TIVAN LIMITED — Capital/Financing Update 2012

May 15, 2012

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ASX ANNOUNCEMENT

HIGH PURITY VANADIUM RESULTS FROM TIVAN[TM] PILOT PLANT TESTWORK Final Iron and Titanium results in progress

ASX CODE: TNG

REGISTERED OFFICE TNG Limited Level 1, 282 Rokeby Road Subiaco, Western Australia 6008

T +61 8 9327 0900 F +61 8 9327 0901

W www.tngltd.com.au E corporate@tngltd.com.au

ABN 12 000 817 023

DIRECTORS Neil Biddle Paul Burton Stuart Crow Rex Turkington Wang Zhigang

COMPANY SECRETARY Simon Robertson

PROJECTS Mount Peake: Fe-V-Ti Manbarrum: Zn-Pb-Ag East Rover: Cu-Au McArthur: Cu Mount Hardy Cu-Au Sandover Cu-Au

CONTACT DETAILS Paul Burton | +61 8 9327 0900 Nicholas Read | +61 419 929 046 Simon Robertson | +61 8 9327 0900

HIGHLIGHTS:

• Vanadium Pentoxide (V205) recovery up to 90% and purity of 99%

• Results being independently certified by CSIRO

• Iron Oxide (Fe203) and Titanium Dioxide (Ti02) results in progress

• Pre-Feasibility Study on schedule for completion at end June 2012

TNG Limited (ASX: TNG) is pleased to advise that it has taken an important step towards confirming the commercial potential of the TIVAN™ hydrometallurgical process proposed for use at its flagship Mount Peake IronVanadium-Titanium Project after receiving outstanding analytical results from a recently completed continuous-run pilot plant testwork program.

Importantly, recoveries of 80-90 per cent, which are higher than previous results, were achieved for vanadium pentoxide (V2O5), which was extracted to a purity of 99 per cent.

TIVANTM DATA SPECIFICATION	TIVANTM DATA SPECIFICATION	TIVANTM DATA SPECIFICATION
PRODUCT	Purity %	Recovery %
Final V2O5 product	99	80-90
Final TiO2product1	55-78	67-80
Final Fe2O3 product1	99.9	63-80

Table 1: TIVAN[TM ] Pilot Plant Analytical results, (source:METS). 1 Subject to final verification test work.

The pilot plant run was the culmination of an extensive pilot plant testwork program for the TIVAN[TM] process, and these final analytical grades represent a key input towards confirming the commercial viability of the process.

The grade and purity of V205 have been determined by Inductively Coupled Plasma (ICP) analysis. This is now being independently verified at the Commonwealth Scientific Industrial Research Organisation (CSIRO) in Sydney.

Final grades of the Ti02 and Fe203 are currently being assessed via additional analytical testwork.

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The Ti02 leached liquor is undergoing final upgrading using existing technology at a global leader in minerals and metals processing in Perth. It is anticipated that this work will lead to a higher grade TiO2 product than has been incorporated into the Scoping and initial Preliminary Feasibility studies, with results expected by mid-June.

The Fe203 will be extracted through an acid regeneration process. This wellunderstood existing technology will be provided by another leading technology supplier and is expected to provide a final Fe203 product of exceptional purity of 99.9%. This work is scheduled for completion by mid-June.

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As previously reported, the continuous run testwork phase of the proprietary TIVAN™ solvent extraction (SX) process was conducted at the ALS-AMMTEC laboratory in Perth using modified SX equipment, under supervision by TNG’s metallurgical consultants, METS Pty Ltd.

The successful completion of the Solvent Extraction Pilot test run has confirmed the preferred process flow sheet option for the Mount Peake Project, providing confidence in the potential to fully commercialise the TIVAN™ process

Once all results are available the company will complete the Pre-Feasibility Study (PFS) which should provide definitive conclusions on the commercial potential of both the TIVAN™ Process and the Mount Peake project. The final PFS is on track to be delivered by the end of June 2012.

TNG LIMITED

Paul E Burton Managing Director 16[th ] May 2012

Enquiries:

Paul E Burton, Managing Director + 61 (0) 8 9327 0900

Nicholas Read, Read Corporate + 61 (0) 419 929 046

COMPETENT PERSON STATEMENT

The information in this report that relates to Exploration Results and Exploration Targets are based on information compiled by Mr Paul Burton, B.Sc, M.Sc, is also a Member of The Australasian Institute of Mining and Metallurgy , and an employee and Director of TNG Limited. Mr Burton has sufficient experience 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 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Burton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Mr Damian Connelly, MAAusIMM, Chartered Processional (MET), MMICA, MSME, MSAIMM was responsible for the preparation of the metallurgical test work results reported herein. Mr Connelly has sufficient experience to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of the Exploration Results, Mineral Resources and Ore Reserves. Mr Connelly consents to the inclusion in the report of the matters based on his information in the form and context in which is appears.