Further Strategic Expansion of Paradox Lithium Project Area

Anson Resources Limited (ASX: ASN, ASNOC, ASNOD) (Anson or the Company) is pleased to announce the further strategic expansion of its Paradox Lithium Project in Utah, USA (the Project), via the staking of 556 placer claims immediately adjacent to the western extent of the Project area.

Highlights:

• Anson has expanded the Paradox Lithium Project in Utah, USA, 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, highly prospective for lithium-rich brines
• Anson plans to execute the Western component of its expansion strategy and re- enter and drill the Mineral Canyon Fed 1-3 and Sunburst 1 wells
• The Western component of the expansion strategy is designed to convert existing Inferred Resources and Exploration Target into Indicated and Inferred Resources
• Historical oil drilling has previously confirmed the presence of supersaturated brines on the western side of the Project area
• Anson is in process of completing the Eastern component of its resource expansion strategy with drilling at the Cane Creek 32-1 well – in combination with drilling at the Western targets it plans to deliver a major Resource upgrade

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).

The new tenure will increase the Project’s footprint by 44.7km² (36%) and expands Anson’s contiguous ground-holding at the Project to 167km².

Figure 1: Plan showing the new claims pegged on the western margin of the existing project area.

Increasing the Western Expansion Strategy

Anson is focused on delivering a significant Resource upgrade at the Project, which will incorporate separate “Eastern” and “Western” expansion strategies.

The Company is currently completing the Eastern component of its resource expansion drilling campaign, with drilling at the Cane Creek 32-1 well. It will then commence the Western strategy, which will involve the re-entry of historical wells to convert the existing Inferred Resource and/or Exploration Target into Indicated and Inferred Resources (see ASX announcements of 10 September 2020 and 26 July 2021).

The newly pegged claims are located west of the two wells to be targeted in the Western expansion strategy – the Sunburst and Mineral Canyon wells – and will be included in Anson’s planned JORC Resource upgrade at Paradox (subject to the success of the re-entry drilling program).

The expanded potential Indicated Resource area of influence (AOI) is shown by the magenta outline, and the expanded potential Inferred Resource AOI is shown by the red outline in Figure 2.

On completion of the planned re-entry of the two “Western Strategy” wells, and subject to confirmation the lithium-rich brines extend to the western extent of the project along with porosity data collated from core obtained from the historical wells in the region, the AOI may potentially be increased to 3km in Clastic Zone 31 and the Mississippian units in the upcoming Resource upgrade.

This would deliver a significant milestone to the Project Resources, which would result in a significant part of the Project area being classified in the Indicated Resource category.

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