TIVAN LIMITED — Capital/Financing Update 2013

Sep 18, 2013

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ASX ANASX ANNOUNCEMENT OUNCEMENT

CLARIFICATION TO ASX RELEASE MADE ON 9 SEPTEMBER 2013

220 September 2013[ND] FEBRUARY 2013

ASX CODE: TNG

ASX CODE: TNG

REGISTERED OFFICE

REGISTERED OFFICE TNG Limited TNG Limited Level 1, 282 Rokeby Road Level 1, 282 Rokeby Road Subiaco, Western Australia 6008 Subiaco, Western Australia 6008 T +61 8 9327 0900

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

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

ABN 12 000 817 023

On 9 September 2013 the Company released an announcement titled “ Economic outlook for Mount Peake strengthens” which provided information about the impact of the fall in the Australian dollar on the financial results of the July 2012 Pre-Feasibility Study for TNG’s flagship Mount Peake V-Ti-Fe Project.

This announcement has been revised to revised to include information and correct errors made in relation to the assumptions underpinning the 2012 PreFeasibility Study on Mount Peake (see ASX Release 9th July 2012), as required under the new JORC 2012 guidelines.

Clarifications:

ABN 12 000 817 023

DIRECTORS

DIRECTORS Neil Biddle

J Jianrong Xu Chairman ianrong Xu Paul Burton Paul Burton Stuart Crow MD Neil Biddle Michael Evans Stuart Crow COMPANY SECRETARY Rex Turkington Simon Robertson Wang Zhigang

PROJECTS

COMPANY SECRETARY Mount Peake: Fe-V-Ti Simon Robertson Manbarrum: Zn-Pb-Ag East Rover: Cu-Au

PROJECTS McArthur: Cu

Mount Peake: Fe-V-Ti CONTACT DETAILS Manbarrum: Zn-Pb-Ag Paul Burton | +61 8 9327 0900 East Rover: Cu-Au Nicholas Read | +61 419 929 046 McArthur: Cu Simon Robertson | +61 8 9327 0900 Mount Hardy Cu-Au Sandover Cu-Au

CONTACT DETAILS

The Company clarifies that:

1. On 18 March 2013 the Company announced an updated Mineral Resource estimate based on drilling undertaken in 2012 as set out below:

Category	Tonnes(Mt)	V2O5%	TiO2%	Fe%	Al2O3%	SiO2%
Measured	118	0.29	5.48	23.64	8.18	32.81
Indicated	20	0.28	5.33	22.05	9.09	33.98
Inferred	22	0.22	4.41	19.06	10.38	37.79
TOTAL	160	0.28	5.31	22.81	8.60	33.64

1. In the announcements dated 9 September 2013 and 25 July 2013, it indicated that the Mount Peak financial model was based on the updated mineral inventory of 91Mt (from the 18 March 2013 updated Mineral resource estimate), which included 22% of mineral inventory categorised as Inferred Mineral Resource. There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration will result in the determination of indicated mineral resources or that the production target itself will be realised.

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

1. The company also wishes to make clear that as the announcements of 9 September 2013 and 25 July 2013 did not use the 2012 PFS Mineral inventory model (which was based on the Mineral resource estimate of 12 October 2011)and therefore the exchange rate effect noted in those releases is materially different from this revision.

2. The 18 March 2013 Resource estimate is to be used for the financial assessment to be prepared as part of the current Definitive Feasibility Study and has been reported in accordance with the JORC 2012 guidelines.

3. As stated in the Pre-Feasibility assumptions, the 2012 PFS financial model assumes mining of 75.9 Mt of the October 2011 Resource Of this mining inventory, some 15.5 Mt is classified as Inferred Mineral Resource. There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further

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exploration will result in the determination of indicated mineral resources or that the production target itself will be realised. However the subsequent drilling and Mineral Resource estimate of 18 March 2013 resulted in an improvement in the confidence attached to this mineralisation.

A revised announcement is attached.

Paul E Burton,

Managing Director + 61 (0) 8 9327 0900

Nicholas Read

Read Corporate + 61 (0) 8 9388 1474Competent Persons Statement

In relation to the Mineral Resource estimate announced on 18 March 2013

The information in this report that relates to Mineral Resources is based on and fairly represents, information and supporting documentation compiled by Lynn Olssen who is a Member of The Australasian Institute of Mining and Metallurgy and a full time employee of Snowden Mining Industry Consultants Pty Ltd. Lynn Olssen has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Lynn Olssen consents to the inclusion in the report of the matters based on his information in the form and context in which it appears

In relation to the 2012 Mineral Resource estimate, on which the 2012 Pre-feasibility Study was based

The information in this report that relates to Mineral Resources is based on information compiled by Lynn Olssen who is a Member of The Australasian Institute of Mining and Metallurgy and a full time employee of Snowden Mining Industry Consultants Pty Ltd. Lynn Olssen 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’. Lynn Olssen consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Financial Analysis is based on information compiled by Jeremy Peters who is a Member of The Australasian Institute of Mining and Metallurgy and a full time employee of Snowden Mining Industry Consultants Pty Ltd. Jeremy Peters 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’. Jeremy Peters consents to the inclusion in the report of the matters based on his information in the form and context in which it appears

TNG Limited | ASX Announcement

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ASX ANNOUNCEMENT

20 September 2013

ASX CODE: TNG

MOUNT PEAKE PROJECT ECONOMICS BOOSTED BY EXCHANGE RATE AND METAL FORECASTS

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 Jianrong Xu Paul Burton Michael Evans 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

Technical review finds that 10% fall in Australian Dollar delivers 20% increase in NPV up to $3.2 billion: Metal Forecasts remain strong

Australian resources company TNG Limited (ASX: TNG ) is pleased to report that an independent technical review of its flagship Mount Peake VanadiumTitanium-Iron Project in the Northern Territory has identified significant improvements to the Project’s financial parameters and forecast returns as a result of the recent fall in the Australian Dollar exchange rate.

The technical review – which was conducted by Snowden Mining Industry Consultants Pty Ltd as part of the ongoing Definitive Feasibility Study (DFS) on the Mount Peake Project – has highlighted the strength and robustness of the Project.

TNG advises that this technical review modifies the July 2012 PFS, which was based on a Mineral Resource estimate reported under the then current guidelines of the 2004 JORC Code. TNG’s subsequent March 2013 Mineral Resource estimate is reported under the 2012 JORC Code guidelines and this estimate is the subject of the DFS. A financial model for this estimate is not available yet, as the DFS is ongoing,

The technical review has identified that the recent falls in the USD:AUD exchange rate contribute to a significant enhancement of the overall economic model result, compared to the base model used in the Pre-Feasibility Study of 1 USD: 1 AUD, as shown in Table 1 and Figure 1 below:

Table 1: 2012 PFS economic model against exchange rate:

Comparison of effect of	exchange rate	on Mount	Peake Project	2012 PFS
A$/US$ Exchange Rate	1.00	0.95	0.90	0.85
IRR	31.80%	34.40%	37.20%	40.20%
NPV 8% A$M	1,884	2,153	2,452	2,786
Cash- flow A$M	5,044	5,650	6,324	7,077

As a result of this finding, the original financial model for the Mount Peake Pre-Feasibility Study has been verified and updated from the PFS exchange rate of $1.00 to the current approximate exchange rate of 90c by Snowden Mining Industry Consultants Pty Ltd leading to:

• an increase in Net Present Value (NPV 8%) from A$1.884 billion to $2.452 billion ; and

• an increase in pre-tax IRR from 31.8% to 37.2%

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This indicates that a 10% decrease in the AUD: USD exchange rate leads to a 15% increase in the Mount Peake Project IRR and 24% increase in the NPV, other parameters (such as diesel price) have been kept constant. Consensus exchange rate forecasts are noted to be AUD 90-85c by 2017.

Importantly, this result was based on the July 2012 PFS financial model, which does not incorporate the effect of redistributing iron values, as modelled in January 2013 and TNG surmises that this will have further beneficial effect on the project economics. The combined effect of these changes will be modelled in the feasibility study, currently underway.

For comparison, TNG presents the effect of the exchange rate variance on the 6 February 2013 update to the PFS, where iron values have been redistributed to better reflect the value of the mineralisation processed. The results indicate significantly improved project economics (Table 2 and Figure 2).

Table 1: 2013 updated PFS economic model against exchange rate:

Comparison of effect of exchange rate on Mount Peake Project 2013 PFS update	Comparison of effect of exchange rate on Mount Peake Project 2013 PFS update	Comparison of effect of exchange rate on Mount Peake Project 2013 PFS update	Comparison of effect of exchange rate on Mount Peake Project 2013 PFS update
A$/US$ Exchange Rate	1.00	0.95	0.90	0.85
IRR	38.70%	41.40%	44.30%	47.50%
NPV 8% A$M	2,646	2,955	3,298	3,682
Cash- flow A$M	6,785	7,483	8,258	9,125

A summary of the Mount Peake Pre-Feasibility Study results is in the appendix to this Announcement (Appendix 1) and referred to in the Company’s ASX Announcements 9 July 2012, and 6 February 2013.

A mining inventory of some 75.9 Mt process plant feed is based on the July 2012 PFS financial analysis. This figure includes some 60.4 Mt of material classified as Indicated resource, and 15.5 Mt of material classified as Inferred Resource. There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration will result in the determination of indicated mineral resources or that the production target itself will be realised. TNG comments that the revised March 2013 Mineral Resource estimate, which reports under the 2012 JORC Code guidelines, improves overall confidence in the resource (refer ASX announcement 18 March 2013).

TNG’s Managing Director, Mr Paul Burton, said the results of the review showed that Mount Peake remains one of the most robust new strategic metals projects in Australia, with potential to underpin a substantial, long-life resource project for the Northern Territory. Figure 1: Mount Peake Project 2012 PFS results vs exchange rate

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Mount Peake 2012 PFS vs
exchange rate
8,000 50%
6,000 45%
4,000 40% NPV 8% A$M
Cash- flow A$M
2,000 35%
IRR
0 30%
1.00 0.95 0.90 0.85
A$/US% Exchange Rate
A$ (Millions)
Internal Rate of Return
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Figure 2 Mount Peake 2013 PFS update (redistributed iron values) vs exchange rate

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Mount Peake 2013 PFS Update vs
exchange rate
10,000 50%
8,000 45%
6,000
40% NPV 8% A$M
4,000
35% Cash- flow A$M
2,000
0 30% IRR
1.00 0.95 0.90 0.85
A$/US% Exchange Rate
A$ (Millions)
Internal Rate of Return
----- End of picture text -----

In addition, the outlook for the key products which will be produced at Mount Peake – high purity vanadium pentoxide (V205), high purity Iron oxide (Fe2O 3) and titanium remains extremely strong compared to the base case prices used in the PFS, which should provide further enhancements to the economic viability (see Figures 2 and 3 below).

Figure 2 - Metal Bulletin: V2O5 Monthly Average Price, 2012-2013 Historical, 2013-2017 Projection

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Figure 3 Roskill : Outlook to 2015 on Titanium Sponge Production and Annual Average Prices

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TNG has recently announced key cost saving measures and realisation of asset value through the recently announced potential sale of its Manbarrum Project for $5 million (subject to completion of Conditions Precedent), with the aim of strengthening its cash resources in order to progress the Mount Peake DFS.

Further updates on operating and capital costs are expected shortly.

TNG LIMITED

Paul E Burton

Managing Director

Enquiries:

Paul E Burton,

Managing Director + 61 (0) 8 9327 0900 Nicholas Read Read Corporate + 61 (0) 8 9388 1474

Competent Person Statements

In relation to the 2012 PFS Study Resource and Mining Analysis:

The information in this report that relates to Mineral Resources is based on information compiled by Lynn Olssen who is a Member of The Australasian Institute of Mining and Metallurgy and a full time employee of Snowden Mining Industry Consultants Pty Ltd. Lynn Olssen has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which she 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’. Lynn Olssen consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Financial Analysis is based on information compiled by Jeremy Peters who is a Member of The Australasian Institute of Mining and Metallurgy and a full time employee of Snowden Mining Industry Consultants Pty Ltd. Jeremy Peters 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’. Jeremy Peters consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

In relation to this announcement:

The information in this report that relates to Financial Analysis is based on information compiled by Jeremy Peters who is a Member of The Australasian Institute of Mining and Metallurgy and a full time employee of Snowden Mining Industry Consultants Pty Ltd. Jeremy Peters 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’. Jeremy Peters consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Forward-Looking Statements

This announcement has been prepared by TNG Ltd. This announcement is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained.

This is for information purposes only. Neither this nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of TNG Ltd shares in any jurisdiction.

This does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

To the fullest extent permitted by law, TNG Ltd, its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this announcement. No responsibility for any errors or omissions from this arising out of negligence or otherwise is accepted.

This may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of TNG Ltd. Actual values, results or events may be materially different to those expressed or implied.

About TNG:

TNG Ltd is a junior exploration company with a focus on exploration and development of projects in the Northern Territory of Australia.

The company is currently developing its 100% owned world class Mount Peake Vanadium –Titanium – Iron project in the which is currently in the Definitive Feasibility Stage, with anticipated production in 2015. In addition it is also actively exploring its copper projects including its 100% owned Mt Hardy project which is emerging as a potential major Copper/Gold and polymetalic project.

The company has joint ventures on its other projects with Rio Tinto, Norilsk, and Western Desert Resources and strategic investment from Ao-Zhong Ltd., a 100% owned subsidiary of China’s ECE Ltd.

For more information please see the company’s website at www.tngltd.com.au

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Appendix 1:

Supporting information for 2012 Pre-Feasibility Study Results

The 2012 Pre-Feasibility Study was prepared by key consulting companies Snowden Mining Industry Consultants Pty Ltd (“Snowden”), Mineral Engineering Technical Services (“METS”) and Sinclair Knight Mertz (“SKM”) to an implied accuracy of ±25 per cent,.

The Pre-Feasibility Study (PFS) is based on an Indicated and Inferred Resource for Mount Peake, reported under the then-current 2004 guidelines of the JORC Code and published on 12 October 2011. The estimate comprises 160Mt @ 0.3% V2O 5, 5% TiO 2 and 23% Fe (Indicated 110Mt @ 0.29% V2O 5, 5.3% TiO 2 and 23% Fe; Inferred 48Mt @ 0.24% V2O 5, 4.5% TiO 2 and 21% Fe). TNG has subsequently released (March 2013) a Mineral Resource estimate reported under the 2012 guidelines of the JORC Code

The key points of the final PFS are:

• Total material mined: 147.9Mt

• Total waste movement: 72Mt

• Total mining inventory exploited: 75.9Mt

TNG advises that this mining inventory comprises 60.2 Mt of material classified as Indicated Resource and 15.5Mt of material classified as Inferred Resource (numbers do not add directly due to rounding). There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration will result in the determination of indicated mineral resources or that the production target itself will be realised.

TNG further advises that, while material classified as an Inferred resource has a low level of geological confidence and may not ultimately present an economic resource, drilling undertaken in 2012 that resulted in the March 2013 Mineral Resource estimate has increased confidence in the overall resource and is the subject of the current DFS.

• Strip ratio: 0.95

• Mine life: 20 years (including pre-production)

• Processing rate (life-of-mine): 2.5Mt/annum, increasing to 5Mt/annum in year 4

• • Average head grade: 0.39% V 2O 5, 27.09% Fe, 7.02% TiO 2 • Average recoveries: 80% V2O 5, 66% Fe, 55% TiO 2 • Total metal production: 236kt V2O 5, 17.4Mt Fe, 5,822kt TiO 2

The key financial outcomes of the final PFS are:

• Total revenue (life-of-mine): A$11.8 billion

• • Operating cash flow (life-of-mine): A$5.8 billion • Nett cash flow (life-of-mine): A$5.05 billion • Pre-production capital cost estimate (including all infrastructure: A$563 million

• Total operating costs (including mining, processing, transport & royalties): A$75.5/tonne of plant feed

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• Nett annual cash flow: A$294M[2]

• • 31.8%

• IRR pre-tax:

2Nett annual Cash Flow is defined as the average discounted cash flow per annum after all CAPEX (prestrip CAPEX, initial CAPEX, and expansion CAPEX) has been deducted, but ignores cost or source of capital, hedging, tax, depreciation, rehabilitation and salvage

As announced on 6 February 2013 the IRR increased to 38.7% following the identification of a misestimation of the iron component of the resource, (all other assumptions for the 2012 PFS apply):

Key assumptions at commencement of operations include:

• Operating costs and pit slope angles related to mining estimated to a Pre-Feasibility Study level (±25%)

• V2O 5 price of US$19,841/tonne (>99% grade)

• TiO 2 price of US$400/tonne (> 64% grade)

• Fe2O 3 price of US$200/tonne (>99.9% grade)

• Royalty rate of 2.5% per tonne of plant feed

• Discount rate of 8%

• A$/US$ exchange rate of 1 US$ = 1A$

.

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