ABX GROUP LIMITED — Interim / Quarterly Report 2019

Apr 29, 2019

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Quarterly Activities Report – March 2019 Page 1

ASX code: ABX

QUARTERLY REPORT AND ACTIVITY STATEMENT FOR THREE MONTHS TO 31 MARCH 2019

Corporate

• Group available cash at the end of the quarter was $1.69 million and now stands at about $1.50 million.

• Final payment for the current sale of a 33,000 tonne shipload is to be received in mid-May.

Sales & Operations

• 33,000 tonnes of cement-grade bauxite was produced and delivered to Bell Bay Port 3 weeks ahead of schedule, ready for the customer’s ship which is on approach after experiencing congestion delays in Newcastle Port

• Tripartite Memorandum of Understanding between ABx, Rawmin and Tianshan Aluminium Co. Ltd executed for the sale of 0.5 to 1.5 million tonnes of bauxite from the Binjour Project in Queensland

• Sales of fertiliser-grade bauxite from Bald Hill are continuing to grow as demand grows for superphosphate fertiliser made by acid-processing of ABx bauxite

• Rehabilitation has been carried out at Bald Hill in accordance with ABx’s standard practice of reforming the land surface in readiness for pasture seeding in the right seasonal period.

Bauxite Refining Technology

• ALCORE Limited is a wholly owned subsidiary of ABx to fund and manage the ALCORE Project, leading to the construction of an ALCORE Production Plant to produce Aluminium Fluoride (AlF3) and valuable co-products

• The ALCORE Research Centre at Berkeley Vale on the NSW Central Coast is preparing to produce larger-scaled AlF3 samples for product-testing by potential customers in the current quarter

• ALCORE patent (pending) technology is designed to beneficiate and refine raw bauxite that has a market price of $50 into high-value products worth more than $US 800 per tonne, including:

• a. Aluminium Fluoride (AlF3) which is a key electrolyte ingredient in production of aluminium by aluminium smelters. Global demand for AIF3 and associated co-products continues to increase as aluminium production increases and the use of AIF3 in lithium ion batteries increases;

• b. Silica fume for our cement industry customers and manufacturers of low-CO2 geopolymer cement;

• c. Corethane which is an ultra-pure hydrocarbon that can substitute for natural gas for electricity and industrial heat generation and can be used for metallurgical use and brickmaking;

• d. Refractory-grade bauxite & potentially high purity alumina (HPA) for making scratch-resistant sapphire glass

• ALCORE will be the first Australian supplier of AlF3 to the Australasian Aluminium Smelters and for export

• Ore Reserves: ABx has stockpiled and sampled refinery-grade bauxite at Bald Hill mine in Tasmania and an initial ore-reserve estimation of some of these large refinery-grade stockpiles is in progress

• Several tonnes of ABx refinery-grade bauxite is being supplied to the ALCORE Research Centre for refining into AlF3 for potential customers to evaluate

• Once sufficient AlF3 is produced, the pilot plant will test the production of Corethane, which will provide the fuel for heat and electrical power for the ALCORE Production Plant and will also demonstrate its use as a gas-substitute in gas turbine electrical generators and its use as a diesel substitute for fuel security purposes. Corethane has significant energy and industrial potential

• ALCORE technology is relatively low-risk because it operates at ambient temperatures and pressures

• The ALCORE business plan targets long-established, broad industrial markets with many potential buyers

• ALCORE is holding discussions with governments, agencies and companies that have showed strong interest in both AIF3 and the main co-products, Corethane and silica fume

Quarterly Activities Report –March 2019 Page 2

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Binjour Project, QLD

Tripartite Memorandum of Understanding (MoU) for 0.5 million to 1.5 million tonnes of bauxite per annum executed for the Binjour project located inland from Bundaberg Port, Queensland

• ABx and its joint venture partner, Rawmin Mining and Industries of India have entered into a Memorandum of Understanding with Tianshan Aluminium Co Ltd of China for the sale of 0.5 to 1.5 million tonnes of bauxite from the Binjour project to Tianshan’s new bauxite refinery due for completion in 2020

• The MoU is for the delivery of bauxite from ABx’s bauxite mines in Australia and from Rawmin’s bauxite mines in India to Tianshan’s new low temperature refinery in southern China which is nearing completion. The planned combined tonnage commences at 0.5 million tonnes growing to more than 1 million tonnes

• ABx considers its Binjour Project located 115 kms southwest of Bundaberg port to be the best source of gibbsite-trihydrate (THA) bauxite in Queensland that is suitable for low-temperature alumina refineries and for sweetener circuits in some high-temperature refineries

• ABx’s total Queensland bauxite resources are 40.5 million tonnes comprising 37 million tonnes of thick gibbsite trihydrate bauxite at Binjour plateau and 3.5 million tonnes in the granted mining lease at Toondoon, located 46 kms south of Binjour[ 1]

• Binjour bauxite is 3 to 15 metres thick and comprises 10.4 million tonnes suitable for simple bulk mining and shipping as “DSO Bauxite[1] ” and 26.6 million tonnes containing silica gel veinlets which require processing by ABx’s proprietary TasTech technology to reduce silica and upgrade the Al2O3 content to the target production grade of 44% to 45% Al2O3 & 5% SiO2 for metallurgical-grade bauxite

• Bulk sampling and processing testwork is planned to commit to project development in late 2019 which will commence with a mining licence application

• Coordinated Production: The Binjour Project will be at maximum production during the Queensland dry season from April to November. ABx’s mines in Tasmania achieve optimum production in summer from December to May and Rawmin’s mines in north western India achieve maximum production in the Indian dry season from November to May but are restricted by the monsoon months June to September each year. Coordinated production and shipments from all 3 sets of mines will achieve reliable year-round delivery to the customer of bauxite at a consistent specification

• An Memorandum of Understanding Agreement for access to the preferred stockpile site at the Port of Bundaberg is well advanced and expected to be finalised in mid-2019

• A bulk sampling site has been identified and is in final stages of approvals to proceed on the private landholders about access to the site where the Binjour bauxite layer occurs at surface and contains a spectrum of medium-grade bauxite grades that are suitable for conducting bulk sampling. Discussions with local mining and screening contractors have succeeded in assembling a suite of equipment needed to carry out the bulk sampling, grade control and screening performance testwork.

Penrose Bauxite Types in Strong Demand

ABx’s Penrose bauxite deposit located in a pine plantation 90km inland of Port Kembla (see Figures 7 & 8) contains a layer grading 55% Al2O3 and very low iron content which has potential to make special chemical products, as well as refractory bauxite. The strategy for Penrose is to have contracted customers for each layer of Penrose bauxite.

Three significant corporations are currently engaged, each interested in a different bauxite layer. The key task is to design an environmentally optimised project that will extract the maximum value from this rare quality deposit – see more details on page 7 below.

Penrose bauxite may be ideal feedstock for the ALCORE bauxite refining technology for the production of high-value refractory-grade bauxite and potentially high purity alumina (HPA) for making scratch-resistant sapphire glass ALCORE

1. See Resource Statement

Quarterly Activities Report –March 2019 Page 3

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Locations

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Figure 1: Locations of ABx bauxite mines, projects and transport infrastructure in Tasmania

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Figure 2: Operations at Bald Hill mine, Tasmania in full swing during the quarter

Quarterly Activities Report –March 2019 Page 4

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Sales & Operations: Bald Hill Bauxite Project, Campbell Town, Northern Tasmania

As at 30 April 2019

Dispatch Date	Sale Tonnes		Product stockpiles(at mine site, blended to specification) Cement-grade 658 tonnes Fertiliser grade 200 tonnes
20/01/2016 8/04/2016 7/08/2016	446 5,557 35,913
			Subtotal product s/piles 858 tonnes
9/09/2016	89
19/09/2017 28/09/2017 30/10/2017 30/04/2019	30,000 5,000 669 33,000	est	Mine stockpiles(grade controlled, ready for blending) Metallurgical grade 150 tonnes Cement-grade 350 tonnes Fertiliser grade 7,585 tonnes
Cement Sub Total	110,674		Subtotal mine s/piles 8,085 tonnes
24/11/2015	195
16/03/2016	390		Port stockpiles Cement-grade(awaiting ship-measured weights) 33,083 tonnes
14/09/2016	1,500
31/01/2017 28/02/2017	351 429
			Total saleableprocessed stockpiles 41,168 tonnes
31/03/2017	430
30/04/2017 3/10/2017	78 468		Screened material available for classification 35,798 tonnes Broken Ore Stocks readyfor screening: 8,000 tonnes
13/11/2017	857		Grand total 84,966 tonnes
6/12/2017	704		Table 1 Operating Statistics as at 30 April 2019 – Table 1
23/03/2018	1,412
30/09/2018 3/04/2019	978 1,243
Fertiliser Sub Total	9,035
Total all sales	119,710

Markets: Recent falls in the Australian dollar exchange rate are encouraging. Several sales contracts remained at the Letters of Intent stage for shipments later in the year, subject to prevailing market prices closer to the dates of shipment.

Production statistics as at 30 April 2019

Production statistics as at 30 April 2019
Tonnes mined	48,471	tonnes
Tonnes screened (primary)	77,161	tonnes
Tonnes metallurgical-grade(added to cement-grade	0	tonnes
Tonnes cement-grade	33,741	tonnes
Tonnes fertiliser-grade	0	tonnes
Tonnes other screened material	35,798
Total saleable tonnes produced	69,539	tonnes
Tonnes rehabilitation material for Q2 2019	54,588	tonnes
Tonnes rehabilitation material for Q1 2019	27,490	tonnes

ABx’s rehabilitation program for 2019 at its Bald Hill mine recommenced during the quarter.

Quarterly Activities Report –March 2019 Page 5

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Bauxite Refining Technology

ALCORE’s bauxite refining technology produces Aluminium Fluoride (AIF3) and other co-products including the gas-substitute Corethane to power the plant and Silica Fume for the cement industry which ABx already services with its supplies of cement-grade bauxite. ABx has been in negotiations with potential customers about demand and technical specifications for its AIF3 product. These investigations concluded that there is sufficient demand to ultimately justify a 50,000 tonnes per year AIF3 production plant in Australia, built in 5 stages, each of 10,000 tonnes per year AlF3 production.

ABx will initially control the marketing of ALCORE products to customers in the bauxite-alumina- aluminium industry to enhance cost-efficiency. Currently all AIF3 used in Australian aluminium smelters is imported at prices higher than those paid by their overseas competitors. ALCORE may reverse this situation.

ALCORE Bauxite Refining Process : all co-products saleable

Bauxite &/or coal ash = 36% Al2O3 + Fe2O3 + SiO2 + TiO2 Reagents: 2 Fluorine acids & water (mainly “FSA” a waste acid from fertiliser plants and used for water fluoridation).

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Grind Bauxite &/or coal
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Process

1. All minerals except hydrocarbon dissolved by reagents

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50,000 tpa refinery
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1. Hydrocarbon floats & is recovered = “Corethane”

2. Metal fluorides form from dissolved minerals

3. Fluorides sequentially precipitated as oxide products (except AlF3) and F-acids recovered

4. Co-products are all in saleable pure forms

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Corethane to heat & SiO2 Fe2O3 AlF3
power the refinery &
other sales
Ultra-pure Silica Fume Iron Oxide Pigment Ti Oxide Pigment Aluminium Fluoride
US$600 to $3,000/t ~US$600/t ~US$1,800/t ~US$1,500/t
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Figure 3 Summary of the ALCORE process:

1. Inputs,

2. AlF3 product &

3. Co-products

Note: Corethane is an ultra-pure hydrocarbon to power the production plant with zero particulate emissions & CO2 emissions similar to natural gas.

ALCORE can also sell electricity to the grid or sell Corethane to industrial customers, several of which have already expressed interest.

Summary

ALCORE’s bauxite refining converts bauxite valued at approximately US$50 per tonne into a suite of products worth in excess of $US800 per tonne of bauxite representing a more than 10-times increase in net value.

Competitive Advantage of ABx’s clean bauxite: zero emissions & wastes: ALCORE technology exploits the uniquely clean nature of ABx bauxite, being free of deleterious elements that would inhibit ALCORE’s bauxite refining efficiency. This allows ALCORE to operate with zero emissions and no waste products.

ALCORE can be located anywhere: An ALCORE project could operate anywhere in the world, importing bauxite from any supplier of clean bauxite for less than the $US50 per tonne which is being conservatively assumed in ALCORE’s economic studies.

Therefore, the ALCORE Technology is not affected by resource supply issues and can be located near to its major customers, near sources of low-cost reagents, in areas of skilled and semi-skilled labour and where financial incentives are most attractive for developing these mid-sized value-adding projects.

Risk management: Proven low temperature & pressure technology and achievable product grades

The ALCORE business plan is designed to minimise the financial and technical risks as follows:

1. ALCORE technology operates at low temperatures & low pressures;

2. ALCORE’s main products in the start-up years 1 to 5 are AlF3, silica fume and high-grade bauxite. These products have deep, well-established markets and can be sold at moderate grades and good prices.

Quarterly Activities Report –March 2019 Page 6

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This plan for ALCORE’s initial products avoids the market risks of targeting high-purity products which can take several years of process improvements to achieve and often have very few buyers.

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Figure 4: The Core Lab is a climate-controlled laboratory constructed inside the ALCORE Research Centre for the refining of bauxite to produce test samples of AlF3 and co-products. It will become a research centre for testing its technology on many ores.

Prices for AlF3 Remain Strong

Prices of AlF3 exports from China have remained firm, ranging from US$1,550 per tonne in November 2018 to US$1,750 in February 2019.

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Aluminium Fluoride AlF3 Prices 2012 to Present Source Asian Metals & Bloomberg
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
Price US$/tonne FOB China
3
AlF
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Figure 5: Export prices of AlF3 FOB Chinese ports from March 2012 to February 2019

Quarterly Activities Report –March 2019 Page 7

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Binjour Project Commencing Financial Studies & Marketing Strategy

This project area is located inland from Bundaberg, central Queensland, comprising the main project area located at Binjour, 115kms SW of Bundaberg between Gayndah and Mundubbera with a granted Mining Lease at Toondoon 25kms south of Mundubbera and an exploration project at Brovinia further to the south.

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Figure 6: Location of Binjour, Toondoon and Brovinia Bauxite Project Areas

ABx and its Indian marketing partner, Rawmin Mining and Industries ( Rawmin ) are assessing the economic viability of the Binjour Bauxite project in the Wide Bay Burnett region, shipping from the Port of Bundaberg.

Mine studies: A detailed review has been completed of the project resources and potential extensions of resources, currently estimated as totalling 40.5 million tonnes from Binjour[ 1] and granted mining lease at Toondoon[ 1] 46 kms south of Binjour - see Figure 6 above.

An exploration and bulk sampling exercise is planned in the near future to confirm the performance of the bauxite in mining and processing so as to better define a mining lease application. Land status studies are in progress and access agreements must now be secured.

Customers: A tri-partite Memorandum of Understanding agreement with prospective customer Tianshan of China has been executed for supplying 1 to 1.5 million tonnes of bauxite per year to Tianshan’s new lowtemperature bauxite refinery currently under construct.

Port of Bundaberg: ABx is in negotiations to secure an option to use a stockpile site at the Port of Bundaberg that can accommodate 175,000 tonnes of bauxite and allow barge transhipment to a deepwater site within the port limits, loading of Cape-size ships carrying 150,000 tonnes of bauxite, thus achieving lowest shipping costs.

Road Haulage: ABx has now assessed a road transport study from expert consultants to identify opportunities for cost-efficient road transport from both Binjour deposit and Toondoon mining lease. Trucking costs can now be estimated with greater certainty.

Support: ABx acknowledges the high level of support from Queensland State government departments, local councils and the Port authority. Dealing with regulations is always a major challenge but local support heartens us.

1. See Resource Statement

Quarterly Activities Report –March 2019 Page 8

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Exploration: Penrose Pine Forest Quarry NSW

The Penrose project is located in a pine plantation adjacent to the major Hume Highway, some 90km from Port Kembla, south of Sydney NSW. A layer of grey-white, low iron bauxite that potentially could be used to produce refractory bauxite lies beneath two-metres of high grade metallurgical bauxite.

Three companies have expressed interest in joint-venturing this project. Negotiations commenced during the quarter and will be progressed during the 2[nd] Quarter of 2019.

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N
10 kilometres
High grade
bauxite in
Penrose Pine
Plantation
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Figure 7

Location of the Penrose Bauxite project area

ABx conducted significant beneficiation research on the low-iron grey bauxite at its laboratory in Tasmania.

One company that is interested in the greybauxite conducted proprietary testwork on samples of that bauxite during NovemberDecember 2018 and advised that the bauxite meets its requirements.

About Australian Bauxite Limited

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

Australian Bauxite Limited (ABx) has its first bauxite mine in Tasmania & holds the core of the Eastern Australian Bauxite Province. ABx’s 14 bauxite tenements in Queensland, New South Wales & Tasmania totalled 834 km[2] & 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 committed a large proportion of its expenditure into Research and Development to find ways to capitalise on the main strengths of its bauxite type, mainly highly clean, free of all deleterious elements and partitioned into layers, nodules, particles and grains of different qualities that can be separated into different product streams using physical, chemical and geophysical methods. 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.

ABx’s first mine commenced at Bald Hill near Campbell Town, Tasmania 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.

About ALCORE Limited:

Australian Bauxite Limited (ABx) has incorporated ALCORE Limited as a wholly-owned subsidiary to fund and manage the ALCORE Project, to lead to the construction of an ALCORE Production Plant to produce Aluminium Fluoride (AlF3) and valuable co-products, using patent (pending) new technology. The ALCORE Technology is designed to convert low grade bauxite worth $50 per tonne into a suite of valuable products worth more than $800 per tonne. Site construction works for Stage 1 of the ALCORE project commenced on 1 July as planned at ALCORE’s pre-approved Research Centre in Berkeley Vale, Central Coast NSW.

Stage 1 is designed to produce AlF3 test samples for pre-qualified aluminium smelter customers & then produce Corethane, which is pure hydrocarbon powder refined from low-value coals and has been used to provide thermal and electrical power with low CO2 emissions when used as a gas-substitute to fuel large gas turbine. Corethane has also been used as a diesel substitute for fuel security purposes and is ideally suited for use as a sulphur-free bunker fuel.

Directors of ABx

Paul Lennon Chairman Ian Levy CEO & MD Ken Boundy Director Henry Kinstlinger Company Secretary

Officers

Leon Hawker Chief Operating Officer Jacob Rebek Chief Geologist Paul Glover Marketing, Exploration & Relationships

Quarterly Activities Report –March 2019 Page 9

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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
New South Wales		Tasmania
		EL 7/2010 Conara
EL 6997 Inverell
		EL 9/2010 Deloraine
EL 7361 Guyra
		EL 16/2012 Reedy Marsh
EL 8370 Penrose Forest
		EL 18/2014 Prosser’s Road
EL 7357 Taralga
		ML 1961 P/M Bald Hill Bauxite
EL 7681 Taralga Extension
EL 8600 Penrose Quarry
Queensland		Note: During the quarter, no exploration licences were relinquished. 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 18014 Binjour
EPM 18772 Binjour Extension
EPM 25146 Toondoon EPM
EPM 19427 Brovinia 2
ML 80126 Toondoon ML

Quarterly Activities Report –March 2019 Page 10

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Resource 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 3: 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
TOONDOON QLD3	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 (this report)

• 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 18/06/2018 total 137.1 million tonnes.

Quarterly Activities Report –March 2019 Page 11

==> picture [78 x 56] intentionally omitted <==

Figure 8

==> picture [461 x 509] intentionally omitted <==

----- Start of picture text -----

Figure 8
ABx Project Location Yarwun Refinery Gladstone
ABx Project Tenements & Major Qld Alumina Refinery
Infrastructure in ABx’s major Binjour Project Name Boyne Island Smelter Bundaberg
bauxite project areas nearest
Binjour
export ports in Eastern Australia Major Ports Binjour Ext
as follows, from south to north: Toondoon
Aluminium Smelter Brovinia 2
1. Northern Tasmania, south Alumina Refinery
of Bell Bay Port Brisbane
Road Infrastructure
2. Southern NSW Taralga & Rail Infrastructure
Penrose pine
forest west of Port Kembla
Inverell
Guyra
3. Central Queensland based
on the major Binjour
Bauxite Project, southwest
of Port of Bundaberg
which is a port that has no
Tomago
impact on the Great Smelter
Barrier Reef. Kurri Kurri Newcastle
Smelter
Sydney
Taralga
Taralga Ext
Port Kembla
Penrose Forest
Penrose
Canberra
Melbourne
Bell Bay
Smelter
Conara
Bald Hill ML
Hobart
----- End of picture text -----

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

Australian Bauxite Limited

ABN 14 139 494 885 31 March 2019

Quarter ended (“current quarter”)

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other (research & development refund) 1.9 Net cash from / (used in) operating activities	311 (78) (85) (287) (58) (35) - 8 - - - -	311 (78) (85) (287) (58) (35) - 8 - - - -
	(224)	(224)

2. Cash flows from investing activities

2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets	2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets
	2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets	- - - -	- - - -

• See chapter 19 for defined terms

1 September 2016

Page 1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
2.2 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - (253) - -	- - - - (253) - -
	(253)	(253)
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- 308 - - - - - - -	- 308 - - - - - - -
	308	308
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period*	1,844 (224) (253) 308 -	1,844 (224) (253) 308 -
	1,675	1,675

• See chapter 19 for defined terms 1 September 2016

Page 2

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (secured bank deposits) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	300 770 - 605	47 1,192 - 605
	1,675	1,844

6.	Payments to directors of the entity and their associates	Current quarter
		$A'000
6.1	Aggregate amount of payments to these parties included in item 1.2	20
6.2	Aggregate amount of cash flow from loans to these parties included	Nil
	in item 2.3
6.3	Include below any explanation necessary to understand the transactions included in
	items 6.1 and 6.2

$20,000 director fee was paid to Paul Lennon, for his services rendered.

7.	Payments to related entities of the entity and their	Current quarter
	associates	$A'000
7.1	Aggregate amount of payments to these parties included in item 1.2	Nil
7.2	Aggregate amount of cash flow from loans to these parties included	Nil
	in item 2.3
7.3	Include below any explanation necessary to understand the transactions included in
	items 7.1 and 7.2

N/A

• See chapter 19 for defined terms 1 September 2016

Page 3

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

	8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities Nil Nil 8.2 Credit standby arrangements Nil Nil 8.3 Other (please specify) N/A N/A 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		Nil	Nil
		Nil	Nil
		N/A	N/A
N/A

N/A

9. Estimated cash outflows for next quarter	$A’000
9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Total estimated cash outflows	25 50 75 70 20 -
	240

10. Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced	-	-	-	-
10.2 Interests in mining tenements and petroleum tenements acquired or increased	-	-	-	-

• See chapter 19 for defined terms 1 September 2016

Page 4

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Sign here: Date: 30 April 2019 (Company secretary)

Print name: Henry Kinstlinger

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

Page 5