TIVAN LIMITED — Capital/Financing Update 2017

Sep 21, 2017

22 September 2017

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TNG TO SELL MELVILLE ISLAND EXPLORATION LICENCE APPLICATION TO RIO TINTO EXPLORATION

Sale Agreement with Joint Venture Partner Rio Tinto Exploration Pty Limited encompasses cash payment of $80,000 plus a 2% Net Smelter Royalty

Australian strategic metals company TNG Limited (ASX: TNG) is pleased to announce that it has reached an agreement with Rio Tinto Exploration Pty Ltd (RTX) for the sale of its 100%-owned Melville Island exploration licence application 28617 in the Northern Territory.

A farm-in agreement was signed by both parties in October 2012, allowing RTX to earn 80% equity in the project with TNG retaining 20% equity, at which point TNG would elect to either contribute, sell or convert its equity to a 2% Net Smelter Royalty (NSR).

The licence has not progressed from the application phase and therefore equity has not at this stage been earnt by RTX. TNG has now agreed to sell its interest in the project to RTX for $80,000 plus a 2% Net Smelter Royalty (NSR).

ELA 28617 covers an area of 1,387km[2 ] in the north-western part of Melville Island and is prospective for bauxite and heavy minerals.

TNG’s Managing Director, Mr Paul Burton, said the Melville Island ELA was considered to be a non-core asset for the Company, with the divestment to RTX consistent with its focus on progressing the financing and development of its world-class Mount Peake vanadium-titanium-iron project.

“Over the past 12 months, we have demonstrated a clear intent to rationalise our portfolio consistent with our focus as an emerging international strategic metals producer,” he said.

“A key step in this process was the successful demerger and IPO of our Northern Territory base metal exploration assets through Todd River Resources, and this transaction with RTX marks another step towards consolidating our minerals portfolio while retaining some exposure to the future development potential of this asset.”

Paul E Burton Managing Director

22 September, 2017

Inquiries:

Paul E Burton Managing Director + 61 (0) 8 9327 0900

Nicholas Read Read Corporate + 61 (0) 8 9388 1474

ASX CODE: TNG ABN 12 000 817 023

REGISTERED OFFICE Level 1, 282 Rokeby Road Subiaco, Western Australia 6008

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

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

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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 long-life project producing a suite of high-quality, high-purity strategic metals products for global markets including vanadium pentoxide, titanium dioxide and pig iron. 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 was completed in July 2015, demonstrating that the Mount Peake Project could generate outstanding returns and paving the way for final approvals, project financing and development to proceed. An integral part of TNG’s emerging strategic metals business its 100% ownership of the unique and patent pending TIVAN® hydrometallurgical process, which successfully extracts all three valuable metals from the Mount Peake resource.

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.

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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