TITANIUM SANDS LIMITED — Interim / Quarterly Report 2016

Oct 31, 2016

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QUARTERLY OPERATIONS REPORT TO 30 SEPTEMBER 2016

HIGHLIGHTS

• Further and extensive drilling is being undertaken at the Mannar Island heavy mineral project in Sri Lanka by the vendor group.

• Visual indications of heavy mineral concentration now cover an expanding area of over 26km[2] of Mannar Island. This is in addition to the 5km[2] covered by the previously reported resources and an increase of 6km[2] from the area previously reported on the 12[th] of September.

• Drilling undertaken in a prospective corridor now nearly links the two previously reported areas of high grade ilmenite and leucoxene resources on Mannar Island.

• The corridor indicates an extensive new area of mineralisation contiguous with the previously defined inferred resource on Mannar Island.

• In excess of 1,000 shallow auger holes have been drilled with drilling to continue on the balance of the corridor by the vendor group.

• Samples will be processed in dedicated sample preparation facilities on Mannar Island before shipping to a mineral sands analytical laboratory at the conclusion of the program.

• It is anticipated an upgraded resource statement will be available upon completion of the drilling program and analysis.

OPERATIONS

SRI LANKAN MINERAL SANDS PROJECT

As reported to the ASX on the 12[th] of September the vendor of the Mannar Island Heavy Mineral Project in Sri Lanka (Figure 1), Srinel Holdings Ltd has been undertaking further shallow auger drilling and had defined an area of heavy mineral concentration of 20km[2] .Since that date drilling has been on going and the area of heavy mineral concentration continues to expand and now covers 26km[2] (Figure 2). This is in addition to the 5km[2] covered by the previously report resources. This continues to confirm Srinel’s and Windimurra’s confidence in the strength of the project. This drilling will enable the momentum of the project to be maintained while final Windimurra shareholder approval for the acquisition is sought.

Windimurra Vanadium Limited ABN 65 009 131 533 Level 24,44 St Georges Tce, Perth WA 6000 Tel: 08 6211 5099 Fax: 08 9218 8875

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Figure 1 Mannar Island Heavy Mineral Sand Project location.

The initial Mannar Island heavy mineral resource has been previously reported at 10.3Mt at 11.7% Total Heavy Minerals*. This high grade Total Heavy Mineral (THM) suite is dominated by ilmenite (47.3%) and higher value leucoxene (11.4%), and the deposit has very low levels of slimes (2%). This initial resource was based on drilling along a narrow strip of the Mannar shoreline generally not extending more than 150m inland (Figure 2) and covering in total around 5km[2] .

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Figure 2 Auger drilling and areas of heavy mineral concentration, Mannar Island

The latest Srinel drilling has been undertaken in the prospective paleo beach plain corridor previously identified by Windimurra as extending for over 45km[2] across Mannar Island (Figure 1). The program was designed and the results compiled here by Windimurra. A hand auger pattern drilling program is being undertaken as a first pass test of the entire target zone. To date over 1,000 holes have been completed (Appendix Tables 1 and 2 list the 191 drill holes completed since the 12[th] of September ASX announcement). The drill lines are 800m apart and drill holes separations of between 50m and 100m. Subsequent infill drilling in areas of heavy mineral concentration will be necessary to provide sufficient data density for resource then reserve modelling. Due to the consistent blanket geometry of the beach plain sediments it is possible to drill using (Dormer) shell sand augers down to the present water table at 1 to 3m below the present land surface. This form of drilling is being completed quickly and at exceptionally low cost in this terrain.

These latest holes have been logged in detail as they were drilled and sampled at 0.5m intervals. Heavy mineral concentrations were readily identifiable and have been found to extend over at least an area of 26km[ 2] . Drilling is continuing in the prospective corridor. Samples are being processed in a dedicated sample preparation facility on Mannar Island before shipping to a mineral sands analytical laboratory at the conclusion of the program for heavy mineral determination and then mineralogical investigations of the heavy mineral suite. The Company anticipates that a revised resource statement will be prepared in due course.

ABOUT THE MANNAR ISLAND HEAVY MINERAL SAND PROJECT

Srinel Holdings Ltd is an unlisted company registered in Mauritius which holds via subsidiary companies 13 exploration licences (covering 348km[2] )and an exploration license application (covering 42km[2] ). Windimurra has exercised its option to acquire 100% of the issued capital of Srinel under the updated terms as released to ASX on 29 January 2016. The acquisition does however in addition require Windimurra shareholder approval at a general meeting. This process is underway.

An initial JORC inferred mineral resource of 10.3 Mt with total heavy mineral (THM) of 11.7% (Table 2) was reported to the Australian Securities Exchange on the 22 April 2015 *. This resource was based on an historical drill hole data base of 785 auger drill holes and from the 115 holes drilled in 2014. The drilling and the defined resource envelope were largely confined to within 150m of the Mannar Island shoreline.

Tonnes	%THM	%Silt	%Oversize	%Ilm.	%Leuc.	%Rut.	%Zir
10.33Mt	11.71	2.08	8.69	5.54	1.34	0.18	0.26

Table 1 JORC inferred mineral resource Mannar Island Project *.

The reported mineral resource at Mannar indicates a high grade deposit with leucoxene grades alone approaching that of specialised leucoxene producers, but also having in addition very high (by industry standards) ilmenite grades and significant subsidiary amounts of the premium value minerals of rutile and zircon.

WINDIMURRA VANADIUM PROJECT

The Company has relinquished a mining lease M58/272 in the Mid-West Region of Western. The tenure was assessed as having insufficient exploration potential.

Changes to the Tenement Schedule in the March 2016 Quarter

PROJECT	LOCATION	TENMENT NUMBER	ECONOMIC ENTITIES INTEREST AT QUARTER END	CHANGE IN ECONOMIC ENTITIES INTEREST DURING QUARTER
Windimurra Vanadium Project	Mid-West Region Western Australia	M58/272	0%	Tenure relinquished

* An initial JORC inferred mineral resource of 10.3 Mt with total heavy mineral (THM) of 11.7% was reported in full to the Australian Securities Exchange on the 22 April 2015.This resource was based on an historical drill hole data base of 785 auger drill holes and from the 115 holes drilled in early 2015. The drilling and the defined resource envelope were largely confined to within 150m of the Mannar

Island shoreline. The Company confirms that this resource statement remains current in regards to the areas covered by the drilling used in the resource model.

Except where indicated, exploration results above have been compiled by James Searle BSc (hons), PhD, a Member of the Australian Institute of Mining and Metallurgy, with over 34 years experience in metallic and energy minerals exploration and development, and as such has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Searle is the Managing Director of Windimurra Vanadium Limited and consents to the inclusion of this technical information in the format and context in which it appears.

Appendix 1

Table 1

Drill hole collars from the ongoing 2016 hand auger drilling program by Srinel Holdings Ltd, subsequent to the ASX announcement of the 12[th] of September 2016.

• All holes drilled are listed.

• All holes vertical.

• Collar locations by GPS on WGS84.

• Elevations not yet determined.

• Samples to be consigned for laboratory analysis at conclusion of program.

Hole ID	Northingdeg	Eastingdeg	EOH m
MA901	9.03783	79.84499	1.40
MA902	9.03663	79.84583	1.50
MA903	9.03628	79.84476	1.65
MA904	9.03626	79.84547	1.50
MA905	9.03557	79.84503	1.50
MA906	9.03516	79.84462	1.50
MA907	9.03474	79.84447	1.50
MA908	9.03392	79.84417	1.50
MA909	9.03421	79.84457	1.95
MA910	9.03344	79.84407	2.05
MA911	9.03306	79.84381	1.80
MA912	9.03263	79.84362	2.00
MA913	9.03252	79.84295	2.60
MA914	9.03215	79.84272	2.60
MA915	9.03144	79.84225	2.65
MA916	9.03072	79.84171	2.10
MA917	9.02997	79.84121	0.50
MA917	9.02997	79.84121	2.10
MA918	9.02922	79.84071	1.50
MA919	9.02848	79.8402	1.30
MA920	9.02885	79.84045	1.50
MA921	9.02801	79.84012	2.10
MA922	9.02773	79.8397	2.50
MA923	9.02276	79.84554	1.25
MA924	9.02357	79.84603	1.80
MA925	9.02426	79.84667	1.95
MA926	9.025	79.84708	1.90
MA927	9.02462	79.84684	1.50
MA928	9.02539	79.84733	1.80
MA929	9.02573	79.84761	1.10
MA930	9.02612	79.84785	1.55
MA931	9.02648	79.84808	1.50
MA932	9.02718	79.84868	1.70
MA933	9.02686	79.84834	1.75
MA934	9.02762	79.84888	1.80

Hole ID	Northingdeg	Eastingdeg	EOH m
MA935	9.02798	79.8491	1.60
MA936	9.02842	79.84927	1.95
MA937	9.02873	79.8497	1.70
MA938	9.02897	79.85095	1.85
MA939	9.02947	79.85094	1.90
MA940	9.0298	79.85137	2.00
MA941	9.03009	79.85182	2.00
MA942	9.03044	79.85196	2.00
MA943	9.03112	79.85178	1.60
MA944	9.03135	79.85226	1.70
MA945	9.03179	79.85239	1.70
MA946	9.03246	79.8522	1.95
MA947	9.03283	79.85245	1.90
MA948	9.03322	79.85267	1.90
MA949	9.03355	79.85298	2.10
MA950	9.03397	79.85323	2.00
MA951	9.03431	79.85339	2.00
MA952	9.0346	79.85384	1.00
MA953	9.03509	79.85394	2.00
MA954	9.03541	79.85423	1.80
MA955	9.03604	79.85426	2.10
MA956	9.03838	79.85626	2.00
MA957	9.03834	79.85517	1.50
MA958	9.03788	79.85457	1.90
MA959	9.03734	79.85465	1.90
MA960	9.03685	79.85449	1.80
MA961	9.03644	79.85443	1.50
MA962	9.01724	79.85183	1.90
MA963	9.01762	79.85207	1.95
MA964	9.01799	79.85232	1.85
MA965	9.01861	79.85226	1.80
MA966	9.0192	79.85294	2.50
MA967	9.01989	79.85352	1.75
MA968	9.01962	79.85318	1.85
MA969	9.02025	79.85378	1.20
MA970	9.02105	79.85426	1.60
MA971	9.02193	79.85453	0.50
MA972	9.0215	79.85417	1.85
MA973	9.0224	79.85466	2.00
MA974	9.02284	79.85465	1.85
MA975	9.02296	79.85542	1.90
MA976	9.02342	79.85552	2.00
MA977	9.02374	79.85598	1.60

Hole ID	Northingdeg	Eastingdeg	EOH m
MA978	9.02409	79.85613	1.80
MA979	9.02449	79.85639	1.10
MA980	9.02487	79.85668	2.00
MA981	9.02526	79.85696	2.00
MA982	9.02576	79.85693	1.90
MA983	9.02605	79.85729	1.80
MA984	9.02628	79.85783	2.00
MA985	9.02641	79.85831	1.90
MA986	9.0267	79.85863	2.00
MA987	9.02722	79.85873	2.00
MA988	9.02739	79.85927	2.10
MA989	9.02777	79.85954	2.00
MA990	9.02871	79.85881	1.40
MA991	9.02915	79.85837	2.05
MA992	9.02944	79.8586	2.05
MA993	9.02983	79.85884	2.05
MA994	9.03018	79.85914	1.60
MA995	9.03002	79.85998	2.10
MA996	9.03041	79.86024	1.60
MA997	9.0309	79.86037	1.70
MA998	9.03119	79.86073	2.50
MA999	9.03156	79.86102	2.00
MA1000	9.03199	79.86124	1.75
MA1001	9.01191	79.85792	2.00
MA1002	9.01229	79.85817	1.95
MA1003	9.01266	79.85851	1.70
MA1004	9.01305	79.85865	1.90
MA1005	9.01335	79.85899	2.05
MA1006	9.01378	79.8592	2.00
MA1007	9.0141	79.85951	1.75
MA1008	9.01459	79.85966	1.90
MA1009	9.01487	79.85998	1.95
MA1010	9.01537	79.86004	1.90
MA1011	9.01562	79.86048	1.50
MA1012	9.01603	79.86067	1.95
MA1013	9.01634	79.86103	1.95
MA1014	9.01676	79.86123	1.90
MA1015	9.01712	79.86149	1.80
MA1016	9.01752	79.86176	1.90
MA1017	9.01807	79.86221	1.90
MA1018	9.0185	79.86238	1.80
MA1019	9.01896	79.86267	1.90
MA1020	9.01937	79.86295	1.85

Hole ID	Northingdeg	Eastingdeg	EOH m
MA1021	9.00617	79.86287	1.80
MA1022	9.00657	79.86301	1.90
MA1023	9.00697	79.86327	1.35
MA1024	9.00743	79.86345	1.60
MA1025	9.00824	79.86259	1.90
MA1026	9.00806	79.86396	1.60
MA1027	9.0084	79.86428	1.50
MA1028	9.00877	79.86454	1.60
MA1029	9.00918	79.86478	1.60
MA1030	9.00957	79.86501	1.85
MA1031	9.01017	79.86501	2.00
MA1032	9.01046	79.86539	1.85
MA1033	9.01079	79.86574	1.95
MA1034	9.01109	79.86611	1.80
MA1035	9.01125	79.86682	1.60
MA1036	9.01172	79.86686	1.85
MA1037	9.01234	79.86666	1.95
MA1038	9.01271	79.86697	1.50
MA1039	9.01309	79.86718	2.00
MA1040	9.01347	79.8674	1.90
MA1041	9.00078	79.86791	1.50
MA1042	9.00111	79.86815	1.50
MA1043	9.0015	79.8684	1.50
MA1044	9.0019	79.86862	1.95
MA1045	9.00228	79.86888	1.85
MA1046	9.00265	79.86911	2.00
MA1047	9.00313	79.86918	1.85
MA1048	9.00349	79.86951	1.60
MA1049	9.00401	79.86947	1.90
MA1050	9.00436	79.86974	1.90
MA1051	9.00472	79.87004	2.00
MA1052	9.00498	79.87052	1.60
MA1053	9.00532	79.87076	1.65
MA1054	9.00562	79.87116	1.65
MA1055	9.00605	79.87128	1.90
MA1056	9.00652	79.87139	2.00
MA1057	9.00679	79.87166	1.90
MA1058	9.0074	79.87174	1.80
MA1059	9.00768	79.87206	1.95
MA1060	9.00801	79.87241	2.00
MA1061	9.00838	79.87265	2.00
MA1062	9.00876	79.87292	2.00
MA1063	9.00916	79.87315	1.90

Hole ID	Northingdeg	Eastingdeg	EOH m
MA1064	9.05779	79.84222	2.05
MA1065	9.05821	79.8425	2.40
MA1066	9.05854	79.84273	2.50
MA1067	9.0589	79.84297	2.00
MA1068	9.05918	79.84335	2.75
MA1069	9.05966	79.84349	2.90
MA1070	9.06003	79.84374	2.00
MA1071	9.06377	79.8375	2.00
MA1072	9.06417	79.83758	2.25
MA1073	9.0647	79.83767	2.50
MA1074	9.06517	79.83779	2.05
MA1075	9.06973	79.83289	2.70
MA1076	9.07013	79.83313	2.30
MA1077	9.07046	79.83346	2.30
MA1078	9.07123	79.83396	2.50
MA1079	9.07157	79.83421	2.50
MA1080	9.07193	79.83448	2.30
MA1081	9.07225	79.83475	2.45
MA1082	9.07257	79.83498	2.20
MA1083	9.07285	79.83524	2.50
MA1084	9.07317	79.83547	2.50
MA1085	9.0735	79.8357	2.50
MA1086	9.07464	79.82787	2.35
MA1087	9.07508	79.82812	2.45
MA1088	9.07545	79.82841	2.05
MA1089	9.07575	79.82869	2.75
MA1090	9.07613	79.82895	2.35
MA1091	9.07647	79.82926	2.50

JORC TABLE 2

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

All drilling, sampling and sample splitting procedures were designed and audited by Dr James Searle, the Competent Person named in the body of this report.

Criteria	**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. • Includereference tomeasures	 100% of recovered sample collected, riffle split, and bagged at drill site.  Sample interval down hole every 0.5m or part interval.  No sampling below water table.

Criteria	**Explanation **	Commentary
	taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.
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.).	 Hand auger , vertical, Dormer type shell auger 75mm, 191 holes, maximum depth 3m  All holes vertical.
Drill sample recovery	• Method of recording and assessing core 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 preferential loss/gain of fine/coarse material.	 Weight of sample recovered logged against estimate of 100% recovery weight.  For the hand auger holes, re- entry depth of auger tip noted against depth achieved before auger withdrawn to recover sample. Hole abandoned if more 3cm of fall back in hole noted.
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. • The total length and percentage of therelevantintersectionslogged.	 Recovered samples logged in standardized format for all relevant visual parameters including sediment, rounding, sorting etc.  Logging of visual parameters qualitative but referenced to standard parameter sheets.  All drill hole samples logged at drill site.
Sub-sampling techniques and sample	• If core, whether cut or sawn and whether quarter, half or all core taken.	 100% of recovered sample bagged and numbered.  Allsamples transported to secure

Criteria	**Explanation **	Commentary
preparation	• If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the _material being sampled. _	company storage.  All samples from drill holes with at least one interval of visually logged significant HM concentration selected and oven dried at 65 to 105deg C prior to further processing.  Custody chain of samples maintained from drill site to controlled storage.  Subsequent processing of samples has commenced at the Mannar Island sample prep facilities set up for the project.
Quality of assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	 Samples prepared at Mannar Island preparation facility.  !00% of dried samples dry sieved on 1mm vibratory sieve to measure oversize weight %.  150-250g subsamples prepared by splitting the -1mm material through a 12 chute riffle splitter using loading baffle sheet.  Subsamples weighed to 0.1g accuracy.  Subsamples given an agitation wash in 3% NaOH solution.  Subsamples wet vibratory sieved on 45 micron sieve to remove “slimes”.  Subsamples dried and reweighed to 0.1g.  Subsamples to be consigned to specialist mineral sands laboratory for TBE sinks and mineralogical analyses.
Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	 Prior to the completion of the program the following verification procedures will be undertaken.  Independently supervised repeat drilling will twin between 5 and 10% of holes showing significant heavy mineral mineralisation.  Samples from the verification drilling will be bagged and sealed by the Independent and consigned as whole sample to another laboratory for sample prep and analysis.
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. • Specification of thegrid system	 Drill collars located using GPS WGD84 to an accuracy typically of better than 6m  Topographic control to be determined from subsequent survey andDTMtiein.

Criteria	**Explanation **	Commentary
	used. • Quality and adequacy of topographic control.
Data spacing and distribution	• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has _been applied. _	 Drilling spacing varying from 50m to 100m along lines at 800m nominal separations along the mineralisation trend.
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	 Shoreline concentrated heavy minerals when preserved by net coastal progradation seaward form strands of mineralisation that can vary from 10s to hundreds of metres wide but many hundreds or metres and kilometres long. Drill lines are therefore optimally oriented across the trend direction of the paleo shoreline positions. Drill hole spacing along the lines were designed to find HM strands as narrow as 25 to 50m wide. Separation of the drill lines along the paleo shoreline orientations reflects the much greater along shore dimensions of any potentially economic strands.
Sample security	• The measures taken to ensure sample security.	 Custody of samples documented, and integrity of packaging monitored.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	 Duplicated sample splits and samples from twinned holes will be used to demonstrate QA/QC

Section 2 Reporting of Exploration Results

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

Criteria	**Explanation **
Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a _licence to operate inthe area. _	 Granted exploration licenses.  No known overriding interests at this stage.  Normal state royalty regime.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	 Previously reported to the ASX.

Criteria	**Explanation **
Geology	• Deposit type, geological setting and style of mineralisation.	 Holocene to Modern coastal sand deposit hosted heavy mineralsands
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 • down hole length and interception depth • 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. _	 Tabulation of all drill hole information contained within Table 1 of the announcement above, with the exception of RL which will be provided later when a DTM is available. At this time collar elevation is considered not material due to the lack of significant elevation changes over the area.
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results 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. _	 No laboratory results available at this time_._
Relationship between mineralisation widths and intercept lengths	• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true _width not known’). _	 Heavy mineral zones in beach sediments are flat or only very shallowly dipping. All drill holes were vertical.
Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being	 Plans of drill hole locations historical and subject of this announcement are provided in summary.

Criteria	**Explanation **
	reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	 Sectional representations not considered relevant as the drill depths were rarely more than 2m.
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. _	 All holes drilled are contained in Table 1.
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. _	 Not applicable.
Further work	• The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is _not commercially sensitive. _	 Completion of the first pass testing 45km2area of prospective beach plain will require about another 100 auger holes. This is underway.  Shown in Figure 2

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

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

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

Name of entity

Name of entity	Name of entity
Windimurra Vanadium Limited
ABN 65 009 131 533	Quarter ended (“current quarter”)
65 009 131 533	30 September 2016

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- (18) - - - (10) - - - - - -	- (18) - - - (10) - - - - - -
	(28)	(28)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets	- - - -	- - - -

• See chapter 19 for defined terms

1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3months) $A’000
2.2 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.3 Cash flows from loans from other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - -	- - - - - - -
	-	-
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - 22 - - - -	- - - - 22 - - - -
	22	22
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	8 (28) - 22 -	8 (28) - 22 -
	2	2

• See chapter 19 for defined terms 1 September 2016

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

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	2 - - -	8 - - -
	2	8

6. Payments to directors of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to these parties included in item 1.2 2 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 - 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2	Current quarter $A'000
	2
	-
1. Reimbursements.
7. Payments to related entities of the entity and their associates Current quarter $A'000 7.1 Aggregate amount of payments to these parties included in item 1.2 - 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 - 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2
	Current quarter $A'000
	-
	-

7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2	7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2	7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2
8. Financing facilities available Add notes as necessary for an understanding of the position 8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify)	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	-	-
	-	-
	-	-
8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

• See chapter 19 for defined terms 1 September 2016

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

9. Estimated cash outflows for next quarter	9. Estimated cash outflows for next quarter	9. Estimated cash outflows for next quarter	$A’000	$A’000	$A’000
9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other - ASX re-compliance, notice of meeting and related costs 9.7 Total estimated cash outflows			15 0 0 0 93 25
			133
10. Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest		Interest at beginning of quarter	Interest at end of quarter
10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced	M58/272	Direct interest.		100%	0%
10.2 Interests in mining tenements and petroleum tenements acquired or increased	-	-		-	-

Compliance statement

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

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

Sign here: (Director)

Date: 31[st] October 2016

Print name: Jason Ferris

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Notes

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

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

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

4. See chapter 19 for defined terms 1 September 2016

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