Ann: Capital Raising to Progress Paradox Lithium Project, page-5

11 July 2018 ASX ANNOUNCEMENT ASX: ASN, ASNOB Capital Raising to Progress Paradox Lithium Project Anson Resources Ltd (Company) hereby (ASX: ASN) (Anson or the Company) is pleased to announce a $2.5M capital raising at an issue price of $0.11 per fully paid ordinary share (Share), to be conducted via a placement to sophisticated and professional investors (Placement). The Shares to be issued, totalling approximately 22,727,273, will be accompanied on a one-for-four basis by unlisted options, exercisable at $0.20 and with a 2-year life. Hunter Capital Advisor Pty Ltd (Hunter) acted as the exclusive lead manager and book runner for the Placement. Proceeds from the Placement will be used principally to progress the Company’s flagship Paradox Lithium Project in Utah, including funding the re-entry of drill holes to determine a JORC resource and to produce sample product for testing by potential off-take partners/battery producers. Funds will also be used to conduct metallurgical test work to determine the production process, and for general working capital purposes. Settlement is expected to occur next week. Anson’s Managing Director, Bruce Richardson, commented: “We are delighted with the support received for the Placement and welcome a number of new institutional investors to the register. The quality of support for the Placement reflects the enthusiasm for the Company’s Paradox Lithium Project as it moves closer to its production goals. The Placement, in addition to the ongoing funds received through the exercise of the Company’s listed options, significantly enhances the Company’s financial position for future growth.” An Appendix 3B for the Placement Shares will be lodged in due course. The Placement will be completed through the utilisation of the Company’s issuance capacity under Listing Rules 7.1 and 7.1A. With regard to the 7.1A capacity, the following information required under ASX Listing Rule 3.10.5A is provided: (a) Dilution Effect Number of Shares on issue prior to the Placement: Placement issue under Listing Rule 7.1A: Total dilution as a result of the LR 7.1A Placement: Number of Shares on issue following the LR 7.1A Placement: Number of Shares on issue following completion of the full Placement: The issue of 11,000,000 Shares under the 7.1A capacity will represent dilution to the existing holders of ordinary securities as follows (and before the full Placement as noted above is completed. The balance of the Placement Shares, 11,727,273, will be issued under the Company’s 7.1 issuance capacity): 418,684,343 11,000,000 Approximately 2.6% 429,684,343 441,411,616 2 (b) Why an issue under ASX Listing Rule 7.1A? The Company issued the Shares for cash consideration pursuant to the Placement as it is of the view that this was the most efficient and expedient mechanism to raise cash in the current market. (c) Underwriting Agreement: This issue was not underwritten. (d) Cost of Issue: A fee of 6% of funds raised is payable to Hunter. In addition, a total of 10 million options, with the same terms and conditions as the options accompanying the Share Placement, will be issued to Hunter (or its nominee) utilising the Company’s issuance capacity under L/R 7.1. Response to media speculation Anson is aware of speculation on Hot Copper regarding its potential resource estimates at the Paradox Lithium Project in Utah. At the present time, the Company is continuing its exploration and testing activities, including evaporation test work on brine samples to determine lithium concentration levels. Consequently, any information regarding potential resource estimates at this time is unfounded and speculative in nature and not based on fact. Further, there is no connection between the Company and the speculative information. Shareholders should disregard the speculation and particularly, purported resource estimates, when seeking information on which to base investment decisions.