ABX GROUP LIMITED — Capital/Financing Update 2018

Jul 17, 2018

ASX ANNOUNCEMENT 18 July 2018

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Letter of Intent with Aziz Group Bangladesh

Australian Bauxite Limited (ASX: ABX) (ABx) is pleased to advise that Australian Bauxite Limited and Aziz Group of Bangladesh have successfully negotiated a Letter of Intent (LOI) over two important opportunities for bauxite sales and future business development.

Chemical Grade Bauxite

ABX have agreed to develop and supply Chemical Grade Bauxite for the manufacture of PAC (Polyaluminum Chloride) to be used in the treatment of industrial waste water.

Aziz Group are a chemical manufacturing, trading and marketing company in Bangladesh involved in a variety of chemical manufacturing industries and a long-established trading house with a broad base of customers and relationships.

Industrial waste water is a significant issue for Bangladesh industry and communities with large volumes of waste water needing to be treated and returned to the environment.

Australian Bauxite CEO, Mr. Ian Levy said; “We are delighted to be involved in this significant opportunity that will have a positive impact on the communities of Bangladesh, utilizing our bauxite which is known for its clean character and being free of deleterious elements. We also have a wide range of grades of bauxite to supply, including our Penrose bauxite which is more than 55% Al2O3 and very low in iron content.”

Cement Grade Bauxite

Australian Bauxite Limited will be appointing Aziz Group of Bangladesh to be the ABx agent for marketing ABx Cement Grade Bauxite to Bangladesh.

The Bangladesh Cement Industry is undergoing significant growth and an excellent opportunity exists for ABx’s ultra clean and cement specific Cement Grade Bauxite to provide a perfectly balanced blend of Aluminum, Iron and Silica to assist the Bangladesh Cement Industry produce high late strength cement.

CEO of Aziz Group Mr. Johnny Chowdhury said; “There is a real opportunity for our wellestablished trading and manufacturing relationships to be of significant support in the marketing of this specialized ABx Cement Grade Bauxite. We look forward to jointly developing a good market base for real supply opportunities.”

For further information please contact:

Ian Levy, CEO and MD Australian Bauxite Limited Telephone: +61 (0) 2 9251 7177 Mobile: +61 (0) 407 189 122

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Figure 1

ABx Project Tenements & Major Infrastructure in ABx’s major bauxite project areas nearest export ports in Eastern Australia as follows, from south to north:

1. Northern Tasmania, south of Bell Bay Port of Launceston

2. Southern NSW Taralga & Penrose pine forest, 90km west of Port Kembla

3. Binjour, Central Queensland based on the major Binjour Bauxite Project, southwest of Port of Bundaberg

About Australian Bauxite Limited

ASX Code ABX Web: www.australianbauxite.com.au

Australian Bauxite Limited (ABx) has its first bauxite mine in Tasmania and holds the core of the Eastern Australian Bauxite Province. ABx’s 22 bauxite tenements in Queensland, New South Wales & Tasmania exceed 1,975 km[2] and were 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 that can be processed into alumina at low temperature. 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.

At Bald Hill near Campbell Town, Tasmania, the Company’s first bauxite mine commenced operations in December 2014 – the first new Australian bauxite mine for more than 35 years. 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 Leon Hawker Chief Operating Officer Ian Levy CEO & MD Jacob Rebek Chief Geologist Ken Boundy Director Paul Glover Logistics & Exploration Manager Henry Kinstlinger Company Secretary