TIVAN LIMITED — Capital/Financing Update 2011

Mar 14, 2011

MAJOR ENGINEERING FIRM APPOINTED TO OVERSEE MOUNT PEAKE PREFEASIBILITY STUDY

PFS ON LARGE-SCALE IRON-VANADIUM PROJECT EXPECTED TO BE COMPLETED BY 3[RD] QUARTER 2011

TNG Limited (ASX: TNG ) is pleased to announce that it has appointed the leading global engineering firm, Sinclair Knight Mertz (“SKM”), to manage the completion of a PreFeasibility Study (“PFS”) for the Company’s flagship Mount Peake Iron-Vanadium Project in the Northern Territory.

The PFS, which is expected to take seven months to complete, will build on the positive independent Scoping Study announced last month and will be based on a conventional open pit mining operation processing 5Mtpa. It will be undertaken in conjunction with the next phase of pilot plant metallurgical test work, which TNG recently commissioned.

The PFS will pave the way for a Definitive Feasibility Study next year on potential commercial development options for the Mount Peake Project as the foundation for a longlife, world-scale ferrous metals business in the Northern Territory.

The Scoping Study was based on the use of a revolutionary new patented hydrometallurgical process, developed by TNG in conjunction with its metallurgical consultants Mineral Engineering Technical Services Pty Ltd (“METS”), which has been successful in recovering the three principal commodities – vanadium, titanium and iron – from samples of Mount Peake ore.

The key findings of the Scoping Study were:

• Mine Life: 23.63 years

• processing rate (life-of-mine): 5Mt /annum  Life-of-mine production: 107.1 million tonnes  Process head grade: 0.33% V2O5, 25.39% Fe, 6.04% TiO2  Total metal production: 349kt V2O5, 27,182kt Fe, 6,463kt TiO2  Total operating costs (excluding royalties): $46.6/tonne  Preliminary capital estimate: $370.3M (for Stage 1 – 2Mtpa) $307.6M (for Stage 2 – 5Mtpa)

• Annual Nett Cash Flow: $148.37M / annum

TNG’s Chief Executive, Mr Paul Burton, said the commencement of the PFS at Mount Peake represented another important milestone for the Company.

“Following the success of the initial Scoping Study, TNG is building a highly capable team to progress the project,” he said. “As part of this team, we are pleased to have secured the services of SKM to oversee the study. TNG will be retaining the services of its existing consultants, Snowden, for resource evaluation and mining advice, and joint Patent owners METS for the continued metallurgical evaluation and process development.

“SKM bring to the team a detailed understanding of titanomagnetite vanadium projects similar to Mount Peake, and will oversee the production of the PFS, which will include detailed reports regarding geology and resource estimation, process metallurgy and plant process design, infrastructure and CAPEX and OPEX estimates for the project.”

TNG recently completed a $2.8 million capital raising to underpin the completion of the PFS, including the delivery of a resource upgrade, pilot plant metallurgical work and associated studies on the hydrometallurgical process.

“It’s been a very busy start to 2011 with the delivery of the Scoping Study in February, the commissioning of an expanded Study to consider the production of high-value ferrovanadium, which is expected to completed in the next few weeks, and the start of a new phase of metallurgical test work to test the commercialization on our patented metallurgical process,” Mr Burton said.

“We are very pleased to be working on the PFS with a Group such as SKM, whose expertise and credentials are globally recognized and complement those of our existing consultants and specialists,” Mr Burton said. “We look forward to providing further updates on our progress in the months ahead.”

TNG LIMITED

Paul E Burton Director & CEO

15 March 2011

Enquiries: Paul E Burton Director & CEO + 61 (0) 8 9327 0900

Nicholas Read

Read Corporate + 61 (0) 419 929 046