TIVAN LIMITED — Interim / Quarterly Report 2007

Jul 31, 2007

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QUARTERLY REPORT

JUNE 2007

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TRADING HALT

TNG called a voluntary trading halt on Friday 27th July 2007 following receipt of results for diamond drill hole MDD002 and logging results for MDD011, MDD012, MDD017 and MDD018. These results are shown within this report.

The Company took this measure to allow the information to be assimilated as the results for MDD002 were lower than anticipated, while visual logging of MDD011, 012, 017 and 018 recorded large widths of mineralisation; both were not expected based on the existing geological model.

MDD002 was located near MRC013 (2006 drilling), in the eastern margin of the interpreted resource zone, and showed 2 zones of strata-bound mineralisation where a higher grade vertical pipe like zone was expected.

Assessment of last years drilling results, combined with the distribution of zinc results and including correlation with historic data, outcrop assessment, comparison with local MVT deposits and the style of mineralisation had led the Company’s geologists and its consultants CSA Ltd, to originally model the main zone of mineralisation in a “pipe” like structure with adjacent strata-bound zones. The grade and logging of the style of mineralisation supported this interpretation.

While these new results confirm the ore grade strata-bound nature of the model it is possible that the underlying pipe zone is different or more complex than previously concluded.

In addition geological logging of 4 recent diamond holes MDD011, 012, 017 and 018 indicates high grade pervasive sphalerite and galena intersections located to the north of the interpreted pipe zone, further questioning the existing geological model. Analytical results are awaited for these holes.

The Company has a large back log of both RC and Diamond samples awaiting analysis. This was caused predominantly by the unseasonable weather delay previously reported but is also due to backlogs experienced at the analytical laboratory.

The Company considers it premature to postulate as to the accuracy of the geological and mineralisation model at this time or to revise the model until all the relevant assay results are received.

The Company has in accordance with normal procedures meanwhile, commenced investigations and audits of all results to rule out any possible analytical discrepancies. However, the Company wishes to highlight that the 2006 RC results correlate with historic Aquitaine diamond drill results and that analytical results carried out independently by metallurgical company METPLANT confirm the robust nature of the drill and assay results.

The Company will report their findings to the market in due course.

Quarterly Report June 2007 1

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The Company’s view and that of its consultants CSA Ltd remains very positive for the prospectivity and resource potential of the Manbarrum Project.

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Level 1, 282 Rokeby Road Subiaco, Western Australia 6008

T +61 8 9327 0900

F +61 8 9327 0901

www.tngltd.com.au corporate@tngltd.com.au

Contact:

Neil Biddle, Managing Director Paul Burton, Exploration Manager

Quarterly Report June 2007 2

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SUMMARY

During the June 2007 Quarter, TNG (“TNG”) commenced a substantial exploration program at its 100%-owned Manbarrum Zinc-Lead-Silver Project , located in the Northern Territory.

TNG’s primary objective is to delineate a significant inventory of zinc-lead-silver resources.

The 2007 field program has been designed to confirm the potential of the Manbarrum Project to host multiple MVT (Mississippi Valley Type) zinc-lead-silver deposits. An initial resource for the Sandy Creek Main Zone was announced in February 2007 of 10.5Mt at 3% Zn, 0.74% Pb and 5.5g/t Ag (3.3% Zn Eq).

A reassessment of historic IP (Induced Polarisation) geophysical, gravity and drill data for the Manbarrum Project area highlighted three other zones along strike from Sandy Creek – Browns, Djibitgun, and Landandi prospects which have similar geophysical responses to the Sandy Creek deposit. The Djibitgun prospect also features historic RC drill values of up to 8.5%Zn.

These target zones, together with the Sandy Creek North IP anomaly (NEIP), represent priority drilling targets for the 2007 exploration field season. Sandy Creek and NEIP are currently being drill tested, while a detailed high resolution IP survey is underway over the other prospective areas to define more targets.

Drilling and IP survey work was hindered in late June due to unseasonably heavy rainfall, which resulted in delays to the collection and dispatch of samples for analysis. Both the Diamond and RC rig remained operational during the heavy rains. A second RC rig secured by the Company to assist in expediting its exploration activities did not arrive at site due to access problems caused by the wet weather.

The Company has a significant amount of samples awaiting analysis due to the unseasonal weather and a high volume backlog at the analytical laboratory.

Quarterly Report June 2007 3

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TNG Operations

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Figure 1: TNG Limited Tenement Map

TNG Limited holds interests in 34 exploration, mining titles and applications in prospective areas of the Northern Territory and Western Australia.

Quarterly Report June 2007 4

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EXPLORATION

Manbarrum Project: Zinc-Lead-Silver, TNG 100%.

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Figure 2: Location of Manbarrum Project

The Manbarrum Project is located in the Northern Territory, 70 kilometres north east of the regional centre of Kununurra.

The granted Manbarrum tenements comprise two Exploration Licences and an Authority to Prospect (under Section 178) covering a combined area of over 600 square kilometres. An additional three Exploration Licences have been applied for and these will give TNG access to complete coverage of the prospective margins of the Bonaparte Shelf Margin, where widespread Mississippi Valley Type (MVT) zinc-lead-silver mineralisation has been identified along a 50 kilometre strike length.

The Sandy Creek deposit, located in the south west corner of the Manbarrum Project, was the core focus of TNG’s 2006 exploration programs.

Quarterly Report June 2007 5

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Exploration Model

The Manbarrum Project is considered by TNG to have the potential to be a global scale MVT district.

The Sandy Creek deposit is interpreted to be a strata-bound carbonate matrix replacementtype zinc-lead deposit, with similarities to several global MVT deposits (eg SE Missouri MVT district, USA; Tri State district, USA).

In 2006, TNG focused initially on the known mineralisation at Sandy Creek. This drilling defined continuous strata-bound zinc-dominant mineralisation over a 450 x 250 metre zone. The mineralisation commenced at shallow depth (~40m) and is within a 100-120 metre thick sandy dolomite unit, dipping approximately 30 degrees to the west and plunging to the north at 35 degrees, with a sub-vertical higher grade mineralised zone at the southern end of the deposit.

In the March 2007 quarter TNG released a preliminary resource estimate for the Sandy Creek deposit with an initial JORC resource of 10.5 million tonnes at 3% Zn, 0.74% Pb and 5.5g/t Ag (3.3% Zn Eq).

2007 Exploration Programme

The 2007 exploration program commenced in late May and is focused on confirming extensions to the current mineralisation at the Sandy Creek deposit and establishing the extent and grade of the expanded resource zone to underpin a revised JORC resource estimate, and undertake exploration of other key targets.

TNG’s exploration team has identified the potential for the Manbarrum Project to host multiple pods of Mississippi Valley Type (MVT) base metal mineralisation of similar scale or larger than the Sandy Creek deposit. The broader objective of the 2007 drilling program is to confirm this potential and establish a strategically significant inventory of zinc-lead-silver resources.

Two drilling rigs are currently operational at Manbarrum – a new diamond drill rig and a high-powered Reverse Circulation (RC) rig. A total of 159 RC holes for a total of 20,000 metres and 19 diamond drill holes for a total of 10,000 metres have been planned to in-fill and extend the current resource at Sandy Creek and undertake regional exploration of other key targets in the 2007 field season.

Sandy Creek Deposit

Both RC and diamond drilling commenced at the Sandy Creek deposit to define the full extent of the resource and to provide additional mineralogical and metallurgical information to upgrade the resource to measured status. This work is progressing.

Quarterly Report June 2007 6

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The Sandy Creek deposit comprises sphalerite-galena-pyrite type mineralisation. It is almost exclusively a primary sulphide deposit, although some secondary zinc mineralisation may be present in the supergene zone. No lead sulphates (anglesite) or carbonates (cerrusite) have been observed.

The mineralisation is predominantly hosted by a quartz-sandy carbonate unit, 100-120m thick. In places, the mineralisation appears to extend into the underlying silty carbonate unit. High-grade galena mineralisation has been intersected in two holes in the saprolitic clays immediately above the main host unit. This zone is also likely to contain zinc oxide mineralization. The mineralisation remains open at depth, to the South, West and North.

Reverse Circulation (RC) Drilling

Sandy Creek Main Zone

A total of 24 RC holes (4,566m) have been completed during the 2007 program. With drilling initially targeting southern extensions to the Sandy Creek resource.

Four fences of Reverse Circulation (RC) drill holes were completed at the southern end of the Sandy Creek Main Zone with nearly all holes to date intersecting significant sphalerite (zinc sulphide) and galena (lead) from visual estimates, and initial assay results.

Drill chip observations indicate the continuation of a west-dipping strata-bound sphalerite (zinc sulphide) and galena (lead) mineralisation, with an average width of 250 metres and an average thickness of 20 metres.

Figure 3 shows a long section view of the resource extension, to the south.

Results:

TNG has received assay results for 5 RC drill holes MRC070-MRC074, from the first traverse or fence of drilling at Sandy Creek. This traverse is located approximately 50m south of the 2006 Resource Zone (Figure 3). Intersections include:

Quarterly Report June 2007 7

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Hole_ID	East	North	From	To	Interval	Zn	Pb	Ag	Zn+Pb
			m	m	m	%	%	ppm	%
MRC074	520525	8297073	97	108	11	2.1	0.5	3.7	2.6
			incl
			97	102	5	2.9	0.8	5.5	3.8
			127	143	16	2.8	0.0	3.6	2.8
			incl
			135	141	5	3.5	0.1	5.0	3.5
			157	160	4	2.6	0.0	2.3	2.7
MRC073	520583	8297064	60	62	2	2	0.8	6.0	2.6
			74	84	10	4.2	0.4	2.4	4.5
			85	106	21	2.06	0.2	2.1	2.3
			incl
			92	96	4	2.9	0.1	2.7	3.0
MRC072	520636	8297054	39	45	6	1.3	0.2	4.2	1.5
			55	60	5	1.1	0.3	12.0	1.4
			61	74	13	2.9	0.2	4.0	3.1
			incl
			66	70	4	5.9	0.3	4.5	6.3
			120	126	6	1.8	0.1	3.5	1.9
			incl
			121	124	3	2.3	0.1	4.7	2.5
MRC071	520682	8297066	44	60	16	3.2	2.5	14.4	5.7
			105	120	15	1.9	0.1	6.6	2.0
			121	125	4	1.3	0.0	2.0	1.4
MRC070	520729	8297055	25	27	2	2.0	0.3	5.0	2.3
			30	36	6	1.3	0.1	4.5	1.4
			68	72	4	1.7	0.1	2.5	1.8
			75	78	3	1.7	0.1	3.0	1.7
			82	86	4	1.2	0.1	1.8	1.3
			90	94	4	1.7	0.3	2.8	2.0
			95	98	3	1.4	0.1	2.0	1.5

Table 1: Significant RC Assay Results Received To Date, Manbarrum Project

Quarterly Report June 2007 8

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Figure 3: Long Section

Holes MRC071- MRC074 – which returned individual intercepts grading up to 5.9% Zn and up to 6.3% combined Zn+Pb – are located within the interpreted southern extension of the strata-bound resource at Sandy Creek.

The increasing grades to the west also support the potential for this to represent a southwesterly trending extension of the higher-grade central zone (5.4Mt @ 4.6% Zn+Pb), although further drilling will be required to confirm this.

All other samples are at the laboratory awaiting analysis however logged mineralised zones with visible Zn and Pb are summarised in Table 2.

RC drilling will continue to test extensions to the north, west and south of the Sandy Creek resource zone which remain open.

Quarterly Report June 2007 9

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SANDY CREEK RC	DRILLING: TOTAL MINERALISED	ZONES
Hole	Visible Zn, Pb (m)	Total Intersection
		(m)
MRC 070	47 – 82	35
MRC 071	55 – 123	68
MRC 071	140 – 210	70
MRC 072	53 – 81	28
MRC 073	142 – 214	72
MRC 074	71 – 156	85
MRC 075	95 – 135	40
MRC 075	162 – 178	16
MRC 076	106 – 118	12
MRC 077	123 - 211	88
MRC 078	44 – 50	6
MRC 078	143 – 198	55
MRC 079	35 – 77	42
MRC 079	155 - 203	48
MRC 080	57 – 135	78
MRC 081	71 – 96	25
MRC 081	143 – 186	43
MRC 085	28 – 33	5
MRC 085	80 – 108	28
MRC 086	54 – 87	33
MRC 086	119 - 130	11
MRC 087	79 – 175	93
MRC 088	120 – 180	60
MRC 089	136 – 222	86

Table 2: Sandy Creek RC Drilling: Total Mineralised Zones

Quarterly Report June 2007 10

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Diamond Drilling

Diamond Drilling commenced in the main higher grade interpreted “pipe” zone at Sandy Creek.

A total of 18 Diamond holes (4,460m), have been drilled to date.

All diamond holes were located to provide confirmation of the 2006 analytical results and provide additional geological information on the rock type, ore mineralogy and to provide a geological, structural and stratigraphic framework for subsequent drilling.

Due to the delay in sample dispatch caused by the unseasonable rain interruption to the operation and due to high volume experienced at the analytical laboratory, TNG has only received assay results for MDD001 and MDD002. All other samples are now at the laboratory and results are awaited.

Results:

MDD001, the first diamond hole drilled by TNG into the Sandy Creek Deposit, was located near MRC012 (2006 drilling) to confirm the results of this hole. MDD001 results intersected continuous zinc mineralisation over an interval of at least 100 metres, from 70 metres to 171 metres (end of current depth of sampling) and contains several intervals greater than 5% Zn+Pb within a broad interval averaging 0.5-1% Zn+Pb. Significant intersections within the hole are shown in Table 3.

The hole also returned some higher grade individual intersections including 1m @ 3.5% Zn, 7.3% Pb, 31ppm Ag or 10.8% Zn+Pb and 1m @ 11.0% Zn, 0.1% Pb, 14ppm Ag or 11.1% Zn+Pb. High silver values were also noted including 1m @ 582ppm Ag and 1m @ 1,240ppm Ag.

The results are interpreted to reflect the distribution of mineralisation near the western margin of the high-grade pipe zone, defined by MRC012 with MDD001 interpreted to have been drilled down the western margin of the pipe effectively defining the edge of this zone. This interpretation has been further confirmed by diamond hole, MDD005, a recently completed scissor hole (Figure 4). This also recorded visual mineralisation from 36m – 149m. Results are awaited.

In light of this geological interpretation, a second diamond hole, MDD009 designed to twin MRC012 has been completed immediately to the east of this original hole. Assays results are awaited.

MDD002 was located approximately 50m east of MDD001, near MRC013(2006 drilling). The results confirm the zonal nature of the resource, but do not confirm the results in MRC013 or the interpreted pipe structure. Further analysis and check results are awaited and refinements to the geological model are expected as more results are received.

Quarterly Report June 2007 11

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TNG has approximately 4,000 samples awaiting analysis and consider it premature to draw conclusions from this data until they are received.

Hole_ID	East	North	From	To	Interval	Zn	Pb	Ag	Zn+Pb
			m	m	m	%	%	ppm	%
MDD001	520550	8296925	70	90	20	1.8	1.2	9.8	3.0
			Incl
			79	80	1	4.8	1.2	8.0	6.0
			80	81	1	2.5	1.1	5.0	3.5
			85	86	1	3.1	2.2	22.0	5.2
			86	87	1	2.6	5.8	25.0	8.4
			87	88	1	3.5	7.3	31.0	10.8
			88	89	1	5.0	3.5	40.0	8.5
			Incl
			79	89	6	3.6	3.5	21.8	7.1
			119	120	1	1.0	0.1	582.0	1.1
			120	121	1	1.9	0.1	1,240.0	1.9
			156	176	20	2.0	0.1	3.0	2.1
			Incl
			166	171	5	5.1	0.3	8.4	5.4
			Incl
			166	167	1	3.1	0.4	4.0	3.5
			167	168	1	3.2	0.0	6.0	3.3
			168	169	1	11.0	0.1	14.0	11.0
			169	170	1	3.9	0.2	7.0	4.0
			170	171	1	4.2	1.0	11.0	5.3
MDD002	520701	8297219	45	62	17	1.9	0.4	5.3	2.0
			Incl
			52	56	4	2.3	0.8	6.7	3.1
			45	47	2	2.9	0.1	7.0	2.9
			131	136	5	2.1	0.06	9.2	2.1

Table 3: Significant Diamond Assay Results Received To Date, Manbarrum Project

Mineralisation Model:

Assessment of last years drilling results, combined with the distribution Zn results, correlation with historic data, outcrop assessment, comparison with local MVT deposits and on the style of mineralisation, concluded that the mineralisation was a “pipe” like structure with and adjacent strata-bound zones. While the strata-bound body holds together very well it is possible that the underlying “pipe” zone is different or more complex than previously concluded, possibly sub-parallel to east-dipping fractures rather than a “pipe” like structure.

Quarterly Report June 2007 12

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An alternative view, based on the mineralisation observed in MDD011, 012, 017 and 018, is that mineralisation in these holes correlates with an east-west-trending structure. This eastwest trend connects these holes with some of the best historic intersection of lead mineralisation (Aquitaine) that TNG confirmed on the eastern side of the creek in RC holes MRC04, 05 and 01 (2006 drilling). Further drilling and results are required to confirm this.

Sphalerite and galena mineralisation in diamond holes MDD011, 012, 017 and 018, is much more abundant over intervals of 15m up to 40m below the shale contact, and overlying the fracture-vugh replacement-style mineralisation where marcasite and sphalerite dominate. All these holes also line up in a broadly east-west direction (Figure 7). Sphalerite and galena is visually estimated to be 3 to 4 times more enriched in places in these holes compared to MDD001 and MDD002. Analytical results are awaited.

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Figure 4: Cross section Sandy Creek Main Zone

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The following table summarises the visible Zn and Pb mineralised widths from the current diamond drilling at Sandy Creek. Results are awaited.

DIAMOND DRILLING:	TOTAL MINERALISED ZONES
Hole	Visible Zn, Pb (m)	Total Intersection (m)
MDD001	78 – 200	122
MDD002	42 – 167	125
MDD003	54 – 66	12
MDD005	36 - 136	100
MDD006	59 – 161	102
MDD007	68 – 147	79
MDD008	43 – 129	86
MDD009	66 - 146	80
MDD010	66 – 196	130
MDD011	106 – 213	107
MDD012	91 – 103	12
MDD012	115 – 205	90
MDD013	51 – 84	33
MDD013	116 – 141	25
MDD014	50 – 156	106
MDD015	63 – 77	14
MDD015	85 – 119	34
MDD015	166 – 199	33
MDD017	56-80	24
MDD017	120-140	20
MDD018	74-115	41
MDD018	163-190	27

Table 4: Diamond Drilling: Total Mineralised Zones

In view of this information, the Company considers it premature to postulate on the accuracy of the geological and mineralisation model at this time or to revise the model until all results are received.

The Company has in accordance with normal procedures meanwhile commenced investigations and audits of all results to rule out any possible analytical discrepancies. However the Company wishes to highlight that the 2006 RC results correlate with historic Aquitaine drill results and that analytical results carried out independently by metallurgical company METPLANT confirm the robust nature of the drill and assay results, as shown below:

Quarterly Report June 2007 14

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Hole ID	From	To	Zn -Lab	Zn- Met	Pb Lab	Pb Met
MRC004	38	42	3.14	3.1	12.24	12.6
MRC005	45	48	2.68	3.2	13.72	14.7
MRC012	135	140	15.16	11.9	0.55	0.5
MRC012	196	200	4.93	1.9	0.26	0.2
MRC046	46	98	6.16	8.0	2.26	1.5

Table 5: Comparison of Metallurgical bulk sample results with Lab assay results, Manbarrum RC drilling 2006

Hole ID-	From	TO	Interval	Zn+Pb	Hole ID	From	TO	Interval	Zn+Pb
2006					Historic
Holes drilled close together
MRC004	19	54	35	8.33	NBK1004	76.0	100.1	24.1	8.62
MRC005	18	52	34	11.21	NBK1001	25.3	33.4	8.1	15.64
MRC001	18	30	12	12.12		44.5	61.6	17.1	4.47
	32	47	15	14.15
Holes drilled close together
MRC034	39	72	33	7.77	NBK4008	20.0	94.0	74.0	12.60
					NBK1003	16.2	63.5	47.3	6.89
Holes drilled close together
MRC063	125	133	8	2.27	NBK1025	119.3	140.3	21.0	4.65
	139	150	11	4.50

Table 6: Comparison of Historical Assay results from historic Diamond drilling and Manbarrum RC drilling 2006

NEIP Anomaly

To date, 21 RC holes (3,082m) have been completed at the NEIP Anomaly, located approximately 400m north east of the Sandy Creek Main Zone (Figure 5).

This represents a key exploration target for TNG in the context of the geological model for the Manbarrum Project as an emerging Mississippi Valley Type (MVT) province comprising multiple pods of mineralization.

Initial drilling at this target is being conducted at 50m centres on 100m spaced drilling traverses to identify the source of a strong Induced Polarisation (IP) anomaly.

Quarterly Report June 2007 15

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The 21 holes completed so far have intersected very encouraging intervals of sulphide mineralisation with significant widths of mineralisation recorded in the logging and summarised in Table 7.

NEIP ANOMALY RC	DRILLING: TOTAL MINERALISED ZONES	DRILLING: TOTAL MINERALISED ZONES
Hole	Visible Zn, Pb (m)	Total Intersection (m)
MIPRC 001	92 – 128	36
MIPRC 002	49 – 96	47
MIPRC 002	136 – 186	50
MIPRC 003	62 – 76	14
MIPRC 003	165 – 217	52
MIPRC 004	37 – 63	26
MIPRC 004	74 – 125	51
MIPRC 005	47 – 72	25
MIPRC 006	46 – 139	93
MIPRC 007	82 - 99	17
MIPRC 008	106 – 153	47
MIPRC 009	141 – 169	28
MIPRC 010	48 – 135	87
MIRPC 011	74 – 157	83
MIPRC 012	81 – 162	81
MIPRC 013	77 – 166	89
MIPRC 014	68 – 95	27
MIPRC 018	120 – 146	26
MIPRC 019	44 – 79	35
MIPRC 021	110 - 150	40

Table 7: NEIP Anomaly RC Drilling: Total Mineralised Zones

The RC rig will continue to follow this encouraging mineralisation to define the trend and extent, prior to returning to Sandy Creek to complete the resource drilling.

Quarterly Report June 2007 16

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OTHER PROSPECTS

In addition to the Sandy Creek zone, significant surface geochemical soil and rock zinc-lead anomalies – some with coincident IP geophysical anomalies – have been identified from historic data within TNG’s tenement portfolio at Manbarrum (Figure 5).

Three of these – Browns, Djibitgun, and Landandi, have coincident IP, gravity and soil zinc anomalism. Interpretations of the gravity and seismic data show that these overlie the prospective sandy dolomite in favourable structural settings.

Historic drilling by Aquitane at Djibitgun recorded significant intersections of Zn with values exceeding 8% Zn. These intersections are interpreted as oxide zones located on the up dip margins of the new IP targets.

The current detailed IP survey has progressed from Sandy Creek through Browns, to Djibitgun and all data is currently being processed and reviewed.

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Figure 5: 2007 Manbarrum targets

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Manbarrum Project Tenement Status

TNG has increased its exploration title holding in the area with one tenement application in the Northern Territory and two in Western Australia (Figure 2). Once these applications are granted, the Company will hold more than 1,100 km in this prospective region. Details are summarised below (Table 8).

Tenement	Holder	Date	Status	Area
Application No		Applied		Km2
EL24395 (NT)	TNG 100%	08/09/04	- Granted	200.0
A 24518 (NT)	TNG 100%	15/12/04	- Granted	16.8
EL25470 (NT)	TNG 100%	13/07/06	- Granted	199.5
EL25646 (NT)	TNG 100%	16/10/06	- Awaiting	122.0
			clearance
E80/3772 (WA)	TNG 100%	16/10/06	- Awaiting	402.8
			clearance
E80/3816 (WA)	TNG 100%	30/11/06	- Awaiting	224.0
			clearance

Table 8: TNG Tenements, Manbarrum Project

Quarterly Report June 2007 18

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OTHER PROJECTS

TNG previously announced that it had entered into an agreement with Western Desert Resources Ltd, (WDR) for the sale of a portfolio of non-core mineral assets in the Northern Territory for A$2 million in shares.

WDR has, since the announcement, listed on the ASX and transfer of the licences completed.

Explorer, Rover and McClaren Creek Gold-Copper-Bismuth Prospects, TNG 100%

TNG has an interest in four exploration licences 50km south of Tennant Creek in Central Australia. The exploration licences cover an area in excess of 2,500 square kilometres and contain numerous first order Tennant Creek-style magnetic ironstone targets with the potential to host gold, and gold-copper-bismuth deposits.

These prospects are hosted within the prospective Warrimunga Formation and have the same magnetic trend and magnitude as some of the world-class gold and gold-copperbismuth deposits in the Tennant Creek Inlier.

Due to the Company’s focus on the Manbarrum Project, no exploration has been conducted during the Quarter.

Mount Peake: Nickel, TNG 100%

Mount Peake is located in the Arunta Province 80 kilometres north east of Alice Springs. Airborne magnetic surveys have indicated possible ultramafic intrusion hosted nickel targets.

Due to the Company’s focus on the Manbarrum Project, no exploration has been conducted during the Quarter

Tanami East (Goddards Prospect): Copper / Gold, TNG 100%

Tanami East, also known as Goddard’s Prospect, hosts significant malachite mineralisation outcropping over a strike length of 1,200 metres. Numerous values over 1% Cu and 100 ppb Au were obtained from rock chip samples carried out during the 1970s and the area is considered to have exploration potential for copper-gold deposits.

Due to the Company’s focus on the Manbarrum Project, no exploration has been conducted during the Quarter.

Quarterly Report June 2007 19

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Angela and Pamela: Uranium Deposits

TNG via a wholly owned subsidiary submitted exploration licence applications in December 2006 for the Angela and Pamela uranium prospects (EL25821 and EL25823). A reserve had been lifted on this prospective ground and the release of this ground has become a highly contentious issue. The Northern Territory Department of Infrastructure, Fisheries and Mining (DPIFM) received over 70 applications in total.

DPIFM recently advised TNG’s applications are to be included in the assessment and audit which will be conducted independently by Stanton International.

MINING PROJECTS

Cawse Extended: Nickel, TNG 20%, Norilsk 80%

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Figure 6: Cawse Extended Tenement Map

The Cawse Project is located in the Eastern Goldfields region of Western Australia approximately 60 kilometres north west of Kalgoorlie.

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Four main types of mineralisation have been identified at Cawse. These are the oxide ores of limonite, talc, and siliceous cobalt and the smectite-saprolite ore (locally termed nontronite).

The commercial success of the Cawse nickel operation is dependent in part upon the ability of the principal ore type to be beneficiated. A simple process of rejecting lower grade material on the basis of particle size achieves this. The process is called upgrading and allows sub grade material to become commercial ore grade and also allows higher ore grades to be processed in the early parts of the operation. The success of the upgrade process is dependent upon the physical and chemical properties of the ore being processed and the nickel grade of the ore.

The upgrade ore type represents >80% of the Cawse nickel resource and is hosted mostly within a limonite unit, represented by goethitic clays in the upper saprolite zone.

In the upgrade processing circuit the ore is crushed and slurried. It is then passed over a series of screens that remove all material over 0.5 mm. This ensures that coarse material is removed from the main ore stream. Upgrade is reliant on selectively rejecting lower grade or barren material, which can include silica, magnesite and relict saprock.

Metal Content	Metal Volume
Res_cat Product Total_mass (t) ni (%) co (%) ni (t) co (t) CawseExtended Measured Upgrade Ore 2,537,468 0.67 0.03 17,081 858 Grind Ore 30,775 1.02 0.26 314 80 Indicated Upgrade Ore 12,112,649 0.70 0.03 84,486 3,544 Grind Ore 54,993 1.16 0.20 636 111 Inferred Upgrade Ore 81,550,543 0.70 0.03 566,829 22,985 Grind Ore 503,850 1.34 0.21 6,756 1,056 Total 96,790,278 0.70 0.03 676,101 28,634

Table 9: Resource Estimate for Cawse Extended as at end 2006, (source: Norilsk Nickel Cawse).

Mine Scheduling

At this stage the long term mining plan has not seen any significant changes. It is expected that mining will commence at the Satyr prospect in June 2008. Infill drilling is continuing as described above and a mining proposal is being formulated for submission to the DoIR.

Mining at the Dragon prospect is scheduled to start in December 2008. At this point in time Satyr and Dragon are the only Cawse Extended prospects in the long term mining schedule. Further drilling at Cetus is underway in an attempt to prove up a mineable resource and optimisation work continues on a northern extension to Unicorn pit.

Quarterly Report June 2007 21

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Other Western Australian Tenements

TNG holds an interest in other tenement groups, however, in each case, the Company does not contribute towards exploration expenditure as the projects are subject to joint venture or options for sale. These projects include Kintore East and McTavish, both based in WA.

TNG currently has other applications over prospective interests for a range of commodities.

CORPORATE

Change of Name

The Company’s shareholders approved, via special resolution, the change of name to TNG Limited at the general meeting of shareholders held on 17 May 2007.

Placement and Underwriting Agreement

The Company placed 6m new shares with CBH Resources Ltd (ASX:CBH) at a price of $0.39 raising $2.34m before costs. CBH has subsequently increased its holding to almost 16.2m shares representing 8.9% of the total shares on issue.

The Company successfully secured $11.52m of funding to support the $8.0m 2007 drilling program at the Manbarrum Project, via the underwriting of various options expiring during the quarter.

Extraordinary General Meeting

On 17 May 2007, the Company held a general meeting of shareholders to approve, amongst other items, the capital distribution of the investments in Batavia Mining Limited (ASX: BTV) and Thor Mining PLC (ASX: THR). The distribution was successfully completed and TNG no longer held a significant interest in BTV or THR as at 30 June 2007.

TNG now holds balances as follows:

Batavia Mining Ltd	Shares	1,119,564
Thor Mining PLC	CDI Shares	1,093,817
Thor Mining PLC	CDI Warrants	216,445
The aggregate value of these holdings as at the date of this report is $527K

Sale of Non-Core Assets to Western Desert Resources (“WDR”)

On 27 February 2007 the Company announced that it had reached agreement with minerals company WDR for the sale of a portfolio of non-core mineral assets in the Northern Territory for A$2 million in shares, conditional upon WDR achieving a listing on the ASX before 31

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October 2007. WDR achieved listing on 23 July 2007. The agreement with WDR represented an opportunity to realise value for these projects at a time of strong market interest.

The Company has announced its intention to distribute the 10m WDR shares to TNG shareholders as soon as possible, subject to shareholder approval. To this end a Notice of Meeting and Explanatory memorandum will be distributed shortly for a general meeting of shareholders to be held on 4 September 2007 to approve the distribution.

Yours faithfully

TNG LIMITED

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Paul Burton

Exploration Manager

31 July 2007

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Paul Burton, who is a Member of The Australasian Institute of Mining and Metallurgy. Paul Burton is the Exploration Manager of TNG Limited. Paul Burton has sufficient experience which is 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 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Paul Burton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Quarterly Report June 2007 23

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Directors		Australian Stock Exchange Listing
John W Barr	Chairman	Shares	TNG
Neil Biddle	Managing Director
Michael Bowen	Non Executive Director
Terry Smith	Non Executive Director	European Stock Exchange Listings
Eddie Fry	Non Executive Director
		Frankfurt	A0B60K
Chief Financial Officer/Company Sec		Berlin	A0B60K
		Munich	A0B60K
Damian Delaney		Stutttgart	A0B60K
Shareholder Enquiries
		Major Shareholders - 27 July 2007
Damian Delaney
		ANZ Nominees Limited	13.96%
Contact		CBH Resources	8.89%
		RAB Special Situations (Master) Fund Ltd	7.70%
Telephone:	(08) 9327 0900	JW Barr	6.11%
Facsimile:	(08) 9327 0901	N Biddle	5.69%
Email: corpor	ate@tngltd.com.au	TOTAL DIRECTORS HOLDINGS	16.71%

Email: corporate@tngltd.com.au

Website: www.tngltd.com.au

Share Registry

Computershare Investor Services Pty Ltd Level 2, 45 St Georges Terrace Perth WA 6000 Telephone: (08) 9323 2000 Facsimile: (08) 9323 2033

Capital	Structure -	27 July 2007	27 July 2007
Ordinary	Shares	TNG	182,092,404
Options:	30.11.07	(unlisted)	1,500,000	$0.23
Options:	31.03.10	(unlisted)	12,500,000	$0.50
Options:	31.12.11	(unlisted)	5,100,000	$0.38

Quarterly Report June 2007 24

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Figure 7: Sandy Creek 2007 Drill Locations

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