Anson Resources : to Commence Resource Expansion Program at Paradox

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17 January 2022	ASX ANNOUNCEMENT
	ASX: ASN, ASNOC, ASNOD
	OTC: ANSNF

Anson to Commence Resource Expansion Program at

Paradox Lithium Project

Highlights:

• Anson to commence major Resource expansion program to upgrade the resource base at the Paradox Lithium Project in Utah
• Program to commence with re-entry of Long Canyon No2 (LC2) well to increase JORC Indicated and Inferred Resource to support future production proposals
• Program will also target the deeper Mississippian Units which contains a large super- saturated brine reservoir not previously sampled for inclusion in Resource estimates:

1. Units are 100 metres to 250 metres thick, compared to 10 metres Paradox Clastic Zones

1. LC2 well remains open from previous sampling providing quick government approval to extend re-entry sampling program

• 1. The highest lithium value to date of 253 ppm Li was recorded in this well.
• Resource expansion strategy is focused on existing targets across the Paradox Project area and also on new claims to be added adjacent to the Project
• New Exploration Target confirmed for Mississippian super-saturated brine surrounding the Long Canyon No 2 well of 445Mt - 1,000Mt of brine grading 70 - 100ppm Li and 2,000
• • 3,000ppm Br
• Exploration Target forms part of a larger project-wide Exploration Target announced on 6 April 2021

Anson Resources Limited (Anson) is pleased to announce the commencement of a major resource expansion sampling program at its Paradox Lithium Project in Utah, USA (Paradox Project).

Anson is focused on delivering a significant resource upgrade at the Paradox Project in H1, calendar 2022, which will be designed to support its feasibility studies and the development of the Paradox Project into a substantial, operating lithium-bromine project.

Anson's resource expansion strategy is focused on:

• increasing the existing JORC 2012 estimates both vertically and horizontally at existing targets across the Paradox Project area (Figures 1 and 2), and
• adding new claims adjacent to the Paradox Project.

The first target is the Long Canyon No 2 well and the deeper Mississippian Units (Figure 1). Anson has lodged a "Sundry Notice" to extend the previously approved re-entry and sampling program of these target areas.

Anson Resources Limited

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

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

This is similar to the previously announced application to re-enter the Mineral Canyon and Sunburst wells to sample lithium and other minerals in the super-saturated brine of the lower Mississippian Units (ASX Announcement 26 July 2021).

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personal	Figure 1: East-West Cross section showing the thickness of the Mississippian target units.
		Anson plans to re-enter the Long Canyon No 2 well to test the lithium grades plus bromine, boron
		and iodine grades within the Mississippian units and in the Clastic Zones 17, 19, 29 and 33 brines
		with the intent to increase and upgrade the Project's estimated JORC resources (ASX
		announcement 11 May 2020).
		Exploration Target
		Anson has confirmed a new Exploration Target for the Mississippian super-saturated brine
		surrounding the Long Canyon No 2 well, which consists of 445Mt - 1,000Mt of brine grading 70 -
		100ppm Li and 2,000 - 3,000ppm Br (Table 1).
For	This Exploration Target forms part of a larger project-wide Exploration Target of 1,300Mt - 1,800Mt
grading 80 - 140ppm Li and 2,000 - 3,000ppm Br (ASX announcement, 6 April 2021).
	Mississippian Units	Porosity	Density	Brine	Li Grade	Li	Li2CO3	Br Grade	Br
		Exploration Target	(%)		(Mt)	(ppm)	(Tonnes)	(Tonnes)	(ppm)	(Tonnes)
		MIN	14	1.27	445	70	31,100	166,000	2,000	891,000
		MAX	14	1.27	1,002	100	100,200	533,500	3,000	3,007,000

Table 1: The calculated Exploration Targets for the Mississippian units.

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

The original Notice of Intent for the exploration program was granted by the USA Federal Government, Bureau of Land Management in December 2018 (ASX Announcement of 14 December 2018) and an amended Sundry Notice has now been submitted to carry out this additional work.

Figure 2: Plan showing the probable Mississippian AOI for the JORC calculation surrounding the Long

Canyon well on completion of the re-entry.

The Exploration Target draws on data that has been generated during previous oil and gas drilling programs. The review identified several wells within the Paradox Project area that have been drilled into the Mississippian Units which included Long Canyon No 1, Long Canyon Unit 2, Coors USA 1-10LC, White Cloud 1, Big Flat 1 to 3, Big Flat Unit 5 and Mineral Canyon Fed 1-3 (see Figure 2).

Resource Expansion Program Background and Rationale

Anson's research into the surrounding historic wells has shown that test-work, such as core sampling and flow testing, has been carried out on some of the deep wells which is suitable for use in upgrading the JORC resource in both the Inferred and Indicated categories.

Anson's assayed lithium value in the Long Canyon No. 2 well is the first recorded lithium value and artesian flow east of Roberts Rupture, adding new knowledge of the geology of the area. The lithium grade from Clastic Zone 31 was the highest value to date.

The flow rates at Skyline Unit 1 and Long Canyon No. 2 wells supports the theory that the fracturing by the geological structures in the central and southern area of Anson's claims, particularly Roberts Rupture, will assist with brine flow without the need for extraction pumping which is significant for project economics.

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Saturated brines have been encountered in Pennsylvanian, Mississippian and Devonian rocks in almost every well 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.

From the standpoint of reservoirs for brine accumulation, the Mississippian rocks may hold as much promise as the Pennsylvanian clastic units. These limestone and dolomite units range from 100 to 250 metres thick and are noted for vuggy and inter-crystalline porosity.

The possibilities of concentrated brines in these formations are good, but Anson notes that only one brine sample has been assayed historically, especially where they have been faulted against Paradox salt beds, which is the case in the Moab Valley.

Four wells on the western side of the Project area have been cored through the Mississippian units. Drill stem tests (DST) were also carried out through some of these intervals which provides additional information such as flow rates and permeability.

Anson will be able to obtain the core from the university storage, as was carried out for Clastic Zone 31, and test for porosity and the resultant specific yields. This information along with the lithium grades will aim to convert some of the Exploration Target to both Indicated and Inferred Resources.

In the Clastic Zones 17, 19, 29 and 33 there are no previous historical assays recorded resulting in only an Area of Interest of 1km for the Indicated Resource being interpreted surrounding the previously re-entered wells (ASX Announcement of 11 May 2020). With the re-entry and sampling of the Long Canyon No 2 well, these horizons would be included in the resultant JORC Resource upgrade.

The re-entry program and the addition of extra claims, (ASX announcement of 18 October 2021), would result in a significant increase in the block model tonnages and grades for the horizons which have had no previously recorded assays in those locations.

The sampling of Long Canyon No2 would result in the conversion of part of the exploration target to both an Indicated Resource with an area of influence (AOI) of 1km, and Inferred Resource with an AOI of 1 to 3km as has been the case with all the previously assayed clastic zone horizons.

Updated 3D Model

Anson has also updated the 3D model for the project area which was carried out with ARANZ Leapfrog Geo modelling software, see Figure 3. The model can provide an estimate of the potentially drainable brine within the project area.

It is a static model and takes no account of pumping other than by the application of effective porosity. In the model it can be seen that the Leadville Limestone (grey) is a massive aquifer compared to that of Clastic Zone 31 (khaki). This figure also shows the drill traces of the historic wells used in the calculation of both the JORC Resource and the Exploration Target.

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Figure 3: 3D plan showing the locations of the Long Canyon No2, Sunburst and Mineral Canyon wells to be re-

entered.

This announcement has been authorised for release by the Executive Chairman and CEO.

	ENDS
For further information please contact:
Bruce Richardson	Media and Investor Relations
Executive Chairman and CEO	James Moses, Mandate Corporate
E: [e-mail]	E: [e-mail]
Ph: [phone]	Ph: [phone]

www.ansonresources.com

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