TIVAN LIMITED — Capital/Financing Update 2019

Jun 26, 2019

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ASX ANNOUNCEMENT
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27 June 2019

TNG SIGNS BINDING HEADS OF AGREEMENT WITH GENESEE & WYOMING FOR RAIL HAULAGE SERVICES FOR THE MOUNT PEAKE PROJECT

Rail haulage will underpin the transport of magnetite concentrate produced at the Mount Peake mine site to the TIVAN® Processing Facility in Darwin

Key Points

• Binding Heads of Agreement signed with Genesee & Wyoming Australia (“GWA”) for the provision of rail haulage services for the Mount Peake Vanadium-Titanium-Iron Project.

• The agreement covers the transport of magnetite concentrate produced at the Mount Peake mine site from the proposed Adnera rail siding to the TIVAN® Processing Facility in Darwin.

• The scope of services extends to the transport of the three end products to be produced by the TIVAN® Facility to the Darwin Port at East Arm before shipping to TNG’s customers.

• Genesee & Wyoming is a global railroad owner and operator with extensive experience in the transport of bulk commodities for the resources industry.

• TNG and GWA will develop an optimised rail haulage strategy for Mount Peake ahead of finalising a Rail Haulage Agreement.

Australian strategic metals company TNG Limited (ASX: TNG) (“TNG” or the “Company”) is pleased to announce that it has entered into a Binding Heads of Agreement (“HoA”) with Genesee & Wyoming Australia (“GWA”), the third-largest rail operator in Australia, for the provision of rail haulage services for its flagship 100%-owned Mount Peake Vanadium-Titanium-Iron Project, located 235km north of Alice Springs in the Northern Territory.

Genesee & Wyoming is a global railroad owner and operator with extensive experience in the transport of bulk commodities for the resources industry, and is the majority owner of the rail line to Darwin that runs approximately 1,100 km from the Mount Peake mine site.

Rail haulage will underpin the logistics chain transporting the magnetite concentrate to be produced by the proposed Beneficiation Plant at the Mount Peake mine site to the proposed TIVAN® Processing Facility in Darwin, where TNG intends to produce high-purity vanadium pentoxide, titanium pigment and iron ore fines.

The scope of services includes the loading of magnetite concentrate onto rail at the Adnera rail siding (proposed to be located 85km from the mine site), rail haulage from Adnera to the TIVAN® Facility in Darwin on the Tarcoola-toDarwin rail line, and the unloading of magnetite concentrate at the TIVAN® Facility.

GWA will also load and transport TNG’s final products from the TIVAN® Facility to the Darwin Port.

GWA will provide all necessary rail transport plant and equipment, including locomotives, wagons, crew vans and fuelling equipment.

Following execution of the HoA, TNG and GWA will work together on an exclusive basis, and commit the necessary resources, to develop an optimised rail haulage strategy for Mount Peake, and negotiate and finalise a Rail Haulage Agreement.

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

ASX CODE: TNG ABN 12 000 817 023

REGISTERED OFFICE Suite 20, 22 Railway Road Subiaco, Western Australia 6008

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

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Management Comment

TNG’s Managing Director and CEO, Mr Paul Burton, said the Company views the signing of this strategic agreement with GWA as the cornerstone of its logistics chain for the Mount Peake Project and marked another important step in its multi-pronged development strategy.

“We are delighted to have engaged GWA as Mount Peake’s rail haulage service provider. GWA’s presence and expertise in logistics and transportation further strengthens TNG’s global network of high-quality partners assigned for the development and operation of Mount Peake.”

Commenting on the signing of the HoA, GWA’s Chief Executive Officer, Mr Luke Anderson, said:

"GWA is pleased to be working with TNG on their Mount Peake Project, and look forward to providing the rail haulage solutions required to ensure a successful logistics supply chain”.

Paul E Burton Managing Director and CEO

27 June 2019

Inquiries:

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

Paula Raffo Investor Relations + 61 (0) 8 9327 0900 Nicholas Read Read Corporate + 61 (0) 8 9388 1474

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 iron ore fines. The project, which will be a top-10 global producer, has received Major Project Facilitation status from the Northern Territory Government.

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.

About Genesee & Wyoming Australia

Genesee & Wyoming Australia (“GWA”) is a subsidiary of Genesee & Wyoming Inc., a North American company that owns or leases 120 freight railroads worldwide organised in eight locally managed operating regions with 8,000 employees serving 3,000 customers.

GWA has operations in New South Wales, the Northern Territory and South Australia, including the 1,400-mile Tarcoola-toDarwin rail line. GWA provides intermodal service six days per week on the Adelaide-to-Darwin corridor as well as intrastate haulage of bulk commodities including grain, steel and minerals, and provides a coal haulage service in New South Wales transporting approximately 40 million tonnes annually. The Australia Region is 51.1% owned by GWA and 48.9% owned by a consortium of funds and clients managed by Macquarie Infrastructure and Real Assets.

For more information: www.gwrr.com/railroads/australia

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Forward-Looking Statements

This announcement has been prepared by TNG Limited. 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 announcement 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 Limited shares in any jurisdiction. This announcement 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 announcement 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 Limited, 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 announcement 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 Limited. Actual values, results or events may be materially different to those expressed or implied.

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