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LINDIAN RESOURCES LIMITED Capital/Financing Update 2021

Feb 3, 2021

65236_rns_2021-02-03_da45a9c4-d6e5-49b7-91eb-4f5b2a7c2143.pdf

Capital/Financing Update

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ASX ANNOUNCEMENT 4 FEBRUARY 2021

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DIGESTION TEST RESULTS GAOUAL HIGH GRADE CONGLOMERATE BAUXITE PROJECT

HIGHLIGHTS

  • The digestion test work completed on the screened ores has confirmed they are Gibbsite dominant and suited well to both Low Temperature and High Temperature Bayer process alumina refineries.

  • With the much-reduced silica levels in the screened ores, the Reactive silica percentage levels are now in line with the highest quality bauxites in Guinea .

  • The Gaoual Project’s Bouba Conglomerate Bauxite Plateau has a high grade tonnage of 83.8 Mt[1] (45% Al2O3 Cut off grade – indicated category) which has the capacity to have the ore quality significantly upgraded using a simple screening process.

Lindian Resources Limited (ASX: LIN ) (“ Lindian ” or “ the Company ”) is pleased to advise it has received results of the Digestion test work on the screened ores from the Bouba Plateau within the Gaoual High Grade Conglomerate Bauxite Project in Guinea.

DIGESTION RESULTS SUMMARY

Digestion test work was completed upon the coarse fraction of the beneficiated bauxite ores from the primary screening test work completed in December 2020 - January 2021. This test work was completed so as to confirm the “digest-ability” of the ores in both Low Temperature and High Temperature digestion settings and to confirm the mineralogical make-up of the materials being tested.

Al2O3 SiO2 Fe2O3 LOI Total Available Alumina (“TAA”) Reactive Silica (“RSi”)
Low TempHigh Temp Low TempHigh Temp
Coarse Fraction – High 58.4% 2.8% 7.6% 28.1 51.2% 54.4% 1.6% 2.6%
Grade (After screening)
Bouba Conglomerate
Bauxite Plateau1

Table 1: Summary of Digestion Results

A total of 28 tests were completed upon the coarse fraction bauxite ore samples, representing 4 samples from each of the 7 test pits sampled. Each sampled was digested at both low temperature and high temperature equivalents by Bureau Veritas – Perth with Total Available Alumina (“TAA”) and Reactive Silica (“RSi”) reported. A summary of the results is as below:


1 Refer ASX releases dated 15 July 2020 for full details of Mineral Resources Estimates and 19 January 2021 for Gaoual screening test work results. The Company confirms that it is not aware of any new information or data that materially affects the information included in this document and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.

Level 24 108 St Georges Terrace Perth WA 6000 Australia ASX :LIN www.lindianresources.com.au

Chairman Asimwe Kabunga T : +61 8 6557 8838 E : [email protected] Non Executive Directors Giacomo (Jack) Fazio Enquiries regarding this Yves Occello 1 announcement can be directed to: Chief Operating Officer/CFO David Sumich Asimwe Kabunga

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ASX RELEASE 4 FEBRUARY 2021

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  • The Low Temperature (“LT”) Digestions of the high grade (“HG”) test pits bauxite averaged 88% TAA recovery (51.2% TAA) and 59% RSi recovery (1.6% RSi). The High Temperature (“HT”) Digestions of the HG test pits bauxite averaged 93% TAA recovery (54.4% TAA) and 92% RSi recovery (2.6% RSi).

  • The lower of recoveries in TAA in the LT Digestions of the HG pits bauxite ore is caused by a minor component of Boehmite. This is determined by the HT digestions having a smaller range of TAA recoveries and are those TAA recoveries themselves being very high (>90% TAA).

  • The increasing RSi recovery from LT to HT digestions for the HG test pits indicates that there is only a small presence of coarse unreactive quartz, and quartz that is present may be very fine grained and able to be digested at the HT digestions.

  • The LG test pits indicated that all of the coarse fraction bauxite samples were able to be digested easily with LT TAA recoveries ranging from 85-87% recovery (averaging 86%), and the HT TAA recoveries ranging from 88-90% recovery (averaging 89%),

The digestion test work completed upon the beneficiated ores has confirmed that these ores are gibbsite dominant and suited well to both LT and HT Bayer process alumina plants. With the much-reduced silica levels in the beneficiated ores, the RSi grades have now been decreased to levels in line with the highest quality bauxites being mined and exported from Guinea.

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Table 2: Summary of Digestion Results by High Grade and Low Grade pits.

Competent Person’s Statement - Guinea

“The information in this announcement that relates to exploration results is based on information compiled or reviewed by Mr Mark Gifford, an independent Geological expert consulting to Lindian Resources Limited. Mr Mark Gifford is a Fellow of the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Gifford consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears ”.

This ASX announcement was authorised for release by the Lindian Board.

For further information, please contact:

Asimwe Kabunga Chairman Phone : +61 8 6557 8838 Email : [email protected] www.lindianresources.com.au

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ASX RELEASE 4 FEBRUARY 2021

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ABOUT LINDIAN RESOURCES LIMITED

Lindian Resources Limited (“Lindian”) is a bauxite focused exploration company listed on the Australian Stock Exchange under the ASX code LIN.

The combination of assets offers the opportunity for near term production via the Woula Project while simultaneously advancing the larger, multi-generational bauxite assets, the very high grade Conglomerate Bauxite Gaoual Project and the world class Tier 1 Lelouma Project.

Company Highlights

  • Very high quality product available from Gaoual Project ( 58.4% Al2O3 & 2.8% SiO2 )

  • • ~1Bt of high quality (JORC 2012) resources.

  • • Strategic landholding in the premier bauxite province o 95% of African bauxite exports are from Guinea

  • o Guinea the no.1 exporter to China

  • o 7 bauxite export terminals in Guinea Figure 1 – Lindian Project Location Map[1]

GAOUAL PROJECT SCREENING TEST WORKS

Screening test work results from the Bouba Conglomerate Bauxite Plateau within the Gaoual Project confirmed that a simple screening process reduced SiO2 significantly (to 2.8% SiO2 ) and raised Al2O3 ( to 58.4%) in the conglomerate samples, with minimal loss of tonnage.

The Gaoual Project’s Bouba Conglomerate Bauxite Plateau has a high grade tonnage of 83.8 Mt[1] (45% Al2O3 Cut off grade – indicated category) which has the capacity to have the ore quality significantly upgraded using a simple screening process.


1 Refer ASX releases dated 15 July 2020 (Gaoual Project), 23 September (Woula Project), and 6 October 2020 (Lelouma Project) for full details of Mineral Resources Estimates and 19 January 2021 for Gaoual screening test work results. The Company confirms that it is not aware of any new information or data that materially affects the information included in this document and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.

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ASX RELEASE 4 FEBRUARY 2021

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Table 1 – Geochemical Analysis of the Coarse and Fine-Grained Screening Fractions – High Grade[1 ]

Resources
(Mt)
Cut-off
(Al2O3 %)
Grade
(Al2O3 %)
Grade
(SiO2 %)
Category
Lelouma Project
High Grade Resources 398 >45 48.1 2.0 Measured + Indicated
Total Lelouma Resources 900 >40 45.0 2.1 Measured + Ind.+ Inf.
Gaoual Project
High Grade Resources 83.8 >45 51.2 11.0% Indicated
Total Gaoual Resources 101.5 >40 49.8 11.5% Indicated
Woula Project
High Grade Resources 19.0 >40 41.7 3.2% Inferred
Total Woula Resources 64.0 >34 38.7 3.1% Inferred
TOTAL RESOURCES
1,065 Mt

Table 2 – Lindian Bauxite Projects – Mineral Resource Estimate (JORC 2012) Summary[1 ]

CHINA RAILWAY SEVENTH GROUP MOU

  • The MOU has been executed to determine an infrastructure solution and to accelerate development of Lindian’s projects.

  • CRSG, through its affiliates and related entities and partners could facilitate in development financing and/or introducing offtake partners.

  • Lindian seeking to establish a consortium to develop the Woula project and the larger Gaoual/Lelouma projects

Lindian also has two bauxite licenses in Tanzania at Lushoto and Pare, which are currently at an early stage, but offer geographical diversification within the Company’s bauxite portfolio. The Company also holds a number of early-stage gold licences in Tanzania, which are currently under review.

The Company’s strategy is to develop projects that meet international standards of environmental compliance, create benefits for the local communities and deliver strong returns for the Company’s shareholders.


1 Refer ASX releases dated 15 July 2020 (Gaoual Project), 23 September (Woula Project), and 6 October 2020 (Lelouma Project) for full details of Mineral Resources Estimates and 19 January 2021 for Gaoual screening test work results. The Company confirms that it is not aware of any new information or data that materially affects the information included in this document and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.

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Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary
Sampling Nature and quality of sampling (eg cut •7 Test Pits were dug within the field
techniques channels, random chips, or specific area. A single 60-80kg sample was
specialised industry standard measurement
collected from each one-meter-deep
tools appropriate to the minerals under pit and it was cone and quartered
investigation, such as down hole gamma into 4 samples. These 4 samples
sondes, or handheld XRF instruments, etc).
were dried and then passed over a
These examples should not be taken as 1.5mm screen from which the over
limiting the broad meaning of sampling. and under sized material was
Include reference to measures taken to weighed and then both cone and
ensure sample representivity and the quartered. All samples were
appropriate calibration of any measurement
transferred to the Bureau Veritas -
tools or systems used. Mali prep lab facility.
Aspects of the determination of •Sample representivity was ensured
mineralisation that are Material to the Public
by the taking of all cuttings from the
Report. small test pit developed. These
In cases where ‘industry standard’ work has
samples were weighed, logged and
been done this would be relatively simple then cone and quartered into 4 15-
(eg ‘reverse circulation drilling was used to 20kg samples prior to screening. The
obtain 1 m samples from which 3 kg was screened material was then cone and
pulverised to produce a 30 g charge for fire quartered and forwarded for sample
assay’). In other cases more explanation preparation.
may be required, such as where there is •The samples tested were
coarse gold that has inherent sampling conglomerate bauxite samples, a
problems. Unusual commodities or less common bauxite found within
mineralisation types (eg submarine Guinea. The determination aids in
nodules) may warrant disclosure of detailed
the confirmation of this specific ore
information. type.
•Bauxite sampling has smaller
potential error due to the element
which forms the bulk of the material
is the element being analysed for. It
is not possible to significantly dilute
alumina grade in a bauxite sample
unless the material is not bauxite and
not related to the mineralised profile.
Drilling Drill type (eg core, reverse circulation, •Not applicable.
techniques open-hole hammer, rotary air blast, auger,
Bangka, sonic, etc) and details (eg 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). _
Drill sample Method of recording and assessing core •Not applicable.
recovery and chip sample recoveries and results
assessed.
Measures taken to maximise sample
recovery and ensure representative nature
of the samples.
Whether a relationship exists between
sample recovery and grade and whether
sample bias may have occurred due to

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Criteria JORC Code explanation Commentary
preferential loss/gain of fine/coarse
material.
Logging Whether core and chip samples have been •Logging was carried out on each of
geologically and geotechnically logged to a the samples including lithology,
level of detail to support appropriate Mineral
amount of weathering by a suitably
Resource estimation, mining studies and qualified geologist.
metallurgical studies. •Data is initially conducted on paper
Whether logging is qualitative or logging sheets and is then
quantitative in nature. Core (or costean, transferred to an Access database
channel, etc) photography. •All of the samples recovered from the
The total length and percentage of the test pits completed were logged.
relevant intersections logged. There is a total of 7 bulk samples
with 100% logged.
Sub- If core, whether cut or sawn and whether
sampling quarter, half or all core taken. •All sampling was carefully supervised
techniques If non-core, whether riffled, tube sampled, with ticket books containing pre-
and sample rotary split, etc and whether sampled wet or
numbered tickets placed in the
preparation dry. sample bag and double checked
For all sample types, the nature, quality and
against the ticket stubs and field
appropriateness of the sample preparation sample sheets to guard against mix
technique. ups.
Quality control procedures adopted for all •All sub samples were taken by cone
sub-sampling stages to maximise and quartering. The samples were
representivity of samples. dry due to the drying of the bulk
Measures taken to ensure that the sampling
sample prior to cone and quartering
is representative of the in situ material and subsequent screening. The sub
collected, including for instance results for
field duplicate/second-half sampling.
samples were predominantly >25%
of the total sample weight.
Whether sample sizes are appropriate to •Field duplicates, blanks and
the grain size of the material being authorized standards were be
sampled. incorporated into the sample string
when collated at a ratio of 1 per
twenty primary samples for each of
the components.
Quality of The nature, quality and appropriateness of •All assays were completed by
assay data the assaying and laboratory procedures Bureau Veritas – Perth using an XRF
and used and whether the technique is analyser and a standard bauxite
laboratory considered partial or total. micro-digestion method. The XRF
tests For geophysical tools, spectrometers, analysis was total with 14 elements
handheld XRF instruments, etc, the and the LOI determined. The micro-
parameters used in determining the digestion analysis reported Total
analysis including instrument make and Available Alumina and Reactive
model, reading times, calibrations factors Silica at two temperature settings
applied and their derivation, etc. (high and low).
Nature of quality control procedures •Standards were within the primary
adopted (eg standards, blanks, duplicates, sample string, as well as numerous
external laboratory checks) and whether standards added by Bureau Veritas –
acceptable levels of accuracy (ie lack of Perth within the sample series. All
bias) and precision have been established. standard grades reported were
extremely accurate and consistent
across all elements and the LOI
determinations.
•Field duplicates, blanks and
authorized standards were

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Criteria JORC Code explanation Commentary Commentary
incorporated into the final sample
string when collated at a ratio of 1
per twenty primary samples for each
of the components. Review of the
duplicates taken in the field showed
an extremely high level of
repeatability and a lack of any bias.
Blanks were from a quartz sand and
there was no form of dilution or
enrichment of any elements within
the blanks in comparison to each
other or over time. Standards were
accurate in regards to both those
placed into the sample string by
Lindian and those used by Bureau
Veritas – Perth during analysis.
Repeats completed by Bureau
Veritas – Perth were highly accurate
and showed no bias in any form.
Verification The verification of significant intersections
of sampling by either independent or alternative Data was recorded by the sampling
and assaying company personnel. geologist, entered in a company’s
The use of twinned holes. designed excel spreadsheet before
Documentation of primary data, data entry being uploaded to the company’s
procedures, data verification, data storage Access database. The excel
(physical and electronic) protocols. spreadsheet is designed to detect
Discuss any adjustment to assay data. any errors entered. The Access
database contains data QAQC
queries.
Location of Accuracy and quality of surveys used to A hand-held GPS was used to
data points locate drill holes (collar and down-hole identify the position of all samples
surveys), trenches, mine workings and and drill sites (xy horizontal error of 5
other locations used in Mineral Resource metres) and reported using WGS 84
estimation. grid and UTM datum zone 28 North.
Specification of the grid system used.
Quality and adequacy of topographic
control.
Data spacing
Data spacing for reporting of
The test pits were completed within
and Exploration Results. the plateaux tested at a variety of
distribution Whether the data spacing and spacings so as to ensure a range of
distribution is sufficient to establish the grades of ore was tested by the
degree of geological and grade screening program.
continuity appropriate for the Mineral No compositing of the samples has
Resource and Ore Reserve estimation been applied. All samples were
procedure(s) and classifications collected and analysed as 1m test pit
applied. samples.
Whether sample compositing has been
applied.
Orientation Whether the orientation of sampling Not applicable.
of data in achieves unbiased sampling of possible
relation to structures and the extent to which this is
geological known, considering the deposit type.
structure If the relationship between the drilling

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Criteria JORC Code explanation Commentary
orientation and the orientation of key
mineralised structures is considered to
have introduced a sampling bias, this
should be assessed and reported if
material.
Sample The measures taken to ensure sample •The samples are currently held near
security security. the collection location within a secure
compound. All samples were sub
sampled in the compound with the
sample for analysis placed in the
string order and bagged as sets of 20
samples. The remainder of the
samples were stored for possible
future work. The samples were all
individually accredited a sample
number and this was used through
the total process from sample
preparation through to full analysis.
Audits or The results of any audits or reviews of •An audit of the process was
reviews sampling techniques and data. undertaken by the author of the
resultant resource report and it was
considered accurate and
representative for the subsequent
sampling, preparation and analysis
process.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation Commentary
Mineral tenement and land tenure
Type, reference name/number,

•The under application 22584
status location and ownership was applied in 3rd March 2019
including agreements or for prospecting Bauxite. The
material issues with third licences may be granted
parties such as joint ventures, anytime.
partnerships, overriding The area covered by the
royalties, native title interests, application is 332.3 km2. It is
historical sites, wilderness or situated in the Koumbia/
national park and Gauoal region, Guinea
environmental settings. •The application is held under
The security of the tenure held KB Bauxite Guinee SARLU
at the time of reporting along which incorporated in Guinea.
with any known impediments The surface area is
to obtaining a licence to administered by the
operate in the area. Government as native title.
The area is rural, with small
villages.
Exploration done by other parties Acknowledgment and •There is no written record of
appraisal of exploration by previous exploration available
other parties. for this area known to KB
Bauxite Guinea SARLU. The
location of the Bauxite was

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Criteria JORC Code explanation Commentary
determined by colonial
mapping and a recently
conducted site visit by the
company personnel.
Geology Deposit type, geological •The exploration targets occur
setting and style of in the elevated areas of the
mineralisation. application. The ore zone is an
occurrence of conglomerate
bauxite which formed through
the erosion of surrounding “in
situ” bauxite into a valley
during a period of significant
erosion. The conglomerate
was deposited over a
sandstone base and upon
changing climatic conditions
and the redevelopment of river
systems the conglomerate was
subsequently eroded with only
a remnant of the original “pile”
remaining. This type of
mineralization is rare and
known by the type location of
Sangaredi where it was
defined and mined from the
1970’s to early in the 21st
Century.
Drill hole Information A summary of all information •No exploration results are
material to the understanding being reported in this release.
of the exploration results The information being
including a tabulation of the provided is a summary of a
following information for all simple screening program of
Material drill holes: the conglomerate bauxite ores
o easting and northing of the present as the mineralised unit
drill hole collar of the Bouba Plateau.
o elevation or RL (Reduced •The drill hole information has
Level – elevation above been incorporated into the
sea level in metres) of the quantification of the resource
drill hole collar previously released prior to
o dip and azimuth of the hole this geotechnical test work
o down hole length and program.
interception depth
o hole length.
If the exclusion of this
information is justified on the
basis that the information is
not Material and this exclusion
does not detract from the
understanding of the report,
the Competent Person should
clearly explain why this is the
case.
Data aggregation methods In reporting Exploration •There are no Exploration
Results, weighting averaging results being reported in this
techniques, maximum and/or release due to the

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Criteria JORC Code explanation Commentary
minimum grade truncations (eg
development of a qualified
cutting of high grades) and resource.
cut-off grades are usually •No High Grade intercepts were
Material and should be stated. reported.
Where aggregate intercepts •No metal equivalents were
incorporate short lengths of reported.
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.
The assumptions used for any
reporting of metal equivalent
values should be clearly
stated.
Relationship between These relationships are •No mineralised intercepts were
mineralisation widths and particularly important in the reported within this release.
intercept lengths reporting of Exploration
Results.
If the geometry of the
mineralisation with respect to
the drill hole angle is known,
its nature should be reported.
If it is not known and only the
down hole lengths are
reported, there should be a
clear statement to this effect
(eg ‘down hole length, true
_width not known’). _
Diagrams Appropriate maps and •No exploration results are
sections (with scales) and being reported in this release,
tabulations of intercepts thus there are no maps and
should be included for any sections of preliminary
significant discovery being exploration results.
reported These should include,
but not be limited to a plan
view of drill hole collar
locations and appropriate
sectional views.
Balanced reporting Where comprehensive •The reported and quantified
reporting of all Exploration screening test results
Results is not practicable, presented provides the basis
representative reporting of for the balanced reporting of
both low and high grades the exploration results with
and/or widths should be reference to the potential for
practiced to avoid misleading upgrading of the Bouba
reporting of Exploration Conglomerate Bauxite
Results. Resource.
Other substantive exploration Other exploration data, if •The Bouba Conglomerate
data meaningful and material, Bauxite Resource has been
should be reported including defined and recognised as a
(but not limited to): geological high grade bauxite with quite
observations; geophysical highgrade silica as agangue

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Criteria JORC Code explanation Commentary
survey results; geochemical component. It was proposed
survey results; bulk samples – that by screening the resource
size and method of treatment; the fines material could
metallurgical test results; bulk preferentially be enriched in
density, groundwater, silica, thus reducing the silica
geotechnical and rock content within the remaining
characteristics; potential bauxite rich pebbles. A simple
deleterious or contaminating series of tests was completed
substances. so as to determine the validity
of the assumptions and the
impact such a simple
geotechnical process would
impact on potential reserve
tonnages and grade. The test
work is not quantitative in
nature, but qualitative
providing an opportunity to
develop a higher alumina
grade product with less silica
(a deleterious element in the
bauxite digestion process).
Digestion test work of the
bauxite ores has been
completed upon the remnant
bauxite ore pulps so as to
ensure that the bauxite ores
tested were of typical gibbsite
dominant bauxite, and
providing high recoveries
when processed through a
Bayer process alumina plant.
Digestion test work was
completed at both high and
low temperature definitions so
as to mimic the range of major
Bayer plant operations
globally.
Further work The nature and scale of •Further geotechnical test work
planned further work (eg tests has yet to be completed and
for lateral extensions or depth results of this work will aid in
extensions or large-scale step- the understanding of the
out drilling). screening effects upon the
Diagrams clearly highlighting Bouba Conglomerate Bauxite
the areas of possible Resource.
extensions, including the main
geological interpretations and
future drilling areas, provided
this information is not
commercially sensitive.