Anson Resources Limited announced that approval has been granted by the Utah Division of Oil, Gas and Mining for the commencement of its western Resource expansion drilling program at the Paradox Lithium Project in Utah, USA. The Company will commence re-instatement of historic drill pads at the drill targets in the Western area of the Project in the next few weeks ahead of the commencement of drilling, which is expected to start in the current quarter. UDOGM has approved Anson's plan to conduct a re-entry and sampling program at the Sunburst No.1 and Mineral Canyon Fed 1-3 wells in the western region of the Project area.

This is another significant step in the Company's Resource expansion program. The Bureau of Land Management has already approved the new drilling and sampling program of all horizons at Sunburst No.1 and Mineral Canyon Fed 1-3 listed in Table 1, see ASX Announcement 5 October 2022. In addition, it is proposed that some of the area located west of the targeted Sunburst and Mineral Canyon wells may be included in a future Resource upgrade when the drilling and sampling programs are completed.

Sampling of brine from the Sunburst and Mineral Canyon wells will be tested for lithium and other minerals including bromine, Iodine and Boron concentrations in clastic horizons 17, 19, 29, 31 and 33 as well as the thick Mississippian units. The wells are located approximately 1km from historic lithium-rich assayed brines previously sampled from a number of wells in the "Big Flat" area. The thicknesses of each horizon containing the supersaturated brines.

It can be seen from the thicknesses of the Mississippian units that it is a very large reservoir which may result in a significant increase in the JORC resource at the Project once the sampling program is completed. Anson initially applied to re-enter the Mineral Canyon Fed 1-3 and Sunburst 1 wells to test lithium, bromine, boron and iodine grades in the Paradox Formation brines, with the intent to increase and upgrade the Project's JORC Resource. The application was subsequently amended to include the sampling of the much larger aquifer within the Mississippian units.

The sampling of the Mississippian units has proven successful, as evidenced by the Resource expansion program at the Long Canyon Unit 2 and Cane Creek 32- wells which resulted in a large increase in the JORC resource for the Project. On completion of the planned re-entries of the two wells of the Western Strategy, and the confirmation of grades of the lithium-rich brines and consistency of thickness of Clastic Zone 31 and the Mississippian units in the western extent of the Project the Area of Influence used to estimate JORC Resources may be increased to 3km in a future Resource upgrade. This would result in most of the Project area in those horizons being classified in the Indicated category and also result in the recently pegged claims being re-classified as Indicated and Inferred.

As a result of the program of work proposed under the Western expansion strategy and the recently completed drilling, Anson has upgraded the Exploration Target of both the Mississippian Units and Pennsylvanian Paradox Units for the Western Strategy. The Exploration Target for the Paradox Lithium Project's Western Strategy consists of 2.10Bt - 2.56Bt of brine grading 108 - 200ppm Li and 2,000 - 3,000ppm Br. 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 Leadville.

It is uncertain that future exploration will result in a mineral resource. The Exploration Target for the Western Strategy does not include the additional Clastic Zones discovered in the recent Cane Creek 32-1 well drilling, see ASX Announcement, 29 September 2022. The Exploration Target draws on data generated from previous drilling programs for oil and gas and the drill results from Anson's exploration programs. It also uses the parameters from the recent JORC Resource upgrade, such as the laboratory determined specific yield.

The data and available assay results from these drilling programs have been used by a third party to estimate a brine Exploration Target. The Exploration Target ranges have been estimated using a combination of historic drilling data and calculations carried out from exploration programs and therefore the level of accuracy of the Exploration Target range is more accurate.