Slide 1: Paradox Lithium Project, USA - Definitive Feasibility Study Presentation
For personal use only Paradox Lithium Project, USA Definitive Feasibility Study Presentation ASX:ASN 9/09/2022
Slide 2: Disclaimer & Important Notice
Disclaimer & Important Notice For personal use only The information contained in this confidential document ("Presentation") has been prepared by Anson Resources Limited (the "Company"). It has not been fully verified and is subject to material updating, revision and further amendment. The Informati
Slide 3: Company Overview
For personal use only Company Overview
Slide 4: Paradox Lithium Project (100% owned)
Paradox Lithium Project (100% owned) For personal use only Direct Production of High Purity Battery Grade Lithium Carbonate Ø JORC Resource >1 billion containing 788,300 tonnes of Lithium Carbonate tonnes of brine Equivalent (LCE) and >3.5 million tonnes of Bromine1 Ø Tier 1 Political, Tax & ideally
Slide 5: Emerging EV Battery Industry in the USA
Emerging EV Battery Industry in the USA For personal use only U.S. Lithium Advantage IM3 15GWh LG 20GWh Lithium listed as critical mineral in the U.S. Greater GM/LG focus towards supply chain 30GWh security and local assets TESLA, Gigafactory 1 Ford Ford/SKI 100GWh 43GWh 86GWh 12 battery mega factor
Slide 6: Corporate Snapshot
Corporate Snapshot For personal use only Share Price Performance (12 months) Overview ASX code ASN 100 0.50 Issued Capital 1,028 million Volume (Millions) Share Price 90 0.45 Share Price (8 Sept 2022) A$0.42 80 0.40 Market Capitalization A$431 million Cash (30 June 2022) A$5.7 million 70 0.35 60 0.3
Slide 7: Resource Expansion – Eastern Strategy
Resource Expansion – Eastern Strategy For personal use only Anson is currently delivering on the Eastern Strategy with further JORC update expected to Eastern support production Strategy ü Resource expansion drilling at Long Canyon No. 2 and Cane Creek 32-1 to target additional clastic zones has bee
Slide 8: Paradox Geology & Mineralisation
Paradox Geology & Mineralisation For personal use only The Paradox Basin is located within a mature Oil & Gas district providing Anson access to existing well infrastructure and valuable historic data. The Paradox Basin consists of various formations which host large volumes of brines rich in Lithiu
Slide 9: Paradox Lithium and Bromine Resource
Paradox Lithium and Bromine Resource For personal use only Brine Grade (ppm) Contained (‘000 t) Category Formation Clastic Zone (Mt) Li Br Li2CO3 Br2 Indicated 48 172 3,043 44 145 Paradox 31 Inferred Formation 77 181 2,540 75 196 Resource 31 125 178 2,723 118 342 Indicated 178 83 3,377 79 603 Parado
Slide 10: Anson & Sunresin – A Compelling Partnership
Anson & Sunresin – A Compelling Partnership For personal use only 91.5%1, achieved in pilot scale testing in Utah, USA. 1 Higher Lithium Recoveries Well in excess of recoveries achieved with other DLE processes tested by Anson. 2 Reliable, Longer Resin Life Lithium extraction resin exhibits greater
Slide 11: Sunresin – Proven DLE Partner
Sunresin – Proven DLE Partner For personal use only • Anson has executed a binding MoU1 with leading global DLE technology Sunresin to support the development and operation of the Paradox Lithium Project. • The MoU provides for a long term strategic and commercial alliance About Sunresin between Sun
Slide 12: Paradox Lithium Project Definitive Feasibility Study September 2022
For personal use only Paradox Lithium Project Definitive Feasibility Study September 2022
Slide 13: Expanded Resource delivers upsized production rate
Paradox Lithium Project: Expanded Resource delivers upsized production rate Phase 1 DFS Highlights For personal use only Phase 1 Highlights ü 424% growth in Lithium Carbonate Resource from 2021 PEA study Lithium Carbonate Production 13,074tpa (years 1-10) ü ~5-fold increase in DFS Production rate Pr
Slide 14: DFS Phase Economics
DFS Phase 1 Economics Additional Upside Value For personal use only NPV 7 (pre-tax) IRR Project (pre-tax) US$ 1,305 m 47% ü Revenue from valuable by-products has not been included in the economic analysis C1 OPEX1 CAPEX US$ 4,368 /t LCE US$ 495 m ü Results from recently completed drilling at Cane Cr
Slide 15: Lithium Carbonate Production
Lithium Carbonate Production For personal use only Production Schedule 20,000 250 Production Parameters Units Phase 1 18,000 Further JORC update from Cane Creek Construction Period Years 2 drilling and high grade Mississippian 16,000 200 formation to enhance production in later years. Project Life Y
Slide 16: Mine Plan & Project Infrastructure
Mine Plan & Project Infrastructure For personal use only • Permitted production wells planned at Long Canyon to extract brine (see ASX Announcement 20 October 2021) • Early site works for two production pads completed (see ASX Announcement 20 December 2021) • Brine transport pipeline to use existing
Slide 17: Enhanced Production Site location
Enhanced Production Site location For personal use only New production site location and project layout unlocks cost savings, ESG benefits and more streamlined approvals process. • Selection of a new production site location from previous Blue Hills site as part of the DFS will deliver significant a
Slide 18: Capital Cost Estimate
Capital Cost Estimate For personal use only • The capital cost estimate includes direct, indirect costs, Capital Item US$m freight, professional services, taxes and contingency. Direct Capital Costs 275.2 • The DLE plant will be supplied and commissioned by Indirect Capital Costs 126.0 Sunresin, Ans
Slide 19: Operating at bottom of Cost Curve
Operating at bottom of Cost Curve For personal use only Year 1-10 Production, Lithium Carbonate Production • Operating cost estimates include brine extraction, processing 13ktpa and production of battery grade lithium carbonate Item US$ per tonne LCE • FEED process will seek to include previously id
Slide 20: Financial Evaluation
Financial Evaluation For personal use only Project Cash Flows Key Financial Metrics Unit Capital Cost US$ m 495 Further resource update from Mississippian 400 formation at Cane Creek expected to enhance 3,500 C1 Operating Costs US$ / t LCE 4,368 US$ Millions US$ Millions economics in later years 3,0
Slide 21: Anson's Funding Strategy
Anson’s Funding Strategy For personal use only ü Appointed BurnVoir Corporate Finance as financial adviser ü Strong initial interest from leading international banks, Debt export credit agencies and credit funds Phase 1 DFS ü Engagement commenced with US Department of Energy Loan Programs Office Pro
Slide 22: Development Timeline
Development Timeline For personal use only Final Investment Decision targeted in Q2 2023, with first production of battery grade lithium carbonate in 2025. 2022 2023 2024 2025 Milestone Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Resource Update - LC#2 DFS Resource Update - Cane Creek FEED Offta
Slide 23: Direct Lithium Extraction
Direct Lithium Extraction What is Clean Lithium? High Purity, Low Footprint For personal use only Production of High Purity >99.95% Li2CO3 Delivery of Longer Battery Life Direct Lithium Extraction No mining / reduced ground disturbance Processed brine to be returned to horizon Low Energy and Water C
Slide 24: Li Battery Testing – Premium Performance
Li Battery Testing – Premium Performance For personal use only • Anson’s Li2CO3 demonstrated lower capacity loss during initial charge cycles • Lower resistance growth in Anson Li battery1 • Anson’s Li2CO3 more stable battery • 1.5 -2x less gas production within battery • Lower rate of self discharg
Slide 25: Lithium Carbonate Process Flowsheet
Lithium Carbonate Process Flowsheet For personal use only RO Water Reverse Osmosis (RO) Water Calcium & RO Adsorption Membrane Magnesium Fresh Water Preconcentration Removal Brine Extraction Brine Re injection Mechanical Lithium Fine Boron Coarse Boron Vapour Precipitation Removal Removal Recompress
Slide 26: Producing High Purity Lithium Carbonate – 99.95%
Producing High Purity Lithium Carbonate – 99.95% For personal use only Exceed EV Battery Longer Battery life De-risked Proven Grade • NOVONIX testing indicating Process – Direct • 99.5% battery grade v/s less loss in initial charge cycles1 Lithium Extraction Anson’s 99.95% • Lower self-discharge rat
Slide 27: Paradox Lithium Project – Development Strategy
For personal use only Paradox Lithium Project – Development Strategy
Slide 28: Lithium Market – Long term supply deficit
Lithium Market – Long term supply deficit For personal use only Lithium Carbonate Price Annual EV sales 15x that of 2020 60 80,000 Millions 15x 50 60,000 40 US$ / t 40,000 30 Battery grade 6x Lithium 20 20,000 Carbonate price US$69,400 per tonne1 10 1x 0 0 01/20 07/20 01/21 07/21 01/22 07/22 2020 20
Slide 29: US Offtake Strategy
US Offtake Strategy For personal use only US Offtake Strategy • Preliminary discussions and interest from Tier 1 US based automakers and cell makers • Offtake discussions to accelerate with the benefit of the recently completed JORC Resource upgrade and release of Definitive Feasibility Study. • Par
Slide 30: Phase – Lithium Expansion – Western Strategy
Phase 2 – Lithium Expansion – Western Strategy For personal use only Western The successful execution of the Western Strategy Strategy will support future increases in Lithium Carbonate production. • Anson’s Western Resource Expansion Strategy aims to further expand the Paradox Project Resource via
Slide 31: Phased approach to unlock Paradox Basin Potential
Phased approach to unlock Paradox Basin Potential For personal use only • Phase 1 – 13,074tpa Lithium Carbonate • Phase 2 – Bromine Production and Production Lithium expansion § Further JORC update from Cane Creek § Bromine Production to be funded from 32-1 well expected to support increase Phase 1
Slide 32: Phase – Bromine & Lithium Production
Phase 2 – Bromine & Lithium Production For personal use only Paradox Project is well placed to supply bromine to the rapidly growing stationary energy storage battery market in the United States, with large resource and proximity to planned major energy storage projects on the east coast of the Unit
Slide 33: Anson's Strategy – Developing Resources for a Sustainable Future
Anson’s Strategy – Developing Resources for a Sustainable Future For personal use only 80 United States 60 Portfolio West Australian Portfolio USD/t 40 Yellow Cat - Uranium / 20 Future Facing Vanadium 2019 2020 2021 2022 0 Commodities Lithium Price2 Hooley Well - Paradox Nickel & Cobalt Lithium Proj
Slide 34: Experienced Board & Executive Team
Experienced Board & Executive Team use only Bruce Richardson, B.A (Hons) Peter (Greg) Knox, B.Sc. (Geology) Michael van Uffelen, B.Com, CA – Executive Chairman and CEO – Executive Director – Non Executive Director Board Proven track record of 13 years in Qualified geologist with over 30 years of Exp
Slide 35: Thank You
For personal use only Thank You Telephone: +61 478 491 355 Email: info@ansonresources.com Website: www.ansonresources.com Level 1, 35 Outram Street West Perth WA 6005 Australia 35
Slide 36: Competent Person's Statement
Competent Person’s Statement For personal use only Competent Person’s Statement 1: The information in this presentation that relates to exploration results and geology is based on information compiled and/or reviewed by Mr Greg Knox, a member in good standing of the Australasian Institute of Mining