TIVAN LIMITED — Capital/Financing Update 2015

Apr 12, 2015

13 April 2015

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ASX ANNOUNCEMENT
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TNG Discovers Long-Term Water Supply Source for Mount Peake Vanadium Mine Development

Discovery of large aquifer system significantly de-risks project ahead of Feasibility Study completion

HIGHLIGHTS

• Recent successful water bore drilling program has successfully outlined an aquifer with likely sufficient sustainable volume and quality of water to support the Mount Peake mining and processing operation.

• Aquifer assessment work is ongoing with borefield design, permitting and costing work to follow.

• All of this work will contribute towards the Mount Peake Definitive Feasibility Study to be delivered by the middle of 2015.

Australian strategic metals company TNG Limited (ASX: TNG) is pleased to advise that it has significantly de-risked a critical aspect its Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory with the discovery of a large aquifer system capable of providing a sustainable long-term water source for the project.

The recently completed water drilling program ( see ASX Announcement – 23 March 2015 ) was designed to prove the availability of water for use on the proposed Mount Peake mine site for process plant water, site dust suppression and camp potable water supply, as required for the Feasibility Study.

The drilling program was highly successful, outlining a large aquifer system within the Hansen Palaeochannel, which lies beneath the Hansen River, located around 20km from the Mount Peake deposit (Figure 1). Preliminary indications from pump test-work are that it is capable of providing a sustainable long-term source of water to supply all of the requirements of the Mount Peake mining and processing operation over the planned 20-plus year life of the project .

A total of five holes for 336m were drilled in late March along the lower reaches of the Hansen River. Details of the drilling program are outlined in Appendix 1 with hole locations outlined in Table 1 and shown on Figure 1. The drilling was conducted by a licensed water bore drilling company/driller from Alice Springs using a percussion air system (shown in Figure 2).

Four 205mm exploration bores were cased with 150mm slotted PVC, and the final test production bore hole was drilled to 300mm and cased with 200mm slotted steel pipe. All holes were finished with cemented steel headworks and had Summary Logs registered with the NT Water Resources Department.

All five bores intersected a consistent alluvial aquifer which varied from 20m to 36m in thickness of clean and unconsolidated coarse river sands and gravels. The aquifer zone commenced at a depth of around 12m below surface and the deepest portion was less than 60m below ground.

Drilling was managed by TNG staff with water test-work supervised by hydrogeological staff employed by the Company’s consultants, GHD. GHD is a global services company (operating in the water, energy and resources sectors) that has been appointed by TNG to complete the Environmental Impact Statement (EIS) for the Mount Peake development ( see ASX Announcement – 17 February 2015 ).

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

ASX CODE: TNG ABN 12 000 817 023

REGISTERED OFFICE T +61 8 9327 0900 Level 1, 282 Rokeby Road F +61 8 9327 0901 Subiaco, Western Australia 6008

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Figure 1. Location of water bores along the Hansen River, TNG tenure, and the position of the Mineral Resource.

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Pump testing (Figure 3) of the exploration and test production bores was conducted by the drilling contractor under the supervision of GHD hydrogeological staff. Preliminary indications are that sufficient volumes and quality water will be available in this aquifer system, and that it will be able to be sustainably extracted to supply all of the requirements of the mining operation .

The main water requirement is for the process plant, in the grinding circuit and then the magnetic separation plant, with some 0.4GLpa (Gigalitres per annum) required. Part of this will be reclaimed from the tailings (testwork is ongoing on tailings stream options) and can also be utilised for the second most significant use – dust suppression.

Potable water for camp and human consumption is a relatively minor component of the overall water requirement, and will be obtained from treatment (through a reverse osmosis plant) of the borefield supply. Overall, the total requirement is somewhat below 1GLpa, but indications, from pump testwork field data, is that the Hansen paleochannel will be able to comfortably provide this amount.

Water quality varied between the five holes, but holes 15MPWB001 and 15MPWB005 both returned values of less than 5000ppm TDS (Total Dissolved Solids, a measure of salinity) from all field sampling of the main aquifer. The borefield will therefore be established in this area.

A detailed assessment of the aquifer’s characteristics is now being conducted. This includes sample analysis from all recent drilling as well as all of the existing station bores in the area. The aquifer system will be incorporated into the overall Mount Peake surface and groundwater model being developed by GHD.

Following the aquifer assessment, GHD will undertake design and costing work for the development of the borefield. This will include all necessary permitting required through the Mines and Water Resources Departments. These results will form a component of the overall Feasibility Study which is due to be completed by the middle of 2015.

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• Figure 2 (Above). Water bore drilling on the Hansen paleochannel (15MPWB002).

Figure 3 (Right). Pump testing on the production bore 15MPWB005, using a submersible variable pump and digital flow metering.

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TNG’s Managing Director, Mr Paul Burton said the discovery of a long-term water source was a highly significant and very positive development for the Mount Peake Project.

“In an arid region such as this, identifying and securing a long-term sustainable water source is a key requirement for any mining and processing operation,” Mr Burton said. “While we were always confident that we would be able to identify a suitable water source in the region, we were until now unsure of exactly where it would come from.

“This discovery has therefore significantly de-risked the project and ticks a very important box as part of the overall Feasibility Study. Subject to obtaining the required regulatory approvals and agreements to access this aquifer, this water supply solution will be incorporated into the final Feasibility Study report, which is due for completion by mid-year.”

Paul E Burton Managing Director

13 April 2015

Inquiries:

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

Competent Person Statement

The information in this report that relates to Exploration Results and Exploration Targets is based on, and fairly represents, information and supporting documentation compiled by Exploration Manager Mr Kim Grey B.Sc. and M. Econ. Geol. Mr Grey is a member of the Australian Institute of Geoscientists, and a full time employee of TNG Limited. Mr Grey 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’. Mr Grey consents to the inclusion in the report of the matters based on his information in the form and context in which it appear.

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.

Table 1. Water Bore collar summary details.

HOLE_ID	HOLE_TYPE	EASTING_GDA94	NORTHING_GDA94	RL	DEPTH	DIP	AZIM_MAG
15MPWB001	8" Percussion	339560	7627833	436	78.0	-90	360
15MPWB002	8" Percussion	346150	7612700	460	66.0	-90	360
15MPWB003	8" Percussion	338710	7641403	443	78.0	-90	360
15MPWB004	8" Percussion	341615	7657621	418	48.0	-90	360
15MPWB005	12" Percussion	339557	7627846	436	66.0	-90	360

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APPENDIX ONE – MOUNT PEAKE WATER BORE DRILLING

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (eg cut channels, random	Samples from water bores include
	chips, or specific specialised industry standard	water collected from pump testing
	measurement tools appropriate to the minerals under	and percussion rock samples of the
	investigation, such as down hole gamma sondes, or	cuttings. Cuttings were placed in 3m
	handheld XRF instruments, etc). These examples should	piles by the contractor and sampled
	not be taken as limiting the broad meaning of sampling.	for laboratory submission similarly
	Include reference to measures taken to ensure sample	All piles were collected into chip trays
	representivity and the appropriate calibration of any	and also analysed on site by portable
	measurement tools or systems used.	XRF.
	Aspects of the determination of mineralisation that are
	Material to the Public Report.
Drilling techniques	Drill type (eg core, reverse circulation, open-hole hammer,	Open hole percussion (hammer) rig
	rotary air blast, auger, Bangka, sonic, etc) and details (eg	using air (350psi and 1070cfm) lift.
	core diameter, triple or standard tube, depth of diamond
	tails, face-sampling bit or other type, whether core is
	oriented and if so,bywhat method,etc).
Drill sample recovery	Method of recording and assessing core and chip sample	Good recoveries were obtained in all
	recoveries and results assessed.	intervals drilled, however some
	Measures taken to maximise sample recovery and ensure	contamination (of the loose sandy
	representative nature of the samples.	material in the aquifer zone entrained
	Whether a relationship exists between sample recovery	into samples lower down in the hole)
	and grade and whether sample bias may have occurred	was noted from the lower half of all
	due to preferential loss/gain of fine/coarse material.	holes. This is inherent in the drilling
		technique used – which was selected
		as the best way to assess the
		water/aquiferproperties.
Logging	Whether core and chip samples have been geologically	Chips, from 3m piles, were
	and geotechnically logged to a level of detail to support	geologically logged in full. Sufficient
	appropriate Mineral Resource estimation, mining studies	details were obtained to enable
	and metallurgical studies.	picking aquifer and basement
	Whether logging is qualitative or quantitative in nature.	lithologies.
	Core (or costean, channel, etc) photography.
	The total length and percentage of the relevant
	intersections logged.
Sub-sampling	If core, whether cut or sawn and whether quarter, half or	All sampling was by spear from sample
techniques and sample	all core taken.	piles on the ground. A 2-3kg sample
preparation	If non-core, whether riffled, tube sampled, rotary split, etc	was obtained from each 3m pile for
	and whether sampled wet or dry.	lab submission.
	For all sample types, the nature, quality and	The sample preparation for samples
	appropriateness of the sample preparation technique.	follows industry best practice, with
	Quality control procedures adopted for all sub-sampling	oven drying of samples prior to coarse
	stages to maximise representivity of samples.	crushing and pulverization (to >85%
	Measures taken to ensure that the sampling is	passing 75 microns) of the entire
	representative of the in situ material collected, including	sample
	for instance results for field duplicate/second-half	No field duplicates have been taken.
	sampling.	The sample size (2-5 kg) is considered
	Whether sample sizes are appropriate to the grain size of	to be adequate for the material and
	the material being sampled.	grainsize being sampled and the style
		of mineralisation beingdrilled
Quality of assay data	The nature, quality and appropriateness of the assaying	Not available as yet
and laboratory tests	and laboratory procedures used and whether the	Samples are to be analysed for the
	technique is considered partial or total.	multi-element suite at ALS in Perth by
	For geophysical tools, spectrometers, handheld XRF	technique ICP (ME-ICP61a).
	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)
	6 and whether acceptable levels of accuracy (ie lack of bias)

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	andprecision have been established.
Verification of sampling	The verification of significant intersections by either	Sampling was conducted by TNG staff
and assaying	independent or alternative company personnel.	and verified by the Exploration
	The use of twinned holes.	Manager on site.
	Documentation of primary data, data entry procedures,	Primary geological logging was
	data verification, data storage (physical and electronic)	entered into standardized
	protocols.	spreadsheets on field laptops and
	Discuss anyadjustment to assaydata.	uploaded into the companydatabase.
Locations of data	Accuracy and quality of surveys used to locate drill holes	Drill holes were picked up using a
points	(collar and down-hole surveys), trenches, mine workings	standard GPS device using multiple
	and other locations used in Mineral Resource estimation.	point averaging, with accuracy of
	Specification of the grid system used.	better than 3 metres for Northing and
	Quality and adequacy of topographic control.	Easting, and around 5 metres for RL.
		All coordinates data for the project are
		in MGA_GDA94 Zone 53.
Data spacing and	Data spacing for reporting of Exploration Results.	Water bore spacing were dictated by
distribution	Whether the data spacing and distribution is sufficient to	the aquifer and are spaced at several
	establish the degree of geological and grade continuity	kilometres along a paleochannel that
	appropriate for the Mineral Resource and Ore Reserve	extends for over 50 kilometres.
	estimation procedure(s) and classifications applied.	Sampling was of an exploratory and
	Whether sample compositing has been applied.	reconnaissance nature and spacings
		are insufficient to establish continuity
		or define Resources.
Orientation of data in	Whether the orientation of sampling achieves unbiased	All water bores were drilled vertically
relation to geological	sampling of possible structures and the extent to which	to intersect the aquifer, which is
structure	this is known, considering the deposit type.	flatlying
	If the relationship between the drilling 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.	All core and samples were under
		company supervision at all times prior
		to freighting to ALS laboratories in
		Alice Springs
Audits or reviews	The results of any audits or reviews of sampling	No sampling audits have been
	techniques and data.	completed to date on the water bore
		drillingcompleted at Mount Peake

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and	Type, reference name/number, location and ownership	The Mount Peake Project comprises
land tenure status	including agreements or material issues with third	eleven tenements, including ELs and
	parties such as joint ventures, partnerships, overriding	MLs held by Enigma Mining Limited, a
	royalties, native title interests, historical sites,	wholly owned subsidiary of TNG
	wilderness or national park and environmental	Limited.
	settings.	The tenements are in good standing
	The security of the tenure held at the time of reporting	with no know impediments
	along with any known impediments to obtaining a	Drilling was conducted along the
	licence to operate in the area.	Hansen paleochannel with relevant
		Water Resources and Heritage
		clearances
Exploration done by	Acknowledgment and appraisal of exploration by other	Only pastoralist wells exist along the
otherparties	parties.	area drill tested
Geology	Deposit type, geological setting and style of	The target is a Tertiary alluvial
	mineralisation.	paleochannel aquifer zone, which links
		to the Ti Tree aquifer to the south
Drill hole Information	A summary of all information material to the	See Table 2
	understanding of the exploration results including a
	tabulation of the following information for all Material
	drill holes:
	o Easting and northing of the drill collar
	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

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	o Hole length
Data aggregation	In reporting Exploration Results, weighting averaging	No data aggregation has been applied.
methods	techniques, maximum and/or 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 clearlystated.
Relationship between	These relationships are particularly important in the	Each hole is near perpendicular to the
mineralisation widths	reporting of Exploration Results.	aquifer zone being tested and so drill
and intercept lengths	If the geometry of the mineralisation with respect to	intercepts are near to true widths.
	the drill hole angle is known, its 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) and	Refer to Figure 3 in the body of the
	tabulations of intercepts should be included for any	report
	significant discovery being reported These should
	include, but not be limited to a plan view of drill hole
	collar locations and appropriate sectional views.
Balanced reporting	Where comprehensive reporting of all Exploration	No laboratory results (geochemical or
	Results is not practicable, representative reporting of	water quality) are available to date.
	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 material,	There has been no prior work on the
exploration data	should be reported including (but not limited to):	paleochannel aquifer system along the
	geological observations; geophysical survey results;	lower Hansen River
	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 (eg tests	Analytical results are awaited and will
	for lateral extensions or depth extensions or large-	be reported in due course. Full
	scale step-out drilling).	assessment of the aquifer will follow
	Diagrams clearly highlighting the areas of possible	with GHD working towards obtaining
	extensions, including the main geological	necessary permitting and design and
	interpretations and future drilling areas, provided this	costing of the borefield’s development
	information is not commercially sensitive.	in time for the Mount Peake mine
		development

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