Arcadia Minerals Limited (Arcadia or the Company) announced an updated Mineral Resource Estimate for its Bitterwasser Lithium-in-Clay Project from the Eden Pan in Kalkrand, Namibia. The previous JORC Mineral Resource released on 3 November 20213 has been revised following the Phase 2 drilling program4 and comprises an updated JORC Mineral Resource defined over Eden Pan of 85.2 million tonnes @ 633ppm for 286,909t Li2CO3 (LCE) wholly classified in the Inferred Category. This updated resource represents a approximately 560% increase in resource and 430% increase in metal content.

The updated Mineral Resource estimate is based on 77 auger drill holes and 486 core samples taken. The Mineral Resource estimate was based on two groups of resources, namely the Upper and Middle Units, which refers all the material inside the wire frames, and the Secondary Unit which refers to the economic mineralisation material outside the wire frames. A summary of the estimated JORC compliant Mineral Resources for the Bitterwasser Project at various cut-off grades.

The estimate includes all the main mineralised geological domains. The Mineral Resource represents only 19% of the 14 exposed clay pans within three EPL's covering an area of approximately 593km2. The Company plans to continue exploration over the remaining pans, and areas of pans that may be obscured by mobile Kalahari dunes, and to commence with geophysical surveys for lithium brine potential over the entire 4,031km 2 of its land holding in Namibia.

In addition, and in view of the positive results, Arcadia will conduct large scale leach test work at the University of Stellenbosch Chemical Engineering department from July to September 2022 on various lixiviants to ascertain which gives the optimal leaching results and investigate the best recovery process flowsheet to recover lithium as a lithium carbonate. The Mineral Resource has been classified as an Inferred Mineral Resource following the guidelines and procedures for classifying the reported Mineral Resources were undertaken within the context of JORC (2012). The classification is based upon an assessment of understanding the geology of the deposit, mineralisation continuity, drill hole spacing, quality control results, search and estimation parameters, and analysing of available bulk density data.

The criteria reviewed for classification was as follows: Level of understanding of mineralisation controls. Ability to demonstrate geological continuity and understanding of geological setting. Assessment of data quality.

Review of QA/QC procedures applied. Review of the drill hole spacing and estimation quality of statistics applied. The drill spacing is sufficient to allow the geology and mineralisation zones to be modelled into coherent wireframes for each domain.

Reasonable consistency is evident in the orientations, thickness and grades of the Inferred Mineral Resources. Areas that fall within the following lithium grade ranges (< 400 ppm; 500-600 ppm; > 600 ppm) were evaluated onto a block model. No geological or mining losses were applied.

Inferred Mineral Resources have a significant degree of uncertainty as to whether they can be mined economically, and it cannot be assumed that all or any part of the Inferred Resource will be upgraded to a higher confidence category. In compliance with JORC it is noted that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. However, the Bitterwasser Mineral Resources have undergone valid modification in PFS conducted by Bitterwasser Lithium and Mineral Reserves that do have demonstrated economic viability have been recorded.

The Competent Person (Dr. Johan Hattingh) is of the opinion that realistic prospects for the economic extraction of lithium exists at the Bitterwasser Eden Pan deposit. It can be accepted that despite the simplicity of the mineralised horizons and the estimation techniques applied, the estimation methodology used succeeded in presenting a reliable estimate of the resource volume and grade for the Eden Pan. The Competent Person considers that there is good potential for the delineation of further Mineral Resources and Ore Reserves following on-going exploration and development.

Higher levels of confidence in the geology and grade distribution could be achieved by closer-spaced drilling and through a better understanding of the chemical controls of the mineralisation. High resolution surveying of bore hole collars will assist in improving the confidence of resource volume figures. The auger drilling done in the Upper and Middle Units is considered sufficient for delineating a sizeable open pit mine with an appreciable proportion of material in the Inferred category.

Auger drilling data and the 3D modelling undertaken indicates that mineralisation may be open ended in depth. Extensional diamond core drilling will improve the geological as well as the resource confidence in the areas currently delineated as a Mineral Resource. Further to that, it is very likely that the present-day pans such as the Eden Pan, perceived to be confined by dunes in a larger dune field, are in fact part of one large pan in part obscured by mobile dunes in transit over the pan.

Here a very good probability exists that the pans seen are part of a larger pan with younger dunes migrating over and masking a larger pan feature. To clarify this issue the fourteen neighbouring unexplored pans should receive attention in future exploration phases. To date only the lithium bearing clay has been considered as a potential resource target with no work done on the brine potential at this prospect.

This will receive focused attention shortly. Similarly, the potassium and boron potential at the Eden Pan remains unassessed.