Company’s balance sheet and providing the Company with funding to complete its Phase 1 Whistlejacket commitment.

Post period end, the Company entered into a conditional agreement to acquire six uranium prospecting licences in Tanzania, marking our diversification into a broader critical minerals company and complementing our core U.S. lithium assets.

Looking ahead, our focus remains clear: complete the Whistlejacket drilling programme with the objective of delivering an initial NI 43-101 technical report and, subject to results, a maiden Mineral Resource Estimate by the end of 2027; advance the high-priority targets at San Domingo; secure the Basin East lease renewal; and continue building strategic relationships across the domestic battery value chain. We will also look to complete the acquisition of the Uranium project in Tanzania, with the objective being to develop an exploration plan in the comings months.

With a strengthened balance sheet following the July 2026 fundraise, Bradda Head is well positioned to create value as the next phase of the lithium cycle unfolds.”

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU No. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.

For further information please visit the Company's website: www.braddaheadltd.com.

Contact:

Bradda Head Lithium Limited	Beaumont Cornish	Shard Capital	Tavistock
Company	Nomad	Broker	Investor Relations
Ian Stalker, Executive Chair Denham Eke, Finance Director	James Biddle / Roland Cornish	Damon Heath / Isabella Pierre	Nick Elwes
[phone]	[phone]	[phone]	+ 44 20 7920 3150 [e-mail]

About Bradda Head Lithium Ltd.

Bradda Head Lithium Ltd is a North America-focused lithium development group. The Company's principal interests include the Basin Project, comprising Basin East and Basin West, and the San Domingo Project in Arizona.

The Basin East Project has a Measured Mineral Resource of 20 Mt at an average grade of 929 ppm Li, containing 99 kt LCE; an Indicated Mineral Resource of 122 Mt at an average grade of 860 ppm Li; and an Inferred Mineral Resource of 499 Mt at an average grade of 810 ppm Li. Together, these categories contain 2.81 Mt LCE. A plan of operations for the Basin West area was approved by the Bureau of Land Management in 2025, and the Company is progressing the associated Environmental Assessment.

The San Domingo Project comprises 248 claims covering approximately 1,850 acres, located primarily on Bureau of Land Management land, together with two Arizona State Land Department claims. To date, 108 drill holes totalling 13,089 m have been completed across three drilling campaigns. More than 1,000 pegmatites have been mapped across the project area; 18 have been identified as priority targets and six have been drill-tested. Two Notices of Intent are active, and updated drilling plans may be implemented once the required permits have been secured. The next exploration phase is intended to further delineate prospective areas and assess their potential to support a Mineral Resource Estimate prepared in accordance with NI 43-101.

The Whistlejacket Project comprises nine Arizona State Land Department Mineral Exploration Permits covering 2,010.7 hectares. The project is subject to a definitive option-to-joint-venture agreement with Kennecott Exploration Company and targets spodumene-bearing pegmatites.  Kennecott's previous exploration included 19 diamond drill holes totalling 4,188 m, all of which intersected lithium mineralisation. Reported results include 51.0 m at 1.11% Li₂O in hole WSTL0009 and 19.47 m at 1.66% Li₂O in hole WSTL0008. Surface mapping, sampling, airborne geophysics and high-resolution aerial imagery have also contributed to the geological dataset for the project.

The Group intends to continue advancing its three principal projects in Arizona while seeking to realise value from its other prospective pegmatite and brine assets in Arizona, Nevada and Pennsylvania.

Nominated Adviser

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.

Distribution

This announcement has been notified via a Regulatory Information Service and it is not authorised for distribution into North America or any other jurisdiction where to do so would constitute a violation of the relevant laws or regulations of that jurisdiction.

Unaudited Interim Report and Condensed Consolidated Interim Financial Statements

For the six-month period ended 31 August 2026

Chair's statement

Introduction

I am pleased to present the unaudited Interim Results for Bradda Head Lithium Limited (the “Company” or “Bradda Head”) for the six-month period ended 31 August 2026.

Operational review

The six-month period to 31 August 2026 has been one of meaningful progress for Bradda Head. Against a lithium market that has recovered from its 2025 lows but remains volatile, the Company has kept its focus on its highest-quality assets, secured the funding needed to move them forward and, for the first time, put a drill rig to work under Bradda Head’s own management at the Whistlejacket Project. At the same time, we continue to screen new opportunities, assessing each against the Company’s thresholds for potential economic feasibility before committing capital.

Whistlejacket Project

In early 2026, the Company entered into a definitive Option to Joint Venture agreement with Kennecott Exploration Company (“KEX”), a subsidiary of Rio Tinto, over the Whistlejacket Lithium Project. The project lies on Arizona State Land, approximately 80 km from San Domingo and 11 km from the Basin Project. Under the agreement, Bradda Head can earn a 51% interest by spending a minimum of US$5.5 million in Phase 1, with the option to earn a further 9% by spending an additional US$12 million in Phase 2.

Whistlejacket comes with a strong technical foundation. KEX’s previous exploration comprised 19 diamond drill holes totalling 4,188 meters, every one of which intersected lithium mineralization, including 51.0 meters at 1.11% Li₂O in WSTL0009 and 19.47 meters at 1.66% Li₂O in WSTL0008. Independent mineralogical work confirmed that the lithium is hosted predominantly in low-iron spodumene with encouraging Dense Media Separation (“DMS”) potential.

Following the Arizona State Land Department’s approval of exploration and drilling permits in May 2026, the Company and KEX formally established a Technical Committee to oversee exploration, and the first-year budget was approved. Bradda Head then completed a three-phase rock-chip sampling program, with 303 surface samples returning grades of up to 4.24% Li₂O. All samples showed low iron contents (below 1.0% Fe), and elevated tantalum, niobium, cesium and rubidium values confirm a well-fractionated LCT pegmatite system. This work refined the 2026 drill targets and identified several new prospective areas outside the current permitted footprint, including targets generated by the Company’s own exploration team.

The Company’s successful fundraise in July 2026 allowed us to secure an Arizona-licensed drilling contractor, and the Phase 3 drilling program, the first under Bradda Head, commenced in August 2026. The program is designed to infill and expand the mineralization defined by KEX and to support an initial NI 43-101 technical report and, subject to continued exploration success, a maiden Mineral Resource Estimate (“MRE”) by the end of 2027. The first three holes all intersected broad zones of visible fresh spodumene, and in October 2026 the Company reported assay results from the first hole, WSTL0020. Highlights include:

• 31.8 meters at 1.07% Li₂O from 161.85 meters downhole, including a higher-grade interval of 20.47 meters at 1.33% Li₂O;
• two narrower pegmatites higher in the hole returning 2.49 meters at 1.07% Li₂O and 2.96 meters at 1.22% Li₂O; and
• a strong LCT pathfinder suite (Ta, Nb, Be, Cs, Rb) and low iron, consistent with the fresh, unweathered spodumene logged in the field.

These results confirm the continuity of the mineralized body previously drilled by KEX. The hangingwall and footwall mafic schists also host holmquistite, a lithium-bearing amphibole, with intervals of up to 2.62 meters at 0.83% Li₂O, which will be evaluated further as drilling continues. Assays for WSTL0021 and WSTL0022 and WSTL0023 are pending, and drilling continues to define the three-dimensional shape of the main mineralized body.

San Domingo Project

In May 2026, the Company announced the results of technical studies completed at San Domingo by SRK Consulting (UK) Limited (“SRK”), which applied SRK’s proprietary Pegmatite Evaluation from Geochemistry (“PEG”) workflow to whole-rock assay data from the Company’s historic rock-chip sampling and drill core. The study confirms San Domingo as a highly evolved and fertile LCT pegmatite system, with additional upside from cesium, tantalum and tin enrichment, and supports the presence of preserved primary spodumene mineralization, a key indicator of future resource potential and metallurgical performance.

The PEG workflow identified Dragon, Midnight Owl and Ruby Soho as high-priority lithium targets, consistent with the Company’s own prior analysis. Dragon and Midnight Owl stand out for their strong fractionation signatures and well-preserved spodumene, with drill hole SD-DH22-024 at Midnight Owl highlighted as one of the best-mineralized locations evaluated. Ruby Soho is considered sufficiently prospective to justify a maiden drilling program. All three targets hold BLM-approved Notice of Intent (“NOI”) drilling permits and are incorporated into the Company’s planned drilling programs. The Company intends to apply the PEG methodology across its wider Arizona pegmatite portfolio, including Whistlejacket.

Basin Project

The 20-year Arizona State Land Department (“ASLD”) mineral lease at Basin East is due to expire in 2026, and the Company has initiated the renewal process. As part of this, the Company has submitted a Mineral Development Report to the ASLD and is working with the department to confirm the next steps towards renewing the lease for a further 20 years.

Wikieup Project

The Company continues to maintain its position at Wikieup, an area that is attracting renewed attention, particularly with NTEC actively advancing the nearby Big Sandy Lithium Project.

Texas and Pennsylvania Brines

The Company continues to maintain its positions across the Texas brine space and has held discussions with a lithium-brine development company on options and potential collaboration for future work. These discussions remain high level and have not resulted in any agreement or memorandum of understanding. In Pennsylvania, the Company retains its position in the oil-brine asset and is evaluating opportunities to realize value from it.

Strengthening the U.S. Battery Supply Chain

In Pennsylvania, we signed an Accommodation Agreement with SunShare that allows a solar facility to be developed on approximately 140 acres in Lawrence County, while Bradda Head keeps its brine mineral rights. The agreement gives the Company near-term payments and moves our lease costs to the developer once construction begins. It shows that renewable energy and critical mineral development can share the same land, while keeping a potential future source of domestic lithium in our portfolio.

This long-term focus on U.S. lithium supply sits alongside our membership in the Defense Industrial Base Consortium (“DIBC”) and our partnerships across the U.S. battery value chain. These include our Memorandum of Understanding with Tyfast, a U.S. battery-technology developer. Our ambition is not only to supply domestically produced critical minerals, but also to support their integration into next-generation battery technologies, helping to build a more secure, vertically integrated U.S. supply chain from mine to cell.

Diversification into Uranium

Post period end, the Company announced that it had entered into a conditional, definitive and binding asset purchase agreement with US1 Critical Minerals Ltd (ASX:USC) (“US1”), to acquire six prospecting Uranium licences in Tanzania. This acquisition naturally extends Bradda Head’s strategy as it becomes a diversified critical minerals company. Uranium, like lithium, is vital to the energy transition and Western supply-chain security. The Tanzania licences deliver an established, exploration-ready resource at low upfront cost, with most consideration tied to milestones. The deal complements the Company’s core U.S. lithium assets, broadening exposure and diversifying risk, while the Arizona Whistlejacket project remains the primary near-term value driver.

Financial Review

During the six-month period ended 31 August 2026, the Company recorded a loss for the period of US$ 1,185,583 (period ended 31 August 2025: loss of US$ 727,268). As at period end, cash and cash deposit balances stood at US$ 2,565,085 (28 February 2026: US$ 870,221), capitalised deferred mining, exploration, licence and permit costs stood at US$ 15,103,339 (28 February 2026: US$ 14,591,479), and total assets were US$ 17,931,472 as at 31 August 2026 (28 February 2026: US$ 15,735,993).

During the period, the Company completed a fundraise, issuing a total of 101,477,529 new ordinary shares of no-par value for total gross proceeds of £2.28 million. Certain Directors of the Company participated in the fundraise, through a direct subscription and exercise of share options, for total proceeds of US$ 1.1 million, with 40,138,889 new ordinary shares being issued.

The outstanding convertible loan agreements were also converted into ordinary shares, with the carrying amount plus accrued interest of US$ 1,873,547.05 converting into 68,488,299 shares.

Approach to Risk and Corporate Governance

The Company’s general risk appetite is a moderate, balanced one that allows it to maintain appropriate growth, profitability and scalability, whilst ensuring full corporate compliance. Bradda Head’s risk appetite has been classified as high under an “impact” matrix defined as Zero, Low, Medium and High. Appropriate steps have been taken and adequate controls implemented to monitor the risks of the Company, and the appropriate committees and reporting structures have been established, which under the leadership of the Chair, will monitor risks facing the Company.

The Board of Bradda Head is committed to best practice in corporate governance throughout the Company. The Directors have agreed to comply with the provisions of the Quoted Companies Alliance (“QCA”) Corporate Governance Code to the extent which is appropriate to its nature and scale of operations, and we are reporting against the 2023 version of the Code for the first time this year. Details of the Company’s compliance with the QCA code can be found in the audited financial statements for the year ended 28 February 2026.

Strategy and Outlook

The past twelve months have been a reminder of how quickly sentiment in the lithium market can turn. After bottoming in mid-2025, prices recovered strongly through the first half of 2026, with battery-grade lithium carbonate in China reaching a two-year high of around CNY 200,000 per tonne in May 2026. The rally was driven by a combination of supply disruptions, most notably the suspension of CATL’s Jianxiawo lepidolite mine in China and Zimbabwe’s suspension of lithium concentrate exports in February 2026, and by demand from stationary energy storage that continued to outperform expectations.

Since then, the market has given back much of those gains. Higher prices brought idled capacity back online, including restarts at Bald Hill and Finniss in Australia, and Chinese carbonate and spodumene prices each fell by more than 20% over the third quarter. In mid-October 2026, Chinese lithium carbonate futures fell below CNY 110,000 per tonne for the first time since late 2025, as traders began to price in a potential supply surplus in 2027. Physical fundamentals, however, remain firmer than the futures market suggests: Chinese inventories fell by more than 40% between June and September, and several analysts expect prices to form a broad bottom over the coming quarter rather than revisit the lows of 2025.

The underlying demand story remains intact. Battery energy storage is now one of the most important drivers of lithium consumption, supported by grid investment, the growth of AI and data-centre power requirements, and the need for resilient electricity networks. The United States installed a record level of energy storage in 2025, and storage demand has helped carry the market through a period of slower electric vehicle growth in China and a more price-sensitive consumer in Europe, where the EU has moved to limit imports of lower-cost Chinese hybrid vehicles. Electrification across transport, industry and the grid continues to advance, and we expect demand growth to remain robust over the long term.

For U.S. projects, the policy backdrop has strengthened considerably. Lithium has been identified as a national-security priority, with the January 2026 Section 232 action on processed critical minerals, the U.S. Government’s equity-linked participation in Thacker Pass, the planned Project Vault strategic stockpile and expanded Export-Import Bank financing all signalling a clear intent to build a secure domestic supply chain. Arizona pegmatite projects on State and Federal land, close to infrastructure and to the growing battery manufacturing base in the U.S. Southwest, are well placed to benefit from this shift.

Investor appetite for junior lithium explorers remains cautious, with much capital attracted to precious metals and many explorers pivoting to other commodities. At the same time, consolidation is continuing, and strategic players are committing capital to long-term supply, as shown by recent acquisitions in Australia, Ganfeng’s investment in Lithium Argentina and long-term offtake agreements with major traders. We believe this environment will continue to separate well-funded companies with quality assets from the rest.

Bradda Head intends to stay the course and remain lithium focused. Following the July 2026 fundraise, the Company is funded to deliver its Whistlejacket drilling program alongside a world-class partner, with the clear objective of an initial NI 43-101 technical report and, subject to results, a maiden Mineral Resource Estimate by the end of 2027. In parallel, we will advance the priority targets at San Domingo, secure the renewal of the Basin East lease, and continue to build partnerships across the U.S. battery value chain. We will also look to complete the acquisition of the Uranium project in Tanzania, with the objective being to develop an exploration plan in the comings months.

We expect lithium prices to remain volatile in the near term, but we remain confident in the market’s long-term fundamentals and in the Company’s position to create value as the next phase of the cycle unfolds.

John ‘Ian’ Stalker

Chair

20 October 2026

Condensed Interim Consolidated Statement of Comprehensive Income

for the period ended 31 August 2026

		Six-month period ended 31 August 2026 (unaudited)	Six-month period ended 31 August 2025 (unaudited)
	Notes	US$	US$
Expenses
General and administrative	2	(1,105,597)	(761,153)
Foreign exchange gain/(loss)		401	(2,067)
		───────	───────
Operating loss		(1,105,196)	(763,220)
Other income
Unrealised (loss)/gain on investment		(17,628)	28,539
Finance income		3,485	7,413
Finance costs		(66,244)	-
		───────	───────
(Loss)/profit before income tax		(1,185,583)	(727,268)
Income tax expense		-	-
		───────	───────
(Loss)/profit for the period		(1,185,583)	(727,268)
		═══════	═══════
Other comprehensive income - foreign currency translation reserve		-	-
		───────	───────
Total comprehensive (loss)/profit for the period		(1,185,583)	(727,268)
		═══════	═══════
Basic (loss)/profit per share (US cents)	12	(0.28)	(0.19)
Diluted (loss)/profit per share (US cents)	12	(0.28)	(0.19)

The notes on pages 12 to 19 form an integral part of these condensed consolidated interim financial statements.

Condensed Interim Consolidated Statement of Financial Position

as at 31 August 2026

	Notes			31 August 2026 (unaudited)	28 February 2026 (audited)
				US$	US$
Non-Current assets
Deferred mining and exploration costs	3			12,597,731	12,331,686
Exploration permits and licences	4			2,505,608	2,259,793
Plant and equipment	8			-	4,167
Advances and deposits	6			109,813	109,813
Investment at fair value through profit or loss				14,831	32,460
				───────	───────
Total non-current assets				15,227,983	14,737,919
				───────	───────
Current assets
Cash and cash equivalents				2,565,085	870,221
Trade and other receivables	6			138,404	127,853
				───────	───────
Total current assets				2,703,489	998,074
				───────	───────
Total assets				17,931,472	15,735,993
				═══════	═══════
Equity
Share premium	9			35,614,841	30,616,373
Retained deficit				(18,060,844)	(16,875,261)
				───────	───────
Total equity				17,553,997	13,741,112
				───────	═══════
Non-current liabilities
Loans payable	11			-	996,343
Derivative liability	11			-	810,960
				───────	───────
Total non-current liabilities				-	1,807,303
				───────	───────
Current liabilities
Trade and other payables	7			377,475	187,578
				───────	───────
Total current liabilities				377,475	187,578
				───────	───────
Total liabilities				377,475	1,994,881
				═══════	═══════
Total equity and liabilities				17,931,472	15,735,993
				═══════	═══════

The notes on pages 12 to 19 form an integral part of these condensed consolidated interim financial statements.

These financial statements were approved by the Board of Directors on 20 October 2026 and were signed on their behalf by:

Denham Eke 

Director

Condensed Interim Consolidated Statement of Changes in Equity

for the period ended 31 August 2026

		Share premium	Retained deficit	Total
		US$	US$	US$
Balance at 1 March 2026 (audited)		30,616,373	(16,875,261)	13,741,112
Total comprehensive loss for the period
Loss for the period		-	(1,185,583)	(1,185,583)
		───────	───────	───────
Total comprehensive loss for the period		-	(1,185,583)	(1,185,583)
Transactions with owners of the Company
Shares issued for cash		3,011,856	-	3,011,856
Shares issued for options exercised		152,153	-	152,153
Shares issued on conversion of loan notes		1,855,118	-	1,855,118
Shares issued to settle broker fees		66,881		66,881
Capitalised share issue costs		(87,540)	-	(87,540)
		───────	───────	───────
Total transactions with owners of the Company		4,998,468	-	4,998,468
		───────	───────	───────
Balance at 31 August 2026 (unaudited)		35,614,841	(18,060,844)	17,553,997
		═══════	═══════	═══════

The notes on pages 12 to 19 form an integral part of these condensed consolidated interim financial statements.

Condensed Interim Consolidated Statement of Changes in Equity

for the period ended 31 August 2025 (continued)

		Share premium	Retained deficit	Total
		US$	US$	US$
Balance at 1 March 2025 (audited)		30,616,373	(13,958,046)	16,658,327
Total comprehensive loss for the period
Loss for the period		-	(727,268)	(727,268)
		───────	───────	───────
Total comprehensive loss for the period		-	(727,268)	(727,268)
Transactions with owners of the Company
Equity settled share-based payments (note 10)		-	-	-
		───────	───────	───────
Total transactions with owners of the Company		-	-	-
		───────	───────	───────
Balance at 31 August 2025 (unaudited)		30,616,373	(14,685,314)	15,931,059
		═══════	═══════	═══════

The notes on pages 12 to 19 form an integral part of these condensed consolidated interim financial statements.

Condensed Interim Consolidated Statement of Cash Flows

for the period ended 31 August 2026

	Notes	Six-month period ended 31 August 2026 (unaudited)	Six-month period ended 31 August 2025 (unaudited)
		US$	US$
Cash flows from operating activities
(Loss)/profit before income tax		(1,185,583)	(727,268)
Adjusted for non-cash and non-operating items:
Depreciation	8	4,167	11,675
Unrealised fair value gain on investment		17,628	(28,539)
Cash interest income		(3,485)	(7,413)
Loan note interest accrual	11	66,244	-
Realised foreign exchange gain on loan note conversion	11	(18,429)	-
Expenses settled in shares		66,881	-
		───────	───────
		(1,052,577)	(751,545)
Change in trade and other receivables		89,449	(19,339)
Change in trade and other payables		189,898	(47,168)
		───────	───────
Net cash flows used by operating activities		(773,230)	(818,052)
Cash flows from investing activities
Amounts paid for deferred mining and exploration costs	3	(266,045)	(160)
Amounts paid for licences and permits	4	(245,815)	(188,600)
Cash (paid)/received for bonding deposit		(100,000)	-
		───────	───────
Net cash flows used by investing activities		(611,860)	(188,760)
Cash flows from financing activities
Cash interest income		3,485	7,413
Cash received from fundraise and share options exercised	9	3,076,469	-
		───────	───────
Net cash flows from financing activities		3,079,954	7,413
		───────	───────
Increase/(decrease) in cash and cash equivalents		1,694,864	(999,399)
Cash and cash equivalents at beginning of period		870,221	1,086,596
Effect of foreign exchange on cash balances		-	-
		───────	───────
Cash and cash equivalents at end of period		2,565,085	87,197
		═══════	═══════

The notes on pages 12 to 19 form an integral part of these condensed consolidated interim financial statements.

1 Reporting Entity

Bradda Head Lithium Limited (the “Company”) is a company domiciled in the British Virgin Islands. The address of the Company’s registered office is Craigmuir Chambers, Road Town, Tortola, British Virgin Islands. The Company and its subsidiaries together are referred to as the “Group”.

The Company is a lithium exploration Group focused on developing its projects in the USA.

These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the last annual consolidated financial statements as at and for the year ended 28 February 2026 (“last annual financial statements”). They do not include all of the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance since the last annual financial statements.

The financial information in this report has been prepared in accordance with the Company’s accounting policies and in consistency with the last annual financial statements. Full details of the accounting policies adopted by the Company are contained in the financial statements included in the Company's annual report for the year ended 28 February 2026, which is available on the Group's website: www.braddaheadltd.com. These unaudited condensed consolidated interim financial statements should be read in conjunction with the audited Consolidated Financial Statements for the year ended 28 February 2026.

Going concern

The unaudited interim financial statements have been prepared on a going concern basis, taking into consideration the level of cash held by the Company. The Directors have a reasonable expectation that the Company will have access to adequate cash resources, through funding from its major shareholder and further equity fund raises, for its continuing existence and projected activities for the foreseeable future, and for these reasons, continue to adopt the going concern basis in preparing the financial statements for the six-month period ended 31 August 2026.

2 General and administrative

The Group’s general and administrative expenses include the following:

	Six-month period ended 31 August 2026 (unaudited) US$	Six-month period ended 31 August 2025 (unaudited) US$
Auditors’ fees	53,400	39,200
Directors and management fees and salaries	271,849	175,839
Legal and accounting	90,097	36,730
Contractor costs	78,761	93,126
Professional and marketing costs	213,091	142,981
Other administrative costs	397,010	273,277
	───────	───────
Total	1,104,208	761,153
	═══════	═══════

3 Deferred mine exploration costs

The schedule below details the exploration costs capitalised to date:	Total
	US$
Cost and net book value
At 28 February 2025	12,331,526
	═══════
Capitalised during the period	160
	──────────
At 28 February 2026 (audited)	12,331,686
	═══════
Capitalised during the period	266,045
	───────
At 31 August 2026 (unaudited)	12,597,731
Cost and net book value
At 31 August 2026 (unaudited)	12,597,731
At 28 February 2026 (audited)	12,331,686
	═══════

The recoverability of the carrying amounts of exploration and evaluation assets is dependent on the successful development and commercial exploitation or sale of the respective area of interest, as well as maintaining the assets in good standing. The Group assessed the DMEC relating to areas for which licenses and permits are held, for impairment as at 31 August 2025. The Board concluded that no facts and circumstances have been identified which suggest the recoverable amount of these assets would not exceed the carrying amount and, as such, no impairment was recognised during the period.

During the year ended 28 February 2026, an impairment charge of US$ Nil was recognised. 

4 Exploration permits and licences

The schedule below details the exploration permit and licence costs capitalised to date:	Total
	US$
Cost and net book value
At 28 February 2025 (audited)	3,089,626
	──────────
Capitalised during the period	200,042
Licences impaired during the year	(1,029,875)
	──────────
At 28 February 2026 (audited)	2,259,793
	═══════
Capitalised during the period	245,815
	───────
At 31 August 2026 (unaudited)	2,505,608
	═══════
Cost and net book value
At 31 August 2026 (unaudited)	2,505,608
At 28 February 2026 (audited)	2,259,793
	═══════

4 Exploration permits and licences (continued)

The Group assessed the carrying amount of the licences and permits held for impairment as at 31 August 2026. The Board concluded that no facts and circumstances have been identified which suggest the recoverable amount of these assets would not exceed the carrying amount and, as such, no impairment was recognised during the period.

The Group assessed the carrying amount of the licences and permits held for impairment as at 28 February 2026. During the year, upon a detailed review certain project licences and permits that were no longer considered core, were not renewed, and thus an impairment charge of US$ 1,029,875 was recognised during the year ended 28 February 2026 (28 February 2025: US$ Nil). This doesn’t impact on the MRE defined over the Basin project, dated August 2024, and the Company remains positive about the prospects of the remaining licence and permit areas.

5 Investment in subsidiary undertakings

As at 31 August 2026 and 28 February 2026, the Group had the following subsidiaries:

Name of company	Place of incorporation	Ownership interest	Principal activity
Bradda Head Limited*	BVI	100%	Holding company of entities below
Zenolith (USA) LLC	USA	100%	Holds USA lithium licences and permits
Verde Grande LLC	USA	100%	Holds USA lithium licences and permits
Gray Wash LLC	USA	100%	Holds USA lithium licences and permits
San Domingo LLC	USA	100%	Holds USA lithium licences and permits

*  Held directly by the Company. All other holdings are indirectly held through Bradda Head Limited

The condensed interim consolidated financial statements include the results of the subsidiaries for the full interim period from 1 March 2026 to 31 August 2026, and up to the date that control ceases.

6 Trade and other receivables and advances and deposits

 Non-current

	31 August 2026 (unaudited)	28 February 2026 (audited)
	US$	US$
Advances and deposits	100,000	109,813
	═══════	═══════

Current

	US$	US$
Prepayments	38,404	127,853
	═══════	═══════

7 Trade and other payables

	31 August 2026 (unaudited)	28 February 2026 (audited)
	US$	US$
Trade payables	343,772	139,961
Accrued expenses and other payables	33,703	47,617
	───────	──────
	377,475	187,578
	═══════	═══════

8 Plant and equipment

	Motor vehicle	Other equipment	Total
Cost	US$	US$	US$
As at 28 February 2025 and 28 February 2026 (audited)	114,390	50,000	164,390
Additions during the period	-	-	-
	──────	──────	──────
As at 31 August 2026 (unaudited)	114,390	50,000	164,390
	══════	══════	══════
	Motor vehicle	Other equipment	Total
Accumulated depreciation	US$	US$	US$
As at 28 February 2025 (audited)	(111,048)	(29,167)	(140,215)
Charge for the year	(3,342)	(16,666)	(20,008)
	──────	──────	──────
As at 28 February 2026 (audited)	(114,390)	(45,833)	(160,223)
	══════	══════	══════
Charge for the period	-	(4,167)	(4,167)
	──────	──────	──────
As at 31 August 2026 (unaudited)	(114,390)	(50,000)	(164,390)
	══════	══════	══════
Carrying amount
As at 31 August 2026 (unaudited)	-	-	-
As at 28 February 2026 (audited)	-	4,167	4,167
	══════	══════	══════

9 Share premium

 Authorised

 The Company is authorised to issue an unlimited number of nil par value shares of a single class.

	Shares	Share capital	Share premium
Issued ordinary shares of US$0.00 each		US$	US$
At 28 February 2026 (audited)	390,609,439	-	30,616,373
Shares issued during the period - fundraise	101,477,529	-	3,011,856
Shares issued during the period – share options exercised (note 10)	7,250,000	-	152,153
Shares issued during the period – loan note conversion (note 11)	68,488,299	-	1,855,118
Shares issued to settle broker fees	2,222,222	-	66,881
Capitalised share issue costs	-	-	(87,540)
	──────	──────	──────
At 31 August 2026 (unaudited)	570,047,489	-	30,616,373
	═══════	═══════	═══════

During the period, the Company completed a fundraise, issuing a total of 101,477,529 new ordinary shares of no-par value for total gross proceeds of £2.28 million. Subscribing shareholders also received 1 warrant for every 2 shares acquired, with an exercise price of £0.05 each and a term of two years from warrant issue date.

As part of the fundraise, certain director options were exercised, with 7,250,000 new ordinary shares of no-par value being issued for total proceeds of US$ 113,250.

The outstanding CLA’s were also converted into ordinary shares of no-par value, with the carrying amount plus accrued interest of US$ 1,873,547.05 converting into 68,488,299 shares. Refer to note 11.

10 Equity settled share based payments

The cost of equity settled transactions with certain Directors of the Company and other participants (“Participants”) is measured by reference to the fair value at the date on which they are granted. The fair value is determined based on the Black-Scholes option pricing model.

Options and warrants

The total number of share options and warrants in issue as at the period end is set out below.

Recipient	Grant Date	Term in years	Exercise Price	Number at 1 March 2026 (audited)	Number Issued	Number Lapsed/ cancelled/expired	Number Exercised	Number at 31 August 2026 (unaudited)	Fair value
Options									US$
Directors and Participants	April 2018	5 from listing date	US$ 0.15668	146,052	-	-	-	146,052	24,028
Directors and Participants 1	June 2021	7	US$ 0.048	18,000,000	-	-	-	18,000,000	1,110,556
Directors and Participants 1	September 2021	7	£0.015	3,000,000	-	-	(1,250,000)	1,750,000	69,463
Directors and Participants 1	April 2022	5	£0.015	7,000,000	-	-	(3,000,000)	4,000,000	280,429
Directors and Participants 1	December 2022	5	£0.015	1,000,000	-	-	(1,000,000)	-	-
Directors and Participants 1	April 2023	5	£0.015	3,850,000	-	-	(1,000,000)	2,850,000	29,552
Directors and Participants	February 2024	5	£0.020	2,850,000	-	-	(1,000,000)	1,850,000	-
Warrants
Supplier warrants	July 2021	7	£0.0550	1,818,182	-	-	-	1,818,182	124,482
				───────	───────	───────	───────	───────	───────
				37,664,234	-	-	(7,250,000)	30,414,234	1,638,510
				═══════	═══════	═══════	═══════	═══════	═══════

Note

1 – The exercise price of these share options has been adjusted to be exercisable at £0.015 each.

11 Borrowings and derivative financial instruments

On 23 January 2026, the Company entered into convertible loan agreements (“CLA”) with Galloway Limited (“Galloway”) and Promaco Limited (“Promaco”). Galloway is wholly beneficially owned by Jim Mellon, and Promaco is wholly beneficially owned by John Ian Stalker, both being directors of the Company. Each of these have been accounted for as a financial liability. The loan element has been carried at amortised cost using the effective interest rate method, and the conversion feature has been classified as an embedded derivative liability, being the fair value of the conversion feature.

The table below presents the original principal amount of the CLAs issued during the year. These amounts represent the initial recognition of each instrument at the issue date, and have been subsequently allocated into their respective components in the financial statements, in accordance with applicable accounting standards.

Issue date	CLA holder	Repayment date	Original amount borrowed US$	Annual interest rate	Debt at amortised cost US$	Embedded derivative classified as a financial liability US$
23/01/2026	Galloway	23/01/2028	1,525,000	10%	828,259	696,741
23/01/2026	Promaco	23/01/2028	250,000	10%	135,781	114,219
			──────		──────	──────
Total			1,775,000		964,040	810,960
			══════		══════	══════

On 23 January 2026, the Company raised a total of US$ 1,775,000 from the issue of CLAs.

The terms of the CLAs are set out below:

• Unsecured 24-month facility (expiry being the "Maturity Date");
• Repaid amounts may not be redrawn;
• The outstanding balance of the CLAs (including interest) may be converted into new ordinary shares in the capital of the Company ("Ordinary Shares") at any time at the option of the lender;
• The amounts outstanding pursuant to the CLAs (including interest) will automatically convert into new Ordinary Shares concurrent with an equity financing by the Company to raise not less than £2 million (gross) prior to the Maturity Date (a “Qualifying Fundraise");
• Conversion Price equal to 90% of the 30-day volume weighted average price at close of trading on the last trading day prior to the date notice to convert the CLAs is proposed, if converted at the election of the lender, or a price equal to 90% of the price paid by investors participating in the Qualifying Fundraise;
• Amounts outstanding under the CLAs carry a 10% annual coupon, accruing monthly.

Term loan facility

On 25 September 2025, the Company entered into a short-term loan (“STL”) facility agreement with Galloway Limited, a related party. A summary of the terms of the are set out below:

• US$ 500,000 facility made available (no fees or set-off or contribution to costs);
• Drawn down at the request of the Company (subject to agreed use of proceeds with Galloway Limited);
• One year availability and repayment term;
• Unsecured;
• Interest at 12% per annum;
• Accelerated repayment if Company completes an equity fundraising during the term of the loan; and
• Standard events of default and warranties from both parties.

The total amount advanced under the STL plus accrued interest to 23 January 2026, was rolled into the CLA noted above.

11 Borrowings and derivative financial instruments (continued)

Embedded derivative liability

The CLAs issued during the year contain an embedded derivative financial liability (“DFL”). The DFLs arise from the conversion feature that allows the holder to convert the loan into a variable number of the Company’s equity instruments based on the Conversion Price, noted above. Due to the variability in the number of shares issued on conversion, the embedded derivative is classified as a financial liability, with the DFL initially measured at fair value through profit and loss. The fair value on the date if issue was determined using the Black Scholes valuation model, which considered the following variables:

• Expected share price volatility
• Risk-free interest rate
• Expected life of the instrument
• Potential share price on conversion

As at 31 August 2026, the carrying amount of the CLAs is as follows:

	US$
1 March 2026	1,807,303
Accrued interest	66,244
Foreign exchange gain on conversion	(18,429)
Settled for shares issued – note 9	(1,855,118)
	──────
31 August 2026	-
	══════

As part of the fundraise completed during July 2026, all outstanding CLAs were converted into ordinary shares, issuing 68,488,299 shares in full settlement.

12 Basic and diluted loss per share

The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.

The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares, on the assumed conversion of all dilutive share options.

	Six-month period ended 31 August 2026 (unaudited) US$	Six-month period ended 31 August 2025 (unaudited) US$
Loss for the period	(1,185,583)	(728,816)
Weighted average number of ordinary shares in issue	423,947,656	390,609,439
Dilutive effect of shares to be issued (Note 10)	30,414,234	37,664,234
Diluted number of ordinary shares	454,361,890	428,273,673
Basic (loss)/earnings per share (US cents)	(0.28)	(0.19)
Diluted (loss)/earnings per share (US cents)	(0.28)	(0.19)

13 Related party transactions and balances

Edgewater Associates Limited (“Edgewater”)

During the six-month period ended 31 August 2026, Directors and Officers insurance was obtained through Edgewater, which is a 100% subsidiary of Manx Financial Group (“MFG”). James Mellon and Denham Eke are Directors of MFG and Denham Eke is a Director of Edgewater.

During the period, the premium payable on the policy was US$ 40,874 (six-month period to 31 August 2025: US$ 41,576), of which US$ 37,692 was prepaid as at the period end (28 February 2026: US$ 13,859).

14 Commitments and contingent liabilities

The Group has certain obligations to expend minimum amounts on exploration works on mining tenements in order to retain an interest in them, which would be approximately US$ 257,000 during the next 12 months. This includes annual fees in respect of licence renewals. These obligations may be varied from time to time, subject to approval and are expected to be filled in the normal course of exploration and development activities of the Company.

15 Events after the reporting date

No post balance sheet events have occurred that require disclosure.

ENDS

 

END