Anson Joins Forces With Global DLE Leader Sunresin To Develop Full-Scale Commercial Lithium Plant At Paradox Lithium Project

Anson Resources Limited (ASX: ASN, ASNOC, ASNOD) (“Anson” or “the Company”) is pleased to announce the execution of a binding Memorandum of Understanding (MoU) with leading global lithium extraction technology provider Sunresin New Materials Co. Ltd (Sunresin), for a long term strategic and commercial alliance for Anson’s Paradox Lithium Project (Project) in Utah, USA.

Highlights:

• Anson has executed a binding MoU with leading global DLE technology provider Sunresin for a long term strategic and commercial alliance
• Sunresin has successfully concluded eight months of engineering design work for the Paradox Lithium Project’s DFS – DFS to be released in near future
• Anson to work closely with Sunresin to negotiate agreements for construction of a full-scale commercial lithium plant using Sunresin’s patented Direct DLE technology
• Sunresin’s DLE technology has been commercialised with four operating projects and a further six under construction or under contract in China and South America with a total production capacity of 73,000tpa

Figure 1: Zangge Lithium Plant supplied by Sunresin now in production. Plant constructed in 2018.

The Company’s engagement with Sunresin began in 2019 during a search for a DLE technology that was the most suitable for Paradox Lithium Project’s brine. Four DLE alternative technologies were trialled over the next year. The binding arrangement is the culmination of 12 months collaborative work between Anson and Sunresin, where Anson has conducted several rounds of test work using Sunresin’s patented Direct Lithium Extraction (“DLE”) process in Xian, China in 2020 and in 2021 using a small scale DLE pilot plant at an independent laboratory in Salt Lake City, USA. This test work proved highly successful and delivered a lithium recovery rate of 91.5%, see ASX announcement 13 August, 2021.

Since November 2021 Sunresin has worked with global engineering firm, Worley on the Paradox Lithium Project’s Definitive Feasibility Study (DFS). The engineering and design work to the DFS level has been completed.

Sunresin, Worley and Anson have worked together as a team in the engineering design of Stage 1 of the Project, which has provided the basis for the cost estimates to be released in the upcoming DFS. This combined engineering team has developed a design that will integrate Sunresin’s DLE process and the downstream equipment required to produce lithium carbonate with utilities and other inputs to operate successfully in Utah, USA.

Under the terms of the binding MoU, Sunresin will provide equipment, consumables, innovations, and technical support services to Anson for the development, design, construction, operation and optimisation of Sunresin’s proprietary DLE technology for the production of battery-grade lithium carbonate at the Paradox Project. Anson will supply data related to the Project, including results of the DFS when completed. There is no financial implications to Anson as the parties are to cooperate with each other at their own cost in their efforts to pursue the provision of Sunresin’s technology assistance in Project development, engineering design, construction, operations and optimisation, with an aim to reach a commercial agreement in due course. There is no fixed term to the MOU.

Anson will also have guaranteed access to Sunresin’s global supply chain of distribution centres and technical support network in Asia and Europe, to support Anson’s strategic development of the Project. In addition, Sunresin will provide Anson with technology updates, innovations and support during the life of the proposed Project, including future expansions and optimisations.

As highlighted in ASX announcement 13 August 2021, Sunresin’s DLE technology indicates the opportunity to deliver ESG, operational and economic advantages in producing lithium carbonate at the Paradox Project, including:

• Lithium DLE estimated recovery of 91.5%
• No requirement for pre-treatment
• Use of water (organic process) rather than chemicals to wash the lithium from resin
• Longest recovery lifespan of bulk industry-grade lithium extracting resin to maximise the unit cost of production for the DLE process.

Anson undertook an extensive assessment of potential lithium extraction technologies for the Paradox brines prior to the selection of Sunresin as its DLE technology partner.

Anson’s Executive Chairman, Mr. Bruce Richardson stated:

“We are delighted to announce the strategic partnership with Sunresin as our technology partner today. Sunresin’s DLE technology is the most attractive for the Paradox Lithium Project’s brine and meets our goal of producing the highest quality and cleanest lithium carbonate in the United States. We look forward to a long association with Sunresin.”

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