Anson Resources : Quarterly Activities Report to 31.03.17

Quarterly Activities Report

For the Period Ending 31 March 2017

Overview

• Earn-in agreement completed

• Work underway compiling geology and seismic data sets

• Outotec Finland appointed to undertake metallurgical test work, with initial result showing that magnesium could be removed with a lithium loss of less than 3%

  Ajana Graphite Project, WA:

• 20 hole RC drilling program undertaken at Mary Springs prospect

• Program aims were to confirm grade, width and strike of anomalies found in 2016 VTEM survey, define resource target areas

• Early results intersected graphite mineralisation, assays in progress

  Hooley Well Cobalt-Nickel Project, WA Acquired:

• Project has extensive cobalt mineralisaton over a 1.5km x 800m area

• Historic drilling results include:

o 22m @ 0.97% Ni & 0.06% Co & 1.05% Cr

- Incl. 4m @ 1.41% Ni & 0.11% Co and 1.99% Cr

o 33m @ 0.5% Ni & 0.04 % Co & 0.55% Cr

- Incl. 8m @ 0.84% Ni & 0.10% Co and 0.22% Cr

ULI Lithium Brine Project, Utah

In addition to being prospective for lithium, the ULI Project is also prospective for additional high grade by-products, including bromine, boron, iodine and magnesium.

Tel: +61 8 9226 0299 Fax: +61 8 9321 1627 ABN: 46 136 636 005 www.mayaniron.com

The main target area of the ULI Project is Clastic Zone #31 which is approximately 6,000 feet below the surface, consists of 30 feet of shale, anhydrite and dolomite, and which is not part of an oil reservoir, the Pennsylvanian Paradox Formation which has been defined by numerous oil and gas test wells drilled throughout the region.

The brines in Clastic Zone #31 are under higher pressure (4,953 PSI which is approximately double the expected pressure) and at a higher temperature than would normally be expected (140oF compared to 100oF). This has resulted in the brines flowing to the surface when intersected by historic oil drill holes.

Engineering reports from the 1960s conclude that the brine reservoir is extensive (over 10 square miles) and is likely to be recharged from fresh in-flows of artesian water. This conclusion was based on well pressure measurements and draw-down tests.

Most historical oil wells have not been analyzed for lithium, but two holes within 1km of the south end of the ULI Project (Long Canyon No.1 and Robert's Well) were analyzed and identified lithium values of up to 1,700ppm in samples taken from Clastic Zone #31.

A map of the ULI Project showing the claim area, geological structures, historical oil wells and neighbouring projects follows:

Anson can earn up to 70% of the ULI Project, held by Voyageur Minerals Inc., a subsidiary of a Canadian company, Voyageur Industrial Minerals Ltd by undertaking exploration activities.

Upon earning the 70% interest, Anson has the option to purchase the remaining 30% of the Project. If exercised this will see Voyageur retain a 3% gross overriding royalty.

Anson currently holds a 10% interest in the ULI Project and can earn further interests as follow:

• 40% by defining the location(s) for one or more drill holes, issuing a NI 43-101 technical report, and expending US$666,000; and then

• 20% by drilling and logging one or more holes, issuing a NI 43-101 technical report, and expending US$2,330,000.

Legal agreements for Anson's earn-in were completed, enabling exploration to commence.

Anson is creating a geological data base from historical data from 55 petroleum wells. The historic data includes brine geochemistry, drill hole logs, well data, and seismic data. The objective of this work is to identify target well head locations for a drilling program.

Data is from several generations of reports and evaluations dating back to the 1950s, and an oil well database to draw on for stratigraphic mapping. Additionally, the Anson will compile a historic 2D seismic database and acquire seismic data for the project area from existing operators in the project area, and will compile and reprocess this data to better understand the Paradox Basin.

While the primary drilling target of the ULI Project is expected to be Clastic Zone #31, Anson will also assess historical data to understand if further stratigraphic sections which may contain additional brine horizons, formations and structures of interest as Clastic Zone #31 may not be the only mineral-bearing horizon in the Paradox Formation.

Assembly of this data is expected to reduce the time and cost which would otherwise be required to obtain the information by conducting numerous exploration programs.

Outotec Finland is performing metallurgical test work in two phases on synthetically prepared brine solutions similar in composition to those found at the ULI Project. The objective of this test work is to qualify if lithium products can be extracted from ULI Project brines:

• Precipitation; and

• Solvent extraction (SX).

Phase2 test work will focus on the testing for Li2CO3 productionand the extraction of economic by-products. Parameters that will also be tested throughout the test program include the pH, dosage of reactants and retention times. The aim of the tests is to generate design information for the flowsheet development work for a proposed lithium processing plant. Information expected to be developed includes design criteria, process description, equipment list; and capital costs for a possible processing plant.

The synthetically prepared brines have the same composition as the lithium brine extracted from the Roberts Well drill hole, which intersected the Clastic Zone #31, as shown in table 1 below:

Table 1: Composition of the synthetic lithium brine solution used in the test work

With the ULI Project expected to have a Mg:Li ratio of 20, Anson has sought to identify a process to enable the extraction of the magnesium. The results of the initial test work were that the magnesium could be removed to meet battery grade level (

A low Mg:Li ratio is important for the processing of lithium brines. Where evaporation ponds are used, with acceptable ratios up to 6. By avoiding the use of evaporation ponds and using a processing plant processing time is reduced to hours.

The Ajana Graphite Project

The Ajana Project is located in Northampton, Western Australia, a proven and established mining province for zinc, lead, silver and graphite. The Ajana Project is adjacent to the North West Coast Highway and 130km north of Geraldton. The prospective ground on the 222km2 of granted tenements E66/89, E66/94 and E66/100 (under application) contain extensive areas of graphitic schist mineralization. The Ajana area is dominated by the Proterozoic gneiss with conformable lenses of meta-sediment, pelitic gneiss, meta-quartzite, mafic gneiss and graphitic schist known as the Northampton Metamorphic Complex, which typically hosts high-grade graphite deposits in Western Australia and graphite deposits worldwide.

A map of the location of the project is shown.