Anson Completes Resource Definition Drilling at Long Canyon No.2

Anson Resources Limited (Anson or the Company) is pleased to announce consistent high pressures within the targeted, priority Mississippian Unit (Leadville and Madison Formations) in its recently completed Resource definition-focused drilling at the Long Canyon No. 2 well, at the Company’s Paradox Lithium Project (“the Project”) in Utah, USA.

Highlights:

• Anson has completed the latest phase of its Resource expansion drilling campaign, at the Long Canyon No. 2 well at the Paradox Lithium Project
• Drilling into the targeted Mississippian Unit has successfully confirmed consistent high-pressures
  • 3,785psi recorded at the Long Canyon Unit 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
• Similar high-pressure results recorded in the Mississippian Unit, in a radius of up to 10 km from Long Canyon No. 2
• Drilling has now progressed to the high-priority Cane Creek 32-1 well
• Anson’s drilling campaign aims to convert the Project’s existing Exploration Target into an Indicated and Inferred Resource

Anson has completed the latest phase of its ongoing Resource expansion drilling program, at the Long Canyon No. 2 well, recording a pressure of 3,785psi. Drilling successfully targeted the large Mississippian supersaturated brine aquifer which hosts a substantial lithium-rich zone of ~70m- 250m thickness. Drilling aims to convert the existing Exploration Target into an Indicated and Inferred Resource (see ASX Announcement 17 January 2022).

The consistently high pressures delivered from the Mississippian Unit in the Long Canyon drilling 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.

Executive Chairman and CEO, Bruce Richardson commented:

“Our drilling at Long Canyon No. 2 has established that the pressures in both the Paradox and the deeper Mississippian Unit (see Figure 1) are very high. This is expected to allow the brine to flow from an area with a radius of 10km and is why the Company is confident that the pressure will not drop or the flow will slow down over distance and time, as is known to occur with oil wells.”

The first brine samples from the Long Canyon Unit 2 well from the Mississippian Unit (see ASX Announcement 2 June 2022) and Clastic Zones 33, 29,19 and 17 have been sent to certified laboratories to assay for lithium, bromine and other minerals.

The Company’s resource expansion drilling program has now progressed to high-priority Cane Creek 32-1 well, where drilling aims to convert a large portion of the Paradox Exploration Target into Indicated and Inferred Resources.

Figure 1: Plan showing an East- West cross section through the Paradox Lithium Project showing the Paradox and Mississippian Unit (Leadville & Madison Formations), highlighting the thickness of the Unit.

Commentary - High-Pressure and Permeability at Shallower Depth

The Mississippian Unit consist of layers of limestone and dolomite. These units have been altered by hydrothermal events which have enhanced the reservoir potential. These events have increased the porosity by:

• Leaching
• Developing microporosity
• Fracturing

These rock units form an excellent reservoir for supersaturated brines. When brine is removed at the extraction point, salt will flow into the voids (from where the brine has been removed), throughout the period of production. This will help maintain high reservoir pressure and assist in a high ultimate recovery of brine.

Anson’s research has confirmed that the pressure in the Mississippian Unit extends for more than 10km from the Long Canyon No. 2 well and will take many years to exhaust when extraction begins.

Drill stem test data on the historical wells show that consistent higher pressures (see Table 1) with high porosities and permeabilities of the Mississippian Unit will result in the recovery of brine from this Unit.

Table 1: Table showing the depths and pressures of the Mississippian Units in or near the Project area (*finished in the Mississippian Unit).

Anson is in a unique, and ideal, location for brine extraction at the intersection of Robert’s Rupture and the Cane Creek Anticline (raised area, at the Paradox Project). Robert’s Rupture provides vertical porosity, and the Cane Creek Anticline provides a shallower depth to the target extraction horizon.

These factors, high pressure and shallower depth are key attributes of the Paradox Lithium Project area and are not present anywhere else in the area. In combination, they provide strong indicators of low extraction costs and beneficial ESG outcomes.

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