AUSTRALIAN VANADIUM LIMITED — Capital/Financing Update 2017

May 29, 2017

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ASX Announcement
Blesberg Exploration Update
Drilling and trenching programmes expose multiple new targets
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30 May 2017

Highlights:

• ➢ Drilling programme advancing;

• 18 RC holes (>1,400m) completed

• Pegmatite intersected in all holes

• First laboratory assays pending

• ➢ Slow drill progress has been addressed by the appointment of a new drilling company

• ➢ Trenching programme exposes multiple buried pegmatite bodies;

• extends known strike of Noumas 1 pegmatite to over 1km;

• 50m wide pegmatite zone at P2 strike extended with trenching and targeted for drilling

• ➢ Sampling of trench-exposed pegmatite, alluvial lag and soils underway

• Full analysis of concentrate samples;

• Opportunity for niche high-value low-iron lithium and feldspar products

• ➢ Process testwork - planning underway; ▪ Mintek – initial optical sorting results encouraging

• Sampling of composites completed

ASX ANNOUNCEMENT

Australian Vanadium Limited

ASX: AVL FRA: JT7.F ABN: 90 116 221 740

T: +61 8 9321 5594

F: +61 8 6268 2699

E: info@australianvanadium.com.au

W: australianvanadium.com.au

Street Address:

Level 1 Havelock Street, West Perth, WA, 6005

Postal Address:

Level 1 Havelock Street, West Perth, WA, 6005

Projects:

Gabanintha - Vanadium Blesberg – Lithium/Tantalum Nowthanna Hill- Uranium/ Vanadium

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Australian Vanadium Limited (ASX: AVL, “the Company” or “AVL”) is pleased to provide an update of the activities underway at the Blesberg Lithium–Tantalum-Feldspar project in the Northern Cape Province of South Africa where the company is advancing the project towards feasibility to extract feldspar and lithium, beryl and tantalite by-products.

The main products produced from the historical mining at Blesberg were feldspar, beryl, bismuth, tantalitecolumbite, spodumene and mica. Feldspar production for the glass and ceramic industry from the mine was reported to be of very high quality, with the feldspar being pure white and unstained by iron oxide. AVL’s objective is to establish a production facility at Blesberg that maximises the value of the LCT pegmatites. This will include high volume ceramic grade feldspar and quantities of high value by-product spodumene, beryl and tantalite.

Managing Director Vincent Algar commented, “Blesberg offers AVL shareholders the opportunity for niche, high quality products in a market where most players can only supply a lower quality product. The high purity mineralisation of the Blesberg pegmatites flag the potential for the Northern Cape area as a world class region for future mineralised pegmatite discovery and production”.

The Company is currently undertaking a 4,000m reverse circulation (RC) and 500m diamond core drilling programme, intended to allow the Company to calculate and report a mineral resource estimate in accordance with the 2012 JORC Code. The programme has been designed to achieve a drill intersection spacing of 50m, sufficient to allow good resolution of the pegmatite geometry and mineral distribution.

Drilling and trenching update

• RC drilling is currently underway, evaluating the Noumas 1 pegmatite zone under the current historic Blesberg mine and the northwest strike extension (P1) visible in Plate 1.

• 18 RC drill holes have been completed to date for >1,400m, successfully intersecting the pegmatite zone in all holes. Spodumene, Tantalite and Beryl have been identified, with high quality (clean white) feldspar visible in all intersections (See Plate 4).

• Slow drill progress has been addressed by the appointment of a new drilling company (see Plate 3).

• Diamond drilling will commence on completion of the RC programme.

• Exploration activity has been complimented successfully with the excavation of rows of trenches to identify the pegmatite under areas of sand cover (See Plate 1,5,10).

• Trenches at P1 (the western strike extension of Noumas 1) have been successful in exposing pegmatite with surface widths greater than 10m, directly along strike from the main Noumas pegmatite as it extends out under cover. (See Figure 3 and Plates 1 and 5).

• The new pegmatite exposure is being targeted by drilling in the current programme. This increases the known strike length of the main Noumas 1 zone to over 1km in length.

• New trenches completed in the P2 area targeting the wide pegmatite zone which contains individual pegmatites over 18m in width and an aggregate width of 55m over 160m. Tantalite and relic spodumene textures have been identified in the outcrop (See Figure 3 and Plate 10).

• New trenches indicate sand cover over 4m deep which obscures the pegmatite swarm (see Plate 2). AVL has therefore used this opportunity to collect soil samples every 5m along the exposed trench to further refine its pegmatite soil exploration index.

• Newly exposed pegmatite in trenches create the opportunity to sample alluvial lag for heavy minerals such as Tantalum that may be concentrated around the margins of the outcrop in addition to the channel sampling of the pegmatite itself. This work is currently underway.

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• Trenches at P2 have been successful in exposing pegmatite as it extends out under cover. (See Plate 10).

• The P2 area will be targeted by RC drilling after the current Noumas 1 P1 programme.

• Drilling will continue in May and June and is expected to finish in July, with samples periodically despatched to ALS laboratories in Johannesburg for analysis.

• The company is currently awaiting assay results from the first batch of sample data. A second batch has been submitted for processing.

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Plate 1. Trenching activity at Noumas 1

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Plate 2. Pegmatite exposed in trench for sampling (hammer for scale)

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Plate 3. Slow drilling progress was corrected by bringing in a new drilling contractor

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Plate 4. A pegmatite intercept in chip tray. The intercept represents high purity feldspar, quartz and strongly altered spodumene

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Plate 5. Post trenching activity in P1. AVL staff map and sample the contacts and alluvial lag.

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Figure 1 – Blesberg Hill showing old mine workings and outcropping pegmatite with inset pegmatite projections, completed and planned holes shown.

Metallurgical testing

Sampling of high grade concentrate samples

The company previously reported the results of four composite samples which were taken from 3 stockpile sites at the Blesberg Mine. These samples were considered representative of the spodumene, beryl and feldspar mineralisation observed in the historical excavations. The spodumene sample was further differentiated into 2 x 23kg composite samples based on colour.

The composite sampling was not intended to provide a representative grade of the pegmatite but rather an indication of the quality of historical products.

The beryl sample reports BeO content of 10.71%. The presence of megacryst (cm to decametre scale) beryl has been historically noted at Blesberg, and earlier low intensity mining has targeted the mineral specifically in the past. Beryl is known to occur in the northern contact zone, away from the lithium-tantalum rich intermediate zone.

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Plates 6 – 8 below show examples of Beryl, Spodumene and feldspar composite samples.

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Plate 6. Macro image of high grade Beryl, BBG1

The composite spodumene samples reported lithium contents between 2.86% - 4.76% Li2O indicating highly prospective Lithium grades.

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Plate 7. Macro image of deep purple Spodumene, BBG4

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For the feldspar, Al2O3 was within 18% ± 2%; Fe2O3 was <0.12%; K2O +Na2O+LiO2+Rb2O was >11%; CaO+MgO was <1%; and Al2O3+K2O+CaO+MgO was >30%, thereby meeting all the technical specifications of existing local purchasers of feldspar.

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Plate 8. Macro image of high purity feldspar, BBG2

The mineralogy of the composite samples indicated the presence of Beryl (Be), Spodumene (Li), Eucryptite (Li), Plagioclase (feldspar) Microcline (feldspar) and muscovite (mica) as shown in Table 1 below.

Table 1 Composite product sample mineralogy

Sample ID	Spodumene*	Eucryptite*	Petalite*	Beryl	Quartz	Plagioclase	Microcline	Muscovite
BBG1				96.74		3.26
BBG3	80.31	0.35	0		2.35	11.38	0.72	4.89
BBG4	41.42	14.77	2.73		1.04	33.61	1.24	5.19
BBG2	0	0	0.37		0	21.57	78.06	0

Table 2 below shows the more detailed chemistry reported for BBG3 and BBG4. Of great importance is the very low iron content of the lithium composite samples. The presence of very low iron (below 0.5%) in spodumene concentrates is very encouraging for Blesberg to produce a premium priced concentrate product. Further analysis on iron content will be reported with sampling and drilling results.

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Table 2 Spodumene Sample Chemistry

Sample #	Al(%)	Ca(%)	Fe(%)	Li(%)	Mg (%)	Mn(ppm)	P(ppm)	Sn(ppm)	Sr(ppm)	Ta(ppm)	U(ppm)	Zr(ppm)
BBG3	13.92	0.07	0.21	2.21	0.11	1841	141	11	24	11	<5	9
BBG4	13.74	0.11	0.63	1.33	0.04	1864	66	<5	39	<5	<5	25

Optical sorting testwork

The vendors of the project have previously undertaken high level optical sorting test work with Mintek laboratories in South Africa. Optical sorting is used to separate particles with different optical qualities from one another. This technique has been in commercial and industrial use for many years and a wide range of applications exist. Alternative methods include XRF (X-Ray Fluorescence) sorting which might have application at Blesberg.

Optical sorters today are multi-function, using density, shape, near infrared (NIR), magnetics, colourimetry, conductivity, etc. to separate minerals and provide saleable concentrates. Their use often enables reduced power and water consumption, easier grade control (adjustable cut points) and environmental advantages. Sorting machines are robust and easily containerised for transport and operation. In addition, they can handle substantial volumes of material and are modularly scalable.

Overall, they provide significant operating cost reductions by either simply producing a sales concentrate, or by greatly reducing the volume of material for subsequent processing.

These sorters have gained wide acceptance internationally for lithium mineral concentration, as well as for feldspar, quartz and oxides/sulphides such as tantalum. Sorters have been used in the process flow in the US and Canada as part of 43-101 ore reserve compliance and Preliminary Economic Assessments (PEA) for feldspar and lithium minerals.

Optical sorters can be used in a number of different positions in the process flow. They can be an upfront unit to remove selected material or waste, or to produce a concentrate. They can also be used as a final ‘cleaner’ of product. In Blesberg’s case, the sorters could be used for either feldspar and/or spodumene, tantalum and beryl concentration.

From the samples previously provided to Mintek by the vendors, two spodumene types, beryl, feldspar and quartz have all been separated using the optical sorting technique, with high success as shown in Figure 2 a- d.

Figure 2 shows field diagrams of the Blesberg minerals, showing excellent separation characteristics.

The previous work focused on feldspar separation, but the results show a good division between spodumene and virtually all other minerals (altered and unaltered spodumene can be taken as the same against other silicates).

Sampling and Testing Plan.

AVL’s team has completed a sampling programme of the roadway/spoil material from each of the RC drillholes. The upper metres of these holes have been composited into single samples to be sent for more detailed optical sorting tests and quantitative assay and mineralogical test work with Mintek.

The details and specifications of the programme are currently being finalised with Mintek.

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Figure 2a Albite(purple) – Quartz(green)

Figure 2b Microcline(purple) – Spodumene(green)

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Figure 2c Beryl(red) – Spodumene (yellow) Figure 2d Spodumene (light purple) – Quartz(purple)

Figure 2. Previous ROM samples Blesberg – Mintek optical sorting tests, discrimination results

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Figure 3 – Blesberg Project showing airborne/satellite mapping of pegmatites and prospective exploration targets in the sand plain

Additional Targets

Reconnaissance work away from the main workings at Blesberg has identified additional targets:

• Relic textures of spodumene in outcropping pegmatites in the P2 area and scree from the P1 area. These are indicative of the presence of lithium mineralisation in the absence of fresh spodumene at surface. Erosion of spodumene is common in outcropping pegmatites around the world. Relic textures of spodumene are also seen in the Pilbara pegmatites in Western Australia.

• Confirmed presence of tantalite in P2 Area, strongly supporting the presence of mineralised pegmatites at depth.

• Mapping of outcropping pegmatites in the east of P2, with individual widths up to 18m and an aggregate width of 55m of pegmatites over 160m. This dense swarm extends west under shallow cover towards the main Noumas pegmatite, offering a very exciting walk-up drill target (Plate 9).

• New drilling is planned at P2 due to the confirmed presence of wide pegmatite zones. Additional drill locations have been identified and will be completed following the completion of RC drilling at Noumas 1.

• The P2 swarm appears to be an extension of the main Noumas 1 zone and the exploration is targeting the intervening area under sand cover with mechanical trenches similar to this completed to the west of Noumas 1 (See Plate 10).

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Plate 9: View in P2 zone showing drill pad preparation on pad P100

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Figure 4: Satellite image showing P2 pegmatite zone (light coloured zones) and planned drill locations (grid

squares are 100mx 100m.)

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Plate 10. Trenching activity in P2. Foreground shows pegmatite striking NW towards the Blesberg Mine (image looking NW from near location P104)

Feldspar Sampling and initial Environmental Mining Right process review

AVL has undertaken new actions to advance the project at Blesberg. These include the sampling of feldspar material for commercial testing. Commercial feldspar of a high quality, such as has been produced in the past from Blesberg, constitutes a potentially economically significant component of the pegmatite bodies on the licence. The feldspar quality is highly sought after by local and international glass producers. AVL is working with a local South African consultancy with relationships and expertise in feldspar sales and initial samples have been taken for evaluation.

The consultancy has a division dedicated to the permitting of mines by assisting in the environmental approval and mining right process. AVL and the group are in the initial stages of collaboration towards assistance with development of the site at Blesberg.

Social Responsibility

Locally based AVL management continued the exploration activities and strengthened the good working relationship with the existing shareholders of SALT, as well as other stakeholders. One important action taken during the lead up to drilling was the funding and installation of a solar pump and storage tank at one of the wells near to the project location. AVL and the Nama-Khoi council agreed that AVL and subcontractors can draw water during the tenure of the exploration programme. The hardware will be left in place for local herders to use following the end of the programme.

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Plate 11. Senior Nama Koi representatives and the new solar pump that feeds from the dam in the background near the Blesberg Mine

The Company is happy to report that the solar pump project is completed and in use by the local herders. AVL’s drilling team will use the well and pump to supply water to the diamond drill programme.

Blesberg Project Overview

The Blesberg Project is located approximately 80km north of Springbok in the Northern Cape Province of South Africa (see Figure 5). It lies at the western end of the Northern Cape Pegmatite Belt.

The deposit is one of the largest known economically mineralised and exploited pegmatite deposits in the Pegmatite Belt. The project is serviced by a major sealed road to the east within 6kms of the project area along an unsealed government road.

In addition to the public road the site is serviced by power lines and a borehole was located at site, water can be heard downhole and test work on the borehole is pending.

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Figure 5 – Location Map

Further information

Please visit our website for further information or contact:

Vincent Algar Managing Director, +61 8 9321 5594

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About Australian Vanadium Limited

AVL is a diversified resource company with an integrated strategy with respect to energy storage, seeking to offer investors a unique exposure to all aspects of the vanadium value chain – from resource through to steel and energy storage opportunities as well as other energy storage metals exposure through the acquisition and evaluation of lithium/tantalum projects.

AVL is advancing the development of its 100%-owned, world-class Gabanintha vanadium project. The Gabanintha Vanadium Project is currently one of the highest-grade vanadium projects being advanced globally with existing Measured Resources of 7.0Mt at 1.09% grade V2O5, Indicated Resources of 17.8Mt at 0.68% grade V2O5 and Inferred Resources of 66.7Mt at 0.83% grade V2O5, a total of 91.4Mt, grading 0.82% V2O5 and containing a discrete high-grade zone of 56.8Mt, grading 1.0% V2O5 reported in compliance with the JORC Code 2012 (see YRR ASX Announcement 10 November 2015). AVL has developed a local production capacity for high-purity vanadium electrolyte, which forms a key component of vanadium redox flow batteries (VRB).

AVL, through its 100%-owned subsidiary VSUN Energy Pty Ltd, is actively marketing VRB in Australia through a distribution agreement with world-leading flow battery manufacturer, GILDEMEISTER Energy Storage GmbH.

As part of its broader energy metals focus, AVL has also commenced a staged acquisition of a controlling 50.03% interest in the Blesberg Lithium-Tantalum Project in South Africa (see ASX Announcement 21 December 2016).

Competent Person Statement – Blesberg Exploration Programme

The information relating to the Blesberg Lithium-Tantalum Project exploration programme reported in this announcement is based on information compiled by Mr Vincent Algar. Mr Algar is a Member of The Australian Institute of Mining and Metallurgy (AusIMM) and a full-time employee of the Company. Mr Algar has more than 25 years’ experience in the field of mineral exploration. He has sufficient experience relevant to the style of mineralisation and type of deposit under consideration 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. Algar consents to the inclusion in the report of the matters based on the information made available to him, in the form and context in which it appears.

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Table 3: Section 1 – Sampling Techniques and Data – Blesberg

Criteria	JORC Code Explanation	Commentary
Sampling Techniques	• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma 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 representative and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralization that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	• 3 rock chip/grab samples were collected from 3 different sampling locations Sampling was undertaken as part of the Company’s due diligence of historic workings at the Blesberg Mine. Samples were taken from historical stockpiles and interpreted to comprise of beryl bearing, lithium bearing and feldspar bearing pegmatite lithologies • Composite samples masses range from 22.7kg – 25.5kg (refer to Table 1). Sample locations were determined with a hand-held GPS, coordinates and geological descriptions were noted for each sample. • Soil Samples were taken using a PVC spear and collecting 2-300g from trenched material coming from just the base of the trench. Samples are stored in sealed sample bags and will be transferred to a laboratory setting for sieving and analysis. • The composite sampling programme was reconnaissance in nature, samples were taken at the discretion of the geologist based on visual inspection of rock units. • Soil Sampling locations were collected on trench lines 50m apart at 5m spacings along each line.

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Drilling techniques	• Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method etc.).	• Reverse Circulation (RC) drilling was used during this programme
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximize sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/course material.	• Chip samples were weighed and qualitatively described by AVL geologists on the drill rig every 1m. All measures were taken to ensure that sample loss due to mechanical error was minimal. Due to the bulk nature of the mineralisation it is unlikely that sample bias exists due to loss of fine material.
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. • The total length and percentage of the relevant intersections logged.	• Chip samples were logged by AVL geologists on the drill rig on 1m intervals. Qualitative logging of the intervals was followed by photographic record of the drill hole and quantitative assays are pending.
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximize representativeness of samples.	• All samples were prepared at Scientific Services in Cape Town. • Hand sorted composite sample assays were completed by ALS Laboratories in Johannesburg, South Africa. • All samples were initially split into 2, one half was crushed to -2mm and milled to 95% passing 75 microns. A 100g sample was then split off and submitted to XRA laboratories in

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	• 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.	Pretoria and assessed as per the methods in Table 3. The other half was retained. • Samples are sufficient for the grain size of the material being analysed. • No other quality control procedures were considered necessaryfor thisprogramme.

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Criteria	JORC Code Explanation	Commentary
Quality of assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	• Details of the laboratory procedures used for assaying the samples is detailed in Table 3. • No geophysical tools, spectrometers were used in the field in this sampling programme. • • No Company implemented quality control procedures were considered necessary for this style of sampling programme.
Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss and adjustment to assay data.	• Sample ID, location (east/north), nature of sample site and description were entered into a spreadsheet in the field. • Photographs were also taken of all sample locations
Location of data points	• Accuracy and quality of surveys used to locate drillholes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	• All coordinate and topographical control data was recorded using a hand-held GPS utilizing South African Grid LO17/WGS84.

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Criteria	JORC Code Explanation	Commentary
Data spacing and distribution	• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	• Sample collection was based on historical stockpiles of spodumene and feldspar respectively and sampled at the discretion of AVL’s geologist. Soil Sampling locations were collected on trench lines 50m apart at 5m spacings along each line.
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	• Drilling was done through the mineralised pegmatite at an angle as close to true width as possible. No material bias is thought to have affected the sampling during this programme. Results of the drilling are pending.
Sample security	• The measures taken to ensure sample security.	• Samples were held under the control of AVL’s geologist until they were dispatched to Scientific Services in Cape Town and from there to ALS in Johannesburg and by reputable carrier onto XRA in Pretoria.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• No audits or reviews undertaken for this sampling programme

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Section 2 Reporting of exploration results - Blesberg

Criteria	JORC Code Explanation	Commentary
Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.	• Programme undertaken on granted prospecting right (NC) 940 PR held by SALT. • Boundaries of Prospecting Right (NC) 940 PR are shown in Figure 3. The prospecting right covers an area of 887 hectares • The prospecting right lies on part of the farm Steinkopf No 22. • There are no material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings • The Prospecting Right was granted in 8 May 2013 for a period of 5 years. • There are no known impediments to operating in the area.

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Criteria	JORC Code Explanation	Commentary
Exploration done by other parties	• Acknowledgement and appraisal of exploration by other parties.	• As the Blesberg Mine has in the past been held privately details of production and exploration work have generally not been available. • In 1968, the Geological Survey of South Africa prepared an unpublished report_The Geology of_ the Noumas Pegmatite, Namaqualand_by D.H De Jager. • In 1972, the Geological Survey of South Africa prepared and published the report_The Main Pegmatites in the area between Steinkopf, Vioolsdrif and Goodhouse, Namaqualand_by I.C Schutte which included a detail review of the Blesberg (Noumas) pegmatites. • In 2006, a Geological Society of South Africa paper by H. Minnaar and H.F.J. Theart titled,_The exploitability of pegmatite deposits in the lower Orange River area (Vioolsdrif – Henkries – _Steinkopf)_considered the economics of commercial mining of feldspar only.

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Criteria	JORC Code Explanation	Commentary
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results, 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 equivalent values should be clearly stated.	• No data aggregation methods have been used in reporting the composite sampling results. • Table 1 sets out the assay results for all 4 composite samples collected. • No aggregation methods have been used for the laboratory data shown in Figure 4 • XRF data from soil samples has been aggregated into a Blesberg specific Lithium index, composed of a formula of XRF element data. As shown in Figure 3, 4
Relationships between mineralisation widths and intercept lengths	• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	• As the geochemical results thus far collected by AVL personnel are from surface, any potential depths of mineralisation or orientations can only be inferred from geological observations on the surface and hence are speculative in nature.
Diagrams	• Appropriate maps and section (with scales) and tabulations 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.	• See figures in the release.
Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practised to avoid misleading reporting of Exploration Results.	• Table 1 sets out the assay results for all 4 samples collected. Assay results for lithium bearing lithologies range from 2.86% Li2O to

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4.76% Li2O. Assay results for feldspar bearing lithologies range from 19.43% Al2O3 to 0.08% Fe2O3.

Criteria	JORC Code Explanation	Commentary
Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	• No other substantive exploration data from the sampling programme, or other historical reports, has been excluded from this report.
Further work	• The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	• The Company intends to commence initial exploration, including drilling, at the Blesberg Mine and elsewhere on (NC) 940 PR as detailed in this report.