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AUSTRALIAN VANADIUM LIMITED Capital/Financing Update 2020

Nov 1, 2020

64471_rns_2020-11-01_940992cd-b880-4c23-9ab2-4853198d2fc3.pdf

Capital/Financing Update

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2[ND] NOVEMBER 2020

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ASX ANNOUNCEMENT

THE AUSTRALIAN VANADIUM PROJECT TO PRODUCE HIGH PURITY VANADIUM PENTOXIDE

Testwork confirms high purity V2O5 product from roast-leach pilot testwork

KEY POINTS

  • High purity 99.4% vanadium pentoxide (V2O5) produced from representative leach liquor.

  • The vanadium flake product from the Australian Vanadium Project is expected to be of outstanding quality, comparable to high purity products from existing global producers.

  • Testing has included APV and AMV production routes, allowing optionality in the BFS to simplify the refinery circuit and potentially lower both capital and operating costs.

  • • Testwork demonstrates ability to produce high purity V2O5 at scale.

Australian Vanadium Limited (ASX: AVL, “the Company” or “AVL”) is pleased to announce an update on the metallurgical testwork to support the vanadium purification flowsheet for the Australian Vanadium Project (“the Project”). This includes the production of high purity vanadium pentoxide using hydrometallurgical methods, tested as part of the detailed flowsheet validation program undertaken by the Company and its consultants since the 2018 Pre-Feasibility Study (PFS)[1] and following up successfully on previous vanadium pentoxide results[2] .

Managing Director Vincent Algar commented, “ Test results have shown that the AVL process, using standard methods, has the capability to achieve high purity V2O5 throughout the life of mine. This high purity product is comparable with the high purity vanadium products made by our established producer peers. This outcome comes from concentrating on thorough technical study work and using the process method improvements AVL has identified in that study work. Without doubt, this quality outcome further increases confidence in the Project.”

1 See ASX announcement dated 19th December 2018 ‘Gabanintha Pre-Feasibility Study and Maiden Ore Reserve’

2 See ASX Announcement dated 28th May 2019 ‘High Purity Vanadium Pentoxide Produced’

Australian Vanadium Limited Level 1, 85 Havelock Street West Perth, WA 6005

Phone : +61 8 9321 5594 ASX : AVL Fax : +61 8 6268 2699 FRA : JT7.F Email : [email protected] ABN : 90 116 221 740

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Metallurgical Testwork Summary

A metallurgical testwork program is underway to optimise the final stages of the vanadium refining process, which includes precipitation and V2O5 production.

All vanadium purification tests reported in this update have been performed on leach solution derived from roasted material produced in pilot scale testwork at Metso Outotec’s Dansville pyrometallurgical facility in the USA. The concentrates provided to Metso were in turn generated from pilot scale crushing, milling, and beneficiation testwork at ALS laboratories in Balcatta, WA. Feed materials to the pilot program at ALS were made up from a blend of drill core designed to represent the average first five years and life of mine process feed.

The standard refining technique used in the production of vanadium pentoxide produces an intermediary chemical product called AMV (ammonium metavanadate), which was the basis of the PFS refinery flowsheet. This process includes a desilication stage (aluminosilicate precipitation and solid liquid separation) prior to precipitation of AMV at slightly basic pH.

In parallel with AMV testwork on representative leach liquor, AVL has tested an alternative mature vanadium production route known as APV (ammonium polyvanadate). The APV processing path is a direct precipitation and operates at lower pH and higher temperature. The APV testing indicates an improved vanadium recovery, a reduced ammonium sulphate reagent consumption and has generated a final product quality of 99.4% V2O5, which was independently verified by an accredited laboratory (see Plate 1).

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Plate 1 - AVL’s V2O5 product (left hand side image of product close up)

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These encouraging results and further APV optimisation testwork currently underway will be used to assess and determine the final purification flowsheet and support AVL’s vanadium product/s specification.

Following the refinery pilot testwork program, larger leachate samples will become available to evaluate further V2O5 purification, targeting products to service the vanadium redox flow battery and specialty chemical markets. AVL is the recipient of a federal CRC-P Grant to investigate the production of high purity vanadium[3] .

Comparison to Existing Producer Product Specifications

There are currently only three primary vanadium mines known to be operating outside China, producing V2O5 from titanomagnetites similar in nature and grade to AVL’s Project. The recent testwork summarised in this report indicates the ability for AVL to produce similar vanadium product specifications to existing producers. A direct comparison and links to publicly available information* is shown in Table 1 below.

Table 1 – Comparison of AVL’s V2O5 testwork results versus producer product specifications

V2O5 Al2O3 Ca Cr Fe MgO K2O +
Na2O		 P S Si
% % % % % % % % % %
AVL V2O5 - APV
Precipitation		 99.43 0.019 0.005 0.054 0.02 0.008 0.07 0.034 0.004 0.02
AVL V2O5 - AMV
Precipitation		 99.43 0.038 0.05 0.08 0.01 0.033 0.2 0.02 0 0.21
Industry
Standard Grade
V2O5		 >98 <0.3 <1.5 0.05 <0.03 <0.25
Largo Resources
Vpure™ V2O5
Flakes		 98.5-99.0 <0.1 <0.06 <0.25 <0.5 <0.02 <0.3
Largo Resources
Vpure+™ V2O5
Flakes		 99.0-99.5 <0.1 <0.05 <0.02 <0.1 <0.5 <0.01 <0.02 <0.12
US Vanadium
High Purity V2O5		 99.6 0.02 0.025 0.01 0.01

*Table References

3 See ASX announcement dated 10th February 2020 ‘AVL Awarded $1.25 Million Vanadium Research and Development Grant’

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Fastmarkets (subscription): https://www.metalbulletin.com/Article/3957059/PRICING-NOTICEAmendment-to-Chinese-vanadium-fob-price-assessments.html

Largo Resources Vpure™ V2O5 Flakes:

  • https://largovpure.com/wp content/uploads/2020/01/VPURE_Technical_StandardFlake_v2.pdf Largo Resources Vpure+™ V2O5 Flakes:

https://largovpure.com/wp-content/uploads/2019/11/VPURE-Flakes-Technical-Data-Sheet-1.pdf

US Vanadium High Purity V2O5:

https://img1.wsimg.com/blobby/go/3f18bace-1ccb-47d4-bc97-

b5972e76e9c6/downloads/Product%20Spec%20MC5%20Rev%209%20HPG%20Vanadium%20Pentoxide.pd f?ver=1565476335252

BFS Progress

The metallurgical testwork programs that will be used to underpin the BFS processing flowsheets are nearing completion. Significant pilot scale testing has been completed to validate an optimised concentrator flowsheet and a pelletisation and grate kiln roasting circuit for the front part of the refinery flowsheet. Further leach and vanadium purification testwork is underway to optimise the downstream refinery flowsheet and this is forecast to be completed by the end of year.

AVL’s engineering consultant (Wood Mining and Metals) is in the process of updating the process design for the parts of the flowsheet that have been validated by pilot testwork. This work will enable a progressive commencement of the BFS engineering activities which is targeted for completion in mid-2021.

For further information, please contact: Vincent Algar, Managing Director +61 8 9321 5594

This announcement has been approved in accordance with the Company's published continuous disclosure policy and has been approved by the Board

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ABOUT AUSTRALIAN VANADIUM LTD

AVL is a resource company focused on vanadium, seeking to offer investors a unique exposure to all aspects of the vanadium value chain – from resource through to steel and energy storage opportunities. AVL is advancing the development of its world-class Australian Vanadium Project. The Australian Vanadium Project is currently one of the highest-grade vanadium projects being advanced globally with 208.2Mt at 0.74% vanadium pentoxide (V ₂ O ₅ ), containing a high-grade zone of 87.9Mt at 1.06% V2O5., reported in compliance with the JORC Code 2012 (see ASX announcement dated 19 December 2018 ‘ Gabanintha Pre-Feasibility Study and Maiden Ore Reserve’ and ASX announcement dated 4 March 2020 ‘Total Vanadium Resource at the Australian Vanadium Project Rises to 208 Million Tonnes’. ).

The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

VSUN Energy is a 100% owned subsidiary of AVL, focused on developing the vanadium redox flow battery market.

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APPENDIX 1

The Australian Vanadium Project – Mineral Resource estimate by domain and resource classification using a nominal 0.4% V2O5 wireframed cut-off for low-grade and nominal 0.7% V2O5 wireframed cut-off for high-grade (total numbers may not add up due to rounding).

2020 Feb Category Mt V2O5 % Fe % TiO2 % SiO2 % Al2O3 % LOI %
HG Measured 10.1 1.14 43.9 13.0 9.2 7.5 3.7
Indicated 25.1 1.10 45.4 12.5 8.5 6.5 2.9
Inferred 52.7 1.04 44.6 11.9 9.4 6.9 3.3
Subtotal 87.9 1.06 44.7 12.2 9.2 6.8 3.2
LG
2-5		 Indicated 44.5 0.51 25.0 6.8 27.4 17.0 7.9
Inferred 60.3 0.48 25.2 6.5 28.5 15.3 6.7
Subtotal 104.8 0.49 25.1 6.6 28.0 16.1 7.2
Trans
6-8		 Inferred 15.6 0.65 28.4 7.7 24.9 15.4 7.9
Subtotal 15.6 0.65 28.4 7.7 24.9 15.4 7.9
Total Measured 10.1 1.14 43.9 13.0 9.2 7.5 3.7
Indicated 69.6 0.72 32.4 8.9 20.6 13.2 6.1
Inferred 128.5 0.73 33.5 8.8 20.2 11.9 5.4
Subtotal 208.2 0.74 33.6 9.0 19.8 12.1 5.6

COMPETENT PERSON STATEMENT — MINERAL RESOURCE ESTIMATION

The information in this announcement that relates to Mineral Resources is based on and fairly represents information compiled by Mr Lauritz Barnes, (consultant with Trepanier Pty Ltd) and Mr Brian Davis (consultant with Geologica Pty Ltd). Mr Barnes and Mr Davis are both members of the Australasian Institute of Mining and Metallurgy (AusIMM) and the Australian Institute of Geoscientists (AIG). Both have sufficient experience of relevance to the styles of mineralisation and types of deposits under consideration, and to the activities undertaken to qualify as Competent Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Specifically, Mr Barnes is the Competent Person for the estimation and Mr Davis is the Competent Person for the database, geological model and site visits. Mr Barnes and Mr Davis consent to the inclusion in this announcement of the matters based on their information in the form and context in which they appear.

COMPETENT PERSON STATEMENT – METALLURGICAL RESULTS

The information in this announcement that relates to Metallurgical Results is based on information compiled by independent consulting metallurgist Brian McNab (CP. B.Sc Extractive Metallurgy). Mr McNab is a Member of AusIMM. He is employed by Wood Mining and Metals. Mr McNab has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is undertaken, to qualify as a Competent Person as defined in the JORC 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr McNab consents to the inclusion in the announcement of the matters based on the information made available to him, in the form and context in which it appears.

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APPENDIX 2

Section 1 - Sampling Techniques and Data

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.		 The Australian Vanadium Project deposit was sampled using diamond core and reverse circulation (RC) percussion drilling from surface.
During 2019 43 RC holes were drilled; 30 RC holes were drilled for 2,236m in the December 2019 drilling on blocks 16 and 8, and 13 RC holes for
1,224m drilled during October 2019.
A further 30 PQ diamond drill holes were completed by March 2019, to collect metallurgy sample for a plant pilot study. 12 are drilled down-dip into
the high-grade zone. These were complimented by an additional 18 PQ diamond drill tails on RC pre-collars, drilling vertically. The down dip holes
are measured by hand-held XRF at 50 cm intervals to inform metallurgy characterisation but will not form part of any resource estimation update
unless certified laboratory analysis is completed on a cut portion of the drill core. 14 of the 18 diamond tails were cut and a ¼ of the PQ sized core
was sent for analysis.
At the time of the latest Mineral Resource estimation (November 2018), a total of 250 RC holes and 20 diamond holes (6 of which are diamond
tails) were drilled into the deposit. 59 of the 251 holes were either too far north or east of the main mineralisation trend or excised due to being on
another tenancy. One section in the southern part of the deposit (holes GRC0156, GRC0074, GRC0037 and GRC0038) was blocked out and
excluded from the resource due to what appeared to be an intrusion which affected the mineralised zones in this area. Of the remaining 191 drill
holes, one had geological logging, but no assays and one was excluded due to poor sample return causing poor representation of the mineralised
zones. Two diamond holes drilled during 2018 were not part of the resource estimate, as they were drilled into the western wall for geotechnical
purposes. The total metres of drilling available for use in the interpretation and grade estimation was 20,058m of RC and 3,299.27m of DDH over
245 holes at the date of the most recent resource estimate.
The initial 17 RC drill holes were drilled by Intermin Resources NL (IRC) in 1998. These holes were not used in the 2015 and 2017 estimates due
to very long unequal sample lengths and a different grade profile from subsequent drilling. 31 RC drill holes were drilled by Greater Pacific NL in
2000 and the remaining holes for the project were drilled by Australian Vanadium Ltd (Previously Yellow Rock Resources Ltd) between 2007 and
2018. This drilling includes 20 diamond holes (6 of which are diamond tails) and 76 RC holes, for a total of 20,974m drilled.
All of the drilling sampled both high and low-grade material and were sampled for assaying of a typical iron ore suite, including vanadium and
titanium plus base metals and sulphur.
Include reference to measures
taken to ensure sample		 PQ core from diamond tails was ¼ cored and sent for assay. The remaining core went to make up the pilot plant metallurgical sample. The down
dip 2019 PQ core has not been sampled. Handheld XRF machines being used to take ½ metre measurements on the core have been calibrated

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representivity and the appropriate
calibration of any measurement
tools or systems used.		 using pulps from previous drilling by the Company, for which there are known head assays. 2018 HQ diamond core was half-core sampled at
regular intervals (usually one metre) with smaller sample intervals at geological boundaries. 2015 diamond core was quarter-core sampled at
regular intervals (usually one metre) and constrained to geological boundaries where appropriate. 2009 HQ diamond core was half-core sampled
at regular intervals (one metre) or to geological boundaries. Most of the RC drilling was sampled at one metre intervals, apart from the very
earliest programme in 1998. RC samples have been split from the rig for all programmes with a cone splitter to obtain 2.5 – 3.5 kg of sample from
each metre. Field duplicates were collected for every 40th drill metre to check sample grade representation from the drill rig splitter. During the
October 2019 RC programme, field duplicates were collected from the rig splitter for every 30thdrill metre. During the December 2019 RC
programme, field duplicates were collected from the rig splitter for every 20thdrill metre.
Aspects of the determination of
mineralisation that are Material to
the Public Report.		 RC drilling samples were collected at one metre intervals and passed through a cone splitter to obtain a nominal 2.5-3kg sample at an
approximate 10% split ratio. These split samples were collected in pre-numbered calico sample bags. The sample was dried, crushed and
pulverised to produce a sub sample (~200g) for laboratory analysis using XRF and total LOI by thermo-gravimetric analysis.
Diamond core was drilled predominantly at HQ size for the earlier drilling (2009) and entirely HQ for the 2018 programme with the 2015 and 2019
drilling at PQ3 size.
Field duplicates, standards and blanks have been inserted into the sampling stream at a rate of nominally 1:20 for blanks, 1:20 for standards
(including internal laboratory), 1:40 for field duplicates, 1:20 for laboratory checks and 1:74 for umpire assays. For this RC programme completed
in December 2019, the field duplicates were incorporated at a rate of 1:20, while standards 1:50 and blanks also 1:50.
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.).		 Diamond drill holes account for 16% of the drill metres used in the Resource Estimate and comprises HQ and PQ3 sized core. RC drilling
(generally 135 mm to 140 mm face-sampling hammer) accounts for the remaining 84% of the drilled metres. Six of the diamond holes have RC
pre-collars (GDH911, GDH913 & GDH916, 18GEDH001, 002 and 003), otherwise all holes are drilled from surface.
No core orientation data has been recorded in the database.
17 RC holes were drilled during the 2018 programme and three HQ diamond tails were drilled on RC pre-collars for resource and geotechnical
purposes. The core was not orientated but all diamond holes were logged by OTV and ATV televiewer. Six RC holes from the 2018 campaign are
not used in the resource estimate due to results pending at the time of the latest update, and two diamond holes drilled during 2018 were not used
as they are for geotechnical purposes and do not intersect the mineralised zones.

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During 2019 a further 12 PQ diamond holes have been drilled down-dip on the high-grade zone for metallurgical sample but have not been
sampled for assay analysis as they have been sampled for a metallurgy pilot study programme. As such they do not form part of any resource
estimation. An addition 18 PQ diamond tails on RC pre-collars have been drilled vertically, of which 14 contribute to the resource. two were used
for the metallurgy pilot study programme, one was not sampled due to core loss and a further core hole cut but not submitted for assay. A further
43 RC holes using a 140 mm face hammer on a Schramm drill rig have been completed during October and December 2019.
Drill Sample
Recovery		 Method of recording and
assessing core and chip sample
recoveries and results assessed.		 Diamond core recovery is measured when the core is recovered from the drill string. The length of core in the tray is compared with the expected
drilled length and is recorded in the database.
For the 2019, 2018 and 2015 drilling, RC chip sample recovery was judged by how much of the sample was returned from the cone splitter. This
was recorded as good, fair, poor or no sample. The older drilling programmes used a different splitter, but still compared and recorded how much
sample was returned for the drilled intervals. All of the RC sample bags (non-split portion) from the 2018 programme were weighed as an
additional check on recovery.
An experienced AVL geologist was present during drilling and any issues noticed were immediately rectified.
No significant sample recovery issues were encountered in the RC or PQ drilling in 2015.
No significant sample recovery issues were encountered in the RC or PQ drilling in 2019 except where core loss occurred in three holes
intersecting high grade ore. This involved holes 19MTDT012 between 142.9m and 143.3m; 19MTDT013 from 149m to 149.6m, 151m to 151.4m
and 159.5m to 160m; as well as 19MTDT016 between 29.5m and 30.7m down hole. In each case the interval lost was included as zero grade for
all elements for the estimation of the total mineralised intercept.
Measures taken to maximize
sample recovery and ensure
representative nature of the
samples.		 Core depths are checked against the depth given on the core blocks and rod counts are routinely carried out by the drillers. Recovered core was
measured and compared against driller’s blocks. 2019 diamond core samples had a coarse split created at the laboratory that was also analysed
to evaluate laboratory splitting of the sample.
RC chip samples were actively monitored by the geologist whilst drilling. Field duplicates have been taken at a frequency between every 30thand
every 50thmetre in every RC drill campaign.
All drill holes are collared with PVC pipe for the first metres, to ensure the hole stays open and clean from debris.

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Whether a relationship exists
between sample recovery and
grade and whether sample bias
may have occurred due to
preferential loss/gain of
fine/coarse material.		 No relationship between sample recovery and grade has been demonstrated.
Two shallow diamond drill holes drilled to twin RC holes have been completed to assess sample bias due to preferential loss/gain of fine/coarse
material.
AVL is satisfied that the RC holes have taken a sufficiently representative sample of the mineralisation and minimal loss of fines has occurred in
the RC drilling resulting in minimal sample bias.
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.		 All diamond core and RC chips from holes included in the latest resource estimate were geologically logged.
Diamond core was geologically logged using predefined lithological, mineralogical and physical characteristics (such as colour, weathering, fabric,
texture) logging codes and the logged intervals were based on lithological intervals. RQD and recoveries were also recorded. Minimal structural
measurements were recorded (bedding to core angle measurements) but have not yet been saved to the database.
The logging was completed on site by the responsible geologist. All of the drilling was logged onto paper and was transferred to a SQL Server drill
hole database using DataShed™ database management software. The database is managed by Mitchell River Group (MRG). The data was
checked for accuracy when transferred to ensure that correct information was recorded. Any discrepancies were referred back to field personnel
for checking and editing.
All core trays were photographed wet and dry.
RC chips were logged generally on metre intervals, with the abundance/proportions of specific minerals, material types, lithologies, weathering
and colour recorded. Physical hardness for RC holes is estimated by chip recovery and properties (friability, angularity) and in diamond holes by
scratch testing.
From 2015, drilling also had magnetic susceptibility recorded, with the first nine diamond holes (GDH901-GDH909) having readings taken on the
core every 30 cm or so downhole. Holes GDH910 to GDH917 had readings every 50 cm and RC holes GRC0159 to GRC0221 had readings for
each one metre green sample bag. 2018 RC drill holes also have magnetic susceptibility data for each one metre of drilling. Pulps from historic

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drill hole have been measured for magnetic susceptibility, with calibration on results applied from control sample measurement of pulps from drill
programmes from 2015 onwards where measurements of the RC bags already exist.
All resource (vs geotechnical) diamond core and RC samples have been logged to a level of detail to support Mineral Resource estimation to and
classification to Measured Mineral Resource at best.
Geotechnical logging and OTV/ATV data was collected on three diamond drill holes from the 2018 campaign, by consultant company Dempers
and Seymour, adding to an existing dataset of geotechnical logging on 8 of the 2015 diamond drill holes and televiewer data for four of the same
drill holes. In addition, during 2018 televiewer data was collected on a further 15 RC drill holes from various drill campaigns at the project.
PQ diamond drill holes completed during 2019 were geologically and geotechnically logged in detail by the site geologists.
Whether logging is qualitative or
quantitative in nature. Core (or
costean, channel, etc.)
photography.		 Logging was both qualitative and quantitative in nature, with general lithology information recorded as qualitative and most mineralisation records
and geotechnical records being quantitative. Core photos were collected for all diamond drilling.
The total length and percentage
of the relevant intersections
logged.		 All recovered intervals were geologically logged.
Sub-
Sampling
Techniques
and Sample
Preparation		 If core, whether cut or sawn and
whether quarter, half or all core
taken.		 The 2018 and 2009 HQ diamond core were cut in half and the half core samples were sent to the laboratories for assaying. Sample intervals were
marked on the core by the responsible geologist considering lithological and structural features. No core was selected for duplicate analysis.
The 2015 PQ diamond core was cut in half and then the right-hand side of the core (facing downhole) was halved again using a powered core
saw. Quarter core samples were sent to the laboratories for assaying. Sample intervals were marked on the core by the responsible geologist
considering lithological and structural features. No core was selected for duplicate analysis.
14 of the 18 total vertical diamond PQ diamond drill holes from 2019 have been quarter core sampled and assayed. Sample intervals were marked
on the core by the responsible geologist considering lithological and structural features.

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If non-core, whether riffled, tube
sampled, rotary split, etc. and
whether sampled wet or dry.		 RC drilling was sampled by use of an automatic cone splitter for the 2019, 2018 and 2015 drilling programmes; drilling was generally dry with a
few damp samples and occasional wet samples. Older drilling programmes employed riffle splitters to produce the required sample splits for
assaying. One in 40 to 50 RC samples was resampled as field duplicates for QAQC assaying, with this frequency increasing to one in 30 for the
October 2019 RC drilling, and one in 20 for the December 2019 RC drilling.
For all sample types, the nature,
quality and appropriateness of the
sample preparation technique.		 The sample preparation techniques employed for the diamond core samples follow standard industry best practice. All samples were crushed by
jaw and Boyd crushers and split if required to produce a standardised ~3kg sample for pulverising. The 2015 programme RC chips were split to
produce the same sized sample.
All samples were pulverised to a nominal 90% passing 75 micron sizing and sub sampled for assaying and LOI determination tests. The remaining
pulps are stored at an AVL facility.
The sample preparation techniques are of industry standard and are appropriate for the sample types and proposed assaying methods.
Quality control procedures
adopted for all sub-sampling
stages to maximize representivity
of samples.		 Field duplicates, standards and blanks have been inserted into the sampling stream at a rate of nominally 1:20 for blanks, 1:20 for standards
(including internal laboratory), 1:40 for field duplicates, 1:20 for laboratory checks and 1:74 for umpire assays. Also, for the recent sampling at BV,
1 in 20 samples were tested to check for pulp grind size. For 2019 diamond core samples, duplicates were created from the coarse crush at a
frequency of 1 in 20 samples at the laboratory and assayed.
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.		 To ensure the samples collected are representative of the in-situ material, a 140mm diameter RC hammer was used to collect one metre samples
and either HQ or PQ3 sized core was taken from the diamond holes. Given that the mineralisation at the Australian Vanadium Project is either
massive or disseminated magnetite/martite hosted vanadium, which shows good consistency in interpretation between sections and occurs as
percentage values in the samples, Geologica Pty Ltd considers the sample sizes to be representative.
Core is not split for duplicates, but RC samples are split at the collection stage to get representative (2.5-3kg) duplicate samples.
The entire core sample and all the RC chips are crushed and /or mixed before splitting to smaller sub-samples for assaying.

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Whether sample sizes are
appropriate to the grain size of the
material being sampled.		 As all of the variables being tested occur as moderate to high percentage values and generally have very low variances (apart from Cr2O3), the
chosen sample sizes are deemed appropriate.
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.		 All samples for the Australian Vanadium Project were assayed for the full iron ore suite by XRF (24 elements) and for total LOI by thermo-
gravimetric technique. The method used is designed to measure the total amount of each element in the sample. Some 2015 and 2018 RC
samples in the oxide profile were also selected for SATMAGAN analysis that is a measure of the amount of total iron that is present as magnetite
(or other magnetic iron spinel phases, such as maghemite or kenomagnetite). SATMAGAN analysis was conducted at Bureau Veritas (BV)
Laboratory during 2018.
Although the laboratories changed over time for different drilling programmes, the laboratory procedures all appear to be in line with industry
standards and appropriate for iron ore deposits, and the commercial laboratories have been industry recognized and certified
Samples are dried at 105°C in gas fired ovens for 18-24 hours before RC samples being split 50:50. One portion is retained for future testing, while
the other is then crushed and pulverised. Sub-samples are collected to produce a 66g sample that is used to produce a fused bead for XRF based
analysing and reporting.
Certified and non-certified Reference Material standards, field duplicates and umpire laboratory analysis are used for quality control. The
standards inserted by AVL during the 2015 drill campaign were designed to test the V2O5grades around 1.94%, 0.95% and 0.47%. The internal
laboratory standards used have varied grade ranges but do cover these three grades as well. During 2018 and 2019, three Certified Reference
Materials (CRMs) were used by AVL as field standards. These covered the V2O5grade ranges around 0.327%, 0.790% and 1.233%. These CRMs
are also certified for other relevant major element and oxide values, including Fe, TiO2, Al2O3, SiO2, Co, Ni and Cu (amongst others).
Most of the laboratory standards used show an apparent underestimation of V2O5, with the results plotting below the expected value lines,
however the results generally fall within ± 5-10% ranges of the expected values. The other elements show no obvious material bias.
Standards used by AVL during 2015 generally showed good precision, falling within 3-5% of the mean value in any batch. The standards were not
certified but compared with the internal laboratory standards (certified) they appear to show good accuracy as well.
Field duplicate results from the 2015 drilling all fall within 10% of their original values.
The BV laboratory XRF machine calibrations are checked once per shift using calibration beads made using exact weights and they performed
repeat analyses of sample pulps at a rate of 1:20 (5% of all samples). The lab repeats compare very closely with the original analysis for all
elements.

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2019 PQ diamond core has been assayed, and studies on all results for QAQC sample performance is in progress. Geologica considers that the nature, quality and appropriateness of the assaying and laboratory procedures is at acceptable industry standards.

2019 PQ diamond core has been assayed, and studies on all results for QAQC sample performance is in progress.
Geologica considers that the nature, quality and appropriateness of the assaying and laboratory procedures is at acceptable industry standards.
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.		 The geophysical readings taken for the Australian Vanadium Project core and RC samples and recorded in the database were magnetic
susceptibility. For the 2009 diamond and 2015 RC and diamond drill campaigns this was undertaken using an RT1 hand magnetic susceptibility
meter (CorMaGeo/Fugro) with a sensitivity of 1 x 10–5(dimensionless units). The first nine diamond holes (GDH901 – GDH909) were sampled at
approximately 0.3m intervals, the last eight (GDH910 – GDH917) at 0.5m intervals and the RC chip bags for every green bagged sample (one
metre). During 2018 and 2019 RC and diamond core has been measured using a KT-10 magnetic susceptibility metre, at 1 x 10-3ssi unit. In
addition to the handheld magnetic susceptibility described above the 2019 diamond drilling included downhole magnetic susceptibility. This was
taken using a Century Geophysical 9622 Magnetic Susceptibility tool. The 9622 downhole tool sensitivity is 20 x 10–5with a resolution of 10cm
2019 diamond core was analysed using an Olympus Vanta pXRF with a 20 second read time. The unit is calibrated using pulp samples with
known head assays from previous drill campaigns by the Company. Standard deviations for each element analysed are being recorded and
retained. Elements being analysed are: Mg, Al, Si, P, S, K, Ca, Ti, V, Cr, Mn, Fe, Co, Ni, Cu, Zn, As, Se, Rb, Sr, Y, Zr, Nb, Mo, Ag, Cd, Sn, Sb, W,
Hg, Pb, Bi, Th, and U.
Four completed diamond drill holes were down hole surveyed by acoustic televiewer (GDH911, 912, 914 and 915) as a prequel to geotechnical
logging during the 2015 drill campaign. A further six holes from the 2018 campaign have been down hole surveyed using acoustic televiewer and
optical televiewer (18GEDH001, 002 and 003 and partial surveys of 18GERC005, 008 and 011) for 627 metres of data.
Televiewer data was also collected during 2018 on some of the holes drilled in 2015 and prior. The holes surveyed were GRC0019, 0024, 0168,
0169, 0173, 0178, 0180, 0183, 0200 and Na253, Na258 and Na376 for a further 286.75 m of data.
All 12 of the 2019 down dip PQ holes have been televiewer surveyed.
Nature of quality control
procedures adopted (e.g.
standards, blanks, duplicates,
external laboratory checks) and
whether acceptable levels of		 QAQC results from both the primary and secondary assay laboratories show no material issues with the main variables of interest for the recent
assaying programmes.

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accuracy (i.e. lack of bias) and
precision have been established.
Verification of
Sampling and
Assaying		 The verification of significant
intersections by either
independent or alternative
company personnel.		 Diamond drill core photographs have been reviewed for the recorded sample intervals. Geologica Pty Ltd Consultant, Brian Davis, visited the
Australian Vanadium Project site on multiple occasions and the BV core shed and assay laboratories in 2015 and 2018. Whilst on site, the drill
hole collars and remaining RC chip samples were inspected. All of the core was inspected in the BV facilities in Perth and selected sections of drill
holes were examined in detail in conjunction with the geological logging and assaying.
Resource consultants from Trepanier have visited the company core storage facility in Bayswater and reviewed the core trays for select diamond
holes.
The use of twinned holes. Two diamond drill holes (GDH915 and GDH917) were drilled to twin the RC drill holes GRC0105 and GRC0162 respectively. The results show
excellent reproducibility in both geology and assayed grade for each pair.
Documentation of primary data,
data entry procedures, data
verification, data storage (physical
and electronic) protocols.		 All primary geological data has been collected using paper logs and transferred into Excel spreadsheets and ultimately a SQL Server Database.
The data were checked on import. Assay results were returned from the laboratories as electronic data which were imported directly into the SQL
Server database. Survey and collar location data were received as electronic data and imported directly to the SQL database.
All of the primary data have been collated and imported into a Microsoft SQL Server relational database, keyed on borehole identifiers and assay
sample numbers. The database is managed using DataShed™ database management software. The data was verified as it was entered and
checked by the database administrator (MRG) and AVL personnel
Discuss any adjustment to assay
data.		 No adjustments or calibrations were made to any assay data, apart from resetting below detection limit values to half positive detection values.

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Location of
Data Points		 Accuracy and quality of surveys
used to locate drill holes (collar
and down-hole surveys),
trenches, mine workings and
other locations used in Mineral
Resource estimation.		 The 2019 drill holes have been set out using a real-time Kinematic (RTK) GPS or DGPS system. At completion of drilling the collar positions were
picked up by a professional surveyor with an RTK system.
For the 2018 drilling, all collars were set out using a handheld GPS. After drilling they were surveyed using a Trimble RTK GPS system. The base
station accuracy on site was improved during the 2015 survey campaign and a global accuracy improvement was applied to all drill holes in the
Company database.
For the 2015 drilling, all of the collars were set out using a Trimble RTK GPS system. After completion of drilling all new collars were re-surveyed
using the same tool.
Historical drill holes were surveyed with RTK GPS and DGPS from 2008 to 2015, using the remaining visible collar location positions where
necessary. Only five of the early drill holes, drilled prior to 2000 by Intermin, had no obvious collar position when surveyed and a best estimate of
their position was used based on planned position data.
Downhole surveys were completed for all diamond holes, using gyro surveying equipment, as well as the RC holes drilled in 2015 (from
GRC0159). Some RC drill holes from the 2018 campaign do not have gyro survey as the hole closed before the survey could be done. These
holes have single shot camera surveys, from which the dip readings were used with an interpreted azimuth (nominal hole setup azimuth). The
holes with interpreted azimuth are all less than 120m depth. All other RC holes were given a nominal -60odip measurement. These older RC
holes were almost all 120m or less in depth.
Specification of the grid system
used.		 The grid projection used for the Australian Vanadium Project is MGA_GDA94, Zone 50. A local grid has also been developed for the project and
used for this latest Mineral Resource update (February 2020). The grid is a 40 degree rotation in the clockwise direction from the MGA north.
Quality and adequacy of
topographic control.		 High resolution Digital Elevation Data was captured by Arvista for the Company in June 2018 over the MLA51/878 tenement area using fixed wing
aircraft, with survey captured at 12 cm GSD using an UltraCam camera system operated by Aerometrex. The data has been used to create a
high-resolution Digital Elevation Model on a grid spacing of 5m x 5m, which is within 20 cm of all surveyed drill collar heights, once the database
collar positions were corrected for the improved ground control survey, that was also used in this topography survey. The vertical accuracy that
could be achieved with the 12 cm GSD is +/- 0.10 m and the horizontal accuracy is +/- 0.24m. 0.5m contour data has also been generated over
the mining lease application. High quality orthophotography was also acquired during the survey at 12cm per pixel for the full lease area, and
visual examination of the imagery shows excellent alignment with the drill collar positions. The November 2018 Mineral Resource used this
surface for topographic control within the Mining Lease Application area (MLA51/878).

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For the entire 2017 and July 2018 Mineral Resource estimates, and the November 2018 Mineral Resource estimate outside the MLA area, high
resolution Digital Elevation Data was supplied by Landgate. The northern two thirds of the elevation data is derived from ADS80 imagery flown
September 2014. The data has a spacing of 5M and is the most accurate available. The southern third is film camera derived 2005 10M grid,
resampled to match it with the 2014 DEM. Filtering was applied and height changes are generally within 0.5M. Some height errors in the 2005
data may be +/- 1.5M when measured against AHD but within the whole area of interest any relative errors will mostly be no more than +/- 1M.
In 2015 a DGPS survey of hole collars and additional points was taken at conclusion of the drill programme. Trepanier compared the elevations
the drill holes with the supplied DEM surface and found them to be within 1m accuracy.
An improved ground control point has been established at the Australian Vanadium Project by professional surveyors. This accurate ground
control point was used during the acquisition of high quality elevation data. As such, a correction to align previous surveys with the improved
ground control was applied to all drill collars from pre-2018 in the Company drill database. Collars that were picked up during 2018 were already
calibrated against the new ground control.
2019 drill collar locations all have RTK pick up by professional surveyors, using the improved ground control point.
Data Spacing
and
Distribution		 Data spacing for reporting of
Exploration Results.		 2019 RC drilling in Fault Block 50 and 60 (previously 16 and 8 respectively) has drilled out portions of the fault block to 140 m spaced lines with 30
m drill centres on lines. Some sections are closer together where new drilling bracketed existing drill lines to maintain a minimum 140 m spacing
between lines.
2019 diamond tail drilling has intersected the HG at about 60 m downdip from the last existing drill hole on select sections that are at 80 m
spacing.
The 2018 RC drilling in Fault Block 30 and 40 (previously 17 and 6 respectively) has infilled areas of 260 m spaced drill lines to about 130m
spaced drill lines, with holes on 30 m centres on each line.
The closer spaced drilled areas of the deposit now have approximately 80m to 100m spacing by northing and 25m to 30m spacing by easting.
Occasionally these spacings are closer for some pairs of drill holes. Outside of the main area of relatively close spaced drilling (approximately
7015400mN to 7016600mN), the drill hole spacing increases to between 140m and 400m in the northing direction but maintains roughly the same
easting separation as the closer spaced drilled area.

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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.		 The degree of geological and grade continuity demonstrated by the data density is sufficient to support the definition of Mineral Resources and the
associated classifications applied to the Mineral Resource estimate as defined under the 2012 JORC Code. Variography studies have shown very
little variance in the data for most of the estimated variables and primary ranges in the order of several hundred metres.
Whether sample compositing has
been applied.		 All assay results have been composited to one metre lengths before being used in the Mineral Resource estimate. This was by far the most
common sample interval for the diamond drill hole and RC drill hole data.
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.		 The grid rotation is approximately 45oto 50omagnetic to the west, with the holes dipping approximately 60oto the east. The drill fences are
arranged along the average strike of the high-grade mineralised horizon, which strikes approximately 310oto 315omagnetic south of a line at
7015000mN and approximately 330omagnetic north of that line. The mineralisation is interpreted to be moderate to steeply dipping, approximately
tabular, with stratiform bedding striking approximately north-south and dipping to the west. The drilling is exclusively conducted perpendicular to
the strike of the main mineralisation trend and dipping 60° to the east, producing approximate true thickness sample intervals through the
mineralisation.
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.		 The orientation of drilling with respect to mineralisation is not expected to introduce any sampling bias. Drill holes intersect the mineralisation at an
angle of approximately 90 degrees.
The 2019 PQ diamond holes are deliberately drilled down dip to maximise the amount of metallurgy sample collected for the pilot study, with all
material used for metallurgy purposes (hence not being available for assay). They are not intended to add material to the resource estimation, or
to define geological boundaries, though where further control on geological contacts is intercepted, this will be used to add more resolution to the
geological model.

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Sample
Security
Audits or
Reviews		 The measures taken to ensure
sample security.		 Samples were collected onsite under supervision of a responsible geologist. The samples were then stored in lidded core trays and closed with
straps before being transported by road to the BV core shed in Perth (or other laboratories for the historical data). RC chip samples were
transported in bulk bags to the assay laboratory and the remaining green bags are either still at site or stored in Perth.
RC and core samples were transported using only registered public transport companies. Sample dispatch sheets were compared against
received samples and any discrepancies reported and corrected.
The results of any audits or
reviews of sampling techniques
and data.		 A review of the sampling techniques and data was completed by Mining Assets Pty Ltd (MASS) and Schwann Consulting Pty Ltd (Schwann) in
2008 and by CSA in 2011. Neither found any material error. AMC also reviewed the data in the course of preparing a Mineral Resource estimate
in 2015. The database has been audited and rebuilt by AVL and MRG in 2015. In 2017 geological data was revised after missing lithological data
was sourced.
Geologica Pty Ltd concludes that the data integrity and consistency of the drill hole database shows sufficient quality to support resource
estimation.

Section 2 - Reporting of Exploration Results

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.		 Exploration Prospects are located wholly within Lease P51/2567, P51/2566 and E 51/843. The tenements are 100% owned by
Australian Vanadium Ltd.
The tenements lie within the Yugunga Nya Native Title Claim (WC1999/046). A Heritage survey was undertaken prior to
commencing drilling which only located isolated artefacts but no archaeological sites_per se._
Mining Lease Application MLA51/878 covering most of E 51/843 and the vanadium project is currently under consideration by
the Department of Mines and Petroleum.
AVL has no joint venture, environmental, national park or other ownership agreements on the lease area. A Mineral Rights
Agreement has been signed with Bryah Resources Ltd for copper and gold exploration on the AVL Gabanintha tenements.
The security of the tenure held at the time of
reporting along with any known impediments to
obtaining a licence to operate in the area.		 At the time of reporting, there are no known impediments to obtaining a licence to operate in the area and the tenement is in
good standing.

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Exploration
done by other
parties		 Acknowledgment and appraisal of exploration by
other parties.		 The Australian Vanadium deposit was identified in the 1960s by Mangore P/L and investigated with shallow drilling, surface
sampling and mapping.
In 1998, Drilling by Intermin Resources confirmed the down dip extent and strike continuation under cover between outcrops of
the vanadium bearing horizons.
Additional RC and initial diamond drilling was conducted by Greater Pacific NL and then AVL up until 2019.
Previous Mineral Resource estimates have been completed for the deposit in 2001 (Mineral Engineering Technical Services Pty
Ltd (METS) and Bryan Smith Geosciences Pty Ltd. (BSG)), 2007 (Schwann), 2008 (MASS & Schwann), 2011 (CSA), 2015
(AMC), 2017 (Trepanier) and 2018 (Trepanier).
Geology Deposit type, geological setting and style of
mineralisation.		 The Australian Vanadium Project is located approximately 40kms south of Meekatharra in Western Australia and approximately
100kms along strike (north) of the Windimurra Vanadium Mine.
The mineralisation is hosted in the same geological unit as Windimurra, which is part of the northern Murchison granite
greenstone terrane in the north west Yilgarn Craton. The project lies within the Gabanintha and Porlell Archaean greenstone
sequence oriented approximately NW-SE and is adjacent to the Meekatharra greenstone belt.
Locally the mineralisation is massive or bands of disseminated vanadiferous titano-magnetite hosted within the gabbro. The
mineralised package dips moderately to steeply to the west and is capped by Archaean acid volcanics and metasediments. The
footwall is a talc carbonate altered ultramafic unit.
The host sequence is disrupted by late stage dolerite and granite dykes and occasional east and northeast -southwest trending
faults with apparent minor offsets. The mineralisation ranges in thickness from several metres to up to 20 to 30m in thickness.
The oxidized and partially oxidised weathering surface extends 40 to 80m below surface and the magnetite in the oxide zone is
usually altered to Martite.
Drill hole
Information		 A summary of all information material to the
understanding of the exploration results including a
tabulation of the following information for all
Material drill holes:
easting and northing of the drill hole collar
elevation or RL (Reduced Level – elevation above
sea level in metres) of the drill hole collar
dip and azimuth of the hole		 All drill results relevant to the mineral resource updates were disclosed at the time of the resource publication. All new 2018 and
2019 drill hole collar information relating to this resource update are shown in Appendix 3.

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down hole length and interception depth hole
length.
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.
 Length weighed averages used for exploration results are reported in spatial context when exploration results are reported.
Cutting of high grades was not applied in the reporting of intercepts.
Where aggregate intercepts incorporate short
lengths of high grade results and longer lengths of
low grade results, the procedure used for such
aggregation should be stated and some typical
examples of such aggregations should be shown in
detail.
 There were negligible residual composite lengths, and where present these were excluded from the estimate.
The assumptions used for any reporting of metal
equivalent values should be clearly stated.
 No metal equivalent values have been used.
Relationship
between
mineralisation
widths and
intercept
lengths
 If the geometry of the mineralisation with respect to
the drill hole angle is known, its nature should be
reported.		 Drill holes intersect the mineralisation at an angle of approximately 90 degrees. Diamond PQ holes in the 2019 program were
drilled vertically (-90 degrees). This decreases the angle of intersection with the mineralisation.
Diagrams Appropriate maps and sections (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 ASX release of March 2020.

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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 practiced to avoid misleading reporting of
Exploration Results.
 Comprehensive reporting of drilling details has been provided in the body of the announcement of March 2020 and in the
Resource Report completed by AVL geologists.
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.
 All meaningful & material exploration data has been reported
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).
 Extensional resource infill drilling is under consideration for the remaining 5 km of mineralisation that is currently drilled at broad
spacing.
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 decision as to the necessity for further exploration at the Australian Vanadium Project is pending completion of mining
technical studies on this resource update. Figures 1 and 2 in this report show areas of possible resource extension.

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Section 3 - Estimation and Reporting of Mineral Resources

Criteria JORC Code Explanation Commentary
Database Integrity Measures taken to ensure that data has not been
corrupted by, for example, transcription or keying
errors, between its initial collection and its use for
Mineral Resource estimation purposes.		 All the drilling was logged onto paper and has been transferred to a digital form and loaded into a Microsoft SQL Server
relational drill hole database using DataShedTMmanagement software. Logging information was reviewed by the responsible
geologist and database administrator prior to final load into the database. All assay results were received as digital files, as
well as the collar and survey data. These data were transferred directly from the received files into the database. All other data
collected for the Australian Vanadium Project were recorded as Excel spreadsheets prior to loading into SQL Server.
The data have been periodically checked by AVL personnel, the database administrator as well as the personnel involved all
previous Mineral Resource estimates for the project.
Data validation procedures used.
 The data validation was initially completed by the responsible geologist logging the core and marking up the drill hole for
assaying. The paper geological logs were transferred to Excel spreadsheets and compared with the originals for error. Assay
dispatch sheets were compared with the record of samples received by the assay laboratories.
Normal data validation checks were completed on import to the SQL database. Data has also been checked back against
hard copy results and previous mines department reports to verify assays and logging intervals.
Both internal (AVL) and external (Schwann, MASS, CSA and AMC) validations were/are completed when data was loaded
into spatial software for geological interpretation and resource estimation. All data have been checked for overlapping
intervals, missing samples, FROM values greater than TO values, missing stratigraphy or rock type codes, downhole survey
deviations of ±10° in azimuth and ±5° in dip, assay values greater than or less than expected values and several other
possible error types. Furthermore, each assay record was examined and mineral resource intervals were picked by the
Competent Person.
QAQC data and reports have been checked by the database administrator, MRG. MASS & Schwann and CSA both reported
on the available QAQC data for the Australian Vanadium Project.
Site Visits Comment on any site visits undertaken by the
Competent Person and the outcome of those
visits.		 The drill location was inspected by John Tyrrell of AMC in 2015 for the initial 2012 JORC resource estimation. Consulting
Geologist Brian Davis of Geologica Pty Ltd has visited all the Australian Vanadium Project drilling sites since 2015 and has been
familiar with the Australian Vanadium Project iron-titanium-vanadium orebody since 2006. Consulting Geologist Lauritz Barnes
of Trepanier Pty Ltd visited the Australian Vanadium Project drilling sites in March 2019. The geology, sampling, sample
preparation and transport, data collection and storage procedures were all discussed and reviewed with the responsible
geologist for the 2015, 2017, 2018 and 2019 drilling. Visits to the BV laboratory and core shed in Perth were used to add
knowledge to aid in the preparation of this Mineral Resource Estimate.
If no site visits have been undertaken indicate why
this is the case.		 N/A

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Geological
Interpretation		 Confidence in (or conversely, the uncertainty of)
the geological interpretation of the mineral
deposit.		 The Australian Vanadium Project’s vanadium mineralisation lies along strike from the Windimurra Vanadium Mine and the
oxidised portion of the high-grade massive magnetite/martite mineralisation outcrops for almost 14km in the company held
lease area. Detailed mapping and mineralogical studies have been completed by company personnel and contracted
specialists between 2000 and 2019, as well as multiple infill drilling programmes to test the mineralisation and continuity of the
structures. These data and the relatively closely-spaced drilling has led to a good understanding of the mineralisation controls.
The mineralisation is hosted within altered gabbros and is easy to visually identify by the magnetite/martite content. The main
high grade unit shows consistent thickness and grade along strike and down dip and has a clearly defined sharp boundary.
The lower grade disseminated bands also show good continuity, but their boundaries are occasionally less easy to identify
visually as they are more diffuse over a metre or so.
Nature of the data used and of any assumptions
made.
 No assumptions are made regarding the input data.
The effect, if any, of alternative interpretations on
Mineral Resource estimation.		 Alternative interpretations were considered in the current estimation and close comparison with the 2015 and 2018 resource
models was made to see the effect of the new density data and revised geology model. The continuity of the low grade units,
more closely defined from lithology logs is now better understood and the resulting interpretation is more effective as a
potential mining model. The near-surface alluvial and transported material has again been modelled in this estimation. The
impact of the current interpretation as compared to the previous interpretation would be a greater confidence in areas of infill
drilling.
The use of geology in guiding and controlling
Mineral Resource estimation.		 Geological observation has underpinned the resource estimation and geological model. The high grade mineralisation domain
has a clear and sharp boundary and has been tightly constrained by the interpreted wireframe shapes. The low grade
mineralisation is also constrained within wireframes, which are defined and guided by visual (from core) and grade boundaries
from assay results. The low grade mineralisation has been defined as four sub-domains, which strike sub-parallel to the high
grade domain. In addition there is a sub parallel laterite zone and two transported zones above the top of bedrock surface.
The resource estimate is constrained by these wireframes.
Domains were also coded for oxide, transition and fresh, as well as above and below the alluvial and bedrock surfaces.
The extents of the geological model were constrained by fault block boundaries. Geological boundaries were extrapolated to
the edges of these fault blocks, as indicated by geological continuity in the logging and the magnetic geophysical data.

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The factors affecting continuity both of grade and
geology.		 Key factors that are likely to affect the continuity of grade are:
•
The thickness and presence of the high grade massive magnetite/martite unit, which to date has been very consistent in both
structural continuity and grade continuity.
•
The thickness and presence of the low grade banded and disseminated mineralisation along strike and down dip. The low
grade sub-domains are less consistent in their thickness along strike and down dip with more pinching and swelling than for
the high grade domain.
•
SW-NE oriented faulting occurs at a deposit scale and offsets the main orientation of the mineralisation. These regional faults
divide the deposit along strike into kilometer scale blocks. Internally the mineralised blocks show very few signs of structural
disturbance at the level of drilling.
Dimensions The extent and variability of the Mineral Resource
expressed as length (along strike or otherwise),
plan width, and depth below surface to the upper
and lower limits of the Mineral Resource.		 The massive magnetite/martite unit strikes approximately 14 km, is stratiform and ranges in thickness from less than 10m to
over 20m true thickness. The low grade mineralised units are sub-parallel to the high grade zone, and also vary in thickness
from less than 10m to over 20m. All of the units dip moderately to steeply towards the west, with the exception of two
predominantly alluvial units (domains 7 and 8) and a laterite unit (domain 6) which are flat lying.
All units outcrop at surface, but the low grade units are difficult to locate as they are more weathered and have a less
prominent surface expression than the high grade unit. The high and low grade units are currently interpreted to have a depth
extent of approximately 200m below surface. Mineralisation is currently open along strike and at depth.
Estimation and
Modelling
Techniques		 The nature and appropriateness of the estimation
technique(s) applied and key assumptions,
including treatment of extreme grade values,
domaining, interpolation parameters and
maximum distance of extrapolation from data
points. If a computer assisted estimation method
was chosen include a description of computer
software and parameters used.		 Grade estimation was completed using Ordinary Kriging (OK) for the Mineral Resource estimate. SurpacTM software was
used to estimate grades for V2O5, TiO2, Fe2O3, SiO2, Al2O3, Cr2O3, Co, Cu, Ni, S, magsus and loss on ignition (LOI) using
parameters derived from statistical and variography studies. The majority of the variables estimated have coefficients of
variation of significantly less than 1.0, with Cr2O3being the exception.
Drill hole spacing varies from approximately 80 m to 100 m along strike by 25 m to 30 m down dip, to 500 m along by 50 m to
60 m down dip. Drill hole sample data was flagged with numeric domain codes unique to each mineralisation domain. Sample
data was composited to 1 m downhole length and composites were terminated by a change in domain or oxidation state
coding.
No grade top cuts were applied to any of the estimated variables as statistical studies showed that there were no extreme
outliers present within any of the domain groupings.
Grade was estimated into separate mineralisation domains including a high grade bedrock domain, four low grade bedrock
domains and low grade alluvial and laterite domains. Each domain was further subdivided into a fault block, and each fault
block was assigned its own orientation ellipse for grade interpolation. Downhole variography and directional variography were
performed for all estimated variables for the high grade domain and the grouped low grade domains. Grade continuity varied
from hundreds of metres in the along strike directions to sub-two hundred metres in the down-dip direction although the down-
dip limitation is likely related to the extent of drilling to date.

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The availability of check estimates, previous
estimates and/or mine production records and
whether the Mineral Resource estimate takes
appropriate account of such data.		 Prior to 2017, there had been five Mineral Resource estimates for the Australian Vanadium Project deposit. The first, in 2001
was a polygonal sectional estimate completed by METS & BSG. The subsequent models by Schwann (2007), MASS &
Schwann (2008) and CSA (2011) are kriged estimates.
AMC (2015) reviewed the geological interpretation of the most recent previous model (CSA 2011), but used a new interpretation
based on additional new drilling for the 2015 estimate.
In 2017 a complete review of the geological data, weathering profiles, magnetic intensity and topographic data as well as
incorporation of additional density data and more accurate modelling techniques resulted in a re-interpreted mineral resource.
This was revised in December 2018.
No mining has occurred to date at the Australian Vanadium Project, so there are no production records.
Addition infill drilling and extensional diamond core holes have resulted in further adjustments to the interpretation.
The assumptions made regarding recovery of by-
products.		 Test work conducted by the company in 2015 identified the presence of sulphide hosted cobalt, nickel and copper, specifically
partitioned into the silicate phases of the massive titaniferous vanadiferous iron oxides which make up the vanadium
mineralisation at the Australian Vanadium Project. Subsequent test work has shown the ability to recover a sulphide flotation
concentrate containing between 3.8 % and 6.3% of combined base metals treating the non-magnetic tailings produced as a
result of the magnetic separation of a vanadium iron concentrate from fresh massive magnetite. See ASX Announcements
dated 22 May 2018 and 5 July 2018.
Estimation of deleterious elements or other non-
grade variables of economic significance (e.g.
sulphur for acid mine drainage characterization).		 Estimates were undertaken for Fe2O3, SiO2, TiO2, Al2O3, and LOI, which are non-commodity variables, but are useful for
determining recoveries and metallurgical performance of the treated material. Estimated Fe2O3% grades were converted to
Fe% grades in the final for reporting (Fe% = Fe2O3/1.4297).
Estimates were also undertaken for Cr2O3which is a potential deleterious element. The estimated Cr2O3% grades were
converted to Cr ppm grades (Cr ppm = (Cr2O3*10000)/1.4615).
In the case of block model interpolation, the block
size in relation to the average sample spacing and
the search employed.
Any assumptions behind modelling of selective
mining units.		 The Australian Vanadium Project block model uses a parent cell size of 40 m in northing, 8 m in easting and 10 m in RL. This
corresponds to approximately half the distance between drill holes in the northing and easting directions and matches an
assumed bench height in the RL direction. Accurate volume representation of the interpretation was achieved.
Grade was estimated into parent cells, with all sub-cells receiving the same grade as their relevant parent cell. Search ellipse
dimensions and directions were adjusted for each fault block.
Three search passes were used for each estimate in each domain. The first search was 120m and allowed a minimum of 8
composites and a maximum of 24 composites. For the second pass, the first pass search ranges were expanded by 2 times.
The third pass search ellipse dimensions were extended to a large distance to allow remaining unfilled blocks to be estimated.
A limit of 5 composites from a single drill hole was permitted on each pass. In domains of limited data, these parameters were
adjusted appropriately.
No selective mining units were considered in this estimate apart from an assumed five metre bench height for open pit mining.
Model block sizes were determined primarily by drill hole spacing and statistical analysis of the effect of changing block sizes
on the final estimates.

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Any assumptions about correlation between
variables.		 All elements within a domain used the same sample selection routine for block grade estimation. No co-kriging was performed
at the Australian Vanadium Project.
Description of how the geological interpretation
was used to control the resource estimates.		 The geological interpretation is used to define the mineralisation, oxidation/transition/fresh and alluvial domains. All of the
domains are used as hard boundaries to select sample populations for variography and grade estimation.
Discussion of basis for using or not using grade
cutting or capping.
 Analysis showed that none of the domains had statistical outlier values that required top-cut values to be applied.
The process of validation, the checking process
used, the comparison of model data to drill hole
data, and use of reconciliation data if available.		 Validation of the block model consisted of:
•
Volumetric comparison of the mineralisation wireframes to the block model volumes.
•
Visual comparison of estimated grades against composite grades.
•
Comparison of block model grades to the input data using swathe plots.
As no mining has taken place at the Australian Vanadium Project to date, there is no reconciliation data available.
Moisture Whether the tonnages are estimated on a dry
basis or with natural moisture, and the method of
determination of the moisture content.
 All mineralisation tonnages are estimated on a dry basis. The moisture content in mineralisation is considered very low.
Cut-Off
Parameters		 The basis of the adopted cut-off grade(s) or
quality parameters applied.		 A nominal 0.4% V2O5wireframed cut off for low grade and a nominal 0.7% V2O5wireframed cut off for high grade has been
used to report the Mineral Resource at the Australian Vanadium Project. Consideration of previous estimates, as well as the
current mining, metallurgical and pricing assumptions, while not rigorous, suggest that the currently interpreted mineralised
material has a reasonable prospect for eventual economic extraction at these cut off grades.

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Mining Factors or
Assumptions		 Assumptions made regarding possible mining
methods, minimum mining dimensions and
internal (or, if applicable, external) mining dilution.
It is always necessary as part of the process of
determining reasonable prospects for eventual
economic extraction to consider potential mining
methods, but the assumptions made regarding
mining methods and parameters when estimating
Mineral Resources may not always be rigorous.
Where this is the case, this should be reported
with an explanation of the basis of the mining
assumptions made.
 AVL completed a mining Scoping Study in October 2016 for the Australian Vanadium Project. The primary mining scenario
being considered is conventional open pit mining.
AVL has assumed, based on initial concept study work and the nearby presence of a similar project (Windimurra mine site),
that the Australian Vanadium Project deposit is amenable to open-pit mining methods.
In September 2018, AVL released a base case PFS which included key assumptions supporting a planned open pit vanadium
mining operation at the Australian Vanadium Project.
This Mineral Resource will be the basis for new optimisation studies during the remainder of Q1 (2020) for a mine plan
incorporating the additional Indicated resources.		 AVL completed a mining Scoping Study in October 2016 for the Australian Vanadium Project. The primary mining scenario
being considered is conventional open pit mining.
AVL has assumed, based on initial concept study work and the nearby presence of a similar project (Windimurra mine site),
that the Australian Vanadium Project deposit is amenable to open-pit mining methods.
In September 2018, AVL released a base case PFS which included key assumptions supporting a planned open pit vanadium
mining operation at the Australian Vanadium Project.
This Mineral Resource will be the basis for new optimisation studies during the remainder of Q1 (2020) for a mine plan
incorporating the additional Indicated resources.		 AVL completed a mining Scoping Study in October 2016 for the Australian Vanadium Project. The primary mining scenario
being considered is conventional open pit mining.
AVL has assumed, based on initial concept study work and the nearby presence of a similar project (Windimurra mine site),
that the Australian Vanadium Project deposit is amenable to open-pit mining methods.
In September 2018, AVL released a base case PFS which included key assumptions supporting a planned open pit vanadium
mining operation at the Australian Vanadium Project.
This Mineral Resource will be the basis for new optimisation studies during the remainder of Q1 (2020) for a mine plan
incorporating the additional Indicated resources.		 AVL completed a mining Scoping Study in October 2016 for the Australian Vanadium Project. The primary mining scenario
being considered is conventional open pit mining.
AVL has assumed, based on initial concept study work and the nearby presence of a similar project (Windimurra mine site),
that the Australian Vanadium Project deposit is amenable to open-pit mining methods.
In September 2018, AVL released a base case PFS which included key assumptions supporting a planned open pit vanadium
mining operation at the Australian Vanadium Project.
This Mineral Resource will be the basis for new optimisation studies during the remainder of Q1 (2020) for a mine plan
incorporating the additional Indicated resources.		 AVL completed a mining Scoping Study in October 2016 for the Australian Vanadium Project. The primary mining scenario
being considered is conventional open pit mining.
AVL has assumed, based on initial concept study work and the nearby presence of a similar project (Windimurra mine site),
that the Australian Vanadium Project deposit is amenable to open-pit mining methods.
In September 2018, AVL released a base case PFS which included key assumptions supporting a planned open pit vanadium
mining operation at the Australian Vanadium Project.
This Mineral Resource will be the basis for new optimisation studies during the remainder of Q1 (2020) for a mine plan
incorporating the additional Indicated resources.		 AVL completed a mining Scoping Study in October 2016 for the Australian Vanadium Project. The primary mining scenario
being considered is conventional open pit mining.
AVL has assumed, based on initial concept study work and the nearby presence of a similar project (Windimurra mine site),
that the Australian Vanadium Project deposit is amenable to open-pit mining methods.
In September 2018, AVL released a base case PFS which included key assumptions supporting a planned open pit vanadium
mining operation at the Australian Vanadium Project.
This Mineral Resource will be the basis for new optimisation studies during the remainder of Q1 (2020) for a mine plan
incorporating the additional Indicated resources.
Metallurgical
Factors or
Assumptions		 The basis for assumptions or predictions
regarding metallurgical amenability. It is always
necessary as part of the process of determining
reasonable prospects for eventual economic
extraction to consider potential metallurgical
methods, but the assumptions regarding
metallurgical treatment processes and parameters
made when reporting Mineral Resources may not
always be rigorous. Where this is the case, this
should be reported with an explanation of the
basis of the metallurgical assumptions made.		 Metallurgical studies supporting the PFS (Q4 2018) focused on bench-scale comminution and magnetic separation test work
on 24 contiguous drill core intervals from the high-grade vanadium domain. These samples included 10 off from the “fresh”
rock zone, 9 off from the zone defined as “transitional” and 5 off from the near surface oxidised horizon, “oxide”.
Metallurgical
Sample
Drill hole
Origin
From
(m)
To
(m)
Interval
(m)
Mass
(kg)
1 Fr
GDH903
191
199
8
33
2 Fr
GDH903
199
209
10
47
3Fr
GDH903
209
215.2
6.2
25
4 Fr
GDH911
98.9
105.5
6.6
59
5Fr
GDH911
108
113.2
5.2
54
6Fr
GDH912
124
129
5
52
7 Fr
GDH912
129
134.2
5.2
54
8Fr
GDH912
134.3
141
6.7
69
9Fr
GDH914
108
114
6
58
10Fr
GDH914
114
121
7
75
11 Tr
GDH902
98
105.8
7.8
34
12 Tr
GDH902
105.8
111.1
5.3
31
13Tr
GDH902
111.1
117.1
6
27
14 Tr
GDH911
105.5
108
2.5
27
15Tr
GDH913
127.9
133.2
5.3
26
16Tr
GDH913
133.2
140
6.8
47
17 Tr
GDH913
140
145.2
5.2
45
18Tr
GDH916
132
139
7
32
19Tr
GDH916
139
151.3
12.3
101
20 Ox
GDH901
38
45
7
29
21Ox
GDH901
45
54
9
44
22Ox
GDH915
12
18
6
44
23 Ox
GDH915
18
23
5
35
Metallurgical
Sample		 Drill hole
Origin		 From
(m)		 To
(m)		 Interval
(m)		 Mass
(kg)
1 Fr GDH903 191 199 8 33
2 Fr GDH903 199 209 10 47
3Fr GDH903 209 215.2 6.2 25
4 Fr GDH911 98.9 105.5 6.6 59
5Fr GDH911 108 113.2 5.2 54
6Fr GDH912 124 129 5 52
7 Fr GDH912 129 134.2 5.2 54
8Fr GDH912 134.3 141 6.7 69
9Fr GDH914 108 114 6 58
10Fr GDH914 114 121 7 75
11 Tr GDH902 98 105.8 7.8 34
12 Tr GDH902 105.8 111.1 5.3 31
13Tr GDH902 111.1 117.1 6 27
14 Tr GDH911 105.5 108 2.5 27
15Tr GDH913 127.9 133.2 5.3 26
16Tr GDH913 133.2 140 6.8 47
17 Tr GDH913 140 145.2 5.2 45
18Tr GDH916 132 139 7 32
19Tr GDH916 139 151.3 12.3 101
20 Ox GDH901 38 45 7 29
21Ox GDH901 45 54 9 44
22Ox GDH915 12 18 6 44
23 Ox GDH915 18 23 5 35

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24Ox GDH917 14.1 21.1 7 44
Metallurgical
Factors or
Assumptions
(cont)		 Some preliminary sulphide concentrate recovery testing has been undertaken on selected 25kg fresh samples and a 90kg
fresh composite sample. These samples were ground to a P80 of 106 µm and underwent wet magnetic separation using a
low intensity (1500 Gauss) magnetic separation drum. The non-magnetic stream was dried, sub split and provided feed for
sulphide flotation testwork. The flotation testing has been carried out at benchscale using a scheme of typical sulphide
flotation reagents. Rougher, scavenger and cleaner flotation has been tested with one concentrate (test BC 4113/2) reground
prior to cleaning.
The preliminary metallurgical investigation has demonstrated:
- The oxide, transitional and fresh materials are similar in comminution behaviour and exhibit a moderate rock competency
and ball milling energy demand.
- The abrasiveness is considered low to moderate.
- A positive and predictable response to magnetic separation can be demonstrated from the fresh and transitional material
within the high-grade domain. The majority of vanadium exists within magnetic minerals which when separated at a grind size
P80 of approximately 106 µm, generates a consistently high V2O5grade, low silica and alumina grade concentrate.
- Oxidised material responds to magnetic separation, albeit at lower vanadium recovery and concentrate quality.
At the stage of metallurgical understanding supporting the PFS a primary mill grinding to P80 106 µm and application of
magnetic drum separation was considered a reasonable flowsheet concept to produce a vanadium rich concentrate
(approximately 1.4% V2O5) from a blend of material classified as oxide, transitional and fresh within the high-grade domain.
Preliminary benchscale roast leach testwork has been undertaken using magnetic concentrate from metallurgical sample Fr 2.
Vanadium leach extractions of 79 to 86% have been determined in roasting for 110 minutes at approximately 1050oC testing a
range of sodium carbonate addition rates (3 to 6%).
Given the indicated quality of the concentrate and the preliminary benchscale roast leach testwork results, it was assumed for
the PFS that production of a saleable V2O5product would be achieved via a traditional roast, leach and ammonium meta
vanadate (AMV) flowsheet path. Similar flowsheets were applied in the treatment of magnetic concentrate in Xstrata’s
Windimurra refinery flowsheet in Western Australia and at Largo Resources Maracas vanadium project in Bahia, Brazil.
Since reporting of the PFS, pilot scale crushing, milling and beneficiation (CMB) testwork has been completed on two blends.
Blend 1 (the Y0-5 pilot blend) represents the average first 5 years of process feed, and Blend 2 (the LOM pilot blend)
representing the life of mine feed to the concentrator. The optimised concentrator flowsheet was found capable of successfully
treatingboth blends,delivering/exceedingthe target concentratequality. The subsequent flowsheet was validated by pilot

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testwork completed in Q1, 2020. Two tonne of high-quality vanadium concentrate generated in the pilot CMB plant has
undergone pilot scale roasting testwork at Metso’s pyrometallurgical facility in Dansville, USA.
Vanadium leaching and purification optimisation testwork is now underway at ALS Metallurgy in Balcatta, WA, to finalise the
refinery flowsheet that will become the basis of the BFS.
Environmental
Factors or
Assumptions		 Assumptions made regarding possible waste and
process residue disposal options. It is always
necessary as part of the process of determining
reasonable prospects for eventual economic
extraction to consider the potential environmental
impacts of the mining and processing operation.
While at this stage the determination of potential
environmental impacts, particularly for a greenfield
project, may not always be well advanced, the
status of early consideration of these potential
environmental impacts should be reported. Where
these aspects have not been considered this
should be reported with an explanation of the
environmental assumptions made.
 Environmental studies are currently being undertaken for Feasibility and approvals work. For the PFS it was assumed that the
tails stream from the concentrator can be effectively stored and rehabilitated within an integrated mine waste landform. Waste
streams from the refinery, including calcine residue and a sodium sulphate rich bleed solution are assumed to be managed
within a lined storage facility.
Bulk Density Whether assumed or determined. If assumed, the
basis for the assumptions. If determined, the
method used, whether wet or dry, the frequency of
the measurements, the nature, size and
representativeness of the samples.
 Bulk density determinations (using the Archimedes’ method) were made on samples from 15 diamond drill holes. Bulk density
data from 313 direct core measurements were used to determine average densities for each of the mineralisation and
oxide/transition/fresh domains. Bulk Density was estimated for HG, LG, Alluvial and waste material in Core taken to represent
the main lithological units.
The bulk density for bulk material must have been
measured by methods that adequately account for
void spaces (vugs, porosity, etc.), moisture and
differences between rock and alteration zones
within the deposit.
 The water immersion method was used for direct core measurements; all 231 of the latest measurements have been done
using sealed core, the previous 97 measurements were not wrapped. AMC’s observation of the core indicates that observable
porosity was not likely to be high for most of the core at the deposit.

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Discuss assumptions for bulk density estimates
used in the evaluation process of the different
materials.		 The average bulk density values for at the Australian Vanadium Project are:
Domain Oxidation State Bulk Density
10 (high grade) Oxide 3.39
10 (high grade) Transition 3.71
10 (high grade) Fresh 3.67
2-8 (low grade) Oxide 2.13
2-8 (low grade) Transition 2.20
2-8 (low grade) Fresh 2.62
Alluvial Oxide 2.63
(waste) Oxide 2.02
(waste) Fresh 2.45
All values are in t/m3.

Regressions used to determine bulk density based on iron content are as follows:
•
Oxide: BD = (0.0344 x Fe2O3%) + 0.9707
•
Transition: BD = (0.0472 x Fe2O3%) + 0.3701
•
Fresh: BD = (0.0325 x Fe2O3%) + 1.4716
The final bulk density used for reporting of the Australian Vanadium Project Mineral Resource is based on the regression as it
provides a more reliable local estimated bulk density.
Classification The basis for the classification of the Mineral
Resources into varying confidence categories.		 Classification for the Australian Vanadium Project Mineral Resource estimate is based upon continuity of geology,
mineralisation and grade, consideration of drill hole and density data spacing and quality, variography and estimation statistics
(number of samples used and estimation pass).
The current classification is considered valid for the global resource and applicable for the nominated grade cut-offs.

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Whether appropriate account has been taken of
all relevant factors (i.e. relative confidence in
tonnage/grade estimations, reliability of input data,
confidence in continuity of geology and metal
values, quality, quantity and distribution of the
data).		 At the Australian Vanadium Project, the central portion of the deposit is well drilled for a vanadium deposit, having a drill hole
spacing from a nominal 80 m to 100 m x 25 m to 30 m in northing and easting. The lower confidence areas of the deposit have
drill hole spacings ranging up to 500 m x 25 m to 30 m in northing and easting directions.
The estimate has partially been classified as Measured Mineral Resource in an area restricted to the fresh portion of the high-
grade domain where the drill hole spacings are less than 80 to 100m in northing (Fault Blocks 20 and 30). Indicated Mineral
Resource material is generally restricted to the oxide high grade and oxide and fresh low grade in the same area of relatively
closely spaced drilling plus areas of infill drilling in Fault Blocks 40, 50 and 60. Inferred Mineral Resource has been restricted
to any other material within the interpreted mineralisation wireframe volumes and limited by constraining wireframes down-dip.
The background waste domain estimate has not been classified, due to very low possibility of economic extraction and limited
data.
Whether the result appropriately reflects the
Competent Person’s view of the deposit.		 Geologica Pty Ltd and Trepanier Pty Ltd believe that the classification appropriately reflects their confidence in the grade
estimates and robustness of the interpretations.
Audits or Reviews The results of any audits or reviews of Mineral
Resource estimates.
 The current Mineral Resource estimate has not been audited.
Discussion of
Relative
Accuracy/
Confidence		 Where appropriate a statement of the relative
accuracy and confidence level in the Mineral
Resource estimate using an approach or
procedure deemed appropriate by the Competent
Person.
For example, the application of statistical or
geostatistical procedures to quantify the relative
accuracy of the resource within stated confidence
limits, or, if such an approach is not deemed
appropriate, a qualitative discussion of the factors
that could affect the relative accuracy and
confidence of the estimate.
 The resource classification represents the relative confidence in the resource estimate as determined by the Competent
Persons. Issues contributing to or detracting from that confidence are discussed above.
No quantitative approach has been conducted to determine the relative accuracy of the resource estimate.
The Ordinary Kriged estimate is considered to be a global estimate with no further adjustments for Selective Mining Unit
(SMU) dimensions. Accurate mining scenarios are yet to be determined by mining studies.
No production data is available for comparison to the estimate.
The local accuracy of the resource is adequate for the expected use of the model in the mining studies.
Further investigation into bulk density determination and infill drilling will be required to further raise the level of resource
classification.
The statement should specify whether it relates to
global or local estimates, and, if local, state the
relevant tonnages, which should be relevant to
technical and economic evaluation.
Documentation should include assumptions made
and the procedures used.		 These levels of confidence and accuracy relate to the global estimates of grade and tonnes for the deposit.

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These statements of relative accuracy and
confidence of the estimate should be compared
with production data, where available.
 There has been no production from the Australian Vanadium Project deposit to date.

Section 4 - Estimation and Reporting of Ore Reserves - Based on PFS announcement of 19 December 2018

Criteria **JORC Code Explanation ** Commentary
Mineral
Resource
estimate for
conversion to
Ore Reserves		 Description of the Mineral Resource estimate
used as a basis for the conversion to an Ore
Reserve.
Clear statement as to whether the Mineral
Resources are reported additional to, or
inclusive of, the Ore Reserves.		 The most recent Mineral Resource estimate was declared on 28 November 2018 and has been used in the PFS. Refer to the
ASX release of 19 December 2018 for material assumptions and further information.
The Measured and Indicated Resources from Section 3 have been used as the basis for conversion to the Ore Reserve.
The Mineral Resources are inclusive of the Ore Reserve.
Site visits Comment on any site visits undertaken by the
Competent Person and the outcome of those
visits.
If no site visits have been undertaken indicate
why this is the case.		 No site visit was undertaken by the Competent Person. There are no current facilities at the project site.
Study status The type and level of study undertaken to
enable Mineral Resources to be converted to
Ore Reserves.
The Code requires that a study to at least Pre-
Feasibility Study level has been undertaken to
convert Mineral Resources to Ore Reserves.
Such studies will have been carried out and will
have determined a mine plan that is technically
achievable and economically viable, and that
material Modifying Factors have been
considered.		 A Pre-Feasibility Study has been prepared.

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Criteria **JORC Code Explanation ** Commentary
Cut-off
parameters		 The basis of the cut-off grade(s) or quality
parameters applied.		 The break-even cut-off grade has been calculated based on the pit optimisation inputs. The basis for calculation of cut-off is:
𝐶𝑢𝑡 𝑜𝑓𝑓 𝑔𝑟𝑎𝑑𝑒 =
(𝑝𝑟𝑜𝑐𝑒𝑠𝑠+ 𝑜𝑣𝑒𝑟ℎ𝑒𝑎𝑑 𝑐𝑜𝑠𝑡) × (1 + 𝑀𝑖𝑛𝑖𝑛𝑔 𝐷𝑖𝑙𝑢𝑡𝑖𝑜𝑛(%))
𝑃𝑎𝑦𝑎𝑏𝑙𝑒 𝑉𝑎𝑛𝑎𝑑𝑖𝑢𝑚 𝑃𝑟𝑖𝑐𝑒 × 𝑃𝑟𝑜𝑐𝑒𝑠𝑠 𝑅𝑒𝑐𝑜𝑣𝑒𝑟𝑦 (%)
Cut-off grades have been calculated as 0.40% V2O5for oxide ore, 0.18% V2O5for transitional and 0.18% V2O5for fresh. The
selected cut-off grade of 0.8% V2O5is higher than the calculated values as metallurgical testing suggests unpredictable recoveries
belowthis chosen value.
Mining factors or
assumptions		 The method and assumptions used as reported
in the Pre-Feasibility or Feasibility Study to
convert the Mineral Resource to an Ore
Reserve (i.e. either by application of appropriate
factors by optimisation or by preliminary or
detailed design).
The choice, nature and appropriateness of the
selected mining method(s) and other mining
parameters including associated design issues
such as pre-strip, access, etc.
The assumptions made regarding geotechnical
parameters (eg pit slopes, stope sizes, etc),
grade control and pre-production drilling.
The major assumptions made and Mineral
Resource model used for pit and stope
optimisation (if appropriate).
The mining dilution factors used.
The mining recovery factors used.
Any minimum mining widths used.
The manner in which Inferred Mineral
Resources are utilised in mining studies and the
sensitivity of the outcome to their inclusion.
The infrastructure requirements of the selected
mining methods.		 The Mineral Resources have been optimised using Whittle software followed by detailed final pit design. The Ore Reserve is the
Measured and Indicated Resources within the pit design, after allowing for ore loss and mining dilution.
In selecting the optimised pit shell used for pit designs the conservative pit shell with a revenue factor of 0.675 was selected.
The mining method selected is open pit, selective mining of ore and waste on nominal 2.5 m benches using a backhoe
excavator. Pit ramps are designed at a 10% gradient and 23 m wide, except for lower pit levels where the ramp reduces to 18 m
wide and then 15 m.
A Pre-Feasibility Study level geotechnical study has been completed by Dempers and Seymour. The pit design parameters from
this study have been used for the pit design and the overall pit slope angle was estimated for the preceding pit optimisations.
Grade control will be based on additional RC drilling, pit mapping and sampling from production drilling where necessary. A RC
drilling pattern of 12.5 m along strike and 6.25 m across strike pattern has been allowed for.
Mining dilution was estimated to be 5%, at zero grade. This was based on consideration of the width, continuity and orientation
of the orebody and the planned mining method.
Ore recovery of 95% has been estimated to allow for losses from blasting and grade control.
A minimum mining width was set at 20 m.
Inferred Resources within the pit design make up 21% of the total Mineral Resources and have not been considered for Ore
Reserve estimates.
Infrastructure required for the open pit mining operation includes mining contractor workshop, heavy equipment washpad, mining
offices, water storage dam, ROM pad, fuel and explosives storage.

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Criteria **JORC Code Explanation ** Commentary
Metallurgical
factors or
assumptions		 The metallurgical process proposed and the
appropriateness of that process to the style of
mineralisation.
Whether the metallurgical process is well-tested
technology or novel in nature.
The nature, amount and representativeness of
metallurgical test work undertaken, the nature of
the metallurgical domaining applied and the
corresponding metallurgical recovery factors
applied.
Any assumptions or allowances made for
deleterious elements.
The existence of any bulk sample or pilot scale
test work and the degree to which such samples
are considered representative of the orebody as
a whole.
For minerals that are defined by a specification,
has the ore reserve estimation been based on
the appropriate mineralogy to meet the
specifications?		 The metallurgical process proposed in the PFS included beneficiation and refining to derive a vanadium (V2O5) flake product and
an additional sulphide flotation circuit for base metals recovery.
The metallurgical processes proposed are all well-tested technologies and considered appropriate for the styles of
mineralisation.
Extensive benchscale metallurgical testwork has been undertaken under the direction of Wood Mining and Metals and included:
Comminution
Magnetic separation
Sulphide flotation
Preliminary roasting and water leaching of concentrate
Metallurgical domaining has been categorised into weathering stages including oxide, transitional and primary mineralisation
with and without recoverable base metals, as defined in the Mineral Resource models.
Metallurgical recoveries for the concentrator have been determined from testwork and indicate vanadium recoveries of 44% for
oxides, variable with depth up to 87.8% for transitional and variable with grade from 76.7% to an expected maximum of 96% for
primary material (for a grade of 1.5% V2O5). Base metals recovery to a sulphide concentrate has been based on benchscale
testwork outcomes up to a primary flotation concentrate and an assumed 90% cleaner flotation recovery.
Vanadium recovery in the refinery flowsheet was predicted to range from 79.7% (oxide concentrate) to 80.6% (fresh
concentrate). This estimate was based on operating benchmarks from other similar flowsheets and was supported by
preliminary benchscale roast leach testwork.
Recoveries for the Ore Reserves were applied according to the recovery equations.
Deleterious elements are assumed to be manageable by the process flowsheets considered.
Environmental The status of studies of potential environmental
impacts of the mining and processing operation.
Details of waste rock characterisation and the
consideration of potential sites, status of design
options considered and, where applicable, the
status of approvals for process residue storage
and waste dumps should be reported.		 Environmental studies have been completed by AQ2. This included studies into:
•
Flora.
•
Fauna.
•
Surface Hydrology.
•
Sub-surface Hydrology.
•
Soil, Waste Rock and Groundwater analysis.
All potential environmental and social impacts associated with the Project have been considered and no issue has been identified
that cannot be mitigated or managed to an acceptable degree.
Further work is required to quantify the potential impact for some aspects, particularly for subterranean fauna. The approvals
process will include referral and assessment by the EPA but is not expected to be subject to a Public Environmental Review.
Waste geochemistry investigations have been undertaken by interpretation of the geological database indicating that none of
the waste rock samples tested were potentially acid generating. Management of surface runoff and seepage from the waste
dumps and pit walls during operation will need to be managed and final waste dumps capped with suitable materials to minimise
water infiltration.

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Criteria **JORC Code Explanation ** Commentary
Infrastructure The existence of appropriate infrastructure:
availability of land for plant development, power,
water, transportation (particularly for bulk
commodities), labour, accommodation; or the
ease with which the infrastructure can be
provided, or accessed.		 The Sandstone to Meekatharra Road passes close to the mine lease area, however an access road will be constructed from the
Northern Highway to the west to the operational area. This road will give access to Meekatharra, which is approximately 55 km
away.
Power will be generated on site using a gas fired power station using gas from a new gas pipeline.
Water will be sourced from onsite pit dewatering and water supply bores.
The mining lease is sufficiently extensive to accommodate all the required infrastructure.
A communications tower and related equipment will be installed on site for phone and data communications.
Accommodation will be constructed on site adjacent to the Project.
Costs The derivation of, or assumptions made,
regarding projected capital costs in the study.
The methodology used to estimate operating
costs.
Allowances made for the content of deleterious
elements.
The source of exchange rates used in the study.
Derivation of transportation charges.
The basis for forecasting or source of treatment
and refining charges, penalties for failure to
meet specification, etc.
The allowances made for royalties payable, both
Government and private.		 Capital costs for the plant and most of the rest of the infrastructure were estimated by Wood Mining and Metals. Mining capital
costs for the heavy equipment workshop and wash pad will be part of the mining contract and have been estimated from a
contractor quotation.
Mining operating costs have been based on contractor rates for similar projects in Western Australia and a quotation from a
mining contractor that broadly supported the benchmarked mining costs. The average mining costs are $3.50/t mined. General
and administration costs were estimated based on experience with similar projects and make up $2.24 /t of ore feed. Processing
costs have been estimated based on the plant design and detailed costings derived by Wood Mining and Metals.
Not applicable
For mining optimisation and design, the exchange rate used was AUD:USD 0.74. The exchange rate used in financial modeling
was AUD:USD 0.72. The exchange rate used for capex and opex derivation was set on 8th November 2018 at AUD:USD 0.728,
AUD:EUR 0.637 and AUD:GBP 0.555. The exchange rates were sourced from publicly available data produced by banks.
The transport cost related to haulage of the product to the port of Fremantle has been estimated by Wood Mining and Metals.
This has been estimated based on a rate A$50t of V2O5product sold FOB Fremantle. Backhaul rates after delivery of
consumables to site have been assumed.
Processing and refining costs have been derived by Wood Mining and Metals based on their design of the processing plant and
refinery.
The royalty paid to the West Australian government will be 2.5% of revenue.
Revenue
factors		 The derivation of, or assumptions made
regarding revenue factors including head grade,
metal or commodity price(s) exchange rates,
transportation and treatment charges, penalties,
net smelter returns, etc.
The derivation of assumptions made of metal or
commodity price(s), for the principal metals,
minerals and co-products.		 Revenue for pit optimisation assumes a V2O5sale price of US$8/lb. This is based on a FOB price for the V2O5flake product.
The sales price used for base case financial analysis was US$8.67/lb V2O5.A table of alternative prices is calculated and
presented as upside sensitivity, given the conservative long-term price selected. Revenues from Cobalt, Nickel and Copper are
based on LME prices for 13 September 2018 of AUD 84.01/kg, A$ 16.57/kg and A$ 7.95/kg respectively. A 65% payability has
been assumed for these base metals that make up approximately 1.3% of the total revenue.
The vanadium price is of a highly cyclical nature . Imbalancesin supply have driven prices up above US$30/lb twice during this
time, and there was a prolonged period where prices hovered around US$5/lb from 2012 to 2017. However, the average price
for the 15-year period was well above this, at US$8.67/lb in 2018 adjusted numbers.

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Criteria **JORC Code Explanation ** Commentary
Market
assessment		 The demand, supply and stock situation for the
particular commodity, consumption trends and
factors likely to affect supply and demand into
the future.
A customer and competitor analysis along with
the identification of likely market windows for the
product.
Price and volume forecasts and the basis for
these forecasts.
For industrial minerals the customer
specification, testing and acceptance
requirements prior to a supply contract.		 The market for Vanadium Pentoxide is substantially based on its use in steel alloys and now also in batteries. In the last few
years the vanadium price recovered, reaching over US$30/lb in November 2018 and since then has price slumped to around
US$5/lb due to Covid related production cuts in the non-Chinese consuming countries
Demand for vanadium outstripped supply between mid-2015 and 2019, corresponding to Evraz Group’s Highveld Steel and
Vanadium’s (South Africa) closure. In late 2015, Chinese stone coal producers began to shut down due to Chinese
environmental regulations, further reducing supply. Supply and demand were not in balance. In 2019, prices began to fall on
substitution with Niobium in rebar and have not recovered into 2020 due to Covid related drops in demand.. Since April 2020,
Chinese demand has grown rapidly supporting new plants the size of AVL’s proposed Gabanintha project to meet future needs..
Vanadium Redox Flow Battery (VRFB) technology uptake could have a large impact on medium to long term vanadium demand.
If VRFBs capture even a small piece of the renewable energy storage demand, it could require thousands of MTV that are not
currently available.
A market assessment analysis has been completed internally with information supplied by Daniel Harris (Technical Director
AVL).
Vanadium products include various oxides of Vanadium, that are converted to Ferro Vanadium or Vanadium Carbo-Nitride
products for use in steelmaking. Refined Vanadium pentoxide, V2O5produced as a powder is supplied as a chemical, and can
be used in the production of vanadium electrolyte solutions for VRFB.
Economic The inputs to the economic analysis to produce
the net present value (NPV) in the study, the
source and confidence of these economic inputs
including estimated inflation, discount rate, etc.
NPV ranges and sensitivity to variations in the
significant assumptions and inputs.		 The December 2018 Pre-Feasibility Study includes the revenue and cost inputs discussed above and cash flows were
discounted by an 8% rate. The post-tax NPV 8% of the project using the long-term historical pricing was estimated to be
US$125M. The mine life is significant but the current benign outlook for inflation does not justify an allowance for inflation.
Sensitivity analysis has been completed based on different product pricing, other revenue related items such as grade and
metallurgical recovery and costs. The project is most sensitive to the product price, metallurgical recovery, the mining cost and
the processing cost, in decreasing order.
Social The status of agreements with key stakeholders
and matters leading to social licence to operate.		 The proposed Project will be located within mining lease application M 51/878, which is currently pending, due to native title
processes. The native title claimant is the Yugunga-Nya Native Title Claim Group. A draft mining agreement between AVL and
the Yugunga-Nya Native Title Claim Group was prepared in November 2017.
A standard Heritage agreement is in place with the Yugunga-Nya Native Title Claim Group.
No land use agreements are in place with other local landowners but good relations are maintained.

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Criteria **JORC Code Explanation ** Commentary
Other To the extent relevant, the impact of the
following on the project and/or on the estimation
and classification of the Ore Reserves:
Any identified material naturally occurring risks.
The status of material legal agreements and
marketing arrangements.
The status of governmental agreements and
approvals critical to the viability of the project,
such as mineral tenement status, and
government and statutory approvals. There
must be reasonable grounds to expect that all
necessary Government approvals will be
received within the timeframes anticipated in the
Pre-Feasibility or Feasibility study. Highlight and
discuss the materiality of any unresolved matter
that is dependent on a third party on which
extraction of the reserve is contingent.		 No material naturally occurring risks have been identified.
No material legal or marketing agreements have been entered into.
The Mining Lease Application MLA51/878 over the tenement that contains the Ore Reserves has not yet been granted. .
Application for the mining approval has not started but there are no impediments expected to this process.
The timeframes for assessment of an environmental assessment proposal vary depending on the level of assessment set by the
Environmental Protection Authority (EPA), the amount of consultation undertaken prior to referral and how quickly the proponent
can compile the information required by the EPA
Classification The basis for the classification of the Ore
Reserves into varying confidence categories.
Whether the result appropriately reflects the
Competent Person’s view of the deposit.
The proportion of Probable Ore Reserves that
have been derived from Measured Mineral
Resources (if any).		 Measured Resources have been converted to Proved Reserves.
Indicated Resources have been converted to Probable Reserves.
The estimated Ore Reserves are, in the opinion of the Competent Person, appropriate for these deposits.
Not applicable
Audits or
reviews		 The results of any audits or reviews of Ore
Reserve estimates.		 No audits have been undertaken.

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