TIVAN LIMITED — Capital/Financing Update 2013

May 28, 2013

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ASX ANASX ANNOUNCEMENT OUNCEMENT May 2013

POSITIVE RESULTS RECEIVED FROM FIRST KEY PHASE OF MOUNT PEAKE DEFINITIVE FEASIBILITY STUDY

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

ABN 12 000 817 023

DIRECTORS

DIRECTORS Neil Biddle J ianrong Xu Chairman Paul Burton Paul Burton MD Stuart Crow Neil Biddle 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

Forecast operating costs under definitive feasibility study significantly lower than under pre-feasibility study, enhancing current view of project economics

Highlights:

• Metallurgical optimisation work reduces forecast of OPEX by A$20/tonne or up to A$50M per annum.

• Baseline environmental work completed with no negative findings.

• Notice of Intent (NOI) to be lodged in June, representing a key step towards securing a Mining Lease.

• Life-of-mine aquifer search underway.

• Engineering confirms slurry pipeline of concentrate to rail siding would provide additional operating savings. This is being investigated in detail by the DFS manager, Arccon.

• Mining, tailings storage and geotechnical contract tenders under review.

• Combination of reduced forecast OPEX and lower Australian Dollar exchange rate enhances current view of overall project economics.

CONTACT DETAILS

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

Australian resources company TNG Ltd (ASX: TNG) is pleased to provide an update on the Definitive Feasibility Study (DFS) on its 100%owned Mount Peake Vanadium-Titanium Project in the Northern Territory.

The DFS is progressing well in all major areas with the first key phase of metallurgical testwork completed, resulting in a number of significant improvements already being identified over the 2012 Pre-Feasibility Study.

Metallurgy

An extensive comminution and material characterisation programme has been completed on a bulk sample from Mount Peake which is representative of the first 18 years of mining. This will allow design and scale-up of a conventional industrial crushing and grinding circuit.

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The Company is pleased to report that the parameters derived from this extensive testwork programme are in keeping with expectations compared to other magnetite deposits.

This work has also provided a positive result for the conventional crushing and magnetic separation stages, delivering a net estimated benefit (when compared to pre-feasibility study estimates) of A$20/tonne by increasing the rejection of deleterious acid- consuming gangue (waste) minerals.

This has resulted in potential forecast operating costs being $50 million per year lower than under the Pre-Feasibility Study (PFS) findings.

The next work programme will involve understanding metallurgical variability spatially and at depth with respect to magnetic and leaching characteristics, followed by magnetic separation of a bulk sample for the definitive pilot plant trial at CSIRO, which is currently expected to take place next Quarter.

The pilot plant planning at CSIRO is well advanced, with equipment fabrication underway and longlead items and first-fill chemicals ordered.

Recently completed acid regeneration experiments have been very encouraging on synthetic liquors, indicating less energy for regeneration compared to previous assumptions. A final assessment will be conducted on waste liquors derived from the CSIRO pilot plant.

Environmental Progress

GHD has completed the Baseline flora and fauna surveys at the proposed Mount Peake operations site and transport corridor to the rail siding.

Surface and ground water assessments have also been completed including ongoing monitoring programmes.

A Notice of Intent (NOI) is nearing completion and should be submitted to the Northern Territory Government in June. This will pave the way for the Mining Lease application to proceed.

Groundwater Science has been appointed to conduct an aquifer search for the life-of-mine (LOM) of the operation and the initial desktop study has highlighted a number of high probability targets for both quality and quantity in close proximity to the mine site.

Engineering

TNG’s DFS manager, Arccon, is completing final assessment of a trade-off study to evaluate trucking compared with pipeline options for the transportation of concentrates.

The general layout of the TIVAN® process plant and associated infrastructure has been well advanced to support the NOI submission.

Mining, Geology, Hydrology, Geotechnical and Tailings Storage

The mining, geology, hydrology, geotechnical and tailings storage scopes have been put out to tender, reviewed internally and are ready to be awarded.

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Off-take and Financing

The Company is in preliminary discussions with third parties regarding potential off-take arrangements and financing for the definitive feasibility study and potentially a proportion of the project development expenditure.

The recent fall in the Australian Dollar below parity against the US Dollar and revised forecasts for the AUD have improved the current view of the overall economics of the Mount Peake Project. The 2012 PFS was completed using an exchange rate of 1 AUD: 1 USD.

TNG’s Managing Director, Mr Paul Burton, said the early results from the Mount Peake Definitive Feasibility Study had met or exceeded expectations, with the development team led by Tony Hadley making good progress on all fronts.

“The identification of significantly lower operating costs, up to $50 million a year lower than previously expected, from metallurgical optimisation testwork is a very pleasing early breakthrough,” Mr Burton said. “Further optimisation of capital and operating costs will remain a key focus for us in the coming months.

“The recent moves in the Australian currency are also a big plus for the current view of the economics of the Project, given that all of our previous studies were based on an exchange rate at parity with the US Dollar. While we don’t place too much emphasis on factors such as this which are beyond our control, the medium term outlook for the currency could mean that the Mount Peake Project economics look better as we move closer towards financing and development, assuming the Australian dollar continues to depreciate against the US dollar.

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

TNG Limited | ASX Announcement

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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.