Anson Resources Limited · ASX:ASN

Anson Resources — 9th Lithium Supply & Markets Conference (June 2017)

33 slides from Anson Resources's conference presentation, Jun 2, 2017

  1. Slide 1: Paradox Brine Project

    For personal use only Paradox Brine Project June 2017

  2. Slide 2: Corporate Overview

    Corporate Overview ASN For personal use only $0.06 16 Top Shareholders Millions (total shareholders circa 470, top 20 hold 63%) 14 Wu Xiaonan 19.43% $0.05 Bruce Richardson 8.62% 12 Ouro Pty Ltd 7.10% $0.04 Greg Knox 4.27% 10 Wo Wah 3.41% Bruce McLeod 3.37% $0.03 8 6 $0.02 Capital Structure 4 Shares

  3. Slide 3: Lithium Brine Peers – Market Capitalisation Upside

    Lithium Brine Peers – Market Capitalisation Upside Market Cap (AUD$ Millions) For personal use only $200 $180 $160 $140 $120 Millions $100 $80 $60 $40 $20 $0 Voltaic Minerals Anson Red Mountain Lake Resources Liberty One Caeneus Advantage Pure Energy Scientific Millenial Lithium Power Argosy Mineral

  4. Slide 4: Subterranean Pressurised Brine

    Subterranean Pressurised Brine For personal use only  Location  High Pressure/Temperature  Prime Acreage  Leverages Proven Technology  Proven High Grade  Infrastructure  Large Exploration Target  Multiple Revenue Streams  Lithium Rich Brine  Significant Upside ASX: ASN 4

  5. Slide 5: Location

    Paradox Brine Project – Location Location: For personal use only  Tesla Gigafactory 11 hr drive  Known Mining and Oil & Gas jurisdiction, Grand County Utah, USA Tesla  15km west of Moab  4km northwest of operating potash mine Weather:  High semi-desert region  Rainfall – 10 inches  300 days o

  6. Slide 6: Prime Acreage

    Paradox Brine Project – Prime Acreage For personal use only  291 placer claims with an area of 2,334 hectares  Historical brine analysis ranging from 500ppm to 1,700ppm (within 800 metres to project claims)  Historical Gold Bar Unit 2 well drilled to a depth of 9,682 feet on Anson’s project area

  7. Slide 7: Robert's Rupture (Rift) - Significance

    Robert’s Rupture (Rift) - Significance For personal use only  Robert’s Rupture:  Caused fracturing of rock formations to over 7,000 ft in depth  Increases permeability and porosity  Promotes fluid mobility  Fracture and alteration is visible at surface  Historical drill holes show presence of

  8. Slide 8: Gold Bar Unit Well

    Paradox Brine Project – Gold Bar Unit 2 Well For personal use only  The formation contains 29 salt cycles which contained both the salt and brine horizons  Clastic zone 31 was intersected at 7,080 ft  Possibility of brines containing lithium in other Clastic zones ASX: ASN 8

  9. Slide 9: Large Exploration Target

    Paradox Brine Project – Large Exploration Target For personal use only  Estimated Exploration target of 30 – 40 Million barrels of brine at 500- 1700ppm*  Additional brine horizons above and below Clastic Zone 31 exist in the paradox basin  Clastic Zone 31 is possibly replenished by aquifer(s) 

  10. Slide 10: Depth Contours

    Paradox Brine Project – Depth Contours For personal use only  Claim areas are over the deepest part of the Paradox Basin  Brines concentrate in the deepest part of the Clastic Zone 31  Flowed from the top of the Cane Creek Anticline to the base of the Kings Bottom Syncline as brine is heavier tha

  11. Slide 11: High Pressure

    Paradox Brine Project – High Pressure For personal use only  Pressure increases from the south west to the north east  Highly pressurized (4,953psi), approximately double expected pressure at this depth  Mineralized brine at the target zone (Clastic 31) which is expected to flow freely  Flow tes

  12. Slide 12: High Temperature

    Paradox Brine Project – High Temperature For personal use only  Temperature increases in line with depth  The unique pressurized brine rises to the surface already heated to 600C (1400F)  Usually expected 400C (1000F)  Flow tested for 9 hours: temperature steady at 600C (1400F) ASX: ASN 12

  13. Slide 13: Proposed Drill Targets

    Paradox Brine Project – Proposed Drill Targets  For personal use only 4 drill targets identified:  T1 & T3 are close to Robert’s Rupture:  On east west structures – potential traps for lithium rich brine  Clastic Zone 31 is thicker at the Southern end  Accessible by existing tracks  T2 is a pr

  14. Slide 14: Lithium Rich Brine vs Hard Rock

    Lithium Rich Brine vs Hard Rock For personal use only Lithium Brine Hard Rock Exploration Easier and more cost effective Increased difficulty and more expensive Development Shorter lead time to production Longer lead time to production (depending on permit) (depending on permit) Processing Purified

  15. Slide 15: New Technology Advantages

    Paradox Brine Project – New Technology Advantages For personal use only New Technology Traditional Processes (Process Plant) (Evaporation Ponds) Extraction Time <24 hours Up to 18 months Scalability Unconstrained Limited Purity >99.9% <99.5% Recovery Rate >90% <50% Reagents Lime, sodium hydroxide Li

  16. Slide 16: Leverages Proven Technology

    Leverages Proven Technology Solvent Extraction Technology For personal use only  Proven SX plant technology with experience in similar applications:  BHP, Minera Spence, Chile – Copper (Cu) SX for organic chloride wash  Codelco, Radomiro Tomic, Chile 2000 - Copper (Cu) SX Plant  Sierra Gorda, 20

  17. Slide 17: Leverages Proven Technology

    Leverages Proven Technology For personal use only  Example of processing plant utilising latest solvent extraction technology  Modular approach to reduce cost and construction lead time  Efficient operational performance  Ease of maintenance ASX: ASN 17

  18. Slide 18: Preliminary Test Work Completed

    Preliminary Test Work Completed For personal use only  Synthetic brine test work:  Magnesium successfully precipitated  Low Li Loss < 3% achieved  Fast Magnesium precipitation result achieved – 1hr  > 99% Calcium extraction after SX ASX: ASN 18

  19. Slide 19: Infrastructure

    Paradox Brine Project – Infrastructure For personal use only  Close proximity to key infrastructure:  Interstate Highway  Railway  Power Line  Gas Line ASX: ASN 19

  20. Slide 20: Peer Project Comparison

    Peer Project Comparison For personal use only Paradox Clayton Big Smokey Bonnie Atacama Uyuni Hombre Basin Valley Valley Claire (Chile) (Bolivia) Muerto (Utah) (Nevada) (Nevada) (Nevada) (Argentina) 1,700 ppm 140-200 160 ppm 340* ppm 1,400 ppm 140-200 160 ppm ppm ppm Sample 800 * Surface Sample metr

  21. Slide 21: Significant Upside

    Paradox Brine Project – Significant Upside For personal use only Upside of Anson’s Paradox Basin Project:  + revenue from by-products: iodine, bromine, boron, magnesium  - lower OPEX from heat, pressure, location  - shorter time to produce products  = Higher margin  + Lower CAPEX from location

  22. Slide 22: Timeline

    Timeline For personal use only ULI Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 H1 2019 H2 2019 Geological Data Data compilation Data modelling NI 43-101 Preliminary Brine Test Work Brine test work Process flow sheet Drilling Drilling permit requirements Drilling program Engineering Pre-F

  23. Slide 23: Next Steps

    Paradox Brine Project – Next Steps For personal use only Task Timeline Next Steps: Phase 1: ~ 6 months  May 2017 - geological data compilation (ongoing) • Geological Data Interpretation and  June 2017 - commence permitting process modeling • Drill planning  December 2017 – expect permitting proce

  24. Slide 24: Directors

    Directors For personal use only Bruce McLeod, B.Sc. (Maths), Bruce Richardson, B.A (Hons) - Peter (Greg) Knox B.Sc. (Geology) – M.Com (Econ) - Non Exec Chairman Managing Director Non Executive Director  Experienced public company director  >30 years of international business experience, particular

  25. Slide 25: Disclaimer

    Disclaimer 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 Information many not be distributed to others at a

  26. Slide 26: Thank You

    Paradox Basin Project For personal use only Thank You ASX: ASN 26

  27. Slide 27: Appendix – Lithium Production Cost Comparison

    Appendix – Lithium Production Cost Comparison For personal use only Source: Galaxy Resources Ltd presentation November 2016 ASX: ASN 27

  28. Slide 28: Appendix – Lithium Technology Requirements

    Appendix – Lithium Technology Requirements For personal use only 2016: Deutsche Bank ASX: ASN 28

  29. Slide 29: Appendix – Global Demand by Applications

    Appendix – Global Demand by Applications 2015: Lithium demand by applications 2025: Lithium demand by applications For personal use only 2016: Deutsche Bank ASX: ASN 29

  30. Slide 30: Appendix – Demand by Applications (2013-2025)

    Appendix – Demand by Applications (2013-2025) For personal use only 2016: Deutsche Bank ASX: ASN 30

  31. Slide 31: Lithium Project – Supply/Demand

    Lithium Project – Supply/Demand For personal use only 2016: Deutsche Bank ASX: ASN 31

  32. Slide 32: Appendix – Lithium Pricing Forecasts

    Appendix – Lithium Pricing Forecasts For personal use only ASX: ASN 32

  33. Slide 33: Contact Details

    Contact Details For personal use only Bruce Richardson Managing Director E:brichardson@ansonresources.com W:www.ansonresources.com T:+61 8 9226 0299 twitter.com/anson_ir Linkedin.com/ansonresourcedlimited ASX: ASN 33

Anson Resources — 9th Lithium Supply & Markets Conference (June 2017) on 6ix