Aranjin Resources Announces Joint Venture on New Copper and Nickel Discovery in Mongolia

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Ulaanbaatar, Mongolia–(Newsfile Corp. – Feb. 1, 2022) – Aranjin Resources Ltd. (TSXV: ARJN) (“Aranjin“) is very pleased to announce that it has entered into a term sheet agreement (the “Term sheet“) which defines the terms of an exploration joint venture with ION Energy Ltd (the “joint ventureThe joint venture will consist of the granting by both parties of reciprocal exploration rights to their respective exploration licenses in Mongolia.

ION and Aranjin will leverage each other’s expertise in their respective metals, with Aranjin being granted the right to explore ION’s properties for base metals (including copper, lead, zinc, nickel, cobalt and related metals), and ION being granted the right to explore Aranjin’s lithium properties. This structured approach aims to expand both parties’ exploration area in the mineral-rich regions of Mongolia, thereby ensuring that ION and Aranjin maximize their chances of bringing a property to the development stage.

The joint venture area includes all mining rights in Mongolia currently held by the parties, which includes the Sharga Project, the Bayan Undur Project, the Baruun Tal Project (pending final purchase), the Baavhai Uul Project, the Urgakh Naran Project and all mineral rights acquired by the Parties in Mongolia after the date of creation of the Joint Venture.

Strong points:

  • The first auger drilling program was completed in the fall of 2021 at ION’s Baavhai Uul project and included 222 auger holes for a total of 1,304.5 meters
  • To date, only 50% of the analysis samples have been returned
  • The first drilling results are very encouraging with a new discovery of copper and nickel at the center of the Baavhai Uul license
  • Hole AU-83 returned results of up to 2,150 ppm nickel between 5.0 and 5.5 m depth in clay samples and an average of 202 ppm nickel. Numerous auger holes with over 200 ppm and up to 480 ppm nickel have been assayed in the eastern area of ​​the license and these will be the subject of follow-up infill drilling programs
  • Drill hole AU-85 returned up to 570 ppm copper at a depth of 2.5 to 3 m and an average of 103 ppm copper. seven auger holes that were drilled in the eastern portion of the license returned over 100 ppm copper
  • The copper geochemical anomaly has a size of more than 4 km² and the Nickel Geochem anomaly has a size of more than 2 km², the anomalies located in the central part of the permit overlap.

Auger holes were drilled to a maximum depth of six meters with samples taken every 0.5 meters and were located over a kilometer apart. This represented a wide pass of the license prospectively. The remaining results from this drill program are expected before the end of February 2022.

The primary objective of Aranjin’s 2022 exploration program is to expand the revealed high-grade nickel and copper anomalies and plan to drill infill drill holes within a 250m grid. A total of 321 holes are planned over 1,926 meters. Aranjin’s drilling program is expected to begin no later than February 5, 2022. Aranjin also plans to test high-grade zones using IP geophysics and shallow diamond drill holes. ION will continue its exploration with hydrogeological sampling and advanced lithium exploration techniques over the coming months.

Figure 1: Copper anomalies at Baavhai Uul (ION Energy Ltd.)

Junior mining networkFigure 2: Nickel anomalies at Baavhai Uul (ION Energy Ltd.)

Joint Venture Highlights

  • ION and Aranjin will grant each other a reciprocal right to explore each other’s properties, with Aranjin gaining an 80% interest and ION gaining a 20% interest in all base metal projects discovered on ION properties, and ION earning an 80% interest and Aranjin earning a 20% interest in all lithium projects discovered on Aranjin’s properties, subject to existing royalties.
  • If a party has prepared a feasibility study (as defined by the Canadian Institute of Mining, Metallurgy and Petroleum) in respect of a deposit on a license of the other party, and the party wishes undertake the development of the deposit (the “Development project“), the Parties will negotiate a separate joint venture or similar agreement governing the development and operation of the Development Project, the initial participation being 80% for the Party initiating the Development Project and 20% for the other Party.
  • Each party will bear its own exploration costs on the other party’s properties, with ION being required to spend at least US$500,000 and Aranjin US$3,000,000 over the three (3) years from the date of the performance sheet. conditions. Aranjin shall be entitled to satisfy any shortfall in cash up to USD 2,500,000.
  • If either party fails to prepare a feasibility study regarding a filing on the other party’s license within five (5) years of the date of the term sheet, the rights of the non-performing party under condition sheet will be terminated. .
  • Aranjin will appoint Ali Haji, CEO of ION, to the Aranjin Board of Directors, and will additionally appoint him as President and CEO of Aranjin.
  • Matthew Wood will step down as President and CEO of Aranjin and continue to serve as Executive Chairman of Aranjin.

Aranjin intends to issue 1% of the outstanding Common Shares to Mr. Haji to induce him to act as President and CEO of Aranjin. The common shares issued to Mr. Haji will be subject to a hold period of four months and one day.

Ali Haji, new President and CEO of Aranjin, said, “This joint venture allows ION Energy to work alongside Aranjin on two very important elements that are necessary for the clean energy revolution and green. The synergistic makeup of each company will enable this joint venture to power the electrification of the future and represent the largest lithium and copper exploration license holders in Mongolia. We look forward to working together and receiving the rest of our exploration results.

Matthew Wood, Executive Chairman of Aranjin, said, “With promising early results and evidence of copper at the Baavhai Uul project, we are excited to expand our portfolio of potential copper assets. Our partnership with ION allows us to diversify our asset footprint and exploration. to pass.”

Final approval of the joint venture and issuance of shares to Mr. Haji remains subject to TSX Venture Exchange approval.

About ION Energy Ltd.

ION Energy Ltd. is committed to exploring and developing the lithium salars of Mongolia, which include the Baavhai Uul and Urgakh Naran projects. ION’s flagship project, the 81,000+ hectare Baavhai Uul Lithium Brine Project, represents the largest and first lithium brine exploration license granted in Mongolia. ION Energy is well positioned to be a key player in the clean energy revolution, well positioned to meet the growing global demand for lithium. Information about the Company is available on its website, www.ionenergie.caor under his profile on SEDAR at www.sedar.com.

About Aranjin Resources Ltd.

Aranjin Resources Ltd. is committed to exploring and developing its potential copper projects, the Sharga Project, the Bayan Under Project and the Baruun Tal Project (pending final purchase) located in Mongolia. Information about the Company is available on its website, www.aranjinresources.com, or under his profile on SEDAR at www.sedar.com.

Contact details

ION Energy Ltd.
Siloni Waraich
Media Relations
+1 416-432-4920
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Warnings

Certain information contained herein constitutes forward-looking information or statements under applicable securities laws and rules. These statements include, but are not limited to, statements regarding the anticipated completion of the joint venture, the parties’ anticipated expenditures, the anticipated development of mining projects in the operations phase, the appointments of certain officers and board members of Directors, the issuances of common shares of Aranjin in connection with the appointment of Mr. Haji and the completion of acquisitions. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of business, performance or achievements of ION and/or Aranjin to be materially different from those expressed or implied by such forward-looking statements, including, but not limited to: (i) any failure of the parties to satisfy the terms of carrying out the joint venture on acceptable terms or at all; (ii) any failure to complete the acquisition of any mining project or produce a favorable feasibility study; (iii) any failure to appoint persons to the board of directors or management of Aranjin; (iv) any inability to effect any issuance of shares to Ali Haji, including due to a failure to obtain required regulatory approvals; and (v) receipt of necessary domestic and foreign stock exchange, court, shareholder and other regulatory approvals. Although the management of ION and Aranjin has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other factors that cause results are not those anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Neither party will update any forward-looking statements or forward-looking information that is incorporated by reference herein, except as required by applicable securities laws. The parties caution readers not to place undue reliance on these forward-looking statements and undertake no obligation to revise and release forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence or non-occurrence – occurrence of any event.

This press release is not and should not be construed as an offer to buy or sell securities in the United States. This press release does not constitute an offer to sell or the solicitation of an offer to buy ION or Aranjin common stock, and there will be no offer or sale of ION common stock or of Aranjin in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Neither TSX, TSX Venture Exchange, nor its Regulation Services Provider (as that term is defined in the policies of the TSX and TSX Venture Exchange) accepts responsibility for the appropriateness or accuracy of this release.

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