TIVAN LIMITED — Capital/Financing Update 2020

Oct 14, 2020

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ASX ANNOUNCEMENT
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15 October 2020

TNG SIGNS BINDING LIFE-OF-MINE OFFTAKE AGREEMENT WITH GUNVOR (SINGAPORE) FOR REMAINING VANADIUM PRODUCTION

The execution of the fourth and final life-of-mine offtake agreement provides a solid foundation for the financing and development of the Mount Peake Vanadium-Titanium-Iron Project

Key Points

• Life-of-mine Offtake and Marketing Agreement (“Agreement”) signed with major global commodity trader Gunvor (Singapore) (“Gunvor”) for 40% of the proposed vanadium pentoxide production from TNG’s 100%owned Mount Peake Project (“Project”) in the Northern Territory.

• The Agreement with Gunvor complements the existing offtake agreement in place with Korea’s WOOJIN for 60% of the proposed vanadium pentoxide production from Mount Peake.

• Under the Agreement, Gunvor will purchase vanadium pentoxide FOB for marketing and distribution on a global basis.

• TNG now has completed binding life-of-mine offtake agreements for all three of its high-value, high-purity products proposed to be produced at Mount Peake - vanadium pentoxide, titanium pigment and iron oxide.

Australian resource and mineral processing technology company TNG Limited (ASX: TNG ) (“TNG” or the “Company”) is pleased to announce that it has executed a binding life-of-mine Offtake and Marketing Agreement with global commodity trader, Gunvor (Singapore) , for 40% of the high-purity vanadium pentoxide that is intended to be produced from the Company’s flagship 100%-owned Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory, Australia.

TNG intends to produce approximately 6,000 tonnes per annum of high-purity vanadium pentoxide from its TIVAN® Processing Facility proposed to be located in Darwin (NT) – one of three high-value products to be produced from the fully integrated Mount Peake Project for export to a global customer base.

Under the Agreement, Gunvor will purchase vanadium pentoxide FOB, for global marketing and distribution for a fixed discount.

With the execution of this Agreement, TNG has now executed offtake agreements for all three proposed product streams for the Mount Peake Project:

• 100% of vanadium pentoxide production between Gunvor (40%) and WOOJIN (60%; see ASX announcement dated 7 September 2015);

• 75% and up to 100% of titanium pigment production (see ASX announcement dated 13 May 2019); and

• 100% of iron oxide production (see ASX announcement dated 27 July 2020).

The execution of this Agreement with Gunvor completes the Company’s offtake arrangements, and is a major milestone underpinning the Company’s commercial strategy for Mount Peake.

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 Suite 20, 22 Railway Road F +61 8 9327 0901 Subiaco, Western Australia 6008

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Founded in 2000, Gunvor Group is one of the world’s largest independent commodities trading houses by turnover, creating logistics solutions that safely and efficiently move physical energy and bulk materials from where they are sourced and stored, to areas of high demand.

With strategic investments in industrial infrastructure—refineries, pipelines, storage, terminals, mining and upstream—Gunvor further generates sustainable value across the global supply chain for its customers. In 2019, Gunvor generated US$75 billion in revenue moving more than 198 million tonnes of physical commodities.

More information can be found at www.gunvorgroup.com or @Gunvor.

Management Comment

Commenting on the signing of the Agreement with Gunvor, TNG’s Managing Director & CEO, Mr Paul Burton, said:

“We are delighted to have secured the fourth and final binding life-of-mine offtake agreement for Mount Peake with Gunvor, a major commodity trader with a global footprint.

“The signing of this Agreement, together with the existing offtake agreements with WOOJIN for vanadium pentoxide, DKSH for titanium dioxide pigment and Vimson Group for iron oxide, is a major achievement and creates a robust commercial foundation to advance the Mount Peake Project financing and development strategy.

“We are very pleased that our team was able to complete this Agreement in the current challenging global market environment, further demonstrating the quality and robustness of the Project. We look forward to continuing to build a strong and mutually beneficial long-term relationship with Gunvor.”

Commenting on the signing of the Agreement with TNG, Mr Ross Sabberton, Head of Specialty Ores at Gunvor, said:

“We are pleased to execute this Agreement with TNG as it seeks to progress the development of its Mount Peake Project. We look forward to working with TNG and to marketing the Mount Peake vanadium pentoxide product in the future.”

Authorised by:

Paul E Burton

Managing Director & CEO

15 October 2020

Inquiries:

Paul E Burton Managing Director & CEO + 61 (0) 8 9327 0900 Paula Raffo Investor Relations + 61 (0) 8 9327 0900 Nicholas Read Read Corporate + 61 (0) 8 9388 1474

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About TNG

TNG is a Perth based resource and mineral processing technology company focussing on building a world-scale strategic metals business based on its flagship 100%-owned Mount Peake Vanadium-Titanium-Iron 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 products for global markets including vanadium pentoxide, titanium dioxide pigment and iron ore fines. The project, which is expected to be a top-10 global producer, has received Major Project Facilitation status from the Northern Territory Government.

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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