TIVAN LIMITED — Interim / Quarterly Report 2008

Oct 23, 2008

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QUARTERLY REPORT SEPTEMBER 2008

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HIGHLIGHTS

• New XRF assay results from Mount Peake project confirm continuous section of magnetite bearing vanadium and titanium mineralisation over 80m in diamond core

• Davis Tube Recovery results confirm recovery of pure product with low Silica, Arsenic, Sulphur and Phosphorous content and provide potentially commercially viable grades.

• Large gravity anomaly detected adjacent to Mount Peake magnetic signature increasing potential for significant volume of near-surface mineralisation.

• High-grade hematite zone discovered at Legune Prospect, (Manbarrum Project).

• XRF assay results grade up to 67.2% Iron with low phosphorous and silica contents in rock samples .

• Rights issue and placement completed raising $3,922,306

• The Davis Samuel hearing concluded. TNG anticipates a decision in mid 2009.

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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 Director

Quarterly Report SEPTEMBER 2008 1

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TNG Operations

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Figure 1: TNG Limited Tenement Map

SUMMARY

During the September quarter, metallurgical test work continued on selected drill core from the Sandy Creek deposit and on selected oxide material from the Djibitgun deposit, in order to evaluate potential mining operations and guide future exploration.

Regional exploration work has defined additional mineralisation potential at the Manbarrum project following a significant new Hematite discovery located at the Legune prospect (Figure 2). High priority Zinc/ Lead/ Silver targets remain to be tested.

Evaluation of the potential Iron-Titanuim-Vanadium resource continued at the Mt Peake project, N.T (Figure 1). The project area also remains prospective for nickel sulphides.

Quarterly Report SEPTEMBER 2008 2

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EXPLORATION

• 2008 Exploration Programme

The 2008 exploration programme has continued with regional data acquisition and project assessment while the metallurgical test work at the Manbarrum project nears completion.

PROJECTS

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

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Figure 2: Manbarrum Project: Exploration Prospects

• Legune Prospect

During the quarter TNG received excellent Fe results from the rock sample grid over Legune Hill confirming the significance of the high-grade hematite iron mineralization discovery. The XRF results shown in Table 1 indicate that the high grade hematite with highest values of 67% Iron (Fe) has corresponding low Silica (Si02), Aluminium (Al203 and Phosphorous (P). These define a high grade zone of 600m in strike length x 400m width. Geological mapping indicates that this zone extends beneath a silcrete cap to the west, potentially extending the mineralised zone to >1km in strike length.

Quarterly Report SEPTEMBER 2008 3

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Sample	North	East	Niton Fe	Fe %	SiO2 %	Al2O3 %	P %	LOI 1000
OCH 0005 OCH 0017 OCH 0160 OCH 0140 OCH 0007 OCH 0008 OCH 0144 OCH 0156 OCH 0009 OCH 0022 OCH 0015 OCH 0061	10 100 9 940 9 940 9 980 10 060 10 040 10 020 9 860 10 020 10 040 9 900 10 060	10 250 10 200 9 600 9 700 10 250 10 250 9 650 9 600 10 250 10 200 10 200 10 050	5.6 62.1 33.9 32.7 63.5 61.8 26.1 24.0 60.1 49.7 43.1 25.0	67.2 66.2 63.4 62.6 62.5 62.4 62.0 62.0 61.6 59.4 59.2 58.7	2.3 3.1 5.0 6.5 2.3 3.2 5.6 4.0 4.1 8.7 8.4 6.1	0.7 0.9 2.1 0.9 0.3 0.9 2.3 1.7 0.5 0.5 0.6 1.7	0.01 0.01 0.01 0.04 0.01 0.02 0.05 0.13 0.01 0.01 0.05 0.02	0.6 0.9 1.6 1.6 7.8 6.2 2.5 4.0 7.1 5.6 5.8 2.3

Table 1: XRF Assay Results (from July 29[th] ASX release).

A drilling program to test the depth extent of the main hematite zone has been postponed until 2009, due to delays in receiving clearance from the Aboriginal Areas Protection Authority and the imminent on-set of the wet season.

• Sandy Creek Deposit (JORC Inferred/ Indicated 15.97mt @ 2.3% Zn+Pb, 5.4g/t Ag)

Metallurgical Test Work

Metallurgical test work is progressing on primary sulphide mineralisation at Metplant Engineering Pty Ltd (Perth) with the assessment of the recovery of Zn and Pb from the Sandy Creek drill core. Results to date are encouraging. This work will be reported when finalised.

Further Exploration Work

The current Sandy Creek resource excludes the higher grade pipe or lode zones. Future drilling will be oriented to delineate the mineralised trends, to allow inclusion of this high grade zone in an updated resource estimate.

• Djibitgun Deposit (JORC Inferred Resource 19.93mt @ 16.4g/t Ag, 0.5% Zn,

With Internal JORC inferred 6.7mt @ 2.4% Zn+Pb, 14 g/t Ag)

Metallurgical Test Work

Mineralogical and Metallurgical test work is continuing at Mineral Engineering Technical Services Pty Ltd (METS) (Perth) to evaluate the leaching characteristics of the oxide zinc and silver mineralisation, in the oxide resource of 6.7mt @ 2.4% Zn+Pb, 14 g/t Ag.

Quarterly Report SEPTEMBER 2008 4

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Initial extraction results for Zn and Ag are positive, with mineralogical and leach data pending.

Further Exploration Work

The Djibitgun deposit was located by reconnaissance broad spaced drilling. Infill drilling to establish the extent of the internal higher grade Zn and Ag mineralised zone is required. Due to delays with access and drill rig procurement this work has been postponed until 2009.

• Manbarrum Project Tenement Status

TNG’s strategic ground holding in the Bonaparte Basin is 1200 km2.

Tenement Application No	Holder	Date Applied	Date Granted	Status	Area Km2
EL24395 (NT)	TNG 100%	08/09/04	16/08/05	- Granted	200.0
A 24518 (NT)	TNG 100%	15/12/04	25/08/05	- Granted	16.8
A 26581 (NT)	TNG 100%	14/01/08	19/06/08	- Granted	12.0
EL25470 (NT)	TNG 100%	13/07/06	05/03/07	- Granted	199.5
EL25646 (NT)	TNG 100%	16/10/06	23/08/07	- Granted	122.0
E80/3772 (WA)	TNG 100%	16/10/06	-	- Awaiting clearance	402.8
E80/3816 (WA)	TNG 100%	30/11/06	-	- Awaiting clearance	224.0

Table 2: TNG Tenements, Manbarrum Project

TNG successfully challenged the validity of duplicate application by a third party over E80/3772. This was resolved in the Wardens court with the Wardens decision to refuse the application as it was not capable of grant without amendment.

• Mount Peake Project: Nickel –Iron–Titanium-Vanadium, TNG 100%

TNG received results of XRF assays from diamond core samples from hole ARD02 at the Mount Peake Project in the Northern Territory (Figure 1). The results confirm the new

discovery of vanadium and titanium rich magnetite mineralisation within a large gabbro intrusion.

The XRF and Davis Tube Recovery (DTR) results have confirmed that the mineralisation is continuous over at least an 80m intersection from 30m to a depth of 111m, with an average grade of 80m @ 28.7% Fe, 0.43% V2O5, 7.5% TiO2 from 31m.

Higher grade zones occur within this of 38m @ 31.2% Fe, 0.49% V2O5, 8.6% TiO2 from 46m, and 10m @ 31.4% Fe, 0.50% V2O5, 9.13% TiO2 from 47m.

Quarterly Report SEPTEMBER 2008 5

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The Davis Tube Recovery test work results are shown in Table 1, have also confirmed that the magnetite bearing gabbro is amenable to magnetic separation yielding a product of potentially economic Iron, Vanadium and Titanium grades.

Sample ID Product Weight Fe SiO2 Al2O3 TiO2 V2O5 P S LOI	DAVIS TUBE RECOVERY
gms % % % % % % % %	Mass % Fe % TiO2 % V2O5 % SiO2 %
MP 1012 DTR 32.01 50.39 6.70 3.47 14.67 1.096 0.017 0.024 -1.87 MP 1022 DTR 59.86 55.27 2.16 2.53 17.13 1.144 0.008 0.026 -3.93 MP 1036 DTR 45.91 54.74 2.67 2.58 16.35 1.157 0.012 0.024 -3.53 MP 1076 DTR 40.97 55.50 2.47 2..55 16.01 1.148 0.008 0.015 -4.03 MP 1105 DTR 19.50 56.15 2.73 2.60 13.84 1.216 0.009 0.006 -3.39 MP 1009 DTR 29.18 55.51 3.42 2.60 14.19 1.215 0.006 0.005 -3.07 MP 1029 DTR 51.74 54.76 2.71 2.60 16.33 1.178 0.014 0.018 -3.73 MP 1047 DTR 58.59 54.90 2.49 2.60 16.51 1.168 0.012 0.021 -3.89 MP 1059 DTR 37.24 55.25 2.39 2.58 16.18 1.172 0.010 0.017 -3.91 MP 1088 DTR 21.76 55.49 2.90 2.60 14.76 1.210 0.013 0.014 -3.70	33.99 56.43 53.73 76.96 8.88 42.26 68.64 71.68 86.56 3.94 35.24 60.75 65.19 81.56 3.67 28.89 51.86 67.14 80.71 2.61 14.09 33.25 51.46 81.99 1.10 27.96 58.67 48.14 83.66 3.12 39.95 65.30 66.98 85.88 4.59 38.12 63.75 71.12 86.46 3.86 33.55 59.62 70.05 86.80 3.01 19.07 40.24 57.68 82.71 1.71

Table 3: Magnetite & DTR Results

The magnetic anomaly is several kilometres in strike. A second historic drill hole DD82MC1 also recoding magnetite rich – gabbro 1.5km to the NE giving confidence that the gabbro body and mineralisation is continuous. A detailed gravity survey over the area to provide additional data on the target area has revealed a significant gravity anomaly immediately adjacent to the main Mt Peake magnetic anomaly (Figure 3) plus a large gravity anomaly extending 1km to the NE providing additional drilling targets and enhancing the prospectivity of the area.

The analytical and geophysical results together with the dimensions of the geophysical signatures show that the project has the potential to develop as a significant new exploration target for the Company. A detailed drilling program has been planned.

Due to delays in receiving access approvals from the Central Land Council the drill program has been delayed until 2009.

Quarterly Report SEPTEMBER 2008 6

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Figure 3: Mt Peak magnetic anomaly (left) and new gravity data (right).

JOINT VENTURE PROJECTS

Western Desert Resources Ltd. (WDR) Joint Venture

TNG 100%, WDR earning in to 51%

WDR is progressing preparations for exploration at the Rover project, ELA 25581. This licence is adjacent to Westgold Resources Ltd, Rover 1 project where they have recently reported significant intersections including 65.75m at 11.0 g/t Au, 0.75% Cu and 0.09% Co at the Rover 1 project.

There are a number of high-priority targets within the tenement which have the potential to contain similar mineralisation to that found at Rover 1

Traditional Owners and the Central Land Council have consented to exploration and the licenece is expected to be granted.

Quarterly Report SEPTEMBER 2008 7

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McTavish Joint Venture:

TNG 30%, Barminco 70%

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 McTavish project.

Barminco have advised that work over the next reporting period is expected to focus on exploratory activities. As tenements M40/77, 119 and 157 are no longer under plaint more in depth exploration, specifically of tenements P40/1001, 1002, is considered viable.

Kintore East Joint Venture:

TNG 23.95%, Mines and Resources Australia Ltd 76.05%

The reversion of the Mining Leases occurred in mid April 2008 and has lead to the granting of tenements P16/2370 – P16/2374.

MRA have advised that a compilation and review of all historical data will be completed followed by target generation and ranking prior to drilling scheduled for early 2009.

A heritage survey has been planned and will take place in the next quarter. The project area is covered by a single Native Title claim held by the Widji People.

Other Tenements and Opportunities

TNG continues to review JV opportunities.

MINING PROJECTS

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

The Cawse Extended Project is a joint venture between Norilsk Nickel Cawse Pty Ltd and TNG.).

Norilsk Nickel Australia have advised it is placing its Cawse laterite nickel operation on indefinite care and maintenance.

The mining and metallurgical facility, which is located about 55 kilometres from Kalgoorlie in Western Australia, has been operating under increasing cost pressures for some time. Cawse uses high-pressure acid leaching (HPAL) to process the laterite nickel and uses sulphuric acid as its principal reagent. The significant increases in the cost of inputs coupled with a steep decline in nickel prices have lead to the decision to stop production indefinitely.

An update on the Cawse Extended JV resource is awaited.

Quarterly Report SEPTEMBER 2008 8

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CORPORATE

Davis Samuel

TNG is a party to proceedings instituted by the Commonwealth of Australia in the Supreme Court of the Australian Capital Territory.

The hearing commenced in June 2008, and after an adjournment, recommenced in late August 2008. The hearing has now been concluded and some final written submissions are required to be lodged prior to the Christmas recess.

TNG anticipates that the judge will announce his decision in mid 2009; however no firm timetable for the decision has been advised.

Rights Issue

TNG undertook a non-renounceable pro rata offer of shares to its shareholders.

The Company applications for 20,015,539 shares from shareholders under the Offer. The shortfall of 28,155,295 shares was fully underwritten by Kirke Securities Limited in accordance with the Underwriting Agreement approved by shareholders in the General Meeting.

As a result of demand for the shortfall, the Company placed an additional 17,200,934 Shares raising $1,032,056.

Funds raised by the recently completed rights issue and the placement total $3,922,306 (before costs).

EGM

A General Meeting of shareholders was held on 11 August 2008. All matters were approved by shareholders.

AGM

The Annual General Meeting of the Company has now been called for the 11[th] of November 2008. Shareholders will receive the relevant documents and are urged to participate in the meeting by attending or lodging a proxy.

Messrs Michael Bowen and Terry Smith have indicated that they intend to retire at the AGM after several years of service. The Directors express their thanks for the contribution of both gentlemen.

Quarterly Report SEPTEMBER 2008 9

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Enigma Mining

In 2007 TNG announced that it would proceed with the demerger of Enigma Mining to enable a separate listing after an I.P.O. The plan was conditional on a number of matters including shareholder approval and a tax clearance from the A.T.O.

The Company recently received a draft ruling, and is now seeking to clear the outstanding issues to enable the ruling to be finalised.

Unfortunately the recent movement in global markets has raised considerable doubt about the planned I.P.O. At this stage the Board has placed the matter on hold until 2009, and will reassess the matter at that time.

TNG LIMITED

John W Barr Chairman

24 October 2008

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 a Director 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 SEPTEMBER 2008 10

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Directors		Australian Stock Exchange Listing	Australian Stock Exchange Listing	Australian Stock Exchange Listing	Australian Stock Exchange Listing	Australian Stock Exchange Listing
John W Barr	Chairman	Shares					TNG
Neil Biddle	Managing Director
Paul Burton	Exploration Director
Michael Bowen	Non Executive Director
Terry Smith	Non Executive Director	European Stock Exchange Listings
Eddie Fry	Non Executive Director
		Frankfurt					A0B60K
Company Secretary		Berlin					A0B60K
		Munich					A0B60K
John W Barr		Stuttgart					A0B60K
Shareholder Enquiries
		Major Shareholders – 14 October				2008
John W Barr
Contact		RAB Special Situations (Master) Fund Ltd					7.37%
		CBH Resources Limited					6.28%
Telephone:	(08) 9327 0900	ANZ Nominees					4.34%
Facsimile:	(08) 9327 0901	JW Barr					3.87%
		T Smith					2.55%
Email: corporate@tngltd.com.au
		TOTAL DIRECTORS HOLDINGS					11.25%
Website:www.tngltd.com.au
		Capital Structure –		14 October 2008
Share Registry
		Ordinary Shares			258,055,076
Computershare Investor Services Pty Ltd
Level 2, 45 St Georges Terrace		Options:	01.11.09	(unlisted)		200,000	$0.75
Perth WA 6000		Options:	31.03.10	(unlisted)	14,000,000		$0.49
		Options:	31.12.11	(unlisted)	4,100,000		$0.32
Telephone: (08) 9323 2000		Options:	31.08.11	(unlisted)		500,000	$0.15
Facsimile: (08) 9323 2033

Quarterly Report SEPTEMBER 2008 11