DELTA LITHIUM LIMITED — Capital/Financing Update 2020

Jul 26, 2020

ASX Announcement 27 July 2020

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REVISED TERMS FOR SALE OF TASMANIAN ASSETS FOR EQUITY STAKE IN NEW EASTERN AUSTRALIAN GOLD VEHICLE

TNT Mines Ltd (ASX: TIN, ‘TNT’ or ‘the Company’) is pleased to announce it has executed a variation agreement to accelerate the future annual payments to the Company for the sale of its Tasmanian tin and tungsten projects, through a cash and equity consideration in a new Eastern Australian gold vehicle.

On 18 October 2019, TNT announced that it had signed a binding agreement with private Canadian company TinOne Resources Corporation Ltd (“ TinOne ”) for the sale of its Aberfoyle and Great Pyramid tin-tungsten assets in north-eastern Tasmania.

In light of recent market conditions and TinOne’s decision to pursue a merger with a private gold company to form a new eastern Australian-focused gold and technology metals vehicle (“ NewCo ”), TNT and TinOne have agreed to amend the original terms of the sale agreement. The TNT Board is very supportive of the proposed transaction and the strategy to take a material equity position in this new eastern Australian-focused gold vehicle. It is Newco’s intention to list on a recognised stock exchange as soon as possible following the merger.

Under the revised terms, TNT will receive shares to the value of A$400,000 in listed NewCo and A$200,000 cash in addition to the A$100,000 cash deposit already paid by TinOne. The Board believes this acceleration of the consideration with the $400,000 of equity in the listed NewCo, in a favourable market for gold equity investments, delivers a material commercial outcome to the Company in the immediate term.

The $200,000 cash is to be paid in deferred instalments of:

• $50,000 on the first anniversary of completion;

• $100,000 on the second anniversary of completion; and

• $50,000 on the third anniversary of completion.

TinOne has recently executed a definitive option agreement with a private group to acquire the Panama gold project in north-eastern Tasmania. The Panama project comprises a granted Exploration Licence that contains the northern limits of the historic Lisle goldfield and two defined prospects.

The goldfield is reported to have produced approximately 300,000 ounces of gold, making it north-east Tasmania’s second most significant goldfield after Beaconsfield. Significantly, production at Lisle was sourced almost entirely from alluvials with only minimal hardrock production, the source of which remains undiscovered.

TinOne is also pursuing a merger with a private Australian gold company with projects in Eastern Australia and has advanced plans to list on a recognised stock exchange. The merged entity’s portfolio will comprise a strong and well blended project mix capitalising on current market interest in Australian gold together with Australian-based tin projects, a commodity strongly leveraged to new technology.

The merged entity’s management team will comprise experienced mining executives with a proven track record of success in building explorers from greenfields to leading resource companies.

ASX Announcement 27 July 2020

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The directors of TinOne have also recently experienced significant exploration success with a TSX-V-listed vehicle Vizsla Resources Corp (TSX-V: VZLA), owner of the Panuco Silver Project in Mexico and are well-regarded in the industry generally, giving the TIN Board reason to believe an IPO of NewCo will be well supported and potentially create significant value for shareholders.

TNT Executive Chairman Brett Mitchell said: “ TinOne’s rationale for acquiring the Panama project and focusing on gold first and foremost makes absolute sense in the current environment. Gold equities have performed very well recently and we look forward to giving shareholders significant exposure to that sector through this transaction.”

The revised sale and purchase agreement will be contingent on the completion of TinOne’s merger with the private gold company.

ABOUT TINONE RESOURCES LIMITED : TinOne is a private British Columbia corporation with a portfolio of large tin exploration projects in New South Wales that present significant discovery potential. The company was formed to capitalise on the electric vehicle applications of tin and has the vision of establishing itself as a leading tin explorer and developer. The company’s senior management comprises of:

Craig Parry, Executive Chairman : Mr Parry has more than 18 years’ experience in the resources sector. He is a co-founder and senior adviser to TSX and NYSE-listed uranium company Nexgen Energy,the current President and Chief Executive Officer of TSX-V listed uranium company IsoEnergy Ltd and Chairman to TSX-V-listed vehicle Vizsla Resources Corp (TSX-V: VZLA). Mr Parry is also a co-founder and Partner of private natural resources investment company Inventa Capital Corp and a founding shareholder of specialist resources private equity manager EMR Capital.

Stuart Smith, Lead Technical Director : Dr Smith has 30 years’ experience in mineral exploration spanning the spectrum from global project generation to mine geology with a track record of discovery in brownfields and greenfields arenas. Until the end of 2018, he was Technical Director – Strategy & New Projects for Teck Resources Ltd based in Vancouver, Canada.

Michael Konnert, President : Mr Konnert is a co-founder and Partner of private natural resources investment company Inventa Capital Corp. and President and CEO of TSX-V listed copper explorer Vizsla Resources Corp. He is also President and CEO of leading North American vanadium developer V23 Resource Corp. and was previously co-founder and CEO of Cobalt One Energy Corp., which was acquired by ASX-listed Blackstone Minerals in 2017.

Authorised for lodgement by the Board.

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For further information, please contact:

Media Enquiries	TNT Mines Ltd
Luke Forrestal	Brett Mitchell
Media and Capital Partners	Executive Director
+61 411 479 144	+61 8 6319 1900
luke.forrestal@mcpartners.com.au	frontdesk@tntmines.com.au
**TNT Mines Limited	ACN 107 244 039