TIVAN LIMITED — Capital/Financing Update 2013

Aug 14, 2013

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ASX ANNOUNCEMENTASX ANASX ANNOUNCEMENTOUNCEMENT

2215 August 2013ND FEBRUARY 2013

TNG IMPLEMENTS MULTI-PRONGED STRATEGY TO OPTIMISE DEVELOPMENT STRATEGY AND REDUCE COSTS

ASX CODE: TNG ASX CODE: TNGASX CODE: TNG

REGISTERED OFFICE

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

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

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

ABN 12 000 817 023 ABN 12 000 817 023ABN 12 000 817 023

DIRECTORS

DIRECTORS DIRECTORS Neil Biddle Jianrong Xu Paul Burton Chairman Paul Burton Stuart Crow MD Michael Evans Neil Biddle Stuart CrowCOMPANY SECRETARY Rex TurkingtonSimon Robertson Wang ZhigangWang Zhigang

PROJECTS COMPANY SECRETARYCOMPANY SECRETARY Mount Peake: Fe-V-Ti Simon RobertsonSimon Robertson Manbarrum: Zn-Pb-Ag East Rover: Cu-Au PROJECTSPROJECTS McArthur: Cu

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

CONTACT DETAILSCONTACT DETAILS

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

Key Points

• Strategic expenditure reductions implemented covering both remuneration, corporate and administrative overheads and project reviews, including:

• 10-20% reduction in fees and salaries for Directors, management and staff;

• Corporate and administrative cost savings including a reduction in head count in WA and Northern Territory; and

• • Reductions in supplier contracts.

• Further cost savings implemented following transfer of management of the Mount Peake Definitive Feasibility Study inhouse and decision to defer completion until Q1 2014.

• Alternative exploration and development scenarios under consideration for all projects.

• Changes designed to streamline TNG’s operations in the current difficult market and ensure that it can cost effectively progress its key assets to create shareholder value.

TNG Limited (ASX: TNG) advises that it has implemented a multipronged strategy to reduce corporate and administrative overheads, reduce expenditures to preserve its cash and to optimise the exploration and development strategies for all of its key assets including its flagship Mount Peake Vanadium-Iron-Titanium Project in the Northern Territory.

As a result of the administration of Arccon Mining Services Pty Ltd and TNG’s decision to transfer management of the Mount Peake Definitive Feasibility Study in-house under its highly experienced Project Manager, Tony Hadley, it estimates this will result in annual cost savings to the Company of approximately $0.5 million.

In addition, several alternative arrangements have been put in place with supporting contractors to ensure that TNG can achieve a highquality DFS at a reduced cost. With reduced expenditure over the next six months, the DFS work schedule has been revised and completion is now expected by end Q1 2014.

As previously advised, the Company is in discussion with potential funding parties to underpin the development of Mount Peake and is also considering two alternative scenarios which could deliver significant financial benefits to TNG and strengthen the economics of the Project (see ASX Release – 15 July 2013).

TNG and its key shareholders remain firmly of the view that Mount Peake is a world quality asset containing a group of strategic commodities that will remain in high demand in China, Europe and the USA for many decades to come, even in a lower economic growth scenario. Accordingly, the Company will continue to progress the evaluation and development of Mount Peake as its flagship asset in a cost effective and focused manner.

In addition, TNG is comprehensively reviewing all of its exploration projects and other assets.

The Company remains extremely enthusiastic about the potential of the Mount Hardy Copper Project and will consider other potential avenues to progress this Project to the next level. This could include securing external funding via a farm-in joint venture.

A possible joint venture and/or sale of the Company’s 100%-owned Manbarrum Zinc Project, which recently returned to TNG following the suspension of the joint venture with KBL Mining (see ASX Release – 27 June 2013) is also being considered.

TNG has also implemented the following measures to provide a sound basis for the Company to prosper and grow in the longer term:

• Fees and salaries for all Directors and Management have been reduced by 10-20% across the board

• The number of staff and consultants has been reduced by five;

• Individual corporate and administrative expenditures have been reduced by up to 50% or eliminated completely;

• The Company is reviewing and evaluating other suppliers and contractors; and

• The Company has sub-leased 50% of its WA office, reducing its office overheads significantly.

Collectively companywide reductions will result in annualised savings to TNG of approximately $1.8 million.

TNG believes that these changes will ensure that the Company is in a position to manage through the current downturn while continuing to add value to its assets. At the same time, it will be well placed to generate growth and opportunities for its shareholders once the equities market improves.

Following completion of the recent Share Purchase Plan, TNG will have cash reserves of approximately $3 million. In addition, the Company expects to receive $3 million in early October from a Research & Development tax rebate and is considering placement of the shortfall from the SPP of up to $2.5 million.

TNG’s Managing Director, Mr Paul Burton, said: “All of this combined with the positive recent outcome of the Davis Samuel case puts the Company in a strong position moving forward. We have taken these measures to preserve our strong cash balance and ensure that we can progress our key assets in a prudent, measured and focused manner to generate maximum value for shareholders.”

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

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 W estern 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