Bacanora Announces $17.8 Million Raised to Advance Sonora Lithium Project

CALGARY, ALBERTA--(Marketwired - Nov. 16, 2015) - BACANORA MINERALS LTD. ("Bacanora" or the "Company") (TSX VENTURE:BCN)(AIM:BCN), the London and Canadian listed lithium exploration and development company focused on Sonora, Mexico, is pleased to announce that it has raised approximately £8.8 million (US$13.4 million / CAD $17.8 million) via the placing of 11,476,944 new common shares (the "Placing Shares") at a price of 77 pence per share (the "Placing"). The Placing is part of the Company's continuing strategy to become a large scale supplier to the lithium market, where demand is expected to continue growing rapidly thanks to lithium's key role in highly innovative industries such as smartphones, electric vehicles and energy storage. Through the Placing, Bacanora has secured its first major institutional shareholder as well as receiving support from pre-existing shareholders.

Rare Earth Minerals Plc ("REM"), one of the Company's largest existing shareholders, has reaffirmed its support by participating in the Placing to maintain its 17% interest by acquiring 1,973,407 Placing Shares, taking its total holding to 16,632,915 common shares in the Company, representing 17.21% of the issued and outstanding share capital. As a substantial shareholder in the Company, REM's participation in the Placing constitutes a related party transaction under Multilateral Instrument 61-101 - "Protection of Minority Security Holders in Special Transactions", however exemptions are available from the minority shareholder approval and valuation requirements set forth in the foregoing Multilateral Instrument.

The funds raised will be used to advance the Company's Sonora Lithium Project(1) in Mexico, one of the largest lithium resources in the world, containing estimated Indicated Mineral Resources of 1.12 million tonnes ("Mt") of lithium carbonate equivalent (LCE)(2) and Inferred Mineral Resources of 6.3 Mt LCE. Specifically, the funds will enable the Company to fully fund the completion of the Bankable Feasibility Study (assuming satisfactory completion of the Pre-Feasibility Study), which is currently scheduled to commence in the first half of 2016. In addition, the proceeds will be used to facilitate the upgrade and continuous running of the Company's operational pilot plant in Hermosillo to produce bulk quantities of lithium products to supply to long term off-take parties with whom the Company remains in ongoing discussions. Testwork previously undertaken at the lithium carbonate pilot plant facility has produced high quality lithium carbonate for initial off-take discussions.

______________________

1	The Sonora Lithium Project is comprised of the following lithium properties: La Ventana lithium concession, which is 100 percent owned by Bacanora; El Sauz and Fleur concessions, which are held by Mexilit S.A. de C.V. ("Mexilit"); and the Megalit concession, which is held by Megalit S.A de C.V ("Megalit"). Mexilit and Megalit are owned 70 percent by Bacanora and 30 percent by REM.
2	LCE = lithium carbonate (Li2CO3) equivalent; determined by multiplying Li value in percent by 5.324 to get an equivalent Li2CO3 value in per cent. Use of LCE is to provide data comparable with industry reports and assumes complete conversion of lithium in clays with no recovery or process losses.

Colin Orr-Ewing, Chairman of Bacanora, commented, "We are pleased to welcome our first major UK institution to our shareholder register and are equally delighted by the continued support shown by our longstanding shareholders. We believe this endorsement is another clear indication of the potential of the Sonora Lithium Project and provides further impetus to our strategy to become a major player in the rapidly emerging lithium market. To have successfully raised funds during what continues to be a challenging environment for commodities in general highlights the attractive dynamics of the lithium market, thanks to the metal's key role in innovative and fast growing industries such as mobile communications and electric cars. With the funds in place to complete a Bankable Feasibility Study for Sonora and also to upgrade our Pilot Plant, 2016 is set to be a highly active period for Bacanora and we look forward to providing further updates on our progress over the coming months."

The Placing was completed in reliance upon exemptions from applicable prospectus and registration requirements. Accordingly, any trades of securities issued under the Placing that occur in Alberta or to a purchaser in Alberta would be subject to a hold period equal to four months and one day from the date of issuance (being March 14, 2016). Trades of securities occurring through the CREST system among non-Alberta residents will not be subject to this restriction. There were no Alberta subscribers under the offering and all of the aforementioned shares will be deposited under the CREST system.

ABOUT BACANORA:

Bacanora is a Canadian and London listed minerals explorer (TSX VENTURE:BCN)(AIM:BCN). The Company explores and develops industrial mineral projects, with a primary focus on lithium and borates. The Company's operations are based in Hermosillo in northern Mexico and it currently has two significant projects under development in the state of Sonora. The two main assets of Bacanora are:

• The Sonora Lithium Project, which consists of ten mining concession areas covering approximately 100 thousand hectares in the northeast of Sonora State. The Company, through drilling and exploration work to date, has established an Indicated Mineral Resource (in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") of 1.12 Mt LCE contained in 95 Mt of clay at a Li grade of 2,200 ppm and an Inferred Mineral Resource of 6.3 Mt LCE contained in 500 Mt of clay at a Li grade of 2,300 ppm.
• The Magdalena Borate Project, covering 16,503 hectares in Sonora state, Mexico, where the Company's main borate zone, El Cajon, has an Indicated Resource (in accordance with NI 43-101) of 1.17 Mt of B₂O₃, at an eight per cent. cut-off grade. The Company has completed a number of measures to determine the geological and commercial potential of the project and is undertaking a prefeasibility exercise to determine the economic benefit of developing the mine and constructing a processing plant on site in order to become a supplier of boric acid.

Reader Advisory

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to the use of proceeds of the Placing, completion of a Bankable Feasibility Study and ongoing discussions with potential off-take partners. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: commodity price volatility; general economic conditions in Canada, the United States, Mexico and globally; industry conditions, governmental regulation, including environmental regulation; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.