Arcadia Minerals : Final lithium drilling assay results received at Bitterwasse

ASX ANNOUNCEMENT 2 May 2022

FINAL LITHIUM DRILLING ASSAY RESULTS RECEIVED AT

BITTERWASSER

HIGHLIGHTS

• • Assay results for the outstanding 32 drill holes received from the 64-hole follow-up auger drilling campaign over 100% of the Eden Pan at Bitterwasser

• • Holes were drilled from surface to a maximum depth of 9.6 m

• • All samples submitted for assay returned significant Lithium mineralisation

• • Results suggest potential for a significant increase of the existing JORC Mineral Resource (Currently 15.1 million tons at 828 ppm Li, which covered only 24% of the Eden Pan surface area)

• • As expected, best individual drillhole intersections for the high-grade middle green clay unit were located in the centre of the pan at shallow depths:

  • ▪ BMC33: From 4.8 to 9.4 m, 4.6 m @ 811 ppm Li

  • ▪ BMC32: From 3.8 to 6.6 m, 2.8 m @ 796 ppm Li

  • ▪ BMC28: From 4.2 to 9.4 m, 5.2 m @ 760 ppm Li

  • ▪ BMC36: From 3.4 to 5.6 m. 2.2 m @ 744 ppm Li

• • Revised Mineral Resource estimate expected by end of Q2/2022

• • Bench scale test work for Lithium extraction using both organic and sulphuric acids underway with the aim of assessing the production of a battery grade lithium product

• • Exploration drilling is planned over the remaining exposed pans in the Bitterwasser Pan District, which area represents 400% of the size of the exposed area of the Eden Pan

• • Option exercised to initiate acquisition of up to 100% of the Bitterwasser Pan District

• • Bitterwasser land package currently under investigation by Arcadia comprises 4,031 Km2 in extent

Arcadia Minerals Ltd (ASX:AM7, FRA:8OH) (Arcadia or the Company), the diversified exploration company targeting a suite of projects aimed at Tantalum, Lithium, Nickel, Copper

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and Gold in Namibia, is pleased to announce final drill results from the Eden Pan at its Bitterwasser Lithium clay project.

Philip le Roux, the Chief Executive of Arcadia stated: "The drilling results bode well for a significant increase to the existing Mineral Resource of 15Mt, especially considering that the maiden Mineral Resource was derived from 16 drill holes (i.e. 24% of Eden Pan area) and that 43 holes of the 64-hole follow-up auger drilling campaign intersected the Middle Green Clay Unit, all of which were significantly mineralised to a similar tenor than what we've seen from our first drilling campaign at the Eden Pan. The work to declare a revised Mineral Resource is being run concurrently with bench-scale test work (expected to be finalised by Q3/2022) for Lithium extraction using both organic and sulphuric acids with the aim of investigating the possibilities of production of a battery grade lithium product".

Exploration Results

Assay results for the outstanding 32 drill holes from the 64-hole follow-up auger drilling campaign completed on 9 February 2022 1 over the Eden Pan was received. All the drill holes commenced in the mineralised Upper Brown Clay Unit and every hole, except two drill holes where thin clay units were intercepted at the edges of the Eden Pan, were sampled from top to bottom up to a depth of 9.60m. Notably, the entire sequence of the drill holes sampled (i.e. Upper Brown Clay Unit and Middle Green Glay Unit) returned lithium mineralisation2.

The Middle Green Clay Unit, lithologically named the Middle-Unit (MU), comprises the dominant lithological unit from which the maiden Mineral Resource3 was derived. This green clay unit was intersected in 18 of the 32 drill holes from which assay results were received and extended from a depth of 1.4 m below surface to the maximum End-of-Hole (EOH) depth of 9.60m. A total of 43 holes from the 64-hole follow-up auger drilling campaign intersected the Middle Green Clay Unit at similar depths.

1 Refer to ASX Announcement dated 10 March 2022 titled "Encouraging lithium drilling assay results at Bitterwasser".

• 2 Refer to Annexures 1 and 2 for a location map and table of the reported drill hole intercepts.

• 3 Refer to ASX Announcement dated 3 November 2021 titled "Arcadia acquires lithium project with JORC

Mineral Resources".

Figure1: Stacked cross section of the Eden Pan depicting drill-hole interpretation with reference to the existing Mineral Resource (green layers) and clay units intercepted in the follow-up auger drilling program.

As expected, the best individual drillhole intersections for the high-grade Middle Green Clay Unit were located in the centre of the pan. These results are:

• ▪ BMC33: From 4.8 to 9.4 m, 4.6 m @ 811 ppm Li

• ▪ BMC32: From 3.8 to 6.6 m, 2.8 m @ 796 ppm Li

• ▪ BMC28: From 4.2 to 9.4 m, 5.2 m @ 760 ppm Li

• ▪ BMC36: From 3.4 to 5.6 m. 2.2 m @ 744 ppm Li

The Company has appointed Creo Design, who previously prepared the maiden Mineral Resource estimate3, to update and revise the JORC Mineral Resource estimate for the Eden Pan. The updated Mineral Resource estimate, if any, is expected during the latter part of Q2 of 2022.

Acquisition of Bitterwasser Pan District

Through its local subsidiary, Brines Mining and Exploration Namibia (Pty) Ltd (BME), Arcadia has exercised a first option in terms of an acquisition agreement to acquire up to 100% of Bitterwasser Lithium Exploration (Pty) Ltd (BLE), which acquisition agreement was approved by shareholders on 5 April 20224. By exercising the first option, Arcadia has acquired 25% of BLE in return for a consideration of approximately A$92,000. Arcadia holds an additional option for 2 years from 12 April 2022 to acquire the remaining 75% of BLE (and thereby own 100% of the Bitterwasser Pan district) in consideration of approximately A$184,000.

4 Refer ASX Announcements dated 14 March 2022 and 5 April 2022 respectively titled "Notice of General

Meeting/Proxy Form" and "Results of Meeting"

Combined with the 3,438Km2 owned by BME and the BLE licenses, the land holding currently under investigation by Arcadia comprises 4,031Km2 in extent.

Additional Pans

In addition to the drilling program the Company undertook a regional study to identify other potential exposed pans within the license area. Satellite and aerial photo interpretation of the Bitterwasser license areas identified 7 additional pans bringing the exposed surface pans to a total of 14, all of which, when combined, cover 9,594 hectares (95.94Km2) in extent. This land package compares favourably with the total surface area under investigation by Bacanora Minerals Ltd at its Sonora Lithium Project (for 8,154ha) in Mexico5, and operations in Clayton Valley (Cypress Development Corp. for 2,197 ha) in Nevada, United States6.

The focus of exploration to date was conducted over the Eden Pan (noted as Pan 5 in Annexure 2), which is 2km by 5km in extent and constitutes 19% of all the exposed pan surface areas identified to date at the Bitterwasser Lithium Project.

Except for the Eden pan, all the pans located over the eastern edge of the Kalkrand half-graben7 remains to be tested for Lithium mineralisation in the clays. However, the location of the pans and the mineralisation model of the Eden pan, indicates that the pans located along the Western edge of the deep-seated tectonic structure located at the Eastern extremities of the Kalkrand half-graben could have been mineralised through geothermal activity from rising brines and may be similarly mineralised as the Eden pan. If mineralisation becomes evident over these pans in similar mode and tenor to that what exists at the Eden pan, it could significantly increase the potential for an increase in the Mineral Resource tonnage associated with the Bitterwasser Project.

This announcement has been authorised for release by the directors of Arcadia Minerals Limited.

For further information please contact: Jurie Wessels

Executive Chairman Arcadia Minerals [e-mail]

5 Refer to s. 4.1 of a Technical Report on the Feasibility Study for the Sonora Lithium Project, Mexico athttps://bacanoralithium.com/_userfiles/pages/files/documents/bacanorafstechnicalreport25012018_compressed.pdf

6 Refer to s. 4.2 of a NI 43-101 Technical Report styled "Prefeasibility Study Clayton Valley Lithium Project" to be found athttps://cypressdevelopmentcorp.com/site/assets/files/3532/cyp_pfs_amended_march_15th-2021.pdf

7 Refer to Asx Announcement dated 10 March 2022 titled "Encouraging lithium drilling assay results at Bitterwasser"

COMPETENT PERSONS STATEMENT & PREVIOUSLY REPORTED INFORMATION

The information in this announcement that relates to Exploration Results listed in Appendices below is based on, and fairly represents, information and supporting documentation prepared by the Competent Person whose name appears, who is either an independent consultant to the Company and a member of a Recognised Professional Organisation or a director of the Company. The persons named below has sufficient experience relevant to the style of mineralisation and types of deposits under consideration and to the activity which he has undertaken to quality as a Competent Person as defined in the JORC Code 2012.

Competent Person	Membership	Report/Document
Mr Philip le Roux	South African Council for Natural Scientific	This announcement and JORC Tables
(Director, Arcadia	Professions #400125/09
Minerals)

The Company confirms that the form and context in which a Competent Person's previous findings, as noted in footnotes 1, 3 and 7, including findings in a report styled Independent Geological Report on the Lithium Resource

at the Bitterwasser Pan, Hardap Region, Namibia, Dr. Johan Hattingh, Nov. 2021, as announced in previous

announcements and presented in this announcement have not been materially modified from the original market announcements.

Release Date	ASX Announcements.
1,710.03.2022	Encouraging Lithium Drilling Assay Results received at Bitterwasser
303.11.2021	Arcadia acquires adjacent lithium project with JORC Mineral Resources

MINERAL RESOURCE ESTIMATES

The Company confirms that it is not aware of any new information or data that materially affects the information included in the Bitterwasser Mineral Resource estimate and all material assumptions and technical parameters underpinning the estimate continue to apply and have not materially changed when referring to its resource

announcement made on 3 November 2021 Arcadia Acquires Lithium Project with JORC Mineral Resources. The

Company confirms the form and context in which the Competent Person's findings are presented and have not been materially modified from the original market announcement.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the Swanson Mineral Resource estimate and all material assumptions and technical parameters underpinning the estimate continue to apply and have not materially changed when referring to its resource announcement made on 1 September 2021 Arcadia Mineral Resource Estimate. The Company confirms the form and context in which the Competent Person's findings are presented and have not been materially modified from the original market announcement.

The Swanson project is currently undergoing a feasibility study. The Swanson and the Bitterwasser Projects contain JORC Mineral Resources. At Swanson, a JORC Mineral Resource of 1.2Mt at an average grade of 412g/t Ta2O5, 76g/t Nb2O5 and 0.29% Li2O was announced on the 23rd of September 2021, which was derived from 23 drillholes completed in September 2020 over 3 pegmatites. See the table below for more details of the Swanson mineral resource.