Arcadia Minerals : Elevated lithium recoveries from organic acid leaching

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ASX ANNOUNCEMENT 24 March 2022

ELEVATED LITHIUM RECOVERIES FROM ORGANIC ACID

LEACHING COMPOUNDS

HIGHLIGHTS

• Pre-liminaryleaching test work conducted at the University of Stellenbosch1 indicates that organic acids are suitable to extract lithium from the Bitterwasser clays
• Initial unoptimized test work indicates that one specific organic acid extracts up to 78% of the lithium
• Organic acids are generally regarded as being environmentally friendly and relatively cheap to produce and use, compared to inorganic acids such as Sulfuric and Hydrochloric Acid
• Full-scaletest work program underway at the University of Stellenbosch to further optimise and potentially increase the leachability and recoveries

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 and Gold in Namibia, is pleased to announce positive lithium organic leach test results from its Bitterwasser lithium clay project.

Philip le Roux, CEO of Arcadia stated: "This result is a significant step for Arcadia towards possibly confirming the viability of extracting significant quantities of lithium from the Bitterwasser clays in an environmentally and economically compliant manner. The test results, combined with the potential of producing a lithium rich leachate from concentrates2, holds the promise of confirming processing matrices with competitive capex and opex responses for any future analyses of economic and technical assessment, which Arcadia could undertake towards confirming the project viability. "

1. Refer to ASX Announcement dated 7 March 2022 "Positive Lithium Mineralogical Test Results Received"
2. Refer to ASX Announcement dated 7 March 2022 "Positive Lithium Mineralogical Test Results Received", and particularly to the appointment of Multotech to conduct cyclone test work to possibly increase the lithium grade in material to be leached.

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Organic Leach Test Results

Leaching test work conducted at the University of Stellenbosch Geochemistry Laboratories on the Bitterwasser clays, has been undertaken to test the leachability of lithium from the clays using an organic acid. The aim of the test work is to obtain an understanding whether organic acids could be used to extract lithium from the Bitterwasser clays. To date, three tests were conducted. The parameters that were used during the tests include:

• Acid doses

- 300 g/L

• Temperature - 80 OC

• Leach time

- 7 hours

Three samples of the Middle Green Clay Unit obtained from recent drilling3 were tested, using the test parameters described above (Refer to Annexure 1, Table 1 for detailed results):

• Sample 1: Total sample (not sieved), resulting in a lithium leachability of 55%
• Sample 2: Containing the < 50-micron fraction, resulting in a lithium leachability of 66%
• Sample 3: Containing the < 40-micron fraction, resulting in a lithium leachability of 78%

Arcadia, in conjunction with the Chemical Engineering Department of the University of Stellenbosch, is currently working on designing a full-scale test work program that would include tests at various acid doses, temperatures and leach resident times using various organic acids. This test work could result in the optimisation and potential increase in the leachability.

Four main advantages for using organic acids, as compared to inorganic acids such as sulphuric acid include:

• Organic acids are much more environmentally friendly than inorganic acids such as sulphuric acid, which could result in producing a lithium product that has much less impact on the environment.
• Sulphuric acid production is required to be undertaken in close proximity to a lithium production plant, resulting in elevated capex costs. On the other hand, organic acids could be sourced from suppliers and may not require construction of an acid plant, thereby reducing the capex portion of a project.
• Organic acids tend to be susceptible to reclamation and recycling, resulting in potential operational savings, which is not possible to achieve with sulphuric acid.

Arcadia's work program will be aimed at possibly confirming the advantages of organic acids in so far as these acids are applicable to the Bitterwasser Clays. If proven to be correct, it is possible that economies of scale sensitivities could favour reduced mineral resource tonnages

3 Refer ASX announcement dated 10 March 2022 "Encouraging Lithium drilling assay results at Bitterwasser"

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through reduced capex requirements, and that upscaling of throughput through modularisation can be achieved if implemented in phases.

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 Limited [e-mail]

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	This announcement and JORC Tables
(Director, Arcadia	Scientific 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 to 3, 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.

MINERAL RESOURCES

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 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".

DISCLAIMER

Some of the statements appearing in this announcement may be forward-looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which Arcadia operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward-looking

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statement. No forward-looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside Arcadia's control.

The Company does not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of Arcadia, its directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements in this announcement reflect views held only as at the date of this announcement.

This announcement is not an offer, invitation, or recommendation to subscribe for, or purchase securities by the Company. Nor does this announcement constitute investment or financial product advice (nor tax, accounting, or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.

BACKGROUND ON ARCADIA

Arcadia is a Namibia-focused diversified metals exploration company, which is domiciled in Guernsey. The Company explores for a suite of Gold and battery metals (Nickel, Lithium and Copper). The Company's strategy is to bring the advanced Swanson Tantalum project into production and then to use the cashflows (which may be generated) to drive exploration and development at the potentially company transforming exploration assets. As such the first two pillars of Arcadia's development strategy (a potential cash generator and company transforming exploration assets) are established through a third pillar, which consists of utilising the Company's human capital of industry specific experience, tied with a history of project generation and bringing projects to results, and thereby, to create value for the Company and its shareholders.

Most of the Company's projects are located in the neighbourhood of established mining operations and significant discoveries. The mineral projects include-

1. Bitterwasser Project - prospective for lithium-in-brines and lithium-in-clays.
2. Kum-KumProject - prospective for nickel, copper, and platinum group elements
3. Karibib Project - prospective for copper and gold
4. The Swanson Project - advanced tantalum and lithium project with early development potential

As an exploration company, all the projects of the company are currently receiving focus. However, currently the Swanson project and the Bitterwasser Lithium project may be considered as Arcadia's primary projects due to their potential to enhance the Company's value.

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.

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At Bitterwasser a JORC Mineral Resource of 15.1 million tons @ 828ppm Li and 1.79% K (at a cut-off grade of 680ppm Li) representing only 6% of the exposed clay pans was defined over one of 14 clay pans. The Mineral Resource was announced on the 3rd of November 2021 and is contained over three exploration licenses, which licenses are the subject of an acquisition that is conditional upon Arcadia shareholders' approval. See the table below for more details of the Bitterwasser mineral resource.

SWANSON TANTALUM PROJECT MINERAL RESOURCE (JORC 2012).

Classification		Pegmatite	Mass (kt)		Ta2O5		Nb2O5		Li2O (%)
					(ppm)		(ppm)
Indicated		D0	4.6		289		77		1.06
		D1	221.1		372		82		0.55
		D2	280.5		439		82		0.20
		F1	157.4		504		57		0.03
		Total	663.5		431		76		0.28
Inferred		D0	79.7		354		54		0.87
		D1	188.4		337		85		0.34
		D2	214.0		407		80		0.13
		F1	61.9		527		55		0.01
		Total	544.0		389		75		0.30
Indicated + Inferred		D0	84.3		351		55		0.88
		D1	409.5		356		83		0.45
		D2	494.4		425		81		0.17
		F1	219.2		510		56		0.02
		Total	1,207.5		412		76		0.29

BITTERWASSER LITHIUM-IN-CLAU MINERAL RESOURCE (JORC 2012).

	Mineral Reserve Category			Mineral Resource Category
	Classification	Tonnage	Li	Contained	Classification	Tonnage	Li	Contained	Lithium
	Grade	Grade	Carbonate
For		(kt)	Li (ton)		(kt)	Li (ton)
	ppm		ppm	Equivalent
Total Probable	0			Total Indicated	0	0	0	0
					Total Inferred	15 100	828	12 503	66 929
	Total Reserves	0			Total Resources	15 100	828	12 503	66 929

For more details, please visit www.arcadiaminerals.global