Mandrake Secures Large-Scale Lithium Project in the United States

Managing Director James Allchurch commented: “Mandrake has organically secured a potentially world-class lithium project in the heart of the US, at a time when the US federal government is actively funding and supporting domestic sources of strategic and critical materials such as lithium.

Utah is among the most mining and investment friendly jurisdictions in the US with the State Government heavily involved in aiding Utah-based projects play a role in the global energy transition from fossil fuels to renewable energy.

Our 100%-owned Utah Lithium Project comprises over 56,000 acres of prime lithium brine�prospective ground in the Paradox Basin in proximity, and incorporating, a multitude of Date: 22 February 2023 ASX Code: MAN Capital Structure Ordinary Shares: 552,499,920 Current Share Price: 5.3c Market Capitalisation: $29.3M Cash: $17.2M (Dec 2022) EV: $12M Debt: Nil Directors Lloyd Flint Non-Executive Chairman Company Secretary James Allchurch Managing Director Roger Fitzhardinge Non-Executive Director Contact Details First Floor 10 Outram Street West Perth WA 6005 Australia Tel: +61 9200 3743 mandrakeresources.com.au Mandrake Resources Limited I ACN: 006 569 124 2 www.mandrakeresources.com.au First Floor, 10 Outram Street West Perth WA dormant oil and gas wells that can be relatively quickly and inexpensively accessed for the purposes of sampling and eventual production.

The Paradox Basin includes nearby operators such as lithium developer Anson Resources (ASX: ASN), who have a Mineral Resource of over 1MT of Lithium Carbonate Equivalent at an average grade of 124mg/L Li1, as well as the biggest potash producer in the US, Intrepid Potash.

The opportunity presented by Mandrake’s large-scale Utah Lithium Project is clearly recognised by ASX lithium developer Galan Lithium Limited (ASX: GLN; MC: $344M) who are investing $1.5 million for a 5% stake in Mandrake and will be involved in the project on an ongoing basis in a technical advisory capacity.

Mandrake will leverage the significant technical work already undertaken over the preceding months to move rapidly into exploration as we head towards the Company’s maiden lithium Resource.”

Highlights

• Mandrake has secured a large-scale lithium project in the prolific ‘lithium four corners’ Paradox Basin southeast Utah, USA.
• The Utah Lithium Project comprises a land position of over 56,000 acres (~226 km2) – includes a Binding Agreement with the Utah State Govt for over 34,000 acres.
• Staking is still underway; the Company will update shareholders with increases in project acreage.
• Compilation of geological and petrophysical data is well advanced to potentially generate a lithium Exploration Target in the short term and to guide exploration work toward a maiden Mineral Resource in the second half 2023.
• Located proximal to Anson Resources’ (ASX: ASN) Paradox Lithium Project in the pro-mining jurisdiction of Utah with access to Tier 1 infrastructure including power and water.
• ASX-listed lithium developer Galan Lithium Limited (market cap: $344M) to provide technical support and invest $1.5M for a ~5% stake in Mandrake.
• US governmentt and industry aggressively promote domestic exploration/production of strategic/critical materials via myriad funding and grant schemes.
• Project generated internally – no payments to third parties.
• Mandrake fully funded - $19M cash post Galan placement.

Utah Lithium Project

Mandrake Resources Limited (ASX: MAN) (Mandrake or the Company) has secured over 56,000 acres (approximately 226 km2) of lithium brine prospective ground in the Paradox Basin. The lithium brine land tenure comprises:

1. 34,670 acres of leases pursuant to an Other Business Agreement (OBA) with the Utah School and Institutional Trust Lands Administration (SITLA), the organization which manages the Utah State Government’s trust lands and mineral rights.
2. Over 1,000 claims have been acquired on Bureau of Land Management (BLM) land which totals over 21,383 acres. Claim staking has targeted the most prospective lithium brine areas in the Paradox Basin.

A global review undertaken by Mandrake of several lithium assets and numerous lithium hard-rock, clay and brine prospective areas throughout the world identified the Paradox Basin in the United States as the most attractive opportunity for the Company to successfully develop a world-class lithium project.

The Utah Lithium Project was generated by Mandrake internally meaning there is no vend or acquisition cost to reduce Mandrake’s cash position or dilute its existing shareholders.

The Paradox Basin in the south-eastern Utah ‘lithium four corners’ area hosts hypersaline brine historically documented to contain significant concentrations of lithium, boron, potassium salts (potash) and other elements. The United States’ biggest potash producer, Intrepid Potash (NYSE: IPI MC: US$427M) operates the Cane Creek potash mine which is located approximately 50km to the north west of the Utah Lithium Project whilst mid-tier ASX-listed lithium developer Anson Resources (ASX: ASN MC: AUD$224M) is located approximately 60km north west (Figure 1).

Project Geology and Lithium Brines

The Paradox Basin is composed of sedimentary rocks that overlie an Early Proterozoic basement of metamorphic gneiss and schist that is locally intruded by granite (Nuccio and Condon, 19962; Tweto,19873). The prospective reservoir brine occurs in deep-seated, confined Paleozoic sedimentary reservoirs, or aquifers, that are still being assessed and may vary in depth between 2,000 and 7,000 feet (610 and 2,134 metres) below surface.

The geological units of most interest to Mandrake currently include the Pennsylvanian age Paradox Member (within the Hermosa Formation) and the Mississippian Leadville-Ouray Limestone Formation (Leadville Limestone; Figure 2).

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