Anson Resources : Quarterly Activities and Cashflow Report

June 2022 Quarterly Activities Report

Paradox Lithium Project, Utah, USA

• Drilling at the Long Canyon No. 2 well has delivered new, high concentrations of Lithium and Bromine from the Clastic Zones at Paradox Lithium Project:

1. 97ppm Li, 882ppm Br in Clastic Zone 33 (11ft thick)

• 1. 240ppm Li, 4,115ppm Br in Clastic Zone 31 (18ft thick) o 111ppm Li, 4,112ppm Br in Clastic Zone 29 (18ft thick) o 111ppm Li, 4,022ppm Br in Clastic Zone 19 (38ft thick) o 114ppm Li, 4,092ppm Br in Clastic Zone 17 (46ft thick)
• Anson reported an average assay grade of 187ppm Lithium and 3,793ppm Bromine through the entire drilled Mississippian Unit compared to recently reported 100ppm Li collected at the top of the Mississippian Unit.
• Consistent high pressures (3,785psi) within the priority Mississippian Unit (Leadville and Madison Formations) in its recently completed Resource definition-focused drilling at the Long Canyon No. 2 well.
• The high pressure, porosity and permeability is expected to deliver continual flow at the extraction well location over the proposed life of mine at Paradox
• Discovery of historical diamond core now being tested for porosity and specific yield will deliver significant cost and time savings for the planned Resource upgrade as new core will not be required.
• Recent re-entry logs and historic drilling data will be consolidated into an updated production flow model for the Paradox Project.
• Drilling has now progressed to the high-priority Cane Creek 32-1 well.
• Anson plans to confirm a major Resource upgrade on completion of its current drilling campaign at the Long Canyon No. 2 and Cane Creek 32-1wells.
• Anson has expanded the Paradox Lithium Project via the staking of 556 new claims on the western edge of the Project area. This strategic expansion increases the total Project area by 36% to 167km2 of contiguous tenure.
• Detailed Feasibility Study for a lithium plant continued to be advanced by Worley and will incorporate the planned Resource upgrade.

Corporate

• 6,460,780 ordinary shares issued during the quarter following the exercise of unlisted options at $0.08685 per share.
• Strong balance sheet with $5.72 million cash on hand at the end of the quarter.

Diversified minerals company Anson Resources Limited (ASX: ASN) (Anson, the Company) is pleased to provide the following update on its activities for the period ending 30 June 2022.

Anson has a portfolio of minerals projects in demand-driven commodities, led by its core asset, the Paradox Lithium Project (Project) in Utah, USA. It is focused on developing the Project in to a significant lithium producing operation.

Anson Resources Limited

Level 1, 35 Outram Street, West Perth, WA 6005, Australia

Tel: [phone] ABN: 46 136 636 005 www.ansonresources.com

Paradox Lithium Project, Utah

During the quarter, the Company maintained its core focus on its Resource expansion drilling programs, which are designed to deliver a significant resource upgrade at Paradox. This will support a Detailed Feasibility Study (DFS) and the development of the Project into a substantial lithium producing asset. Anson intends to use these results to further discussions with prospective off-take partners.

Resource Expansion Program

Anson's resource expansion strategy is focused on:

• increasing the existing JORC 2012 estimates both vertically and horizontally at existing targets across the Project area, and
• defining resources at new claims to be added adjacent to the Paradox Project.

Saturated brines have been encountered in Pennsylvanian, Mississippian and Devonian rocks in almost all wells that penetrated these units. The brines, which are similar to those found in the Pennsylvanian clastic zones, have been found in porous dolomites and limestones of Mississippian-age in numerous wells in the project area (Figure 1).

Figure 1: Pictures of Diamond Core Plugs from wells that sampled the Mississippian Units.

The Mississippian Units within the Project area host a massive brine aquifer with a thickness between 70m and 170m, situated approximately 500m below the Clastic Zones that have been used to calculate the current Indicated and Inferred JORC Resource estimate.

Supersaturated brines in the Mississippian Units have similar mineral composition to that of the brines of the previously assayed brines of the Paradox Formation clastic zones, used in the Project's current JORC Resource estimation.

The Mississippian Units across the entire Project area currently form part of the Project's Exploration Target (aee ASX announcement 6 April 2021), are not included in the current JORC Resource. The Exploration Target for the Mississippian supersaturated brines is; 1.3Bt - 1.8Bt of brine grading 80 - 140ppm Lithium (Li) and 2,000 - 3,000ppm Bromine (Br). The exploration target is summarised in Table 1.

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Mississippian Units	Porosit	Density	Brine	Li	Li	Li2CO3	Br	Br
Exploration Target	y (%)		(Mt)	Grade	(Tonne	(Tonnes)	Grade	(Tonnes)
				(ppm)	s)		(ppm)
MIN	14	1.27	1,300	80	104,000	553,000	2,000	2,600,000
MAX	14	1.27	1,800	140	252,000	1,340,000	3,000	5,400,000

Table 1: The Mississippian Units Exploration Target Range with brine & grade variables.

The Exploration Target figure is conceptual in nature as there has been insufficient exploration undertaken on the project to define a Resource for the Mississippian Unit. It is uncertain that future exploration will result in a Resource.

During the quarter, drilling commenced at Long Canyon No. 2 well targeting the large Mississippian Units, which hosts a substantial lithium-rich zone of ~70m-250m thickness. The Mississippian Units has successfully confirmed consistent high-pressure of 3,785psi (see ASX announcement 4 July 2022).

The consistently high pressures correlates with historically recorded high pressures across the project area and represents a highly positive outcome from this phase of drilling, which is of significant importance.

These results, combined with Drill Stem Tests (DST) data from historic wells within the project area, indicate that the Mississippian strata has a high permeability across a large area. The combination of permeability, high pressure as well as porosity is expected to;

• Deliver continual strong flow at the extraction well location, over the life-of-mine of any future lithium producing operation; and
• Indicates that the pressure will remain constant over the life of a proposed future lithium project.

Subsequent testing of supersaturated brine flow rate has achieved 180 bbl/h (see ASX announcement 13 July 2022). A key positive outcome of the significantly flow rate is that the brine will surface without the need for pumping. This would in turn deliver substantial benefits to the economics of extraction and the longevity of Anson's proposed lithium producing operation at the Project.

The higher flow rate from Long Canyon No. 2 is due to the "Robert's Rupture" geological feature, which has resulted in higher pressure and vertical porosity. Anson has located its two extractions well pads - Long Canyon West 1 (LCW1) and Long Canyon West 2 (LCW2) - in the immediate vicinity of Long Canyon No.2 and Robert's Rupture to take advantage of this unique geological structure.

The Mississippian Units at Long Canyon No. 2 has delivered a 25% increase in lithium grade over previously reported assays at the Project. Assay from brine from the top of the Mississippian Units at Long Canyon No. 2 returned 100ppm lithium and 2,460ppm bromine (see ASX announcement 11 July 2022). This grade is 25% higher than the historical lithium value previously recorded at the Paradox Project area - of 80ppm - which was used as the minimum lithium grade for the Mississippian Units in the Project's Exploration Target.

On 27 July 2022, Anson announced the results of all four brine samples from the Mississippian units at Long Canyon No. 2, with an average assay value of 187ppm lithium and 3,793ppm bromine (see ASX announcement 27 July 2022).

This assay grade represents an 87% increase on the first assay value from the recent drilling (100ppm lithium), and a 134% increase on the only historical lithium value recorded at the Project (80ppm lithium). They are also higher than the maximum lithium grade range used in the Exploration Target for the Mississippian Units (140ppm) (summarised in Table 2).

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Sample ID	Li (ppm)	Br (ppm)	B (ppm)	Density (g/cm3)	pH
11968	186.78	3788.00	1265.20	1.29	4.88
12001	186.71	3888.53	1249.15	1.29	4.76
12081	186.90	3723.24	1283.89	1.29	4.60
12638	187.53	3774.13	1263.32	1.29	4.65

Table 2: Assay results from sampling the Mississippian Unit from the Long Canyon Unit 2 well.

Anson has also tested lithium and bromine values come from the Clastic Zones 17, 19, 29, 31 and 33 at Long Canyon No. 2 well. The new, high concentration of Li and Br results are:

• 97ppm Li, 882ppm Br in Clastic Zone 33 (11ft thick)
• 240ppm Li, 4,115ppm Br in Clastic Zone 31 (18ft thick)
• 111ppm Li, 4,112ppm Br in Clastic Zone 29 (18ft thick)
• 111ppm Li, 4,022ppm Br in Clastic Zone 19 (38ft thick)
• 114ppm Li, 4,092ppm Br in Clastic Zone 17 (46ft thick)

These additional, all of these zones have not been previously included in the existing JORC Resource estimate at the Project. It is anticipated these additional assay results will result in an increase in the Project's Indicated and Inferred Resources at the southern end of the Project area (Figure 2).

Figure 2: Plan showing the AOI for Indicated and Inferred for the additional Clastic zones that will result

from the assay results obtained from the Long Canyon Unit 2 re-entry.

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Separate to the re-entry of LC2, Anson's Application Permit to Drill (APD) Cane Creek 32-1 well has been approved by the Government of Utah (see ASX announcement 1 June 2022). This is a significant step-forward for the Company's resource expansion drilling program at the Project and will allow it to re-enter and drill the (already open) Cane Creek 32-1 well. This drilling is also designed to target the large Mississippian supersaturated brine aquifer.

Subsequent testing of supersaturated brine flow rate has achieved 66 bbl/h (see ASX announcement 13 July 2022).

The re-entry of the Cane Creek 32-1 well, together with the re-entry of the Long Canyon No.2 well, and the Mineral Canyon and Sunburst 1 wells (see ASX announcement 10 September 2020), forms part of Anson's combined "Eastern" and "Western" expansion strategy at the Project (Figure 3).

Western Eastern

Strategy Strategy

Figure 3: Plan showing potential Resource Areas of Interest for the re-entry wells, highlighting Anson's combined "Eastern" and "Western" expansions strategies to materially increase and upgrade the Paradox Project Resource.

Strategic Increase in Paradox Brine Project Area

Anson has staked an additional 556 claims which are highly prospective for lithium-rich brines and abut the ULI2 claims within the existing Project area (Figure 4) (see ASX announcement 25 July 2022). This strategic western expansion of the Project will allow Anson to execute the Western component of its resource expansion strategy and comes after the Company was granted additional strategic SITLA (School and Institutional Trust Lands Administration) blocks at Paradox earlier this year (see ASX announcement of 2 February 2022).

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