ABX GROUP LIMITED — Capital/Financing Update 2019

Nov 24, 2019

ASX ANNOUNCEMENT 25 November 2019

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AUSTRALIAN BAUXITE LIMITED ASX: ABX

Binjour Mine Lease Design Underway: Positive Bulk Sampling Results

• ABx’s bulk-sampling programs at Binjour QLD in 2019 have defined the optimum Mining Lease Application and clarified the mining-processing strategy for the project

• Results have confirmed that the project can operate at a bulk-scale mining and screening scale and achieve the required bauxite specifications

• A project summary and financial assessment will be reviewed by the ABx Board of Directors in mid-December. Progress of the Binjour project remains on schedule

• If ABx resolves to proceed, a Mining Lease Application will be lodged in early 2020

• Binjour project is fully-funded by ABx’s marketing partner, Rawmin Mining of India which will also supply similar bauxite from its bauxite mines in India to the same customer that ABx will supply from Binjour. Seasonal synergies are achieved

• Both ABx and Rawmin intend to sell 0.5 to 1.5 million tonnes per year of gibbsite-rich trihydrate (THA) bauxite grading 44% to 45% Al2O3 and 5% SiO2 which is ideal for refining into alumina by low-temperature Bayer-process refineries

• Binjour bauxite resources total 37 million tonnes – see Resources Statement

• A tripartite sales MoU has been executed between ABx, Rawmin and Chinese aluminium producer Tianshan which is building an alumina refinery in Southern China that needs large supplies of the Binjour-type of bauxite starting end 2020

• ABx has also executed an MoU with the Port of Bundaberg to investigate the opportunity to export bauxite in bulk tonnages through the Port of Bundaberg

• Bulk sampling and screening has resolved mining issues, geological dilution risks, processing, environmental and ore performance characteristics that assist the design of the optimum Mining Lease Application, should ABx decide to proceed with a project

Bauxite producer, Australian Bauxite Limited (ABx) considers its Binjour Project located 115kms southwest of Bundaberg Port (see Figure 1) to be the best source of gibbsite-trihydrate (THA) metallurgicalgrade bauxite in Queensland. Unlike other QLD bauxites, Binjour bauxite is ideal for low-temperature alumina refineries.

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Figure 1: Location of Binjour Bauxite Project, Toondoon Mining Lease & Port of Bundaberg

AUSTRALIAN BAUXITE LIMITED www.australianbauxite.com.au e: corporate@australianbauxite.com.au

ABN 14 139 494 885 Level 2 131 Macquarie St ASX : ABX Sydney NSW 2000 Australia P: +61 2 9251 7177 F: +61 2 9251 7500

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Coordination with stakeholders

ABx has worked at length with landholders, local government, state government, port authorities, mining contractors, processing companies, logistics companies, marketing specialists and bauxite customers to develop a viable strategy for the Binjour Bauxite Project to produce and deliver good quality metallurgical bauxite onto large bulk carrier ships at the Port of Bundaberg for export.

Port MoU agreement

On 30[th] May 2019, ABx announced that it had executed a Memorandum of Understanding agreement (“MoU”) with the Port of Bundaberg to investigate its potential for:

1. Stockpiling bauxite of various grades from the Binjour project

2. Blending the bauxite to the contracted specification, and

3. Transhipping bauxite for loading 150,000 tonne bulk carrier ships within port boundaries.

Customer MoU agreement

On 2[nd] April 2019, ABx announced it had executed a tripartite MoU between ABx and its joint venture partner, Rawmin Mining and Industries of India with Tianshan Aluminium Co Ltd of China for the sale of 0.5 to 1.5 million tonnes of bauxite from the Binjour project and a similar tonnage from Rawmin’s bauxite mines in India to Tianshan’s new low temperature refinery in southern China which is due for completion during 2020.

BULK SAMPLING, PROCESSING & MINE LEASE APPLICATION DESIGN FACTORS

Bulk sampling & testwork was conducted in May, June and September, with assaying and lab tests continuing through November 2019 – see JORC Table 1 in appendix for details of procedures. ABx is scheduled to make a decision in mid-December 2019 regarding project development.

Screen performance: Two 28 tonne screen tests confirmed that Binjour bauxite screens superbly with high throughput rates and clean grade-size distributions which is an important bauxite attribute.

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Fig 1: ABx & Rawmin staff at Binjour bulk sample site

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Figure 2: Screening of 28 tonnes of Binjour bauxite at Gympie

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Fig 3 (left) Figure 4 Coarse fraction Fine fraction contains large screens boulders needing cleanly crushing to 100mm for shipping

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Yields and grades for size fractions

The following Table 1 shows the relationship between fraction sizes and assayed grades. All size fractions above 2.5mm are high quality and can constitute more than 50% of the total sample mined.

Fraction size	Weight %	Al2O3 SiO2 Fe2O3 TiO2 LOI % % % % %
Shippable bauxite +25mm 10-25mm 5-10mm 2.5-5mm	5% 11% 18% 20%	48.10 3.03 17.30 5.34 26.03 46.30 2.16 19.90 5.14 26.30 46.50 4.51 20.40 5.42 22.97 47.60 3.90 17.70 5.57 25.03
Shippable +2.5mm	54%	47.01 3.66 19.02 5.41 24.70
Fines discard 1-2.5mm 0-1mm	11% 35%	40.80 17.95 14.00 4.93 22.12 39.30 17.65 15.20 5.29 22.36
Weighted average	100%	43.65 10.08 17.14 5.32 23.61

Table 1:

Yields and grades achieved for each size fraction

Dry-screening works superbly in dry-season

The dry-screening was impressively effective with each size fraction being free of carry-over of clays. In fact, clays at Binjour are easily screened as long as it is done in the dry-season. The clays become sticky and difficult to handle when wet.

Seasonality: For these reasons, screening will mainly be done in the dry season (April-November) when humidity is very low at Binjour. The dry season is also the best time for shipping.

Crusher for oversize lumps

As shown in Figure 3 on the previous page, the oversize fraction includes some lumps exceeding 100mm in size and will require crushing, probably on a quarterly campaign basis.

Deep high grade bauxite layer identified

The bulk sampling work also identified an extensive deep bauxite layer grading more than 48% Al2O3 and less than 3% SiO2 which is the highest quality gibbsite-trihydrate bauxite in eastern Australia.

Mining this deep bauxite requires removal of 6 to 10 metres of an overlying layer of red mudstone that is probably a sediment that accumulated across the region after the high grade bauxite was formed. This deeper mining will require confidence in strong market support from a customer that is prepared to pay extra for high-grade bauxite. ABx and Rawmin believe that the bauxite market will be short of high-grade in coming years and a strong relationship with a customer is likely.

Mining issues

These bulk sampling programs tested the geological nature of the rock units that affect mining production parameters including:

1. Dilution from red mud overburden

When red mud removal was done in close proximity to exposed bauxite, there was an increase in dilution from the red mud because it has a blocky, brick-like layer that is not identifiable in drill holes. These blocks easily break away and contaminate the extraction of the deeper layer of bauxite. Pre-stripping of large areas will be needed to minimise dilution.

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2. Removal of red mud overburden

The red mud unit is best excavated on retreat from an open face where the confining pressures of the red mud unit have been relaxed. Bulk removal of overburden using scrapers is untested and remains as an upside potential.

3. Bauxite Extraction

Bauxite at Binjour is variable in strength and habit. It can be hard and blocky in places and within 10 to 20 metres, can be friable and free-digging. It is assumed that a large tonnage excavator (75 to 100 tonnes size) will be needed for mining all bauxite settings.

Results show that bulk-mined bauxite can meet the required saleable grades:

Fig 5: Digging overburden vertically is difficult

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Fig 6: Digging away from an open face is easier
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Dust management

As shown in Figure 11 below, fines fractions give off dust when conditions are windy and dry. This characteristic of bauxite has implications for the mining lease design that is in progress at this time.

The Binjour plateau is heavily wooded in places which will provide natural wind suppression and a dust suppression strategy has been developed for the trommel-type screens that are best suited to Binjour-type bauxite.

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Figure 12

ABx bauxite from Binjour being trammel-screened on a dry windy day at Gympie. Dust carry was measured.

ABx will employ operating practices and technology to satisfactorily manage dust.

Rehabilitation

ABx policy: “ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it. We only operate where welcomed.”

ABx hopes to improve agricultural outcomes post mining at Binjour plateau despite the moderate level of salinity in local groundwater which inhibits irrigation. ABx is receiving expert advice on this.

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Figure 13

ABx bauxite employs experienced operators who safeguard the soil horizon for final reinstatement and rehabilitation of any disturbed areas.

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Logistics

Delivery of bauxite to the customer overseas is the largest cost and largest challenge for the Binjour project. At present, the expectations are that high-efficiency trucking over a road distance of 200kms to the Bundaberg Port will be required. This road haulage stage is the inhibiting factor for annual tonnages sold.

A site shown as the “MoU Block” in Figure 14 below has been identified as a stockpile location that requires no trucking though the Bundaberg Port Village, is well shielded by surrounding scrub and has no mangroves along the river banks in that location.

To compensate for the high road haulage costs, ABx seeks to load large bulk carrier ships of the Cape Size class (110,000 tonnes bulk cargo) within the Port Limits of Bundaberg Port.

ABx favours the use of Bundaberg Port because it lies well south of the Great Barrier Reef Park and is sand-bottomed from the point of loading through to international shipping lanes. ABx has worked collegiately with Bundaberg Port management and with all stakeholders in the Wide Bay Burnett Region since 2010-11 when the discovery of the Binjour Bauxite deposit was made.

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Haul road
MoU
Block
Village
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Figure 14: Location of the land being assessed at the Port of Bundaberg (middle right)

For further information please contact:

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

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Resource Statement, Definitions and Qualifying Statement

The information in this report that relate to Exploration Information and Mineral Resources are based on information compiled by Jacob Rebek and Ian Levy who are members of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr Rebek and Mr Levy are qualified geologists and Mr Levy is a director of Australian Bauxite Limited.

Tabulated below are the Mineral Resources for each ABx Project. The initial ASX disclosure for these Resources is given in the footnotes to the table. Refer to these announcements for full details of resource estimation methodology and attributions.

Table 2: ABx JORC Compliant Resource Estimates

Region	Resource Category Thickness (m) Million Tonnes	Al2O3 SiO2	A/S Fe2O3 TiO2 LOI	Al2O3Avl @ 143°C% Rx SiO2 % Avl/Rx ratio	% Lab Yield	O'Burden (m) Int.Waste (m)
		% %	ratio % % %
CAMPBELL TOWN	Inferred 1.3 3.0	42.6 3.5	12 25.4 3.5 24.6	36.7 3.0 12	50	2.1 0.1
AREA TASMANIA7	Indicated 1.4 3.2	42.5 3.2	14 26.4 3.0 24.5	36.2 2.8 14	55	1.8 0.1
	Total 2.7 3.1	42.5 3.3	13 25.9 3.3 24.5	36.5 2.9 13	52	2.0 0.1
Fingal Rail Cement-	Inferred 2.4 3.3	30.9 19.5	-- 35.4 3.9 16.7	-- -- --	--	1.9 0.1
Grade Bauxite8	Indicated 3.9 3.8	31.1 19.0	-- 35.2 4.0 16.9	-- -- --	--	1.7 0.1
	Total 6.3 3.6	31.0 19.2	-- 35.3 4.0 16.8	-- -- --	--	1.8 0.1
DL-130 AREA TAS1	Inferred 5.7 3.8	44.1 4.3	10 22.8 3.1 25.0	37.6 3.2 12	55	1.5 0.1
	Total Tas 14.7 3.6	38.2 10.5	n.a. 28.7 3.5 21.4	n.a. n.a. n.a.	54	1.7 0.1
BINJOUR QLD2	Inferred 14.2 4.3	40.7 7.3	6 24.7 4.3 22.1	32.3 6.7 5	80	8.5 0.3
DSO, Screen & Cement	Indicated 22.8 4.0	33.5 19.2	2 24.9 4.2 16.8	15.8 17.4 1	63	6.6 0.3
	Total 37.0 4.1	44.1 3.6	12 23.1 3.7 24.6	39.0 3.0 13	61	8.9 0.3
TOONDOONQLD3	Inferred 3.5 4.9	40.2 7.2	6 25.3 4.9 21.7	32.8 5.2 6	67	1.5 0.0
TARALGA S. NSW4	Inferred 9.9 3.1	40.4 5.7	7 24.6 4.1 22.2	35.2 1.9 18	54	0.1 0.2
	Indicated 10.2 3.7	41.3 5.3	8 25.9 4.0 22.9	36.1 1.9 19	55	0.7 0.4
	Total 20.1 5.6	40.8 5.5	7 25.3 4.0 22.6	35.7 1.9 19	55	0.5 0.3
PDM-DSO* Inferred 7.6 2.5		37.0 6.0	6 38.4 3.5 13.3	22.1* 1.3 17	72	0.2 0.1
	Indicated 10.3 3.1	37.6 3.9	10 40.4 3.7 13.5	22.4* 1.1 20	71	0.7 0.4
	Total 17.8 5.8	37.3 4.8	8 39.6 3.6 13.5	22.3* 1.2 18	72	0.5 0.3
	Total Taralga 37.9 5.7	39.2 5.2	8 32.0 3.8 18.3	35.4 1.6 23	63	0.5 0.3
INVERELL N. NSW5	Inferred 17.5 4.7	39.8 4.8	8 27.7 4.3 22.2	31.0 4.2 7	61	2.3
	Indicated 20.5 4.8	40.6 4.7	9 26.9 4.1 22.5	32.0 4.0 8	60	2.4
	Total 38.0 4.8	40.2 4.7	9 27.3 4.2 22.4	31.6 4.1 8	61	2.4
GUYRA N. NSW6	Inferred 2.3 4.2	41.4 3.6	12 26.2 3.3 24.6	35.0 2.8 13	56	3.4
	Indicated 3.8 5.9	43.1 2.6	16 27.3 3.9 24.5	37.4 2.0 18	61	4.4
	Total 6.0 5.3	42.5 3.0	14 26.9 3.7 24.5	36.5 2.3 16	59	4.0
GRAND TOTAL A	137.1 LL AREAS		* PDM is Al2O3spinel. Al2O3Avl at 225°C is >35%
Explanations: All resources 100% owned & unencumbered. Res Chemical definitions: Leach conditions to measure available alu 1000°C. "Avl/Rx" ratio is (Al203 Avl)/(Rx SiO2) and "A/S" ratio is A by ALS lab at 0.26mm. Production yields are not directly related tonnages ofpotential extensions, overburden & interburden detrital b		ource tonnage estimates are quoted as in-situ, pre mined tonnages. All assaying done at NATA-registered ALS Laboratories, Brisbane. mina "Al2O3 Avl" & reactive silica "Rx SiO2" is 1g leached in 10ml of 90gpl NaOH at 143°C for 30 minutes. LOI = loss on ignition at l203/SiO2. Values above 6 are good, above 10 are excellent. Tonnage is for bauxite in-situ. Lab Yield is for drill dust samples screened and are typically between 60% and 75%. Tonnages requiring no upgrade will have 100% yield. Resource estimates exclude large auxite and underlyingtransitional bauxite mineralisation. Production will clarifythese materials.

The information above relates to Mineral Resources previously reported according to the JORC Code (see Competent Person Statement) as follows:

• 1 Maiden Tasmania Mineral Resource, 5.7 million tonnes announced on 08/11/2012

• 2 Binjour Mineral Resource, 37.0 million tonnes announced on 18/06/2018 )

• 3 QLD Mining Lease 80126 Maiden Resource, 3.5 million tonnes announced on 03/12/2012

• 4 Goulburn Taralga Bauxite Resource Increased by 50% to 37.9 million tonnes announced on 31/05/2012

• 5 Inverell Mineral Resource update, 38.0 million tonnes announced on 08/05/2012

• 6 Guyra Maiden Mineral Resource, 6.0 million tonnes announced on 15/08/2011

• 7 Initial resources for 1[st ] Tasmanian mine, 3.5 million tonnes announced on 24/03/2015

• 8 Resource Upgrade for Fingal Rail Project, Tasmania announced on 25/08/2016

Tabulated Resource numbers have been rounded for reporting purposes. ABX is not aware of any new information or data that materially affects the information included in the announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

Global Mineral Resources total 137.1 million tonnes.

ASX Announcement 25 November 2019 Page 8

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JORC Code, 2012 Edition – Table 1 report

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling	Nature and quality of sampling (eg cut channels, random chips, or	Bulk sample by pit excavation
techniques	specific specialised industry standard measurement tools appropri-	to expose bauxite and confirm
	ate to the minerals under investigation, such as down hole gamma	previous drill data
	sondes, or handheld XRF instruments, etc). These examples should
	not be taken as limiting the broad meaning of sampling.
	Include reference to measures taken to ensure sample repre-
	sentivity and the appropriate calibration of any measurement
	tools or systems used.
	Aspects of the determination of mineralisation that are Mate-
	rial to the Public Report.
	In cases where ‘industry standard’ work has been done this
	would be relatively simple (eg ‘reverse circulation drilling was
	used to obtain 1 m samples from which 3 kg was pulverised to
	produce a 30 g charge for fire assay’). In other cases more ex-
	planation may be required, such as where there is coarse gold
	that has inherent sampling problems. Unusual commodities or
	mineralisation types (eg submarine nodules) may warrant dis-
	closure of detailed information.
Drilling tech-	Drill type (eg core, reverse circulation, open-hole hammer, ro-	Original drillholes were RC air-
niques	tary air blast, auger, Bangka, sonic, etc) and details (eg core di-	core holes drilled vertically. Re-
	ameter, triple or standard tube, depth of diamond tails, face-	cent pits dug by excavator
	sampling bit or other type, whether core is oriented and if so, by
	_what method, etc). _
Drill sample	Method of recording and assessing core and chip sample recov-	N.A. new pits involved total ex-
recovery	eries and results assessed.	traction by excavator
	Measures taken to maximise sample recovery and ensure repre-
	sentative nature of the samples.
	Whether a relationship exists between sample recovery and
	grade and whether sample bias may have occurred due to pref-
	erential loss/gain of fine/coarse material.
Logging	Whether core and chip samples have been geologically and geotech-	Visual examination by compe-
	nically logged to a level of detail to support appropriate Mineral Re-	tent person of bauxite exca-
	source estimation, mining studies and metallurgical studies.	vated. Each sample photo-
	Whether logging is qualitative or quantitative in nature. Core	graphed and manually sieved
	(or costean, channel, etc) photography.
	The total length andpercentage of the relevant intersections logged.
Sub-sampling	If core, whether cut or sawn and whether quarter, half or all	Sub-sampling by fractional
techniques	core taken.	shovelling in accordance with
and sample	If non-core, whether riffled, tube sampled, rotary split, etc and	ISO standards and in compli-
preparation	whether sampled wet or dry.	ance with Gy’s sampling nomo-
	For all sample types, the nature, quality and appropriateness of	gram
	the sample preparation technique.
	Quality control procedures adopted for all sub-sampling stages
	to maximise representivity of samples.
	Measures taken to ensure that the sampling is representative of
	the in situ material collected, including for instance results for
	field duplicate/second-half sampling.
	Whether sample sizes are appropriate to the grain size of the
	material being sampled.

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Criteria	JORC Code explanation	Commentary
Quality of as-	The nature, quality and appropriateness of the assaying and labor-	Assays by NATA-registered ALS
say data and	atory procedures used and whether the technique is considered	Laboratory, Brisbane – stand-
laboratory	partial or total.	ard bauxite assays
tests	For geophysical tools, spectrometers, handheld XRF instruments,
	etc, the parameters used in determining the analysis including in-
	strument make and model, reading times, calibrations factors ap-
	plied and their derivation, etc.
	Nature of quality control procedures adopted (eg standards, blanks,
	duplicates, external laboratory checks) and whether acceptable lev-
	els of accuracy (ie lack of bias) andprecision have been established.
Verification of	The verification of significant intersections by either independ-	Compared with previous drill-
sampling and	ent or alternative company personnel.	hole . Main purpose of this pit
assaying	The use of twinned holes.	sampling.
	Documentation of primary data, data entry procedures, data
	verification, data storage (physical and electronic) protocols.
	Discuss any adjustment to assay data.
Location of	Accuracy and quality of surveys used to locate drill holes (collar	GPS located and compared with
data points	and down-hole surveys), trenches, mine workings and other lo-	original photographs of drillhole
	cations used in Mineral Resource estimation.	sites on old tracks
	Specification of the grid system used.
	Quality and adequacy of topographic control.
Data spacing	Data spacing for reporting of Exploration Results.	Located on two old drillhole
and distribu-	Whether the data spacing and distribution is sufficient to estab-	sites, 162 metres apart
tion	lish the degree of geological and grade continuity appropriate
	for the Mineral Resource and Ore Reserve estimation proce-
	dure(s) and classifications applied.
	Whether sample compositing has been applied.
Orientation of	Whether the orientation of sampling achieves unbiased sam-	Vertical pits dug through hori-
data in rela-	pling of possible structures and the extent to which this is	zontal bauxite layer..
tion to geolog-	known, considering the deposit type.
ical structure	If the relationship between the drilling orientation and the orienta-
	tion of key mineralised structures is considered to have introduced
	a sampling bias, this should be assessed and reported if material.
Sample secu-	The measures taken to ensure sample security.	Samples driven directly to ALS
rity		Laboratories
Audits or re-	The results of any audits or reviews of sampling techniques and	Detailed report verified by sev-
views	data.	eral experienced officers

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral tene-	• Type, reference name/number, location and ownership in-	• Granted EPM 18014 exploration
ment and land	cluding agreements or material issues with third parties	permit for minerals on private
tenure status	such as joint ventures, partnerships, overriding royalties,	freehold land, subject to Con-
	native title interests, historical sites, wilderness or national	duct and CompensationAgree-
	park and environmental settings.	ment, safety inductions and
	• The security of the tenure held at the time of reporting	ABX-standard safety protocols
	along with any known impediments to obtaining a li-
	cence to operate in the area.

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Criteria	JORC Code explanation	Commentary
Exploration	• Acknowledgment and appraisal of exploration by other	• Nil – ABx discovery which has
done by other	parties.	been explored by ABx since
parties		2011
Geology	• Deposit type, geological setting and style of mineralisa-	• Bauxite layer on Binjour Plat-
	tion.	eau, QLD
Drill hole In-	• A summary of all information material to the under-	• ABx drill 1000 drillholes in 2011
formation	standing of the exploration results including a tabulation	and 2012 reported in earlier
	of the following information for all Material drill holes:	ASX releases. Not applicable
	o easting and northing of the drill hole collar	except for two holes BJ690 and
	o elevation or RL (Reduced Level – elevation above sea	BJ695 as discussed in the re-
	level in metres) of the drill hole collar	port.
	o dip and azimuth of the hole
	o down hole length and interception depth
	o hole length.
	• If the exclusion of this information is justified on the ba-
	sis that the information is not Material and this exclu-
	sion does not detract from the understanding of the re-
	port, the Competent Person should clearly explain why
	this is the case.
Data aggrega-	• In reporting Exploration Results, weighting averaging	• Samples collected at 0.5m and
tion methods	techniques, maximum and/or minimum grade trunca-	1.0m intervals. Simple arithme-
	tions (eg cutting of high grades) and cut-off grades are	tic averaging.
	usually Material and should be stated.
	• Where aggregate intercepts incorporate short lengths of
	high grade results and longer lengths of low grade re-
	sults, the procedure used for such aggregation should be
	stated and some typical examples of such aggregations
	should be shown in detail.
	• The assumptions used for any reporting of metal equiva-
	lent values should be clearly stated.
Relationship	• These relationships are particularly important in the re-	• N.A. simple pit excavation to re-
between min-	porting of Exploration Results.	veal bauxite thickness
eralisation	• If the geometry of the mineralisation with respect to the
widths and in-	drill hole angle is known, its nature should be reported.
tercept	• If it is not known and only the down hole lengths are re-
lengths	ported, there should be a clear statement to this effect
	_(eg ‘down hole length, true width not known’). _
Diagrams	• Appropriate maps and sections (with scales) and tabula-	• In report
	tions of intercepts should be included for any significant
	discovery being reported These should include, but not
	be limited to a plan view of drill hole collar locations and
	appropriate sectional views.
Balanced re-	• Where comprehensive reporting of all Exploration Re-	• Balanced standard report
porting	sults is not practicable, representative reporting of both
	low and high grades and/or widths should be practiced
	to avoid misleading reporting of Exploration Results.
Other sub-	• Other exploration data, if meaningful and material,	• Nil – none known
stantive explo-	should be reported including (but not limited to): geo-
ration data	logical observations; geophysical survey results; geo-
	chemical survey results; bulk samples – size and method
	of treatment; metallurgical test results; bulk density,

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Criteria	JORC Code explanation	Commentary
	groundwater, geotechnical and rock characteristics; po-
	tential deleterious or contaminating substances.
Further work	• The nature and scale of planned further work (eg tests	• Further bulk sample and screen-
	for lateral extensions or depth extensions or large-scale	ing tests at a larger scale are
	step-out drilling).	planned in late June, with re-
	• Diagrams clearly highlighting the areas of possible ex-	sults expected in July and Au-
	tensions, including the main geological interpretations	gust.
	and future drilling areas, provided this information is not
	commercially sensitive.

Section 3 Estimation & Reporting of Mineral Resources: Bulk Pit work

Criteria	JORC Code explanation Commentary
Database in- tegrity	• Measures taken to ensure data has not been corrupted by, for example, transcription or keying errors, between its initial collection & its use for Mineral Resource estimationpurposes. • N.A.
	• Data validationprocedures used. • Lab data entered electronically
Site visits	• Comment on any site visits undertaken by the Competent Person & outcome of those visits. • Competent persons conducted the work
	• If no site visits,why. • All sites visited
Geological in- terpretation	• Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit. • Geology is simple strata, tested by pits at locations where bauxite is exposed or shallow
	• Nature of the data used & of any assumptions made. • Outcrops mapped & pit- sampled. Drillholes complete the subsurface mapping.
	• Effect, if any, of alternative interpretations on Mineral Resource estimation. • N.A.
	• The use of geology in guiding & controlling Mineral Resource estimation. • N.A.
	• Factors affecting continuity both of grade & geology. • Continuity is assumed to be semi random or highly variable, as is normal for bauxite
Dimensions	• Extent & variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, & depth below surface to the upper & lower limits of Mineral Resource. • Bauxite channels 100 to 250m wide meander over 1 to 2km strike. Dissected by erosion channels. Bauxite thickness varies from 1 to 14 metres. Overburden varies from 0 to 13m.
Estimation & modelling techniques	• Nature & appropriateness of estimation technique(s) applied & key assumptions, including treatment of extreme grade values, domaining, interpolation parameters & maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software &parameters used. • N.A.
	• Availability of check estimates, previous estimates &/or mine production records & whether the Mineral Resource estimate takes appropriate account of such data. • Consistency between initial estimates & re-estimations after additional drilling compares well withpit results.

	ASX Announcement 25 November 2019 Page 12
Criteria	JORC Code explanation Commentary
Moisture	• The assumptions made regarding recovery of by- products. • N.A.
	• Estimation of deleterious elements or other non-grade variables of economic significance • Bauxite has many grades, including reactive silica (Rx SiO2) which is the main deleterious element.
	• In the case of block model interpolation, the block size in relation to the average sample spacing& the search employed. • N.A.
	• Any assumptions behind modelling of selective mining units. • N.A.
	• Assumptions about correlation between variables. • N.A.
	• Description of how the geological interpretation was used to control the resource estimates. • N.A.
	• Discussion of basis for usingor not using grade cuttingor capping. • N.A.
	• Process of validation, checking process used, comparison of model data to drill hole data, & use of reconciliation data if available. • Holes compare as expected with twinned holes and pit samples
	• Whether the tonnages are estimated on a dry basis or with natural moisture, & the method of determination of the moisture content. • Moisture is measured gravimetrically by weighing wet and after drying
Cut-off param- eters	• The basis of the adopted cut-off grade(s) or quality parameters applied. • N.A.
Mining factors or assump- tions	• Assumptions made regarding possible mining methods, minimum mining dimensions & internal (or external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods & parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the miningassumptions made. • Mining and screen performance being tested by pit sampling and bulk sample testwork. • All subgrade bauxite treated as overburden or internal waste. 1m length samples incorporate considerable dilution which is easily screened out.
Metallurgical factors or as- sumptions	• Basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes & parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made. • Mining and screen performance being tested by pit sampling and bulk sample testwork. • Screen performance is modelled by sieve work done by Competent Person • Metallurgical-grade bauxite is an industrycategoryof bauxite.
Environmental factors or as- sumptions	• Assumptions made regarding possible waste & process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining & processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions. • N.A.
Bulk density	• Whether assumed or determined. If assumed,the basis • Measured densities – dryin-

	ASX Announcement 25 November 2019 Page 13
Criteria	JORC Code explanation Commentary
	for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size & representativeness of the samples. situ by volumetric methods from bulk pit samples • Broken density & stowage factors for transport, plus the angle of repose for stockpiling also measure in earlystages of mining
	• The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture & differences between rock & alteration zones within the deposit. • Measured volumetrically by diamond blade sawing of precise channels, drying & weighing. • 9 diamond drill cores measured and weighed dry corroborated pit channel sample estimates of 1.9 to 2.1 tonnes per cubic metre(high due to high Fe2O3)
	• Discuss assumptions for bulk density estimates used in the evaluationprocess of the different materials. • No assumptions. ABx uses measured densities.
Classification	• The basis for the classification of the Mineral Resources into varyingconfidence categories. • N.A.
	• Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology & metal values, quality, quantity & distribution of the data). • N.A.
	• Whether the result appropriately reflects the Competent Person’s view of the deposit. • results appropriately reflects Competent Persons’ views of deposits
Audits or re- views	• Results of any audits or reviews of Mineral Resource estimates. • N.A.
Discussion of relative accu- racy/ confi- dence	• Where appropriate a statement of the relative accuracy & confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy& confidence of the estimate. • All Competent Persons do manual, volume-based • Competent Persons have signed approvals for publicly released resource reports. • No objections to date & comments are welcomed
	• Statement should specify whether it relates to global or local estimates, &, if local, state the relevant tonnages, which should be relevant to technical & economic evaluation. Documentation should include assumptions made & theprocedures used. • N.A.
	• Statements of relative accuracy & confidence of the estimate should be compared with production data, where available. • Is always being done, in accordance with industry practice & common sense triple-checking.

ASX Announcement 25 November 2019 Page 14

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Gladstone
Yarwun Refinery Boyne Island Smelter
ABx Project Location Qld Alumina Refinery
Bundaberg
Binjour Project Name
Binjour
Major Ports Toondoon ML
Aluminium Smelter
Alumina Refinery
Road Infrastructure Brisbane
Rail Infrastructure
Inverell
Tomago
Smelter
Newcastle
Sydney
Taralga
Port Kembla
Penrose
Canberra
Melbourne
Bell Bay Smelter
Fingal Rail
Bald Hill Mine
Hobart
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Figure 15

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 west of Port Kembla

3. 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 12 bauxite tenements in Queensland, New South Wales & Tasmania exceed 719 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 in northern NSW, 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.

Officers

Directors Officers Paul Lennon Chairman Leon Hawker Chief Operating Officer Ian Levy CEO & MD Jacob Rebek Chief Geologist Ken Boundy Director Figure 4: ABx Project Locations Paul Glover Logistics & Exploration Manager Henry Kinstlinger Company Secretary Nathan Towns Operations Manager