ABX GROUP LIMITED — Interim / Quarterly Report 2017

Apr 30, 2017

Quarterly Activities Report – March 2017 30 April 2017 Page 1

ASX code: ABX

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QUARTERLY REPORT AND ACTIVITY STATEMENT FOR THREE MONTHS TO 31 MARCH 2017 Corporate

• Current group available cash is $1.40 million. ABx has lines of credit for working capital as and when required.

• ABx has 121,300 tonnes of bauxite stocks ready for sale and has received 6 expressions of interest in long-term offtake sales arrangements to sell bauxite into 4 countries – see page 3.

• ABx has commenced a demonstration mining and processing project at its second mine at Fingal Rail in Tasmania to confirm that ABx’s TasTech processing technology can produce and supply cement-grade bauxite of high specification in large tonnages for long-term contracts.

• ABx is also well-advanced in assessing a bauxite refining technology to increase the value of its bauxite tenfold , capitalising on the clean chemistry of ABx bauxite and the hydro-electricity and skills in Tasmania.

• A potential partner for the development of the large Binjour Project in Queensland has approached ABx and will commence site assessments and government discussions in June.

Operations: sales verification tests

• Physical dispatches of sales in the March quarter were 1,250 tonnes of fertiliser-grade bauxite whilst long-term offtake sales contracts were being negotiated with major traders of cement-grade bauxite.

• Rehabilitation of mined-out areas at the Bald Hill Bauxite Project has been inspected by EPA and other government agencies and is proving successful. The company’s continuous improvement policy which it adopted at the outset of operations is working as planned.

• To assist sales negotiations, ABx is demonstrating to potential customers that it can blend products to suit each customer’s requirements. ABx has sufficient processed bauxite to supply a further 2 large shipments.

• Thus far, ABx has dispatched 6 sales to 2 repeat customers and is in negotiation with 6 possible customers.

• Trial mining and processing at the Fingal Rail mine site is expected to confirm ABx’s ability to easily supply a 5-year contract and will also provide samples for testing the new value enhancement technology.

Emerging cement market boosted by US infrastructure construction

ABx will mainly sell its bauxite into cement and fertiliser markets at prices higher than could be achieved in the over-supplied metallurgical bauxite market for the next few years (see market summary). The clean chemistry of ABx’s bauxite has allowed ABx to sell cement-grade bauxite which:

1. Increases the late strength of concrete and meets the strictest quality specifications;

2. Is quartz-free, base metal-free and alkali salt-free for exceptional corrosion-resistance and strength;

3. Eliminates stoppages & pressure problems in kilns, lowers kiln temperatures & reduces emissions;

4. Helps cement-makers to high-specification standards that now apply in modern economies.

USA infrastructure construction is increasing cement demand and US cement-makers can maximise cement production by eliminating stoppages and increasing late strength of the cement. ABx’s cement-grade bauxite does both. Furthermore, as cement-makers convert from coal to gas-fired production, demand increases for cement-grade bauxite to add aluminium oxide and iron oxide that would have been provided by the coal.

TasTech Technology bulk testing project commenced

ABx has secured a processing plant (see Figure 1) and obtained approvals to conduct a bulk-scale mining and processing project to confirm the effectiveness of ABx’s TasTech technology at Fingal Rail which is the company’s 2[nd] bauxite mine, located 12km north of the Bald Hill Bauxite Project in Tasmania (see Figure 2). TasTech separates ABx’s bauxite into metallurgical, cement and fertiliser-grade bauxite products at low cost. Results will be reported in coming weeks.

Refractory-abrasive grade bauxite discovered 90kms from Port Kembla

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Figure 1: TasTech test plant for trial at Fingal Rail mine site
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ABx announced during the quarter the discovery of high-grade, low-iron grey-white bauxite at Penrose Pine Plantation some 90kms inland from Port Kembla – see ASX release dated 27 February 2017. Extensions of the deposit have been secured by a new exploration lease that is approaching the grant stage.

Quarterly Activities Report – March 2017 Page 2

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Figure 2 Locations of ABx bauxite mines, projects and transport infrastructure in Tasmania

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Bauxite Refining Technology

During research associated with TasTech technology, ABx encountered a bauxite refining technology that is ideally suited to processing Tasmanian-type bauxite. ABx has assessed this remarkable technology in detail.

This bauxite refining technology produces the following products from Tasmanian-type bauxite:

1. Pure bauxite Al2O3.3H2O with very high Al2O3 grades and zero SiO2 silica (called Zero Silica Bauxite). Silica is the main deleterious contaminant of bauxite used in alumina refineries. Pure bauxite is also ideal for making synthetic corundum for abrasives and refractories when low in iron and alkalis. Estimated value: US$ 100 per tonne

2. Pure iron-ore Fe2O3 totally free of deleterious contaminants Al2O3, SiO2 and P2O5. Estimated value: US$ 100 per tonne

3. Pure silica SiO2 for specialist glass or silicon metal production. Estimated value: US$2,700 per tonne

4. Pure titania TiO2 for pure white titanium pigment applications. Estimated value: US$2,500 per tonne

5. Aluminium fluoride AlF3 for feedstock into aluminium smelters at 99.9% purity Estimated value: US$1,000 per tonne

Summary: Bauxite refining converts Tasmanian bauxite valued at US$50 to US$70 per tonne into a suite of products worth in excess of US$800 per tonne of bauxite processed. This represents a more than 10-times increase in value per tonne. The clean chemistry of ABx’s bauxite is ideal for this technology.

ABx CEO, Ian Levy said; “We have supported the evolution of this exciting technology for over 2 years and feel that it now warrants a detailed feasibility study by independent consultants.

Estimation of refining costs per tonne of bauxite will require some further low-cost chemical engineering tests but initial indications are that a substantial operating cashflow surplus is achievable. However the optimum size and capital cost of the bauxite refining plant is dependent on market and technical factors. The availability of reagents, hydroelectricity, infrastructure and skilled employees in Tasmania is excellent, so the key factor will probably be the tonnages of products that can be sold from a bauxite refinery to reliable customers.

We will keep shareholders advised as this assessment progresses.”

Quarterly Activities Report – March 2017 Page 3

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OPERATIONS

Sales Stocks

Sales		Stocks
Dispatch Date	Sale Tonnes	Product stockpiles(at mine site, blended to specification) Cement-grade: shippable 35,500 tonnes Fertiliser grade: 1,100 tonnes ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Subtotal product s/piles 36,600 tonnes Mine stockpiles(grade controlled, ready for blending) Metallurgical grade 16,900 tonnes Cement-grade: 50,700 tonnes Fertiliser grade: 17,100 tonnes ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Subtotal mine s/piles 84,700 tonnes Totalsaleable processed stockpiles:121,300 tonnes A further 33,000 tonnes of screened material is ready for classification into product categories when required. Broken Ore Stocks ready for screening: 36,700 tonnes
20/01/2016 8/04/2016 7/08/2016 9/09/2016	446 5,557 35,913 89
Cement Sub Total	42,005
24/11/2015 16/03/2016 14/09/2016 Jan-Feb 2017	195 390 1,500 1,500
Fertiliser Sub Total	3,584
Subtotal All Products	45,590

ABx is selling into the strengthening cement & fertiliser markets until Chinese demand recovers

ABx will re-enter the metallurgical bauxite market if and when bauxite prices increase. In the meantime, ABx will grow its bauxite business by supplying cement-grade bauxite for making high-strength cement and supplying fertiliser-grade bauxite for making superphosphate fertiliser. As demand for stronger, low alkali cement increases for infrastructure construction (especially in the USA), demand should increase for cementgrade bauxite of the type marketed by ABx. ABx bauxite is exceptionally low in alkali salts and is quartz-free.

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Figure 3: Graph showing cement production rising exponentially as global urbanisation increases.

Source: Urbanisation - increased demand for cement, steel, aluminium, copper…. 3.12.2016

Infrastructure construction markets

ABx may sell more cement-grade bauxite because of the proposed increase in infrastructure construction that is being proposed by the new US administration. ABx bauxite is suitable for all infrastructure construction, be it bridges, tunnels or roads.

ABx’s low-sodium, low alkali cement-grade bauxite supplies the right forms of Al2O3, Fe2O3 and SiO2 in the correct ratio to increase the production rate of extra-strong, corrosion-resistant Portland cement, by stopping kiln blockages, reduces fuel consumption and saves wear and tear on the kiln refractory brick linings.

Several North American cement-grade bauxite customers are reporting bullish outlooks for high-strength cement as the new American administration embarks on a major rebuilding of the USA’s infrastructure. ABx will be a beneficiary should this promise become reality.

The demand for fertiliser also continues to grow in Australia and internationally.

Validation feedback: All test results to date on ABx bauxite products by customers have been exemplary, and are summarised by one expression; “ ABx bauxite is the best thing you can do for your cement kiln .”

ABx’s main cement grade customer has advised ABx that it has, for the first time, operated their cement kilns at maximum throughput rates for 12 months with zero lost time, stronger cement, lower fuel costs and substantially reduced wear on refractories by using ABx bauxite. All cement product has met the highest standards for cement.

ABx continues to work with its customers to further improve production efficiencies.

Quarterly Activities Report – March 2017 Page 4

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	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%
	Very low alkalies . Minor elements: all low or below detection. No deleterious elements. No base metals. Na2O 0.02% P2O5 0.04% MnO 0.03% K2O 0.01% V2O5 0.06% SO3 0.33% CaO 0.02% Cr2O3 0.06% SrO 0.01% MgO 0.07% 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% & 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. No base metals. Chemically inert. 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 & forms thin crust to supress dust Bulk density in stockpile 1.35 to 1.40 tonnes per broken cubic metre

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Cement typical parameters
Sodium Equivalence 0.03% to 0.04% always low
Alumina Ratio "AM" 1.15 to 1.45 to customers' specifications
Silica Ratio "SM" 0.16 to 0.33 to customers' specifications
C3A (tricalcium aluminate) 38% to 52%
C4AF (tetracalcium aluminoferite) 69% to 88%
Particle size distribution "PSD"
Size PSD Wt%
+100mm 5% max Selective mining Screening & grade control
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%
Perfect for road, rail & sea transport Dries fast Sheds rainwater rapidly
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Bell Bay Port
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Blending to specification
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Low dust, high angle of repose
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Figure 4: ABx’s Cement Grade Specifications – tailored to suit each customer’s requirements

Quarterly Activities Report – March 2017 Page 5

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Rehabilitation

ABx and its contractor, Stornoway completed stage 1 of the rehabilitation at the Bald Hill bauxite project on schedule and to a high standard. The Company’s expertise in effective rehabilitation is growing strongly.

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Figure 5: photographic record of rehabilitation processes, with Pit MB6 as the case study

Quarterly Activities Report – March 2017 Page 6

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Figure 6 Blending cementgrade bauxite at Bald Hill Mine Site

Note the stocks of different types of bauxite: metallurgical bauxite (light colour), cementgrade and fertiliser-grade

Figure 7 Loading 35,500 tonnes of bauxite at Bell Bay port

Bell Bay port can handle ships up to 65,000 tonnes.

Loading is managed by QUBE Ports at more than 10,000 tonnes per day, achieving 20,000 tonnes per day in mid2016

Exploration

On 25 August 2016 ABx announced that it had increased the size of its Fingal Rail cement-grade bauxite resource 5-fold to 6.3 million tonnes bringing the total national bauxite resource to over 124 million tonnes (see resource statement in ASX release 25 August 2016 and at the end of this report). This increase in resource tonnage will allow ABx to enter into long-term supply contracts with major cement-grade customers.

On 27 February 2017, ABx announced to the ASX the discovery of high quality refractory-grade, low-iron grey-white bauxite at Penrose Pine Plantation some 90kms inland from Port Kembla. Refractory- grade bauxite is used for heat containment and abrasives and can sell up to 5 times the current price of metallurgical grade bauxite - possibly a new high-priced market for ABx’s bauxite products. This tenement is close to transport infrastructure and suited to quarrying during forest harvest cycles and was granted in late 2015. Extensions of the deposit have been secured by a new exploration lease application (see Table 2 below) that is at the grant stage.

Technology: TasTech mining and processing trial at Fingal Rail mine site

• TasTech technology separates Tasmanian bauxite into 3 product-types at good tonnages all year round, namely: 1. high grade metallurgical-grade gibbsite bauxite exceeding 45% Al2O3 for the aluminium industry;

• cement-grade bauxite for the production of cement; and,

• fertiliser-grade and other bauxite-types.

ABx has commenced a trial mining and processing using TasTech technology at Fingal Rail mine site.

Quarterly Activities Report – March 2017 Page 7

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Figure 8

Map showing the distribution of bauxite at Fingal Rail, ABx’s second mine.

The site for the trial mining and processing of bauxite using TasTech technology is marked with the green star “ “.

Results from this testwork will be reported to shareholders as they are received.

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 aspires to identify large bauxite resources in the Eastern Australian Bauxite Province, which is 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 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

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

Quarterly Activities Report – March 2017 Page 8

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Metallurgical Grade Bauxite Market (for aluminium production)

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Metallurgical Bauxite imports into China
million tonnes per month Indonesian export bans & 50% tax Figure 9
imposed 12 [th] January'14
8 Guinea Graph of Chinese
7 bauxite import
Malaysia Indonesian export partial bans
tonnes
& 20% tax imposed 20 [th] May'12
6 Other
India
5 Source: Chinese
Indonesia
Customs,
4 Australia Malaysian Guinean Tonnes Bloomberg
Indonesian Tonnages
3
Bauxite
Tonnages
2
1
0
Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Average CIF Price of Chinese Metallurgical Bauxite Imports US$/tonne & A$/tonne
Figure 10
$A
$90 Graph of Chinese
US$ Cheap malaysian bauxite started
bauxite import
$80
prices in US$ and
Indonesian export bans & 50% tax
imposed 12 [th] January'14 A$/tonne CIF
$70
China
Indonesian export partial bans
$60 & 20% tax imposed 20 [th] May'12
Source: Chinese
$50 Customs,
Cheap malaysian bauxite started Bloomberg
$40
$30
$20
Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Million tonnes per month
US$ & A$ per tonne CIF China
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Commentary: Metallurgical-bauxite prices fell in 2015-16, steadied in late 2016 and showed weak signs of improvement in early 2017. However, this could be due to a seasonal increase in higher-priced bauxite from Guinea and a seasonal reduction in lower-priced Australian bauxite. Some reports suggest that price increases from some countries are due to suppliers being forced to pay value-added-tax VAT in China as tax loopholes are being closed.

The Chinese metallurgical bauxite market was severely disrupted in 2015 & 2016 by oversupply from Malaysia, Guinea and Australia when Chinese demand was weakening. Demand is catching up, prices have stabilised and are expected to improve in 2018. ABx will sell metallurgical bauxite when prices and demand are attractive.

Source CBIX – Clark & Marron produce the CBIX index report – see www.thebauxiteindex.com

Figure 11

Graph of latest Chinese bauxite import prices on a value-in-use index basis (“CBIX”)

The CBIX leading price indicator (left) shows a falling average bauxite price in February 2017 but this could be seasonal as tonnages of lower-priced bauxite supply increases?

Prices have remained flat since mid-March.

Prices for metallurgical bauxite remain unattractive to build new mines dedicated to only supplying Chinese alumina refineries. This is why ABx continues to develop its cement markets for cement-grade bauxite.

Quarterly Activities Report – March 2017 Page 9

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Resource Statement, Definitions and Qualifying Statement

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 1 : ABx JORC Compliant Resource Estimates

Region Resource Million Thickness	Al2O3SiO2A/S Fe2O3TiO2LOI	Al2O3AvlRx SiO2Avl/Rx	% Lab	O'BurdenInt.Waste
Category Tonnes (m)	% % ratio % % %	@ 143°C%%ratio	Yield	(m)(m)
CAMPBELL TOWNInferred 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 TAS1Inferred 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 Tas14.7 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
BINJOURQLD2Inferred 9.0 3.9	43.7 4.5 10 22.4 3.6 24.2	38.0 3.8 10	59	8.2 0.3
DSO Indicated 15.5 5.3	44.2 3.1 15 23.4 3.7 24.9	39.5 2.6 15	62	9.4 0.3
Total 24.5 4.8	44.1 3.6 12 23.1 3.7 24.6	39.0 3.0 13	61	8.9 0.3
TOONDOON QLD3Inferred 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. NSW4Inferred 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 Taralga37.9 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. NSW5Inferred 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. NSW6Inferred 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 ALL AREAS 124.6		* PDM is Al2O3spinel. Al2O3Avl at	225°C is>	35%
Explanations:All resources 100% owned & unencumbered. Resource tonnage estimates are quoted as in-situ, pre-mined tonnages. All assaying done at NATA-registered ALS Laboratories, Brisbane.Chemical definitions:Leach conditions to measure available alumina "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 1000°C. "Avl/Rx" ratio is (Al203 Avl)/ (Rx SiO2) and "A/S" ratio is Al203/SiO2. Values above 6 are good, above 10 are excellent.Lab Yieldis for drill dust samples screened by ALS lab at 0.26mm screen size Production yields are not directly related to Lab Yield and are typically between 50% and 70%. Tonnages requiring no upgrade will have 100% yield.. Resource estimates excludelarge tonnages of potential extensions that would be drilled during production to extend tonnages.

Explanations: All resources 100% owned & unencumbered. Resource tonnage estimates are quoted as in-situ, pre-mined tonnages. All assaying done at NATA-registered ALS Laboratories, Brisbane. Chemical definitions: Leach conditions to measure available alumina "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 1000°C. "Avl/Rx" ratio is (Al203 Avl)/ (Rx SiO2) and "A/S" ratio is Al203/SiO2. Values above 6 are good, above 10 are excellent. Lab Yield is for drill dust samples screened by ALS lab at 0.26mm screen size Production yields are not directly related to Lab Yield and are typically between 50% and 70%. Tonnages requiring no upgrade will have 100% yield.. Resource estimates exclude large tonnages of potential extensions that would be drilled during production to extend tonnages.

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, 24.5 million tonnes announced on 29/06/2012

• 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 1st 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. The Company conducts regular reviews of these Resources and Reserve estimates and updates as a result of material changes to input parameters such as geology, drilling data and financial metrics. Global Mineral Resources declared to 25/08/2016 total 124.6 million tonnes.

Quarterly Activities Report – March 2017 Page 10

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Qualifying statements

General

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.

Mainland

The information relating to Mineral Resources on the Mainland was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

Mr Rebek and Mr Levy have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of exploration Results, Mineral Resources and Ore Reserves. Mr Rebek and Mr Levy have consented in writing to the inclusion in this report of the Exploration Information in the form and context in which it appears.

Tasmania

The information relating to Exploration Information and Mineral Resources in Tasmania has been prepared or updated under the JORC Code 2012.

Mr Rebek and Mr Levy have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Rebek and Mr Levy have consented in writing to the inclusion in this report of the Exploration Information in the form and context in which it appears.

Disclaimer Regarding Forward Looking Statements

This ASX announcement (Announcement) contains various forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are inherently subject to uncertainties in that they may be affected by a variety of known and unknown risks, variables and factors which could cause actual values or results, performance or achievements to differ materially from the expectations described in such forward-looking statements.

ABx does not give any assurance that the anticipated results, performance or achievements expressed or implied in those forward-looking statements will be achieved.

Table 2: Tenement information required under LR 5.3.3

Tenement No. Location		Tasmania
		EL 4/2010 Evandale
New South Wales
		EL 7/2010 Conara
EL 6997 Inverell
		EL 9/2010 Deloraine *
EL 7361 Guyra
		EL 3/2012 Ross
EL 8370 Penrose Forest
		EL 12/2012 Scottsdale
EL 7357 Taralga
		EL 16/2012 Reedy Marsh
EL 7681 Taralga Extension
		ML 1961 P/M Bald Hill Bauxite
EL 8440 New Stannifer
		EL 18/2014 Prosser’s Road
ELA 5458 Penrose Quarry
Queensland		Note: During the quarter, a tenement was cancelled and a Tasmanian tenement was consolidated with another existing Tasmanian tenement (*). All tenements are in good standing, 100% owned and not subject to Farm-in or Farm-out agreements, third-party royalties nor encumbered in any way.
EPM 17790 Hampton
EPM 17830 Haden
EPM 17831 Hillgrove
EPM 18014 Binjour
EPM 18772 Binjour Extension
ML 80126 Toondoon ML
EPM 25146 Toondoon EPM
EPM 19427 Brovinia 2

Quarterly Activities Report – December 2016 Page 11

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Figure: 12: ABx Project Tenements and Major Infrastructure in Tasmania, NSW and Qld, Eastern Australia