ABX GROUP LIMITED — Capital/Financing Update 2016

Jun 29, 2016

ASX ANNOUNCEMENT

30 June 2016

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About Australian Bauxite Limited ASX Code ABX

Australian Bauxite Limited (ABx) has started its first bauxite mine in Tasmania and holds the core of the Eastern Australian Bauxite Province. ABx’s 37 bauxite tenements in Queensland, New South Wales & Tasmania exceed 5,000 km[2] and were rigorously selected for (1) good quality bauxite; (2) near infrastructure connected to export ports; & (3) free of socio-environmental constraints. All tenements are 100% owned, unencumbered & free of third-party royalties.

ABx’s discovery rate is increasing as knowledge, technology & expertise grows.

The Company’s bauxite is high quality gibbsite trihydrate (THA) bauxite & can be processed into alumina at low temperature – the type in shortsupply globally.

ABx has declared large Mineral Resources at Inverell & Guyra in northern NSW, Taralga in southern NSW, Binjour in central QLD & in Tasmania confirming that ABx has discovered significant bauxite deposits including some of outstandingly high quality.

In Tasmania, at Bald Hill, the Company’s first bauxite mine commenced operations on schedule on 9 December 2014 – the first new Australian bauxite mine for more than 35 years.

ABx aspires to identify large bauxite resources in the Eastern Australian Bauxite Province, which is emerging as a globally significant bauxite province. ABx has created significant bauxite developments in 3 states - Queensland, New South Wales and Tasmania. Its bauxite deposits are favourably located for direct shipping of bauxite to both local and export customers.

ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it.

We only operate where welcomed.

Directors / Officers Paul Lennon Chairman Ian Levy CEO & MD Ken Boundy Director Leon Hawker Chief Operating Officer Rob Williams General Manager Jacob Rebek Chief Geologist Henry Kinstlinger Secretary ASX Symbol: ABX Latest News: www.australianbauxite.com.au

For further information please contact:

Ian Levy, CEO and MD Australian Bauxite Limited

ABx Large Sale Concluded & New Opportunities Initiated

ABx is selling bauxite into fertiliser and cement markets at prices higher than the currently over-supplied metallurgical bauxite market. ABx’s maiden shipment of 5,557 tonnes occurred on 28 April and a second sale of 5,000 tonnes was announced on 31 May.

ABx is pleased to announce it has concluded a large new sale contract for 35,000 tonnes of bauxite from ABx’s Bald Hill mine - the first new bauxite project in Australia for more than 35 years. This sale replaces the second 5,000 tonne sale and payment is to be within 7 days. Shipping dates are to be organised to suit the customer’s requirements in due course.

The sale price is satisfactorily profitable and commercial-in-confidence.

Two other small-tonnage sales of fertiliser grade bauxite have been concluded for August and December at similarly profitable prices.

New Customers In Discussions & Signs of Growth

ABx is preparing two joint offers with its more experienced marketing partner, RawMin to jointly ship large tonnages into both the Middle East and European markets for up to five years.

ABx has also been approached for samples of cementgrade bauxite from several international customers.

ABx’s CEO Ian Levy commented; “This is a great way to end the financial year and we have more positive developments emerging over the coming few months.

“Cement-grade and fertiliser-grade demand is strong and growing but we endured 8 months of negative trends in the aluminium-related metallurgical bauxite markets until recently. Over the last 5 weeks, several customers have approached ABx seeking metallurgical-grade bauxite in significant tonnages.

“In response to these early signs of a strengthening market, ABx has increased its testing of the TasTech technology that separates ABx’s bauxite into 3 products: metallurgical-grade, cement-grade and fertiliser-grade bauxite. Once the robustness of TasTech technology is confirmed, ABx will commence large-scale field trials.”

Telephone: +61 (0) 2 9251 7177 Mobile: +61 (0) 407 189 122

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Mines & Transport in Tasmania

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Burnie Bell Bay Bridport
Scottsdale
DL-130
Launceston
Bald Hill Mine
Campbell Town
Bald Hill Project
Hobart
N
0 kilometres 100
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Figure 1: Map showing ABx mines & transport infrastructure in Tasmania. Pictures show (top to bottom):

1. Simple open pit mining at Bald Hill Bauxite Project near Campbell Town, northern Tasmania;

2. High quality rail transport from the Bald Hill mine to the Bell Bay Port by TasRail;

3. Efficient, low-dust transfer onto the berth stockpile at Port by QUBE Ports stevedores; and

4. The port stockpile of ABx bauxite which currently exceeds 35,000 tonnes.

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Excellent handling, loading and shipping
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CEMENT-GRADE BAUXITE SPECIFICATIONS	CEMENT-GRADE BAUXITE SPECIFICATIONS	CEMENT-GRADE BAUXITE SPECIFICATIONS
Moisture		7.5% to 9.9%
Powder less than 2.5mm		10% to 25%	of	total shipload by weight
Shippingspecification		GroupC	non-hazardous,stable. Triple confirmation
Major Elements
Al2O3		34% to 39%		Al2O3+ Fe2O3guaranteed minimum 60%
Fe2O3		23% to 32%		Either Al2O3or Fe2O3guaranteed 30% minimum
SiO2		10% to 20%		to customers' specifications
TiO2		2.8% to 3.1%
LOI - loss on ignition		17% to 24%
Minor Elements:	all low. No	deleterious elements.		Low alkalies & SO3
CaO	0.02%	P2O5	0.04%		MnO	0.03%
MgO	0.07%	V2O5	0.06%		SO3 gypsum	0.33%
Na2O	0.02%	Cr2O3	0.06%		SrO	0.01%
K2O	0.01%	Zn	0.01%		ZrO2	0.03%

Other bauxite parameters: Trihydrate Gibbsite Bauxite

Reactive "Rx" SiO2 at 140 deg C 8% to 18% :. Quartz content = 1% to 2% typically & clay content = 20% to 40% Available "Avl" Al2O3 at 140 deg C ~25% to 34% :. Gibbsite content = 38% to 50% typically Contains no radioactive or fibrous components. Clean handling, ideal for transport on land or sea. See https://www.youtube.com/watch?v=tqSNioU9gEc. High angle of repose (35 to 45 degrees) in stockpiles Bulk density in stockpile 1.35 to 1.40 tonnes per broken cubic metre

Cement typical parameters Sodium Equivalence 0.03% to 0.04% Alumina Ratio "AM" 1.15 to 1.45 Silica Ratio "SM" 0.16 to 0.33 to customers' specifications C3A (tricalcium aluminate) 38% to 52% C4AF (tetracalcium aluminoferite) 69% to 88%

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Particle size distribution "PSD"
Size PSD Wt%
+100mm 5% max
25-100mm 15% to 25%
10-25mm 25% to 35%
2.36-10mm 25% to 35%
0-2.36mm 10% to 25%
TOTAL 100.0%
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Perfect for road, rail & sea transport
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Bell Bay Port
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Low dust, high angle of repose
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Blending to specification
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