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Bradda Head Lithium Ltd.
Earnings Release • Nov 19, 2025
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Earnings Release
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National Storage Mechanism | Additional information 
RNS Number : 0591I
Bradda Head Lithium Ltd
19 November 2025
19 November 2025
Bradda Head Lithium Ltd
("Bradda Head", "Bradda", or the "Company")
Unaudited Interim Results for the six-month period ended 31 August 2025
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 2025.
The interim results have been posted on the Company's website www.braddaheadltd.com.
Operational Summary:
· Received notice of acceptance for the amended Exploration Plan of Operation at Basin West, covering both Arizona state and Bureau of Land Management ("BLM") lands;
· Commenced writing of the Environmental Assessment for the Basin West project, which is required for the BLM to review and approve;
· Completed surface reconnaissance over clay exposures on newly acquired land at the Wickieup project, following a claim exchange with Arizona Lithium;
· Released results of a mineral particle ore-sorting study on a spodumene composite ore sample from San Domingo's 2023 core drilling. Preliminary bench-scale results indicate the ore is suitable to ore sorting enhancement, offering significant potential cost savings during mining construction and operation.
Ian Stalker, Chair of Bradda Head, commented:
"As summer ends, the Company is optimistic about the future of lithium and is positioned to ride the upcoming wave of momentum through its quality and diverse portfolio. Lithium prices have stabilized and are witnessing a steady increase as supply lines have tightened and mine permitting in China temporarily postponed operations at some key producers. Advances continue in the lithium oil-brine space in Arkansas and Texas with large acquisitions and mergers, highlighting long term commitments to developing lithium in the USA.
Our strategy is to maintain a lean and nimble experienced team with focused exploration efforts on the identification of opportunities within our own portfolio whilst also examining the potential acquisition of new projects; whether they're open for staking or joint venture. All permits are in hand for San Domingo to advance this project, whilst further permitting continues on Basin West where the final stages of the Environmental Assessment permit are being fine tuned for delivery to the BLM, once our internal consultants finalize important reviews.
The Company continued discussions with a lithium oil brine development company, ongoing through the summer, to potentially acquire or lease our properties in Texas and Pennsylvania and,while these discussions remain at a high level, we are encouraged by the direction of the discussions.
Lastly, the Company continues looking for high quality lithium projects to complement San Domingo and has been conducting regional prospecting on pegmatites not previously described on geologic maps or in historic literature. There is optimism a new, unknown lithium bearing pegmatite could be hiding in plain sight, only to be discovered with diligent field examination. The team maintains its commitment to discovering a new pegmatite swarm in Arizona which is proximal to our existing projects."
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 / Josephine Clerkin |
| +44 1624 639 396 | +44 20 7628 3396 | +44 207 186 9927 | + 44 20 7920 3150 [email protected] |
About Bradda Head Lithium Ltd.
Bradda Head Lithium Ltd. is a North America-focused lithium development group. The Company currently has interests in a variety of projects, the most advanced of which are in Central and Western Arizona: The Basin Project (Basin East Project, and the Basin West Project) and the Wikieup Project.
The Basin East Project has a Measured Mineral Resource of 20 Mt at an average grade of 929 ppm Li for a total of 99 kt LCE and 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 for a total of 2.81 Mt LCE. The Group intends to continue to develop its three phase one projects in Arizona, whilst endeavouring to unlock value at its other prospective pegmatite and brine assets in Arizona, Nevada, and Pennsylvania. All of Bradda Head's licences are held on a 100% equity basis and are in close proximity to the required infrastructure. Bradda Head is quoted on the AIM of the London Stock Exchange with the ticker of BHL.
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.
Unaudited Interim Report and Condensed Consolidated Interim Financial Statements
For the six-month period ended 31 August 2025
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 2025.
Operational review
The six-month period to 31 August 2025 has been challenging but we remain positive. The Company sees gradual and steady improvements in the lithium markets and continues to focus our efforts on key projects and to ensure the Company is ready to advance quickly when the market changes. The Company is also seeking new opportunities, constantly assessing if they merit acquisition and meet Company thresholds of potentially becoming economically feasible.
Basin Project
During April 2025, the Company received notice of acceptance of the amended Exploration Plan of Operation ("EPO") at Basin West, both in the state of Arizona and on Bureau of Land Management ("BLM") lands. The amended EPO at Basin West includes changes to build drill pads and construct new access routes to the area. The Company has initiated the writing of the EA (Environmental Assessment) which is required for the BLM to review and approve but also will be open for public comment and further scrutiny. While we could have pursued the Fast-41 permitting route (a 15-day process) as a means of pushing through the EA, dialog with the Kingman BLM settled upon the finalization of the EA process directly with them to avoid potential lawsuits and receive priority status. Prior to sending the draft EA to the BLM, we will have our internal environmental consultants review for accuracy but feel confident this is the correct course.
Bradda Head's Chief Operations Officer, Joey Wilkins, and Bradda Head's geologist, Brendan Fenerty, spearheaded the Company's contribution to a publication released in the Society of Economic Geologists by members of the Arizona Geological Survey, in collaboration with Bradda Head, on the article titled: Geology, Geochemistry, and Potential Origins of the Basin Volcano-Sedimentary Lithium Deposit, Kaiser Spring Volcanic Field, Northwestern Arizona, U.S.A.
Wikieup Project
The Company completed surface reconnaissance over clay exposures on the new land acquired in the claim exchange with Arizona Lithium. The work confirms the widespread presence of green to tan clays that resemble those surrounding the Big Sandy resource, thus proving the land swap enhanced the Company's opportunity to expand exploration drill targets in the clay environment. Arizona Lithium Corp, prior owners of the Big Sandy clay resource, have sold their interest to NTEC, the Navajo Transitional Energy Company, and New Mexico based tribal group that develops energy through the mining of coal, but have limited experience in lithium.
San Domingo Project
During April 2025, the Company released the results of a mineral particle ore-sorting study announced in October 2024. The program was conducted on a spodumene composite ore sample from San Domingo's core drilling in 2023, and was supervised by ABH Engineering Inc.
The interpretive and preliminary bench-scale results indicate the spodumene ore is amenable to ore sorting enhancement, which can provide significant potential cost savings during mining construction and operation, as well as identifying a low water usage quick and efficient route to sustainable operation
Highlights from the study include:
· Results are indicative of potentially producing an in-country direct shipping spodumene ore after particle mineral sorting and separation of wall rock and waste material;
· Waste product containing virtually 0% Lithium, a sellable aggregate product for the local Arizona infrastructure demand;
· Intermediate product containing low grade lithium would be stockpiled for further treatment;
· Recommendations to implement a Phase 2 test with a representative bulk sample (300-500kg);
· Examine economic optimization including potential stockpiling; and
· Lowering resource cut-off grade.
Following this, the Company received approval of bonding on Notice of Intent ("NOI") drilling permits at San Domingo, in the state of Arizona and on Bureau of Land Management ("BLM") lands.
Highlights include:
· Bond approval on the Dragon NOI by the BLM to build 37 drill pads on the North and South targets;
· Bond approval on the San Domingo North NOI by the BLM to build 35 drill pads on the Ruby Soho, Midnight Owl, and Lone Giant targets; and
· Acquired a mineral lease for 160 acres of Arizona State Lands at San Domingo where new outcrops of spodumene bearing pegmatites were discovered.
Exploration Opportunities
Regional reconnaissance has been extended beyond the property boundaries at both San Domingo and Basin with a program looking for new opportunities in pegmatites and clays throughout Arizona. New target areas were identified through detailed review of governmental datasets that include geochemical surveys and mineral/mine localities. The work has led to the identification and detection of large belts of pegmatites and sedimentary basins containing clays worthy of field examination. The reconnaissance style field work encountered lithium-anomalous clays and pegmatites with beryl and muscovite, but none containing significant spodumene. Additional areas of pegmatites have been identified further to the northern part of Arizona, but yet to be examined pending a more robust budget. These new areas are of interest as competitors are active in the area searching for REE's, revealing the potential for a mineral-rich belt.
The Company examined a spodumene-bearing property in North Carolina within the well known Spodumene-Tin belt and in proximity to Kings Mountain (Albemarle), but decided it was too small for acquisition, and commercial terms couldn't be reached with the owners.
The Company has reviewed lithium brine properties in Nevada that offer unique characteristics with potential synergies to the Wilson and Eureka brine projects, with evaluations ongoing at a high level.
Texas Brines
The Company continues to maintain positions throughout the Texas brine space and has been engaged with a lithium-brine development company discussing options and potential collaboration for future work. Discussions are purely high level and have not resulted in any agreements or MOUs.
Pennsylvania Brines
The Company continues to maintain our position with the Pennsylvania oil brine asset and is evaluating various opportunities to realise value.
Financial Review
During the six-month period ended 31 August 2025, the Company recorded a loss for the period of US$ 727,268 (period ended 31 August 2024: profit of US$ 2,176,472). As at period end, cash and cash deposit balances stood at US$ 87,197 (28 February 2025: US$ 1,086,596), capitalised deferred mining, exploration, licence and permit costs stood at US$ 15,609,912 (28 February 2025: US$ 15,421,152), and total assets were US$ 16,004,701 as at 31 August 2025 (28 February 2025: US$ 16,779,135).
Post period end, the Company entered into a short-term loan facility agreement for US$ 500,000 with Galloway Limited, a related party and significant shareholder. The funding was provided in connection with the undertaking made by Galloway Limited as noted in the audited statutory accounts for the year ending 28 February 2025 to provide support for the Company to maintain its good standing and will be used for general working capital purposes.
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 for Small and Mid-Size Quoted Companies (2018) to the extent which is appropriate to its nature and scale of operations. Details of the Company's compliance with the QCA code can be found in the audited financial statements for the year ended 28 February 2025.
Strategy and Outlook
The lithium market appears to have levelled off and stabilized while numerous mines in China ran into permitting issues that temporarily "bumped" prices of lithium carbonate and lithium hydroxide. The global markets remain relatively stable with European countries continuing their "buying-in" mentality to reduction of carbon footprint through the purchasing of EV's but appear to be looking for cheaper models, some originating from China. USA-eligible EV's have seen an uptick in sales as tax credits and incentives came to an end on September 30. Battery storage maintains a steady pace throughout the minor fluctuations in EV sales, essentially carrying the lithium market through the dip. Battery storage is highly underrated and could carry the depressed EV sales through the next few years as it provides some states and regions of the world with intelligent energy storage to deal with climate fluctuations and occasional "brown-outs" from power facilities.
Retail buyers and institutional investors remain on the lithium sidelines while heavily distracted by surging precious metal prices. Natural and logical M&A continues as does the transition of lithium explores to other commodities, whereas Bradda maintains the course and remains lithium centric.
While the lithium prices have bottomed and incurred pressure on both explorers and suppliers, the demand for electrification across all industries has not diminished and steady growth will resume. This is also a time for M&A, which should filter-out lower quality projects and companies without capital, which places Bradda Head in a key position as we have conserved our treasury by trimming back expenditures while maintaining a strong and experienced team.
John 'Ian' Stalker
Chair
18 November 2025
Condensed Interim Consolidated Statement of Comprehensive Income
for the period ended 31 August 2025
| Six-month period ended 31 August 2025 (unaudited) |
Six-month period ended 31 August 2024 (unaudited) |
||
| Notes | US$ | US$ | |
| Expenses | |||
| General and administrative | 2 | (761,153) | (1,198,521) |
| Share based payment write-back | 10 | - | 103,539 |
| Foreign exchange loss | (2,067) | (5,978) | |
| ─────── | ─────── | ||
| Operating loss | (763,220) | (1,100,960) | |
| Other income | |||
| Gain on sale | 11 | - | 2,974,938 |
| Other income | - | 230,000 | |
| Unrealised gain/(loss) on investment | 28,539 | 61,142 | |
| Finance income | 7,413 | 11,352 | |
| ─────── | ─────── | ||
| (Loss)/profit before income tax | (727,268) | 2,176,472 | |
| Income tax expense | - | - | |
| ─────── | ─────── | ||
| (Loss)/profit for the period | (727,268) | 2,176,472 | |
| ═══════ | ═══════ | ||
| Other comprehensive income - foreign currency translation reserve | - | - | |
| ─────── | ─────── | ||
| Total comprehensive (loss)/profit for the period | (727,268) | 2,176,472 | |
| ═══════ | ═══════ | ||
| Basic (loss)/profit per share (US cents) | 12 | (0.19) | 0.30 |
| Diluted (loss)/profit per share (US cents) | 12 | (0.19) | 0.27 |
The notes on pages 11 to 17 form an integral part of these condensed consolidated interim financial statements.
Condensed Interim Consolidated Statement of Financial Position
as at 31 August 2025
| Notes | 31 August 2025 (unaudited) |
28 February 2025 (audited) |
|||
| US$ | US$ | ||||
| Non-Current assets | |||||
| Deferred mining and exploration costs | 3 | 12,331,686 | 12,331,526 | ||
| Exploration permits and licences | 4 | 3,278,226 | 3,089,626 | ||
| Plant and equipment | 8 | 12,500 | 24,175 | ||
| Advances and deposits | 6 | 109,813 | 109,813 | ||
| Investment at fair value through profit or loss | 51,011 | 22,472 | |||
| ─────── | ─────── | ||||
| Total non-current assets | 15,783,236 | 15,577,612 | |||
| ─────── | ─────── | ||||
| Current assets | |||||
| Cash and cash equivalents | 87,197 | 1,086,596 | |||
| Trade and other receivables | 6 | 134,268 | 114,927 | ||
| ─────── | ─────── | ||||
| Total current assets | 221,465 | 1,201,523 | |||
| ─────── | ─────── | ||||
| Total assets | 16,004,701 | 16,779,135 | |||
| ═══════ | ═══════ | ||||
| Equity | |||||
| Share premium | 9 | 30,616,373 | 30,616,373 | ||
| Retained deficit | (14,685,314) | (13,958,046) | |||
| ─────── | ─────── | ||||
| Total equity | 15,931,059 | 16,658,327 | |||
| ─────── | ═══════ | ||||
| Current liabilities | |||||
| Trade and other payables | 7 | 73,642 | 120,808 | ||
| ─────── | ─────── | ||||
| Total current liabilities | 73,642 | 120,808 | |||
| ─────── | ─────── | ||||
| Total equity and liabilities | 16,004,701 | 16,779,135 | |||
| ═══════ | ═══════ |
The notes on pages 11 to 17 form an integral part of these condensed consolidated interim financial statements.
These financial statements were approved by the Board of Directors on 18 November 2025 and were signed on their behalf by:
Denham Eke
Director
Condensed Interim Consolidated Statement of Changes in Equity
for the period ended 31 August 2025
| 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 11 to 17 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 2024 (audited) | 30,616,373 | (14,954,669) | 15,661,704 | |
| Total comprehensive loss for the period | ||||
| Profit for the period | - | 2,176,472 | 2,176,472 | |
| ─────── | ─────── | ─────── | ||
| Total comprehensive loss for the period | - | 2,176,472 | 2,176,472 | |
| Transactions with owners of the Company | ||||
| Equity settled share-based payments (note 10) | - | (103,539) | (103,539) | |
| ─────── | ─────── | ─────── | ||
| Total transactions with owners of the Company | - | (103,539) | (103,539) | |
| ─────── | ─────── | ─────── | ||
| Balance at 31 August 2024 (unaudited) | 30,616,373 | (12,881,736) | 17,734,637 | |
| ═══════ | ═══════ | ═══════ |
The notes on pages 11 to 17 form an integral part of these condensed consolidated interim financial statements.
Condensed Interim Consolidated Statement of Cash Flows
for the period ended 31 August 2025
| Notes | Six-month period ended 31 August 2025 (unaudited) |
Six-month period ended 31 August 2024 (unaudited) |
|
| US$ | US$ | ||
| Cash flows from operating activities | |||
| (Loss)/profit before income tax | (727,268) | 2,176,472 | |
| Adjusted for non-cash and non-operating items: | |||
| Depreciation | 8 | 11,675 | 27,398 |
| Unrealised fair value gain on investment | (28,539) | (61,142) | |
| Equity settled share based payments expense | 10 | - | (103,539) |
| Cash interest income | (7,413) | (11,352) | |
| ─────── | ─────── | ||
| (751,545) | 2,027,837 | ||
| Change in trade and other receivables | (19,339) | 40,765 | |
| Change in trade and other payables | (47,168) | (1,068,097) | |
| ─────── | ─────── | ||
| Net cash flows used by operating activities | (818,052) | 1,000,505 | |
| Cash flows from investing activities | |||
| Amounts paid for deferred mining and exploration costs | 3 | (160) | (1,226,626) |
| Amounts paid for licences and permits | 4 | (188,600) | (331,700) |
| Cash (paid)/received for bonding deposit | - | (3,600) | |
| ─────── | ─────── | ||
| Net cash flows used by investing activities | (188,760) | (1,561,926) | |
| Cash flows from financing activities | |||
| Cash interest income | 7,413 | 11,352 | |
| ─────── | ─────── | ||
| Net cash flows from financing activities | 7,413 | 11,352 | |
| ─────── | ─────── | ||
| Increase/(decrease) in cash and cash equivalents | (999,399) | (550,069) | |
| Cash and cash equivalents at beginning of period | 1,086,596 | 1,664,662 | |
| Effect of foreign exchange on cash balances | - | - | |
| ─────── | ─────── | ||
| Cash and cash equivalents at end of period | 87,197 | 1,114,593 | |
| ═══════ | ═══════ |
The notes on pages 11 to 17 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 2025 ("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 2025, which is available on the Group's website: www.braddheadltd.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 2025.
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 2025.
2 General and administrative
The Group's general and administrative expenses include the following:
| Six-month period ended 31 August 2025 (unaudited) US$ |
Six-month period ended 31 August 2024 (unaudited) US$ |
|
| Auditors' fees | 39,200 | 39,200 |
| Directors and management fees and salaries | 175,839 | 231,983 |
| Legal and accounting | 36,730 | 28,090 |
| Contractor costs | 93,126 | 275,960 |
| Professional and marketing costs | 142,981 | 169,381 |
| Other administrative costs | 273,277 | 453,907 |
| ─────── | ─────── | |
| Total | 761,153 | 1,198,521 |
| ═══════ | ═══════ |
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 2024 (audited) | 11,025,423 |
| ─────── | |
| Capitalised during the year | 1,361,861 |
| Disposal under royalty agreement * | (55,758) |
| ────────── | |
| At 28 February 2025 | 12,331,526 |
| ────────── | |
| Capitalised during the period | 160 |
| ─────── | |
| At 31 August 2025 (unaudited) | 12,331,686 |
| ═══════ | |
| Cost and net book value | |
| At 31 August 2025 (unaudited) | 12,331,686 |
| At 28 February 2025 (audited) | 12,331,526 |
| ═══════ |
* In terms of the LRC royalty agreement, the Company has sold a 2% royalty on future sales from its lithium clay assets. The Company has effectively sold 2% of its capitalised deferred mine exploration costs to date, with this adjustment being recorded to reflect this.
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 2025, 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 2024 (audited) | 2,781,735 |
| Capitalised during the year | 308,141 |
| Disposal under royalty agreement * | (250) |
| ────────── | |
| At 28 February 2025 | 3,089,626 |
| ────────── | |
| Capitalised during the period | 188,600 |
| ─────── | |
| At 31 August 2025 (unaudited) | 3,278,226 |
| ═══════ | |
| Cost and net book value | |
| At 31 August 2025 (unaudited) | 3,278,226 |
| At 28 February 2025 (audited) | 3,089,626 |
| ═══════ |
* In terms of the LRC royalty agreement, the Company has sold a 2% royalty on future sales from its lithium clay assets. The Company has effectively sold 2% of its capitalised deferred mine exploration costs to date, with this adjustment being recorded to reflect this.
The Group assessed the carrying amount of the licences and permits 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 2025, an impairment charge of US$ Nil was recognised as a result of project licences and permits that were not renewed.
5 Investment in subsidiary undertakings
As at 31 August 2025 and 28 February 2025, 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 2025 to 31 August 2025, and up to the date that control ceases.
6 Trade and other receivables and advances and deposits
Non-current
| 31 August 2025 (unaudited) |
28 February 2025 (audited) |
|
| US$ | US$ | |
| Advances and deposits | 109,813 | 109,813 |
| ═══════ | ═══════ |
Current
| US$ | US$ | |
| Prepayments | 134,268 | 114,927 |
| ═══════ | ═══════ |
7 Trade and other payables
| 31 August 2025 (unaudited) |
28 February 2025 (audited) |
|
| US$ | US$ | |
| Trade payables | 77,058 | 75,042 |
| Accrued expenses and other payables | (3,416) | 45,766 |
| ─────── | ────── | |
| 73,642 | 120,808 | |
| ═══════ | ═══════ |
8 Plant and equipment
| Motor vehicle | Other equipment | Total | |
| Cost | US$ | US$ | US$ |
| As at 28 February 2024 and 28 February 2025 (audited) | 114,390 | 50,000 | 164,390 |
| Additions during the period | - | - | - |
| ────── | ────── | ────── | |
| As at 31 August 2025 (unaudited) | 114,390 | 50,000 | 164,390 |
| ══════ | ══════ | ══════ | |
| Motor vehicle | Other equipment | Total | |
| Accumulated depreciation | US$ | US$ | US$ |
| As at 28 February 2024 (audited) | (72,918) | (12,500) | (85,418) |
| Depreciation charge for the year | (38,130) | (16,667) | (54,797) |
| ────── | ────── | ────── | |
| As at 28 February 2025 (audited) | (111,048) | (29,167) | (140,215) |
| Charge for the period | (3,342) | (8,333) | (11,675) |
| ────── | ────── | ────── | |
| As at 31 August 2025 (unaudited) | (114,390) | (37,500) | (151,890) |
| ══════ | ══════ | ══════ | |
| Carrying amount | |||
| As at 31 August 2025 (unaudited) | - | 12,500 | 12,500 |
| As at 28 February 2025 (audited) | 3,342 | 20,833 | 24,175 |
| ══════ | ══════ | ══════ |
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 31 August 2025 (unaudited) and 28 February 2025 (audited) | 390,609,439 | - | 30,616,373 |
| ═══════ | ═══════ | ═══════ | |
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 2025 (audited) | Number Issued | Number Lapsed/ cancelled/expired | Number Exercised | Number at 31 August 2025 (unaudited) | Fair value |
| Options | US$ | ||||||||
| Directors and Participants | April 2018 | 5 | US$ 0.15668 | 146,052 | - | - | - | 146,052 | 24,028 |
| Directors and Participants | June 2021 | 5 | US$ 0.048 | 18,000,000 | - | - | - | 18,000,000 | 1,110,556 |
| Directors and Participants | September 2021 | 5 | £0.09 | 3,000,000 | - | - | - | 3,000,000 | 119,080 |
| Directors and Participants | April 2022 | 5 | £0.18 | 7,000,000 | - | - | - | 7,000,000 | 490,750 |
| Directors and Participants | December 2022 | 5 | £0.105 | 1,000,000 | - | - | - | 1,000,000 | 59,150 |
| Directors and Participants | April 2023 | 5 | £0.06 | 3,850,000 | - | - | - | 3,850,000 | 39,921 |
| Directors and Participants | February 2024 | 5 | £0.00867 | 2,850,000 | - | - | - | 2,850,000 | 31,229 |
| ─────── | ─────── | ─────── | ─────── | ─────── | ─────── | ||||
| 35,846,052 | - | - | - | 35,846,052 | 1,874,714 | ||||
| Warrants | |||||||||
| Supplier warrants | July 2021 | 5 | £0.0550 | 1,818,182 | - | - | - | 1,818,182 | 124,482 |
| ─────── | ─────── | ─────── | ─────── | ─────── | ─────── | ||||
| 37,664,234 | - | - | - | 37,664,234 | 1,999,196 | ||||
| ═══════ | ═══════ | ═══════ | ═══════ | ═══════ | ═══════ |
The amount expensed in the income statement has been calculated by reference to the fair value at grant date of the equity instrument and the estimated number of equity instruments to vest after the vesting period.
| Six-month period ended 31 August 2025 (unaudited) US$ |
Six-month period ended 31 August 2024 (unaudited) US$ |
|
| Share based payment (expense)/write-back | - | 103,539 |
| ═══════ | ═══════ |
During the period ended 31 August 2025, no new options were granted.
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 2025 (unaudited) US$ |
Six-month period ended 31 August 2024 (unaudited) US$ |
|
|---|---|---|
| (Loss)/profit for the period | (728,816) | 1,176,472 |
| Weighted average number of ordinary shares in issue | 390,609,439 | 390,609,439 |
| Dilutive effect of shares to be issued (Note 10) | 37,664,234 | 37,664,234 |
| Diluted number of ordinary shares | 428,273,673 | 428,273,673 |
| Basic (loss)/earnings per share (pence) | (0.19) | 0.30 |
| Diluted (loss)/earnings per share (pence) | (0.19) | 0.27 |
13 Related party transactions and balances
Edgewater Associates Limited ("Edgewater")
During the six-month period ended 31 August 2025, 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$ 41,576 (six-month period to 31 August 2024: US$ 42,566), of which US$ 32,905 was prepaid as at the period end (28 February 2025: US$ 10,854).
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$ 201,000 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
Post period end, the Company entered into a short-term loan facility agreement with Galloway Limited, a related party and significant shareholder. The funding was provided in connection with the undertaking made by Galloway Limited as noted in the audited statutory accounts for the year ending 28 February 2025 to provide support for the Company to maintain its good standing and will be used for general working capital purposes.
ENDS
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