TIVAN LIMITED — Capital/Financing Update 2015

Jul 30, 2015

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ASX ANNOUNCEMENT
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31 July 2015

MOUNT PEAKE FEASIBILITY STUDY CONFIRMS A WORLD-CLASS PROJECT CAPABLE OF DELIVERING OUTSTANDING RETURNS OVER LONG LIFE

Robust 41% IRR and $4.9 billion net present value (NPV8) paves way for final funding, construction and off-take contracts with existing portfolio of Tier One strategic partners

Highlights

• Definitive Feasibility Study (DFS) finds that TNG’s 100%-owned Mount Peake Vanadium-TitaniumIron Project in the Northern Territory when developed will deliver robust financial and technical outcomes.

• Key findings of DFS include: o Pre-production capital cost estimate of A$970M (Stage 1 infrastructure, mine site, concentrator and Refinery);

• o Pre-tax net annual average production cash flow of A$785 million; o Life-of-mine net cashflow of A$11.6 billion; o Pre-tax IRR of 41%; o Two year pre-production period for construction; o Initial 17-year project life; o 3Mtpa (Stage1) mining operation expanding to 6Mtpa (Stage2) after 4 years of production; o Average annual production of 17,560tpa V2O5, 236,000tpa TiO2 (pigment), 637,000tpa Pig Iron; o Pay back of 4 years.

• Maiden Probable Ore Reserve of 41.1Mt (50% of mine life) at V2O5 0.42%, TiO2 7.99%, Fe 28.0% at a cut-off grade of 15% Fe, which has converted 65% of the Measured Resource with a 50% increase in V2O5 grade

• DFS includes a new proposed Darwin location for the TIVAN® Refinery.  TIVAN® Refinery assumed to have an operational life of 40 years however revenues from years 1840 have not been included in this DFS.

• In addition to the TIVAN® vanadium pentoxide process, the Refinery incorporates associated Titanium and Pig-Iron Plants to produce higher-value products.

• TNG expects DFS findings to underpin discussions for converting funding and construction MOU’s to binding implementation agreements.

• Binding commodity off-take agreements expected to be negotiated this Quarter.  Subject to all approvals, permitting and financing, construction of Mount Peake is planned to commence in 2016 with first production scheduled for early 2018.

TNG Limited (ASX: TNG) is pleased to advise that the Definitive Feasibility Study (DFS) for its 100%-owned Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory (Figure 1) has delivered exceptional results, outlining a world-class project capable of generating outstanding returns for shareholders.

The DFS (summarised below) found Mount Peake would generate a pre-tax internal rate of return (IRR) of 41% based on a pre-production capital cost of A$970 million , total estimated life-of-mine net cash flow of A$11.6 billion and operating cash flows of A$13.6 billion over an initial 17-year project life.

REGISTERED OFFICE T +61 8 9327 0900 W www.tngltd.com.au Level 1, 282 Rokeby Road F +61 8 9327 0901 E corporate@tngltd.com.au Subiaco, Western Australia 6008

ASX CODE: TNG ABN 12 000 817 023

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In light of these results, TNG will now progress discussions with its established network of key strategic partners. Where MOUs are already in place, TNG aims to finalise binding contractual agreements to underpin financing, construction and off-take arrangements.

Subject to satisfactory completion of these agreements and all other regulatory approvals and permitting, TNG envisages that construction of Mount Peake could commence in 2016, with a proposed 24 month construction timeline to first production.

TNG’s Managing Director, Mr Paul Burton, said the results of the Mount Peake Feasibility Study were exceptional and had exceeded expectations. This now paves the way for financing, development and construction of one of the most significant new resource projects in northern Australia.

“Seeing the project come through a Feasibility Study at this level of detail and accuracy provided by Tier One engineering, mining and infrastructure groups is a considerable achievement against the backdrop of what can only be described as very challenging commodity market conditions,” he said.

“Over the past 24 months we have continued to de-risk the project building on the already robust figures from the 2012 Pre-Feasibility Study. We have engaged the right consultants to deliver the Companies maiden Ore Reserve of 41.1 million tonnes and a Feasibility Study under budget,” he continued.

“The Study shows that the Mount Peake Project is technically robust, financially strong given the assumptions and forecasting included in the study and, as a result, we anticipate securing finance for the project. On the back of these findings, we will now move ahead to complete funding, construction and off-take agreements.

“Like all resource projects the Mount Peake Project is inherently sensitive to commodity prices. We are therefore fortunate to have been able to unlock the maximum value in the resource through the production of three highvalue products, which enables us to mitigate our commodity price risk exposure and proactively de-risk the project by producing higher-value marketable end-products.

“In a detailed study commissioned for TNG, our independent commodity consultants have confirmed that demand for vanadium and titanium is expected to continue to grow strongly and potentially increase as a result of expanding markets for both of these products, providing a solid foundation for the future of the project.

“The completion of this highly successful Feasibility Study is a major milestone for TNG and its shareholders after almost three years of hard work,” Mr Burton said. “I would like to take this opportunity to thank the extensive team of consultants, engineers, metallurgists, analysts and technical experts who have worked on this study – which pulls together a vast body of work. I am very pleased that this work has confirmed the technical and financial viability of an important new Australian resource project.

“Having already put in a considerable amount of preparatory work to position the project for financing and development, we are now well placed to move ahead with funding discussions in conjunction with our established network of strategic partners.

“The Board will immediately consider the results of the DFS with a view to proceeding to a Development Decision and project financing in the shortest possible time frame. With the completed Feasibility Study to hand, I am looking forward to commencing discussions with our strategic partners and investors in the coming weeks.”

The following pages are a summary of the Mount Peake DFS.

The location of the proposed Mount Peake Mine site is shown in Figure 1 below:

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A)

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B)

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Figure 1. A) Conceptual representation of the key infrastructure components. B) Mount Peake site layout. Showing tenure (MLAs in brown)

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Definitive Feasibility Study Team

TNG engaged a team of professional engineering, metallurgical, mining, marketing and infrastructure groups, for the completion of the DFS.

The DFS was led and compiled by Snowden Mining Industry Consultants (Snowden). Snowden have been associated with the Mount Peake project since 2009, have compiled all previous Mineral Resources and mine plans for the project, and completed the financial model and results for the Pre-Feasibility Study (PFS). As such Snowden have a very good understanding of the resource, the geology, overall project and financial model; TNG acknowledges Snowdens significant input and contribution to the DFS.

SMS Siemag (SMSS), the Duesseldorf based global metallurgical development and construction group, have been associated with the Mount Peak project since 2011, and assisted in many aspects of the DFS including metallurgical testwork, flowsheet verification, financial modelling and with the final compilation: TNG acknowledges significant input and contribution to the DFS by SMSS.

TNG would also like to acknowledge the significant input of the following contributors to the DFS:

Metallurgical testwork and flowsheet design:		CSIRO (Perth), METS,
		ALS Ammtec, Bureau Veritas,
		Outotec, Furnace Technologies;
Environmental, Hydrology and Environmental Impact Statement:		GHD;
Engineering, mine plant design :		Como Engineers,
Mine and Infrastructure:		McMahon Services,
Commodity and market analysis:		The Roskill Group,
Rail and transport infrastructure:		Genesee & Wyoming Australia,
Land, Port handling and infrastructure:	Darwin Port Authority, Northern Territory Government,
Resource and aquifer drilling:	McKay Drilling, and Tomlin Drilling.

Definitive Feasibility Study Summary and key assumptions

DFS results show an increase in life-of-mine revenues and cash flows compared to the previous results from the Pre-Feasibility Study (PFS) completed in 2012 (see ASX Announcement – 15 July 2013).

The DFS is based on the production of magnetite concentrate on site at Mount Peake. The DSF assumes that concentrate will be trucked to a rail siding and then railed north to a TIVAN® Refinery facility to be located approximately 10km from Darwin Port. From the magnetite concentrate the TIVAN® facility will produce highpurity vanadium pentoxide, titanium dioxide concentrate and iron oxide. Associated downstream plants will produce high grade titanium pigment, and pig iron.

While the additional plant facilities increase the capital requirement of the project, the higher revenues achieved from the higher value end products provide the Company with the potential for an early payback (<4 years) and an exceptional internal rate of return. In addition, the products have well understood markets, transparent pricing and ready demand.

DFS financial model

The DFS financial model was compiled and audited by Snowden. Key assumptions and findings are as follows:

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Summary of Key Financial Parameters from cash flow model:

Mine Life:	15 years
Pre-production capital cost estimate (including all infrastructure:	A$970 million
Total operating costs (including mining, processing, transport & royalties):	A$167 per tonne of ore
Total revenue (life-of-mine):	A$27.3 billion
Operating cash flow (life-of-mine):	A$13.6 billion
Net cash flow (life-of-mine):	A$11.6 billion
Discount rate:	8%
Pay back:	4 years
Nett annual operating cash flow:	A$780M
IRR pre-tax:	41%
NPV (at 8% discounted)	A$4.9 billion

Mineral Resource

The Mount Peake Mineral Resource estimate was released in an ASX Announcement dated 26 March 2013, (see ASX Announcement – 26 March 2013, “Additional Information on the Mount Peake Resource”, www.tngltd.com.au), and was completed in accordance with the guidelines of the JORC Code (2012). Initial mining and financial assessment work, based on the Mineral Resource, followed (see ASX Announcement – 15 July 2013, “TNG Considers Two-Stage Development Option for Mount Peake Project, NT ”, www.tngltd.com.au). Details of the methodology and assumptions made are outlined in Appendix One.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are represented have not been materially modified from the original market announcement.

Table 1. The 2013 Mount Peake Mineral Resource estimate,

Mineral Resource

Category	Tonnes (Mt)	**V2O5% **	**TiO2% **	Fe%	**Al2O3% **	**SiO2% **
Measured	120	0.29	5.5	24	8.2	33
Indicated	20	0.28	5.3	22	9.1	34
Inferred	22	0.22	4.4	19	10.0	38
TOTAL	160	0.28	5.3	23	8.6	34

Note: Tonnage and grade figures in tables have been rounded to 2 or 3 significant figures and as a result small discrepancies may occur due to the effect of rounding. Estimate calculated at a 0.1% V2O5 cut-off.

Ore Reserve

The Probable Ore Reserve estimated as part of the DFS is based on, and inclusive of, the above stated Mineral Resources. The Ore Reserve is classified as a Probable Reserve and constitutes around 30% of the Measured and Indicated Mineral Resource, limited only by price forecasts provided be TNG’s external consultants.

The forecasts go out to the year 2025 and the resultant Probable Reserve encompasses the first eight years of the planned mine life.

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Table 2. The maiden Mount Peake Probable Ore Reserve estimate.

Category	Tonnes (Mt)	**V2O5% **	**TiO2% **	Fe%
Proven	0	-	-	-
Probable	41.1	0.42	7.99	28.0
TOTAL	41.1	0.42	7.99	28.0

Note: Tonnage and grade figures in tables have been rounded to 2 or 3 significant figures and as a result small discrepancies may occur due to the effect of rounding. Estimate calculated at 15% Fe cut-off grade

Planned Mining and Mining Inventory

Under the DFS the planned mine is based on a total mining inventory of 78Mt at an average grade of V2O5 0.38%, TiO2 7.04%, and Fe 27.1%. The mining inventory includes all life-of-mine material within the planned pit shell, and is inclusive of both the Probable Ore Reserve material and the material to be mined during years 9 to 17. The inventory for mining in years 9-17 is not included in the Ore Reserve due to product pricing estimates not being available.

The mining inventory is defined by a pit shell produced by a Lerchs Grossman optimisation for mine planning purposes, detailed in Appendix One, and the Reserve constitutes around 53% of this mining inventory. The Mineral Resource has been promulgated on a 0.1% V2O5 cut-off and the Ore Reserve on a 15% Fe cut-off. An iron cut-off, rather than a vanadium cut-off has been applied for procedural simplicity in the mine planning process and does not materially affect the Resource estimate, as the iron cut-off encompasses all material above a 0.1% vanadium cut-off.

The total mining inventory assumed under the DFS represents a 65% conversion of the 2013 Measured Resource, but with a significant increase in grade (from 0.28% to 0.42% V2O5). The large size of the orebody (ca. 2000m x 350m x 100m) and gradual grade boundaries allows a low 2% dilution factor to be applied, with ore loss being correspondingly low.

The mining inventory of 78Mt is derived from the Probable Ore Reserve (41Mt), the Measured Resource (27Mt) and the Indicated Resource (10Mt).

87% of the Probable Ore Reserve is derived from Measured Resource (36Mt), and 13% Indicated Resource (5Mt), with no Inferred Resource material included in the Probable Ore Reserve.

The Strip ratio is 0.9. Following a pre-strip, the principal mining method will be an open pit with conventional drill and blast and load and haul with excavators and large mining equipment. Ore and waste will be trucked to the concentrator and waste dump respectively.

The mining schedule has been designed to initially fill the plant and maintain a consistent blend of mined material. Consequently, the majority of the capital development is scheduled to occur in the first 24 months.

Geotechnical and Groundwater Studies

Geotechnical testwork shows the enclosing rock to be geotechnically competent allowing relatively steep pit wall angles. Groundwater exploration, pump testing and modelling simulations have been completed around the Mount Peake deposit. Results indicate that no significant dewatering of the mine environment will be required during mine development.

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Mine Site Concentrator

An extensive metallurgical testwork program involving a number of laboratories and the CSIRO (Perth) has been performed for the DFS.

The testwork results show that the ore is amenable to the production of a high specification magnetite concentrate Refinery feed stock via crushing, grinding and conventional magnetic separation.

A detailed mine site beneficiation flow sheet and layout has been developed utilising conventional crushing and HPGR grinding process with a primary crusher fed by a dedicated front end loader from stockpiles.

Other Infrastructure and Logistics

Power for onsite production and facilities is expected to be generated from an on-site gas-fired power station provided by a specialist power generation contractor. Gas is expected to be sourced from the Amadeus Gas Pipeline located 20km from the proposed mine site.

A 103km long road will provide access between the Mount Peake mine site and the rail siding, and includes an underpass on the Stuart Highway crossing (for concentrate trucks) and intersections with the Stuart Highway (for mine site access).

The road has been designed in accordance with Austroads Guide to Road Design and is suitable for concentrate and other trucks in a road train configuration of up to 50m in length.

New rail sidings, spur lines and associated signalling infrastructure will be built for both the mine and Darwin Refinery sites.

A 350 person construction village will be built, to be replaced by a 170 person operations accommodation facility.

The project is expected to use the existing Ti Tree airstrip, 70km from the mine site. This 1.6km long bitumen airstrip is available, and able to accommodate jet aircraft such as the Fokker F100 or BAE146. Negotiations with the Northern Territory Government on this facility are in progress and the upgrade of the current airstrip is anticipated to be covered by the Federal Government’s Development Fund for Northern Australia.

TIVAN® Refinery, Metallurgy, and Associated Infrastructure

An extensive metallurgical testwork program for the development of the TIVAN® Refinery has been in progress since 2009, involving multiple flow sheets. For the DFS an industry standard pilot plant was constructed at the CSIRO (Perth) with leaching and continuous solvent extraction conducted to simulate scale-up to commercial design (see ASX Announcement - 8 July 2015).

The TIVAN® Refinery processing plant for the purposes of the DFS is proposed to be located in Darwin at a site approximately 10km from the Darwin Port. A suitable industrially zoned land site has been identified and reserved, while negotiations on the lease of the land are advanced with the Northern Territory Government. Darwin provides the necessary established infrastructure such as gas supply, power, water, a stable workforce and close access to a port.

The TIVAN® Refinery will have a design feed capacity of 900,000 tonnes of magnetite concentrate per year and is proposed to expand to a maximum capacity of 1,800,000 tonnes in production year 5. The TIVAN® Refinery consists of feed preparation, leaching, solvent extraction and acid regeneration. The Refinery will produce vanadium pentoxide, pigment grade titanium dioxide and pig iron. A detailed flow sheet and plant design have been completed with the site layout in progress. The plant layout has been designed with expansion capability should throughput be increased.

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Mount Peake Final Products:

During the detailed 24-month DFS and TIVAN® testwork, the challenging commodity markets were constantly addressed. As a result the Company focussed on producing final products that had historically solid demand in readily available and growing markets, in addition to transparent pricing in order to demonstrate a significantly de-risked and robust project for financing. In the DFS it is assumed the following are for production:

Vanadium Pentoxide

It is planned that the Company will produce a high purity vanadium pentoxide (V205) via the 100% owned TIVAN® Process, providing an enhanced vanadium product available for different end-user markets and able to capture a premium price. This will be of a purity that can be used in both the ferro-vanadium and emerging Vanadium Redox battery market sectors. At maximum production TNG would supply approximately 8% of current global demand. Prices for V2O5 are at relative historic lows but are forecast to increase over the next few years as supply/demand tightens.

Pigment grade Titanium Dioxide

The Company will produce a high quality titanium dioxide (TiO2) concentrate via the TIVAN® Process. This will then be further refined on site to pigment grade (>95% TiO2purity), through an industry standard chloride process, providing an important high-value titanium product rather than a medium-grade product as was previously considered in the PFS.

Pigment grade titanium dioxide from a chloride process is in high demand and used extensively in chemical and high technology industry for a vast range of industrial and consumer goods. At maximum projected production TNG would supply approximately 2% of current global demand. It currently sells for approximately US$3000/tonne, compared to the US$400/tonne assumed in the PFS.

Pig-Iron

The Company will produce a high purity iron oxide (Fe2O3) via the acid regeneration process of the TIVAN® Refinery. In a reaction to the changed market conditions and outlook for iron oxide, the Company has taken advice from its metallurgical partners and decided to opt for a well-recognised, industry standard, iron product that has a guaranteed market and strong price. Pig-Iron is an intermediate iron product that is cast into ingot “pigs” and used in integrated steel mills and the metal casting industry and currently sells for approximately US$300/tonne. TNG’s projected production would represent 0.05% of the current global production of pig iron.

TIVAN® Refinery and the Acid Regeneration Plant (ARP)

The ARP is an integral part of the Refinery. For the DFS the ARP will fall under a Build-Own-Operate-Transfer (BOOT) model. As this plant serves an internal purpose (acid recycling) and does not produce any of the final products, the Company considers it is prudent and commercially sensible to outsource it.

It is important to note that the TIVAN® Refinery is expected to be designed for an operational life of approximately 40 years and will therefore be expected to run longer than the current life-of-mine for the Mount Peake project.

Drilling results have indicated the potential to find additional ore in the Mount Peake area, where other vanadium and titanium bearing magnetite-bearing intrusives have already been identified (see ASX Announcement – 15 April 2014). The location of the TIVAN® Refinery near Darwin Port also allows the potential for other concentrates to be shipped to the Refinery for processing.

The potential for the additional long-life revenue streams from the Refinery have not been incorporated into the DFS.

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Capital Expenditure

The DFS assumes an overall Capital Expenditure (Capex) cost for Stage One of AUD $970 million, which includes an EPCM charge of 8% and 5% contingency. This figure includes all infrastructure, access/haul roads, mining, rail works, camp, water supply, concentrator, tailing dam, and the Darwin Refinery and port handling costs.

Table 3: Capital cost summary

Capital Expenditure	Stage 1 $AUD Million	Stage 2 $AUD Million
*Total Mining and Infrastructure Capex	$208	$67.1
**Total Refinery Capex	$647	$631
TOTAL CAPEX	$856	$698
EPCM(8%)	$68.4	$55.9
CONTINGENCY(5%)	$46.2	$37.7
TOTAL	$970	$792

*Includes: Camp, roads and rail infrastructure, water supply, concentrator and tailings facility.

**Includes: TIVAN refinery, Pig Iron and Titanium plants and port handling facilities.

Stage Two is planned to occur in years 4-5, where mine production is projected to increase from 3Mtpa to 6Mtpa, and the capacity of both the concentrator and Refinery double. It is assumed that Stage 2 Capex costs of AUD $793 million are to be paid out of operating revenue.

Operating Costs

Overall Operating Expenditure (Opex) costs have been estimated based on life-of-mine tonnage and grade information, processing costs for the beneficiation plant, Refinery costs, output tonnages, and sales revenues, with an overall assumed Opex of $167/tonne of ore mined.

Commodity Pricing

Independent pricing forecasts for each commodity were commissioned by TNG. These included forecasts for vanadium (supplied by Roskills, London), titanium dioxide (supplied by Roskills, London) and pig iron (supplied by commodity traders, Shanghai). Mount Peake is planned to commence production at a time when vanadium prices are forecast to have recovered from recent price lows, while titanium pigment and pig iron prices are expected to remain strong.

Forward estimate “Real” and “Nominal” prices for all commodities were provided by the consultants and are commercial in confidence. The methodology used by the consultants in the commodity forecasts was based on the following: Current market reviews of suppliers, consumers, reviews of global consumption, new markets, trends, Strengths Weaknesses Opportunities Threats (SWOT) analysis, historical and future trends of supply and demand in “Real” and “Nominal” prices. Only “real” pricing was used for all commodities in the DFS.

Exchange Rate

A USD exchange rate of 0.75 AUD based on RBA estimates was used in the DFS.

Commodity Off-take

At full production, the TIVAN® Refinery is expected to produce an average of 17,560tpa of V2O5, 236,000tpa TiO2 pigment and 637,000tpa of pig iron.

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TNG has shortlisted, and is continuing to progress advanced negotiations with major global tier one companies as potential off-take customers. It has secured initial agreements for all commodities, and a Binding Term sheet for vanadium pentoxide Offtake. Binding Offtake Agreements are in negotiation and expected to be completed this quarter.

Development Schedule

After the final Native Title Agreement is signed by TNG and the Traditional Owners, TNG expects a recommendation to be made by the NT Department of Mines and Energy with regards to the granting of the Mount Peake Mining Leases (ML28341, ML29855, ML29856, and ML30686). This is expected to take one month from the finalisation of the Native Title Agreement.

The Environmental Impact Statement (EIS) is well advanced and expected to be submitted shortly. No issues are currently anticipated from any of the above approvals and processes.

Subject to all regulatory approvals, permitting and receipt of financing, initial site works are expected to commence early in 2016 and will comprise concurrent construction of the accommodation village, the access road and commencement of clearing of the open cut through the overlying sand cover to enable the establishment of the first areas for mining.

The Mount Peake project proposed implementation schedule is dictated by the development of the TIVAN® Refinery. It is planned that first ore is expected to be extracted in Q1 2018, with initial ore stored on a run of mine (ROM) stockpile.

The process plant will commence processing when the ROM stockpile contains sufficient ore feed, which in the DFS assumes will occur in Q1 2018.

First concentrate production is expected to be sent to the TIVAN® Refinery in Q1 2018 and the first vanadium pentoxide, titanium pigment and pig-iron shipment is expected to occur in Q2 2018.

Satisfactory financing, final development approvals, signing of the final Native Title Agreement, the grant of the Mining Leases and a number of other environmental and other regulatory approvals and permits will be required before mine development and production can commence. The proposed schedule described above is subject to satisfying those requirements.

Next Steps

Financing and offtake discussions have progressed significantly and it is possible that these will be finalised prior to receipt of all necessary statutory approvals.

While the Company’s immediate focus is on the permitting and development of the Mount Peake mine, it is also well placed to continue with developing its extensive asset portfolio to build TNG into a premier mining group.

Following recent discussions with Australian, European, Korean and Chinese Engineering Procurement and Construction (EPC) companies, TNG will now give immediate consideration to identifying potentially suitable partners for development of the project.

Paul E Burton

Managing Director

31 July 2015

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Inquiries:

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

Competent Person Statements

The information in this report that relates to the Ore Reserves (Mining) for the Mount Peake project is based on and fairly represents, information and supporting documentation compiled by Jeremy Peters who is a Fellow and Chartered Professional Mining Engineer and Geologist 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 2012 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.

The information in this report that relates to the Ore Reserves (Processing and Metallurgy) for the Mount Peake project is based on and fairly represents, information and supporting documentation compiled by Damian Connelly who is a Fellow, CP (Met) of The Australasian Institute of Mining and Metallurgy and a full time employee of METS. Damian Connelly 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Damian Connelly 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 the Ore Reserves (Processing) for the Mount Peake project is based on and fairly represents, information and supporting documentation compiled by Alisdair Finnie who is a Member of The Australasian Institute of Mining and Metallurgy and a full time employee of Como Engineers. Alisdair Finnie 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Alisdair Finnie consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

About TNG

TNG is building a world-scale strategic metals business based on its flagship 100%-owned Mount Peake Vanadium-TitaniumIron Project in the Northern Territory. Located 235km north of Alice Springs, Mount Peake will be a 20-year plus project producing a suite of high-quality, high-purity strategic metals products for global markets including vanadium pentoxide, iron oxide and titanium dioxide. The project, which will be a top-10 global producer, has received Major Project Facilitation status from the NT Government.

The Mount Peake Feasibility Study is well advanced and due for completion by mid-2015, paving the way for project financing and development to proceed. An integral part of TNG’s emerging strategic metals business its 100% ownership of the unique and patented TIVAN® hydrometallurgical process, which offers significantly lower capital and operating costs, lowers risk and successfully extracts two other valuable metals from the resource in addition to vanadium – titanium dioxide and high-purity iron oxide.

Vanadium is a highly strategic metal which is used as an alloy in steel. It is also in strong demand for use in energy storage, with vanadium redox batteries used to store electricity generated by solar and wind power, and lithium-vanadium ion batteries used to power hybrid cars.

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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.

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Appendix One

The following section is provided to comply with the JORC (2012) requirements for the reporting of

Ore Reserves for the Mount Peake V-Ti-Fe deposit on mining tenement ELR29627/MLA28341.

Section 1 Sampling Techniques and Data

Criteria	Criteria	JORC Code explanation	Commentary
Sampling techniques		 Nature and quality of sampling (eg cut channels, random chips, or specific	A total of 102 reverse circulation (RC) and 25 diamond (DD) drillholes were drilled for 13,037
		specialised industry standard measurement	m and 3,819.6 m respectively. Holes were
		tools appropriate to the minerals under	drilled on a nominal 50 m by 100 m grid
		investigation, such as down hole gamma	spacing.
		sondes, or handheld XRF instruments, etc). These examples should not be taken as	RC drillholes were sampled at 1 m intervals and each sample interval was passed through
		limiting the broad meaning of sampling.	a cyclone and rotary splitter resulting in a 2 to
		 Include reference to measures taken to	5 kg sample which was submitted for analysis.
		ensure sample representivity and the	Rock chips were obtained by sieving a large
		appropriate calibration of any measurement	scoop of sample from each bag. Washed chips
		tools or systems used.	were placed into an appropriately labelled chip
		 Aspects of the determination of mineralisation that are Material to the Public Report.  In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In	tray. Magnetic susceptibility was measured using a model KT-10 portable magnetic susceptibility metre. Individual measurements were taken at 1 m intervals. Samples requiring analysis were selected by the logging geologist based on magnetic susceptibility readings and the geology.
		other cases more explanation may be	Diamond core was PQ size and sampled at 1 m
		required, such as where there is coarse gold	intervals. Core was cut in half and to provide 1
		that has inherent sampling problems.	to 4 Kg samples which were crushed and split
		Unusual commodities or mineralisation types	out to provide a sub sample for analysis.
		(eg submarine nodules) may warrant
		disclosure of detailed information.
Drilling techniques		 Drill type (eg core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter,	RC drill holes range in depth from 35 m to 222 m and DD drill holes range in depth from 65 m to 405.8 m.
		triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	No downhole surveys have been completed on vertical holes. Downhole surveys were taken in angled RC and DD drillholes every 30 or 50 m using a Reflex survey instrument.
Drill sample recovery		 Method of recording and assessing core and chip sample recoveries and results assessed.	Diamond core recoveries were logged and average 99%. There are no core loss or
		 Measures taken to maximise sample	sample recovery issues.
		recovery and ensure representative nature of the samples.  Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to	The broad and consistent style of mineralisation and competent core with high recoveries are considered to preclude any issues with sample bias due to material loss or gain.
		preferential loss/gain of fine/coarse material.
Logging		 Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and	Geological logging was carried out on RC samples and colour, grain size, lithology, alteration and magnetic susceptibility was recorded.
		metallurgical studies.  Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.  The total length andpercentage of the	Geological and structural logging was carried out on diamond core and lithology, alteration and magnetic susceptibility was recorded. All drilled intervals were logged in full.

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Criteria			JORC Code explanation	Commentary
			relevant intersections logged.	Diamond core was photographed (wet and dry).
Sub-sampling techniques			 If core, whether cut or sawn and whether quarter, half or all core taken.	Core was cut in half on site using a industry standard core saw.
and sample preparation			 If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.	RC samples were collected at the rig after being passed through a cyclone and rotary splitter. RC samples were delivered to ALS preparation facility in Alice Springs for crushing and pulverising. Pulps were then sent to ALS Perth for analysis. The sampling for both RC and diamond drilling
			 Measures taken to ensure that the sampling is representative of the in situ material	samples follows industry best practise in collection and preparation.
			collected, including for instance results for	Field duplicates were collected every 20 m.
			field duplicate/second-half sampling.	Samples from diamond drillholes were assayed
			 Whether sample sizes are appropriate to the	by XRF at ALS Metallurgy in Balcatta, Perth
			grain size of the material being sampled.	and samples from reverse circulation holes
				were assayed by XRF at ALS Minerals in
				Malaga, Perth. 32 samples assayed at ALS
				Metallurgy were also assayed at ALS Minerals.
				10 standards were submitted for analysis for
				the diamond core. No standards were
				submitted for the RC program.
				Sample sizes are considered appropriate.
Quality assay	of data		 The nature, quality and appropriateness of the assaying and laboratory procedures used	RC and DD samples were assayed using the method ME-XRF21n.
and laboratory tests			and whether the technique is considered partial or total.  For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.  Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and	Magnetic susceptibility was measured using a model KT-10 portable magnetic susceptibility metre. Individual measurements were taken every metre. A portable XRF was then used to further identify the ore zone. No pXRF values have been used in the drilling database or Resource calculation. Analysis of the field duplicates suggest that good precision is being achieved. Analysis of standards indicated that analytical accuracy of the results is reasonable.
			precision have been established.
Verification of sampling and assaying			 The verification of significant intersections by either independent or alternative company personnel.	Logging of resource RC and Diamond drilling by company geologists was confirmed by TNG’s Exploration Manager. Snowden has
			 The use of twinned holes.	visually inspected the diamond core.
			 Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.  Discuss any adjustment to assay data.	There have been no twinned holes drilled at Mount Peake. The core and RC chips were logged onto paper A3 logging sheets then information transferred
				to Excel spreadsheets using standard
				templates and lookup codes.
				No adjustments or calibrations have been
				applied to any assay data used for the Mineral
				Resource estimate.
Location data points		of	 Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource	Collar coordinates are GPS accuracy (±3m). RL coordinates have been determined by projecting holes vertically onto the topography DTM. Coordinates are on MGA GDA94grid in

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Criteria		JORC Code explanation	Commentary
		estimation.	Zone 53. Local coordinates are quoted in GDA
		 Specification of the grid system used.	Zone 53.
		 Quality and adequacy of topographic control.	Downhole surveys were taken in angled RC
			and DD drillholes every 30/50 m using a reflex
			magnetic survey instrument.
			The topographic surface over the Resource
			area is derived from WorldView 1m contour
			imagery.
Data spacing and distribution		 Data spacing for reporting of Exploration Results.  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.  Whether sample compositing has been applied.	Nominal drillhole spacing is 50 m by 100 m, with several sections at 25m by 100m spacing. The drillhole spacing is sufficient to demonstrate geological and grade continuity appropriate for the Mineral Resource and classifications applied. Samples have been composited to 1m downhole, with the composite lengths adjusted to include all intervals and avoid the loss of residual samples.
Orientation data relation geological structure	of in to	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.  If the relationship between the drilling	Drillholes have been drilled predominantly perpendicular to the mineralised domains. All holes were either vertical or angled at 60 degrees to the horizontal, and the deposit is essentially flat-lying.
		orientation and the orientation of key
		mineralised structures is considered to have
		introduced a sampling bias, this should be
		assessed and reported if material.
Sample security		 The measures taken to ensure sample security.	RC samples were collected from the drill site and delivered to the ALS preparation facility in
			Alice Springs.
			Diamond core was initially stored on site then
			dispatched to the Perth METS laboratory.
Audits	or	 The results of any audits or reviews of	Snowden has validated the database and
reviews		sampling techniques and data.	reviewed the sampling protocols and core
			photography for the drilling. Snowden
			considers that the sampling techniques are
			appropriate for this style of mineralisation.

Section 2 Reporting of Exploration Results

Criteria	**JORC Code explanation **	Commentary
Mineral tenement	Type, reference name/number, location and	The Mount Peake Project comprises eleven
and land tenure	ownership including agreements or material	tenements, including ELs and MLAs. The
status	issues with third parties such as joint ventures,	resource is located on ELR 29627, and also
	partnerships, overriding royalties, native title	falls on the Mining Lease Application MLA
	interests, historical sites, wilderness or national	28341, both held by Enigma Mining Limited, a
	park and environmental settings.	wholly owned subsidiary of TNG Limited.
	The security of the tenure held at the time of	The tenements are in good standing with no
	reporting along with any known impediments to	know impediments.
	_obtaining a licence to operate inthe area. _
Exploration done	Acknowledgment and appraisal of exploration	TNG has been exploring the Mount Peake
by other parties	_by other parties. _	resource areaforover6 years
Geology	Deposit type, geological setting and style of	The orebody is hosted by a magnetite gabbro
	mineralisation.	intrusive unit which intrudes Neoproterozoic
		Georgina Basin sediments. This gabbro is
		bound to thewest by afault and granite, andis

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		open to the east, north and south. The main
		resource area is a thick (>100 metres true
		thickness) and broad trough-shaped
		north/south orientated elongate zone –
		essentially all of the magnetite-bearing
		intrusive phase. The gabbro is nearly flat lying
		and has undergone minimal alteration and
		structural deformation since emplacement.
		Primary igneous mineralogy and texture is well
		preserved, while only a small proportion of the
		resource has undergone alteration due to
		weathering (generally to less than 35 metres
		belowsurface.
Drill hole	A summary of all information material to the	No new exploration results are announced with
Information	understanding of the exploration results	this report.
	including a tabulation of the following	Information on the drilling of the resource is
	information for all Material drill holes:	contained in ASX Announcement 26 March
	o Easting and northing of the drill collar	2013.
	o Elevation of RL (Reduced Level –
	elevation above sea level in metres) of
	the drill collar
	o Dip and azimuth of the hole
	o Down hole length and interception
	depth
	o _Hole length _
Data aggregation	In reporting Exploration Results, weighting	No new exploration results are announced with
methods	averaging techniques, maximum and/or	this report.
	minimum grade truncations (eg cutting of high
	grades) and cut-off grades are usually Material
	and should be stated.
	Where aggregate intercepts incorporate short
	lengths of high grade results and longer
	lengths of low grade results, the procedure
	used for such aggregation should be stated
	and some typical examples of such
	aggregations should be shown in detail.
	The assumptions used for any reporting of
	metal equivalent values should be clearly
	_stated. _
Relationship	These relationships are particularly important	No new exploration results are announced with
between	in the reporting of Exploration Results.	this report.
mineralisation	If the geometry of the mineralisation with
widths and	respect to the drill hole angle is known, its
intercept lengths	nature should be reported.
	If it is not known and only the down hole
	lengths are reported, there should be a clear
	statement to this effect (eg ‘down hole length,
	_true width not known’). _
Diagrams	Appropriate maps and sections (with scales)	The location of the Mount Peake Resource is
	and tabulations of intercepts should be	shown on Figure 1.
	included for any significant discovery being	No new exploration results are announced with
	reported These should include, but not be	this report.
	limited to a plan view of drill hole collar
	_locations and appropriate sectional views. _
Balanced	Where comprehensive reporting of all	No new exploration results are announced with
reporting	Exploration Results is not practicable,	this report.
	representative reporting of both low and high
	grades and/or widths should be practiced to
	avoid misleading reporting of Exploration
	Results.
Other substantive	Other exploration data, if meaningful and	Nonewexploration results are announcedwith

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exploration data	material, should be reported including (but not	this report.
	limited to): geological observations;
	geophysical survey results; geochemical
	survey results; bulk samples – size and
	method of treatment; metallurgical test results;
	bulk density, groundwater, geotechnical and
	rock characteristics; potential deleterious or
	_contaminating substances. _
Further work	The nature and scale of planned further work	No new exploration results are announced with
	(eg tests for lateral extensions or depth	this report.
	extensions or large-scale step-out drilling).
	Diagrams clearly highlighting the areas of
	possible extensions, including the main
	geological interpretations and future drilling
	areas, provided this information is not
	_commercially sensitive. _

Section 3 Estimation and Reporting of Mineral Resources

Criteria	JORC Code explanation	Commentary
Database integrity	 Measures taken to ensure that data has not been corrupted by, for example, transcription	Snowden carried out the following basic validation checks on the data supplied by TNG
	or keying errors, between its initial collection	prior to resource estimation:
	and its use for Mineral Resource estimation
	purposes.	 Drillholes with overlapping sample intervals.
	 Data validation procedures used.	 Sample intervals with no assay data.
		 Duplicate records.
		 Assay grade ranges.
		 Collar coordinate ranges.
		 Valid hole orientation data.
		 There are no significant issues with the data.
Site visits	 Comment on any site visits undertaken by the	Jeremy Peters (Snowden) visited the site in
	Competent Person and the outcome of those	April 2015..
	visits.
	 If no site visits have been undertaken indicate
	why this is the case.
Geological	 Confidence in (or conversely, the uncertainty	The interpretations for structural and
interpretation	of ) the geological interpretation of the mineral	lithological surfaces have been compiled by
	deposit.	Snowden using the drillhole database supplied
	 Nature of the data used and of any	by TNG. The interpretations for the
	assumptions made.	mineralisation envelope and domains based on
	 The effect, if any, of alternative interpretations	V2O5grade cut-offs of 0.1% for low grade and
	on Mineral Resource estimation.	0.3% for high grade were also updated by
	 The use of geology in guiding and controlling Mineral Resource estimation.	Snowden. The topography used was provided by TNG in 2010 and has not changed.
	 The factors affecting continuity both of grade and geology.	Confidence in the geological interpretation of the mineral deposit is considered to be good.
Dimensions	 The extent and variability of the Mineral	The deposit covers an area of approximately 2
	Resource expressed as length (along strike or	km north-south by approximately 300 m to 500
	otherwise), plan width, and depth below	m east-west. The thickness ranges up to about
	surface to the upper and lower limits of the	140 m.
	Mineral Resource.
Estimation and modelling techniques	 The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme	Drillhole data was coded using the wireframe interpretations representing oxidation surfaces and mineralised domains. Samples were

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Criteria	JORC Code explanation						Commentary
	grade values, domaining,				interpolation		composited to 1 m downhole, with the
	parameters and maximum			distance		of	composite lengths adjusted to include all
	extrapolation from data points.			If	a computer		intervals and avoid the loss of residual
	assisted estimation method			was chosen			samples.
	include a description of computer software						Statistical analysis of the domains indicates
	and parameters used.						that there are no extreme outliers and therefore
	 The availability of check estimates, previous						no top cut was applied.
	estimates and/or mine production				records	and	Normal scores variograms were modelled for
	whether the Mineral Resource estimate takes						each of the mineralised domains and were
	appropriate account of such data.						back-transformed prior to estimation.
	 The assumptions made regarding recovery of						Datamine software was used to estimate
	by-products.  Estimation of deleterious elements or other non-grade variables of economic significance						grades for V2O5, TiO2, Fe, SiO2and Al2O3 using ordinary block kriging into 25 mE by 50 mN by 5 mRL parent cell with sub-celling to 5
	(eg sulphur for acid	mine drainage					m by 5 m by 1.25 m. A block discretisation of 5
	characterisation).						by 5 by 5 was used in the easting, northing and
	 In the case of block model	interpolation,				the	elevation directions respectively.
	block size in relation to the	average sample					Mineralised zone boundaries were treated as
	spacing and the search employed.						hard boundaries for estimation.
	 Any assumptions behind modelling of selective mining units.  Any assumptions about correlation between variables.  Description of how the geological						The orientation of the search ellipses was derived from the variogram orientations. The initial search pass used ranges equivalent to the ranges of continuity seen in the variograms at around 60% of the variance. Blocks were
	interpretation was used resource estimates.	to			control	the	estimated using a minimum of 6 and a maximum of 30 samples as determined by a
	 Discussion of basis for using			or not using			kriging neighbourhood analysis (KNA) that was
	grade cutting or capping.						carried out for the October 2011 estimate. If
	 The process of validation,		the checking				the initial search failed to find the minimum
	process used, the comparison		of		model data		number of samples required, then a second
	to drill hole data, and use	of		reconciliation			search was conducted using double the search
	data if available.						radii. A third search using quadruple the initial
							search radii with the minimum number of
							samples reduced to 2 was used to populate all
							remaining un-informed blocks. The maximum
							number of samples allowed from a single
							drillhole was restricted to 6.
							The estimates were validated using:
							 A visual comparison of the block grade
							estimates to the input drillhole
							composite data shows a good
							correlation
							 Generation of moving window average
							plots of the block grade estimates,
							declustered (nearest neighbour
							method) composites and naïve
							composite grades, along with the
							number of composite samples
							available. These grade trend plots
							show a good correlation between the
							local patterns in the block grade
							estimates compared with the drillhole
							composite grades in the well informed
							parts of the deposit.
							 A global comparison of the estimated
							block grades to the average composite
							(naïve) grades for all elements within
							the mineralised domains shows that
							both sets of results are within 6%.

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Criteria	Criteria		JORC Code explanation	Commentary
				The Mount Peake Resource was previously
				estimated by Snowden in October 2011. A
				comparison between the October 2011 estimate
				and the March 2013 estimate shows that the
				Indicated Resource has been upgraded to
				Measured and part of the Inferred Resource has
				been upgraded to Indicated. There has been no
				change in the total tonnage.
Moisture			 Whether the tonnages are estimated on a dry	Not applicable to this estimate – only dry mass
			basis or with natural moisture, and the	considered.
			method of determination of the moisture
			content.
Cut-off			 The basis of the adopted cut-off grade(s) or	Mineral Resource reported at a 0.1% V2O5
parameters			quality parameters applied.	grade cut-off. This threshold was determined by
				a combination of statistical analysis (log
				probability plots and grade-tonnage curve) as
				well as corresponding to the visual (from
				geological logging) drop in magnetite abundance
				from above 10% to below five volume percent in
				the rock. The economic cut-off was considered
				in the Prefeasibility Study conducted in 2012
				and was again chosen as 0.1% V2O5in the
				updated Mineral Resource made in 2013..
Mining factors			 Assumptions made regarding possible mining	The resource is less than 200 metres below
or			methods, minimum mining dimensions and	surface and mining is therefore assumed to be
assumptions			internal (or, if applicable, external) mining	by open cut methods.
			dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral	The deposit was the subject of a Prefeasibility Study (PFS) in 2012 which considered mining, metallurgical and economic factors. These assumptions were used for the 2013 Mineral Resource calculation.
			Resources may not always be rigorous.	Consideration of economic factors and mining
			Where this is the case, this should be	assumptions is made for the Ore Reserve
			reported with an explanation of the basis of	(considered below).,
			the mining assumptions made.
Metallurgical			 The basis for assumptions or predictions	For the Mineral Resource it was assumed that
factors		or	regarding metallurgical amenability. It is	material above a cut-off of 0.1% V2O5is
assumptions			always necessary as part of the process of	potentially economically recoverable. This
			determining reasonable prospects for	threshold was determined from a combination of
			eventual economic extraction to consider	statistical analysis and geological logging.
			potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions	This has been supported by extensive processing and metallurgical testwork on some 25 tonnes of diamond drill core material selected with geological, engineering, and metallurgical input and tested at independent metallurgical laboratories.
			made.
Environmenta			 Assumptions made regarding possible waste	TNG has completed all baseline environmental
l	factors	or	and process residue disposal options. It is	studies and is in the process of gaining all
assumptions			always necessary as part of the process of	required environmental approvals to allow the
			determining reasonable prospects for	mining and processing operations to proceed. It
			eventual economic extraction to consider the	is assumed that these will be gained in due
			potential environmental impacts of the mining	course as no significant issues have been
			and processing operation. While at this stage	identified.
			the determination of potential environmental impacts, particularly for agreenfieldsproject,	The waste dump is to be sited immediately west

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Criteria	JORC Code explanation		Commentary
	may not always be well advanced, the status		of the pit and will accumulate 58Mt over the life
	of early consideration of these potential		of the mine. Studies confirm it will not be acid
	environmental impacts should be reported.		generating. It will be low profile, dust will be
	Where these aspects have	not been	managed and monitored, and rehabilitation will
	considered this should be reported with an		occur progressively.
	explanation of the environmental assumptions made.		Some 55Mt of benign non-acid forming tailings will be generated from the magnetic separation
			of the crushed ore. This silt and sand sized non-
			magnetic material will be stored in a 1km radius
			tailings storage facility (TSF), which has been
			designed to National standards.
Bulk density	 Whether assumed or determined. If assumed, the basis for the assumptions. If determined,		Bulk density is set to 2.51 t/m~~3~~for oxide material, 3.32 t/m3for transitional material and 3.40 t/m3
	the method used, whether wet or dry, the		for fresh material based on measurements from
	frequency of the measurements,	the nature,	diamond core.
	size and representativeness of the	samples.
	 The bulk density for bulk material	must have
	been measured by methods that	adequately
	account for void spaces (vugs, porosity, etc),
	moisture and differences between rock and
	alteration zones within the deposit.
	 Discuss assumptions for bulk density
	estimates used in the evaluation	process of
	the different materials.
Classification	 The basis for the classification of	the Mineral	The estimate has been classified as a
	Resources into varying	confidence	Measured, Indicated and Inferred Mineral
	categories.		Resource based on the integrity of the data, the
	 Whether appropriate account has	been taken	spatial continuity of the mineralisation as
	of all relevant factors (ie relative confidence in		demonstrated by variography, and the quality of
	tonnage/grade estimations, reliability of input		the estimation.
	data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).		The following criteria were used to classify Measured Resources:
	 Whether the result appropriately	reflects the	 Drill spacing 50 m by 100 m or
	Competent Person’s view of the deposit.		closer and
			 grades estimated in the first search
			pass (60 % of the variogram range)
			and
			 blocks estimated using a minimum of 6
			samples.
			The following criteria were used to classify
			Indicated Resources:
			 Drill spacing 100 m by 100 m or
			closer and
			 grades estimated in the first or second
			search pass and
			 blocks estimated using a minimum of 6
			samples.
			In order to maintain continuity, some blocks
			falling outside the constraints listed above were
			included.
			The remainder has been classified as an
			Inferred Resource.
			The Mineral Resource estimate appropriately
			reflects the views of the Competent Person with

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Criteria		JORC Code explanation	Commentary
			respect to the deposit.
Audits	or	 The results of any audits or reviews of Mineral	Snowden has completed an internal peer review
reviews		Resource estimates.	of the estimate which has concluded that the
			procedures used to estimate and classify the
			Mineral Resource are appropriate.
Discussion	of	 Where appropriate a statement of the relative	The relative accuracy and confidence in the
relative		accuracy and confidence level in the Mineral	Mineral Resource estimate is reflected in the
accuracy/		Resource estimate using an approach or	reporting of the Mineral Resource as set out in
confidence		procedure deemed appropriate by the	the JORC code (2012 Edition).
		Competent Person. For example, the
		application of statistical or geostatistical
		procedures to quantify the relative accuracy
		of the resource within stated confidence
		limits, or, if such an approach is not deemed
		appropriate, a qualitative discussion of the
		factors that could affect the relative accuracy
		and confidence of the estimate.
		 The statement should specify whether it
		relates to global or local estimates, and, if
		local, state the relevant tonnages, which
		should be relevant to technical and economic
		evaluation. Documentation should include
		assumptions made and the procedures used.
		 These statements of relative accuracy and
		confidence of the estimate should be
		compared with production data, where
		available.

Section 4 Estimation and Reporting of Ore Reserves

Criteria		JORC Code explanation	Commentary
Mineral		 Description of the Mineral Resource estimate	Data collection and geological interpretations
Resource		used as a basis for the conversion to an Ore	supporting the resource estimate were completed by
estimate	for	Reserve.	TNG.
conversion	to	 Clear statement as to whether the Mineral	Resource model wire-frames, resource block models
Ore Reserves		Resources are reported additional to, or	and Mineral Resource estimation were completed by
		inclusive of, the Ore Reserves.	Mr Richard Sulway of Snowden.
			Mineral Resource estimates based on a cut-off of
			0.1 % V2O5.
			Mineral Resource estimates are inclusive of the Ore
			Reserve estimate.
Site visits		 Comment on any site visits undertaken by the	A site visit was undertaken by Mr. Jeremy Peters in
		Competent Person and the outcome of those	April 2015.
		visits.	The Competent Person for Mining related aspects of
		 If no site visits have been undertaken indicate	the Reserve is Mr Jeremy Peters, Snowden Principal
		why this is the case.	Consultant.
Study status		 The type and level of study undertaken to	The Mount Peake project was examined to a pre-
		enable Mineral Resources to be converted to	feasibility study level in 2011. Snowden completed
		Ore Reserves.	the mining aspects of this study. A Feasibility Study
		 The Code requires that a study to at least	was completed in July 2015.
		Pre-Feasibility Study level has been	The Ore Reserves statement is based on the
		undertaken to convert Mineral Resources to	combined information from these Snowden studies.
		Ore Reserves. Such studies will have been
		carried out and will have determined a mine
		plan that is technically achievable and
		economically viable, and that material
		Modifying Factors have been considered.

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Criteria		JORC Code explanation	Commentary
Cut-off		 The basis of the cut-off grade(s) or quality	Snowden used a cut-off grade of 15% Fe to define the
parameters		parameters applied.	Ore Reserve. The cut-off grade was selected on
			project economics and encompasses all material
			included in the Resource, which was expressed at a
			0.1% V2O5cut-off .
			An iron cut-off was applied, rather than a vanadium
			cut-off for computational simplicity and efficiency. The
			cut-off grade was selected primarily based on the
			marketing criteria and project economics.
Mining factors		 The method and assumptions used as	Mining method
or assumptions		reported in the Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an	The choice and method of mining is conventional drill and blast and load and haul with an excavator and
		Ore Reserve (i.e. either by application of	large open pit mining equipment. This is considered
		appropriate factors by optimisation or by	to be appropriate for the style of mineralisation and is
		preliminary or detailed design).	applied to similar operations in the area.
		 The choice, nature and appropriateness of	Optimisation
		the selected mining method(s) and other	The method used to convert Mineral Resources to
		mining parameters including associated	Ore Reserves is pit optimisation to identify the
		design issues such as pre-strip, access, etc.	economic shell within which a design process is
		 The assumptions made regarding	applied to achieve a practical mine design.
		geotechnical parameters (eg pit slopes, stope	Measured, Indicated and Inferred Mineral Resource
		sizes, etc), grade control and pre-production	categories were used in the optimisation process.
		drilling.  The major assumptions made and Mineral Resource model used for pit and stope optimisation (if appropriate).  The mining dilution factors used.  The mining recovery factors used.	The Inferred Mineral Resource component does not materially contribute to the total Ore Reserve inventory. A geotechnical study was undertaken as part of the feasibility study, which recommended maximum slopes of 55° to 70°depending on depth from surface. This is incorporated in the pit design.
		 Any minimum mining widths used.  The manner in which Inferred Mineral	Snowden has modelled dilution and mining ore loss by regularisation of the geological model using a
		Resources are utilised in mining studies and	selective mining unit (SMU) of 6.5 m (length) by 6.5 m
		the sensitivity of the outcome to their	(width) by 5 m (depth).
		inclusion.	The cut-off grade was applied after dilution.
		 The infrastructure requirements of the selected mining methods.	Dilution has reduced the available ore inventory for consideration by approximately 2%, compared to the
			geological model.
			A 1:10 gradient and 27 m width (including safety
			windrow) is used on in-pit pit ramps.
			 A 50 m minimum mining width is applied on all
			benches except drop cuts.
			Mine plan
			No unclassified material was included in the mine
			plan.
			The total project movement (including waste and low
			grade rehandle) is 139Mt and varies from 10.4 Mtpa
			to 12.0 Mtpa.
			Ore production commences at 2.25Mtpa of plant feed
			in the 1st year of mining and ramps up to 6 Mtpa of plant feed in the 5thyear of the mine.
Metallurgical factors or		 The metallurgical process proposed and the appropriateness of that process to the style of	TNG proposes to beneficiate ore from the mine pits in the proposed on-site process plant. The beneficiated
assumptions		mineralisation.	product will then be loaded onto train for transport to
		 Whether the metallurgical process is well-	Darwin for refining.
		tested technology or novel in nature.	METS and Como Engineering managed the
		 The nature, amount and representativeness of metallurgical test work undertaken, the nature of the metallurgical domaining applied and the corresponding metallurgical recovery	metallurgical investigation and provided the infrastructure cost, processing costs, throughput and recovery estimates for the study. Snowden considers this work to have been completed and peer reviewed

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Criteria	JORC Code explanation			Commentary
	factors applied.			to an appropriate standard.
	 Any assumptions or allowances made		for	The mine will produce a magnetite concentrate.
	deleterious elements.  The existence of any bulk sample or pilot scale test work and the degree to which such samples are considered representative of the			The Darwin Refinery will produce high purity vanadium pentoxide and titanium dioxide products, together with pig iron.
	orebody as a whole.
	 For minerals that are defined by a
	specification, has the ore reserve estimation
	been based on the appropriate mineralogy to
	meet the specifications?
Environmen-	 The status of studies of potential			TNG is in the process of gaining all the required
tal	environmental impacts of the	mining	and	environmental approvals for the proposed mining and
	processing operation. Details of	waste rock		processing activities. It has been assumed that all
	characterisation and the consideration of			approvals will be gained in due course as no
	potential sites, status of design options			significant issues have been identified.
	considered and, where applicable, the status			Baseline flora, fauna, surface water, and groundwater
	of approvals for process residue waste dumps should be reported.	storage	and	studies have been completed. Impact assessments for the above, together with air quality, noise, biodiversity, heritage, and socioeconomic studies are
				ongoing and will form part of the Environmental
				Impact Statement (EIS).
				The project is a straightforward mining and
				beneficiation operation with inert non-hazardous
				waste streams and limited use of hazardous materials
				on site. Most of the potential impacts can be managed
				through appropriate design and monitoring.
				Once all studies are complete the EIS will be
				submitted to the NTEPA for assessment by the
				Territory and Commonwealth government
				departments under their respective environmental
				assessment acts.
Infrastructure	 The existence of appropriate infrastructure:			The Mount Peake project is dependent on access to
	availability of land for plant development,			or development of the following major infrastructure:
	power, water, transportation (particularly for bulk commodities), labour, accommodation;			 A rail siding on the Darwin to Alice Springs Railway Line.
	or the ease with which the infrastructure		can	 A Refinery, to be constructed in Darwin.
	be provided, or accessed.			 A beneficiation plant, tailings dam and associated
				power supply, to be constructed on site
				 An access road and Stuart Highway underpass,
				to be constructed between Mount Peake and the
				railway.
				 The major infrastructure required for the Mount
				Peake site consists of a main site access road,
				pit access ramps, ROM pad and crusher area,
				stockpile areas, product stockpiling and load out
				yard, waste dumps, weighbridge area, mine
				operations centre, borefield, power station,
				contractors’ laydown yard, explosives storage
				and camp or accommodation.
				Sufficient allocation of land has been planned and
				made available for the provision of all infrastructure,
				including site access.
Costs	 The derivation of, or assumptions made,			Cost definition
	regarding projected capital costs in the study.  The methodology used to estimate operating			Processing cost includes all costs not considered by mining: plant, road-haulage, port, general and
	costs.			administration (i.e. overheads).
	 Allowances made for the	content	of	Capital costs have been estimated by TNG’s
	deleterious elements.			consultants and included in the Mount Peake financial
	 The source of exchange rates	used in	the	model.
	_study. _			Snowdenassumes contractor mining, therefore

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Criteria	JORC Code explanation		Commentary
	 Derivation of transportation charges.		mining fleet costs are considered operating costs.
	 The basis for forecasting or source of		Capital costs
	treatment and refining charges, penalties for		Mining capital costs were developed by Snowden.
	failure to meet specification, etc.		Processing, infrastructure, rail, port and all other
	 The allowances made for royalties	payable,	capital costs were developed by TNG’s consultants.
	both Government and private.		Projected Capital costs are based on estimates
			compiled in 2015.
			Operating costs
			Mine operating costs were developed by Snowden
			and process operating costs were developed by
			TNG’s consultants.
			The mining production rates and operating costs have
			been applied from first principles and budget rates
			supplied by external contractors. The Life of Mine
			operating cost is expected to average A$3.41 / wmt
			mined (on a nominal basis).
			Non mining on-site costs have been estimated at
			$15.29/t of ore
			Off-site costs have been estimated at $261.98/t of
			concentrate.
			Operating costs include allowances for mining,
			processing, administration, rail to the Darwin and
			refining. Of these, the mining, processing and
			haulage costs are supplied by budget and first
			principle estimations.
			Where necessary all costs are converted from $US to
			$AU based on exchange rates advised by external
			market analysts.
			Exchange rates used $0.75 over the life of the mine.
			Allowances have been made for Government
			royalties payable.
Revenue factors	 The derivation of, or assumptions made regarding revenue factors including head		TNG provided Snowden with forecast sales prices supplied by external forecasting analysts: Roskills of
	grade, metal or commodity price(s) exchange		London (vanadium and titanium) and HLG Shanghai
	rates, transportation and treatment charges, penalties, net smelter returns, etc.  The derivation of assumptions made of metal or commodity price(s), for the principal metals, minerals and co-products.		commodity traders (pig iron) product, and are (2018 price): V2O5: US $6.28/lb; TiO2: US $3.573/t; Pig Iron US $388/t.t Where necessary all revenues are converted from $US to $AU based on an exchange rate of 0.75 over the life of the mine.
Market	 The demand, supply and stock situation for		TNG engaged Roskills of London and HLG
assessment	the particular commodity, consumption trends and factors likely to affect supply and demand into the future.  A customer and competitor analysis along		commodity traders in Shanghai to provide guidance to assess the long term market and sales prices for vanadium pentoxide, titanium dioxide and pig iron in early 2015.
	with the identification of likely market	windows	Snowden accepts the results of these studies.
	for the product.
	 Price and volume forecasts and the	basis for
	these forecasts.
	 For industrial minerals the	customer
	specification, testing and acceptance
	requirements prior to a supply contract.
Economic	 The inputs to the economic analysis to		Financial modelling indicates that Mount Peake will
	produce the net present value (NPV) in the		produce a positive NPV at a discount rate of 8.0 %,
	study, the source and confidence	of these	based on a range of assumed long term Iron Ore
	economic inputs including estimated inflation, discount rate, etc.  NPV ranges and sensitivity to variations in the significant assumptions and inputs.		prices and exchange rates, derived from external forecasting analysts, and capital and operating cost assumptions. Sensitivity analysis indicates that the project's economicsremainpositivewithintypicalsensitivity

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Criteria		JORC Code explanation		Commentary
				ranges of operating cost, commodity price and foreign
				exchange rates.
Social		 The status of agreements with	key	TNG has directly engaged or contracted other
		stakeholders and matters leading to social		consultants to engage stakeholders to address:
		licence to operate.		- government relations
				- environmental studies
				- community relations
				- labour requirements
				- power supply
				- land access
				- licencing
				- logistics.
				Snowden has not identified deficiencies that are likely
				to affect the result of the project.
				GHD is in the process of preparing an environmental
				impact assessment for the study.
				TNG has received a Sacred Site Clearance Certificate
				for the mining site area, and has commenced
				negotiations with the CLC and Traditional
				Landowners on a Native Title Agreement.
Other		 To the extent relevant, the impact of	the	Snowden was dependent on other consultants for
		following on the project and/or on	the	non-mining related feasibility study data and is
		estimation and classification of the	Ore	satisfied itself that this information is professionally,
		Reserves:		adequately and truthfully prepared.
		 Any identified material naturally occurring		Snowden provided the geotechnical
		risks.		recommendations for the study and is satisfied that
		 The status of material legal agreements	and	this risk is appropriately ameliorated.
		marketing arrangements.  The status of governmental agreements	and	There is no identified material naturally occurring risk that could impact on the project or Ore Reserves.
		approvals critical to the viability of the project, such as mineral tenement status, and government and statutory approvals. There		TNG will continue to engage with the local and Northern Territory governments in relation to the Project.
		must be reasonable grounds to expect that all
		necessary Government approvals will	be
		received within the timeframes anticipated in
		the Pre-Feasibility or Feasibility study.
		Highlight and discuss the materiality of	any
		unresolved matter that is dependent on a third
		party on which extraction of the reserve is
		contingent.
Classification		 The basis for the classification of the	Ore	Snowden has applied Probable classifications to the
		Reserves into varying confidence categories.		Ore Reserves based on Measured and Indicated
		 Whether the result appropriately reflects	the	Mineral Resource classifications.
		Competent Person’s view of the deposit.		Snowden is satisfied that there are no material
		 The proportion of Probable Ore Reserves	that	impediments preventing the project’s progress from
		have been derived from Measured Mineral		study to operation.
		Resources (if any).		The Ore Reserve classification results appropriately
				reflect the Competent Persons’ view of the deposit.
Audits	or	 The results of any audits or reviews of	Ore	No Competent Independent Reviews (CIRs) have
reviews		Reserve estimates.		been undertaken on the Ore Reserve estimate.

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Criteria		JORC Code explanation	Commentary	Commentary
Discussion	of	 Where appropriate a statement of the relative	Snowden has not made an assessment of the relative
relative		accuracy and confidence level in the Ore	accuracy or confidence limits of the Ore				Reserve
accuracy/		Reserve estimate using an approach or	estimate.
confidence		procedure deemed appropriate by the	There is no production data for benchmarking of the
		Competent Person. For example, the	Ore Reserve estimate.
		application of statistical or geostatistical	Factors that may affect the global tonnages and grade
		procedures to quantify the relative accuracy	estimates may include:
		of the reserve within stated confidence limits, or, if such an approach is not deemed		- -	geological interpretation mining ore recovery
		appropriate, a qualitative discussion of the		-	mining dilution
		factors which could affect the relative		-	processing	and	refining
		accuracy and confidence of the estimate.			performance.
		 The statement should specify whether it	The optimisation		of the mineral	resource	indicates
		relates to global or local estimates, and, if local, state the relevant tonnages, which	that the Ore Reserve estimate is not sensitive, within sensible ranges, to:
		should be relevant to technical and economic		-	commodity price and		currency
		evaluation. Documentation should include			exchange rate
		assumptions made and the procedures used.		-	pit slope angle.
		 Accuracy and confidence discussions should
		extend to specific discussions of any applied
		Modifying Factors that may have a material
		impact on Ore Reserve viability, or for which
		there are remaining areas of uncertainty at
		the current study stage.
		 It is recognised that this may not be possible
		or appropriate in all circumstances. These
		statements of relative accuracy and
		confidence of the estimate should be
		compared with production data, where
		available.

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