TIVAN LIMITED — Interim / Quarterly Report 2009

Mar 10, 2009

HALF-YEAR FINANCIAL REPORT

31 December 2008

ABN 12 000 817 023

Corporate Information

Directors

(Chairman)
(Exploration Director)
(Managing Director)
(Non-Executive Director)

Company Secretaries

John W Barr Simon L Robertson

Registered Office

Level 1 282 Rokeby Road Subiaco WA 6008 Telephone: (08) 9327 0900 Facsimile: (08) 9327 0901

Website: www.tngltd.com.au Email: corporate@tngltd.com.au

Auditor

KPMG 235 St Georges Tce Perth WA 6000

Share Registry

Computershare Investor Services Pty Limited Level 2 45 St George's Terrace Perth WA 6000 Telephone: (08) 9323 2000 Facsimile: (08) 9323 2033

Stock Exchanges

Australian Stock Exchange Limited:	(Code:TNG)
Stock Exchange Berlin Germany:	(Code:TNG)

Directors' Report

The Directors present their report together with the consolidated financial report for the half year ended 31 December 2008 and the independent review report thereon.

Directors

The Directors of the Company at any time during or since the end of the half year are:

Name

(Chairman)
(Managing Director)
(Exploration Director)
(Non-executive Director)

MANBARRUM ZINC-LEAD-SILVER PROJECT (TNG 100%)

Background

The Manbarrum Project is located 70 Km north east of Kununurra and is wholly contained within the Northern Territory.

Manbarrum forms part of TNG's Bonaparte Basin Base Metals strategy which also includes tenements located east and north of Kununurra. The Manbarrum project contains 5 contiguous mining tenements occupying a total area of approximately 550 sq.km

Manbarrum is TNG's flagship project and has been the focus of exploration expenditure over the past 18 months.

TNG proposes to systematically explore the tenements which are prospective for multiple Mississippi Valley Type (MVT) zinc-lead-silver deposits. The main areas of interest to date are the Sandy Creek Prospect, and the Djibitgun, Browns and Landandi Prospects. These advanced prospects are all defined by known zinc-lead-silver mineralization supported by historical drilling in conjunction with IP and gravity anomalies.

Sandy Creek contains an established resource 15.9 mt @ 1.6% Zn, 0.7% Pb, 5.4 g/t Ag, and Djibitgun contains significant zinc-silver mineralization of 19.9mt @ 16 g/t Ag, 0.5% Zn, 0.2% Pb with a JORC zinc-oxide resource of 6.7mt @ 1.8% Zn, 0.6%Pb, 14 g/t Ag.

2008

During 2008 assessment work focussed on the Metallurgical test work on ore from both deposits at Manbarrum together with assessment of TNG iron ore prospects.

Sandy Creek:

Metallurgical work has been completed on the JORC Indicated primary sulphide mineral resource. The final test work report favorably concludes that standard metallurgical processes will produce concentrates acceptable to smelters. Good recoveries and grades were achieved from both the composited mineralized zones:

Higher grade Zone: The upper composite zone has the higher Zinc and Lead grades. Results are:

Zinc, 90.8% recovery at a grade of 53.8% Zn. Lead, 70% recovery at a grade of 62% Pb.

The testwork has proven that good concentrates at grades acceptable to smelters can be produced from the Sandy Creek ore by standard metallurgical processes. The ore is at shallow depth, commencing at approximately 50m below surface, which would be amenable to low cost open cut mining methods. This result therefore provides further impetus for economic evaluation of the deposit without engaging in further exploration work.

TNG Limited and its controlled entities Directors' Report

The test work was undertaken on complete sections of diamond drill core. Head grade results of the composite sections provide an average for the section. Results show that the head grades of 4.44% Zn, and 1.15% Pb (Table 1), are above that of the previous JORC reported grades of 1.7% Zn and 0.7% Pb, in the last Mineral Resource statement. This indicates that potential underreporting of analytical grades possibly due to dilution caused by the drilling conditions and core-cutting has occurred. This will be investigated further in any future evaluation work.

Barite was noted as being very prominent in the lower composite zone: Head grade was almost 20%. The production of Barite concentrate as a secondary objective was noted and will be further explored in any future assessment work. The current Sandy Creek resource excludes higher grade zones at deeper levels. Any future drilling will be oriented to delineate the trend of these mineralised zones, and allow inclusion in an updated JORC mineral resource estimate.

Djibitgun Deposit:

Mineralogical and Metallurgical test work has been ongoing to evaluate the leaching characteristics of the JORC zinc-oxide resource of 6.7mt @ 1.8% Zn, 0.6%Pb, 14 g/t Ag. This occurs within a global JORC inferred mineral resource of 19.9mt @ 16 g/t Ag, 0.5% Zn, 0.2% Pb.

The leach testwork conducted has proved that the ore can be leached using elevated temperatures with >90% of the Zn extracted. While it is also reported that the acid consumption is prohibitive due to high carbonate levels, the successful use of heavy liquid separation (HLS) can reject the carbonate minerals and reduce this issue.

The metallurgical testwork has also indicated that the composite grades reported are higher than the initial reported analytical grades. As with the Sandy Creek metallurgical work this appears to be related to a sample size factor, where bulk samples are providing higher grades of Zinc. Initial testwork composites of 2kg samples provided a head grade of 2.02% Zn. Subsequent composites using 5kg and 10kg samples provided head grade averaging 4.1% Zn with a highest Zn grade of 6.6% Zn.

The Djibitgun deposit was located by reconnaissance broad spaced drilling. Infill drilling to establish the extent of the internal higher grade Zinc and Silver mineralised zone is in preparation.

Legune Prospect

A second meeting with the Aboriginal Areas Protection Authority (AAPA) for Drilling clearance at Legune took place on 10th December 2008. The Traditional Owners confirmed their approval and consent was given. A formal clearance certificate from AAPA is awaited.

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

During the last month TNG has completed a Reverse Circulation (RC) drilling programme at its TNG's 100% owned Mount Peake Project in the Northern Territory. As previously reported, the drilling has confirmed an extensive layer of magnetite within a large gabbro intrusion. The mineralisation envelope commences at shallow depths of 15m below surface, is up to 122m thick and remains open in all directions.

A total of 6 holes for 928m were drilled confirming that the targeted magnetic and gravity anomalies reflect the magnetite mineralised zone. The mineralisation however was not always coincident with the geophysical signatures, giving potential for further extensions to the mineralisation.

The N-S strike length of the magnetite mineralisation intersected to date has now been determined to be at least 1300m and remains open in all directions.

The mount Peake magnetic anomaly is and further extensions to the mineralisation can be expected with further drilling. An inferred width to the mineralised zone of 400m, based on the magnetic and gravity signatures, indicates a potential resource in excess of 500mt based on the current drilling. Further drilling will be required to produce a JORC resource.

The homogenous nature of the mineralisation and these new higher grade magnetite intersections indicate that the previous average grades of 56% Fe, 1.2% V2O5, and 17% TiO2 should be maintained and possibly exceeded, however laboratory analysis will be required to confirm this. All samples have been despatched to the laboratory in Perth for XRF analysis and Davis Tube testwork.

______________________________________________________________________________________

A future programme of diamond drilling will be organised to commence in May once all results have been received.

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. The licence has been approved for grant and lies 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.

Traditional Owners and the Central Land Council have consented to exploration and the licence is expected to be granted in early 2009.

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%

Mines Resources Australia Ltd., 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

MINING PROJECTS

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

TNG received an updated mineral resource statement from Norilsk Nickel Cawse Pty Ltd in relation to the Cawse Extended Nickel Project. This is shown in Table 3.

Norilsk Nickel Australia have advised it has placed the Cawse laterite nickel operation on indefinite care and maintenance which will delay commencement of mining operations at Cawse Extended.

	Indicated			Measured			Total					Inferred
	Tonne	Grade	Grade	Metal	Metal	Tonne	Grade	Grade	Metal	Metal	Tonne	Grade	Grade	Metal	Metal	Tonne	Grade	Grade
	s					s					s					s
	Kt	Ni%	Co%	Ni t	Co t	Kt	Ni%	Co%	Ni t	Co t	Kt	Ni%	Co%	Ni t	Co t	Kt	Ni%	Co%
Cawse JV 80% NNAu Upgrade	16,045	0.75	0.03	120,15 8	5,108	3,041	0.69	0.04	20,941	1,079	19,086	0.74	0.03	141,09 8	6,187	62,469	0.69	0.03
Cawse JV 80%NNAu Grind	232	1.19	0.19	2,756	437	51	1.07	0.27	541	138	283	1.17	0.20	3,298	575	134	1.24	0.21
Total	16,276	0.76	0.03	122,91 4	5,545	3,092	0.69	0.04	21,482	1,217	19,368	0.75	0.03	144,39 6	6,763	62,603	0.69	0.03
Cawse JV 80% NNAu 2008 Total	16,276	0.76	0.03	122,91 4	5,545	3,092	0.69	0.04	21,482	1,217	19,368	0.75	0.03	144,39 6	6,763	62,603	0.69	0.03
Cawse JV 80% NNau 2007 Total	13,209	0.75	0.04	99,592	4,742	3,109	0.69	0.04	21,600	1,223	16,318	0.74	0.04	121,19 2	5,965	65,083	0.69	0.03

Table 3: Cawse Extended Mineral Resource (depleted by production as at July 31, 2008),

(source Norilsk Nickel Cawse).

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.

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

Financial Position

The group recognised a net loss after tax for the half-year of \$8,762,131 (half-year ended 31 December 2007: loss of \$1,052,230). At 31 December 2008 TNG had cash reserves of \$5,743,500 (31 December 2007: \$4,127,494)

Rights Issue

TNG under took a non-renounceable pro rate offer of shares to its shareholders on the 15 July 2008.

Funds raised by the completed rights issue and the subsequent 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 was held 11 November 2008.

Messers Michael Bowen and Terry Smith retired at the AGM after several years service. The Directors express their thanks for the contribution of both gentlemen.

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.

This plan has now been deferred due to the prevailing global market conditions.

Auditor's Independence Declaration under Section 307C of the Corporations Act 2001

The lead auditor's independence declaration is set out on page 07 and forms part of the directors' report for the halfyear ended 31 December 2008.

______________________________________________________________________________________

Signed in accordance with a resolution of the Directors:

John W Barr Chairman

11 March 2009

Lead Auditor's Independence Declaration under Section 307C of the Corporations Act 2001

To: the directors of TNG Limited

I declare that, to the best of my knowledge and belief, in relation to the review for the half-year ended 31 December 2008 there have been:

• no contraventions of the auditor independence requirements as set out in the $(i)$ Corporations Act 2001 in relation to the review; and
• no contraventions of any applicable code of professional conduct in relation to the $(ii)$ review.

KPMC

Partner

Perth

11 March 2009

KPMG, an Australian partnership and a member firm of the KPMG network
of independent member firms affiliated with KPMG International, a Swiss cooperative.

Consolidated Interim Income Statement For the six months ended 31 December 2008

	Note	2008	2007
		\$	\$
Gain on sale of tenements		-	941,481
Other income		211,775	514,953
Total income		211,775	1,456,434
Occupancy expenses		(114,091)	(108,163)
Administrative expenses		(68,385)	(146,379)
Employment expense		(257,123)	(554,995)
Corporate expenses		(1,065,032)	(892,181)
Depreciation and amortisation expense		(129,942)	(153,456)
Share based payment expense for consultants/employees		138,280	(828,641)
Impairment of exploration tenements	5	(7,594,136)	-
Change in fair value of investments held for trading		(66,700)	-
Results from operating activities		(8,945,354)	(1,227,381)
Financial income		201,010	196,056
Financial expense		(17,787)	(20,905)
Net financing income		183,223	175,151
Loss before income tax		(8,762,131)	(1,052,230)
Income tax expense		-	-
Loss for the period		(8,762,131)	(1,052,230)
Loss per share (cents per share)
Basic and diluted loss per share		(3.682)	(0.57)

The consolidated interim income statement is to be read in conjunction with the notes to the consolidated interim financial statements.

Consolidated Interim Balance Sheet As at 31 December 2008

	Note	31 December 2008	30 June 2008
		\$	\$
Current Assets
Cash and cash equivalents		5,743,500	4,127,494
Other receivables		106,748	82,397
Prepayments		67,438	47,768
Other investments		4,091	6,493
Total current assets		5,921,777	4,264,152
Non-Current Assets
Other investments		149,318	208,834
Plant and equipment		1,036,818	1,147,995
Exploration and evaluation expenditure	5	9,266,753	16,985,982
Total non-current assets		10,452,889	18,342,811
Total assets		16,374,666	22,606,963
Current Liabilities
Trade and other payables		559,632	762,759
Provisions		28,033	26,493
Total current liabilities		587,665	789,252
Non-current Liabilities
Interest-bearing liabilities		480,000	480,000
Total non-current liabilities		480,000	480,000
Total liabilities		1,067,665	1,269,252
Net assets		15,307,001	21,337,710
Equity
Issued capital	3	24,308,487	20,478,198
Reserves		-	(11,823)
Retained earnings		(9,001,486)	871,335
Total equity		15,307,001	21,337,710

The consolidated interim balance sheet is to be read in conjunction with the notes to the consolidated interim financial statements.

Consolidated Interim Cash Flow Statement For the six months ended 31 December 2008

	2008 \$	2007 \$
Cash flows from operating activities
Cash receipts in the course of operations	214,067	300
Cash paid to suppliers and employees	(1,750,242)	(1,714,404)
Interest received	201,010	196,056
Net cash used in operating activities	(1,335,165)	(1,518,048)
Cash flows from investing activities
Payments for exploration and evaluation expenditure	(847,317)	(7,534,967)
Payments for plant and equipment	(19,311)	(44,057)
Payments for investments	(2,557)	(106,050)
Proceeds from sale of investments	7,852	-
Net cash used in investing activities	(861,331)	(7,685,074)
Cash flows from financing activities
Proceeds from the issue of shares and options	3,922,306	5,256,000
Transaction costs from the issue of share capital and options	(92,017)	(267,277)
Finance lease payments	(17,787)	-
Net cash received from financing activities	3,812,502	4,988,723
Net decrease in cash and cash equivalents	1,616,006	(4,214,399)
Cash and cash equivalents at 1 July	4,127,494	9,880,637
Cash and cash equivalents at 31 December	5,743,500	5,666,238

This consolidated statement of cashflows is to be read in conjunction with the notes to the consolidated interim financial statements.

Consolidated Statement Of Changes In Equity For the six months ended 31 December 2008

	Issued Capital \$	Retained Earnings \$	Translation Reserve \$	Option Reserve \$	Fair Value Reserve \$	Total Equity \$
Balance at 1 July 2007 Net change in fair value of available-for-sale-investments	15,490,639 -	4,621,651 -	- -	- -	- (219,434)	20,112,290 (219,434)
Total income and expense recognised directly in equity	-	-	-	-	(219,434)	(219,434)
Net loss for the period	-	(1,052,230)	-	-	-	(1,052,230)
Total recognised income and expense In-specie distribution (WDR)	- -	(1,052,230) (1,999,700)	- -	- -	(219,434) -	(1,271,664) (1,999,700)
In-specie distribution (WDR) In specie distribution costs	(1,164) (1,841)	- -	- -	- -	- -	(1,164) (1,841)
Share placement	5,000,000	-	-	-	-	5,000,000
Transaction costs Options exercised	(250,000) 256,000	- -	- -	- -	- -	(250,000) 256,000
Option exercise costs Share based payments expense	(15,436) -	- 828,641	- -	- -	- -	(15,436) 828,641
Balance at 31 December 2007	20,478,198	2,398,362	-	-	(219,434)	22,657,126
Balance at 1 July 2008 Net change in asset revaluation	20,478,198	871,335	(11,823)	-	-	21,337,710
reserve Net change in fair value of	-	(972,410)	-	-	-	(972,410)
available-for-sale-investments	-	-	11,823	-	-	11,823
Total income and expense recognised directly in equity Net loss for the period	- -	(972,410) (8,762,131)	11,823 -	- -	- -	(960,587) (8,762,131)
Total recognised income and expense	-	(9,734,541)	-	-	-	(9,722,718)
Share placement	1,032,056	-	-	-	-	1,032,056
Transaction costs Right issue	(92,017) 2,890,250	- -	- -	- -	- -	(92,017) 2,890,250
Share based payments expense	-	(138,280)	-	-	-	(138,280)
Balance at 31 December 2008	24,308,487	(9,001,486)	-	-	-	15,307,001

The amounts recognised directly in equity are disclosed net of tax

The consolidated interim statement of changes in equity is to be read in conjunction with the notes to the consolidated interim financial statements.

Notes to the consolidated financial statements

1. Statement of significant accounting policies

TNG Limited (the "Company") is a company domiciled in Australia. The consolidated interim financial report of the Company for the six months ended 31 December 2008 comprises the Company and its subsidiaries (together referred to as the "consolidated entity".

(a) Basis of preparation

The consolidated interim financial report is a general purpose financial report which has been prepared in accordance with AASB 134: Interim Financial Reporting, and the Corporation Act 2001.

The consolidated interim financial report does not include all of the information required for a full annual financial report, and should be read in conjunction with the consolidated financial report of the consolidated entity as at and for the year ended 30 June 2008.

The consolidated interim financial report was approved by the Board of Directors on 11 March 2009.

(b) Significant accounting policies

The accounting policies applied by the consolidated entity in this consolidated interim financial report are the same as those applied by the consolidated entity in its consolidated financial report as at and for the year ended 30 June 2008.

(c) Estimates

The preparation of the interim financial report requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

Except as described below, in preparing this condensed consolidated interim financial report, the significant judgements made by management in applying the consolidated entity's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial report as at and for the year ended 30 June 2008.

During the six months ended 31 December 2008, management reassessed its estimates in respect of the recoverable amount of exploration and evaluation. (see note 5)

Notes to the consolidated financial statements

2. Segment information

The consolidated entity operates predominantly in one business segment and in one geographical location. The operations of the consolidated entity consist of mineral exploration within Australia.

3. Capital

	December 2008	June 2008
Issued and paid-up share capital	\$	\$
258,055,077 (June 2008: 192,683,315) ordinary shares, fully paid	24,308,487	20,478,198
	2008	2007
Movements in shares on issue	Number	Number
Balance at 1 July Options exercised Share placement Rights Issue	192,683,315 - 17,200,934 48,170,828	182,092,405 1,500,000 9,090,910 -
Balance at 31 December	258,055,077	192,683,315

4. Share-based payments

The terms and conditions of the employee share option plans are disclosed in the consolidated financial report as at and for the year ended 30 June 2008. In August 2008, further grants were made to consultants.

The terms and conditions of the grants made during the six months ended 31 December 2008 are as follows:

Grant Date	Number of Instruments	Vesting conditions	Contractual life of options
25 August 2008	250,000	Immediately	31 August 2011
25 August 2008	250,000	31 January 2009	31 August 2011

Fair value of share option and assumptions for the six months ended 31 December 2008:

Grant Date	25-Aug-08
Fair value at grant date	\$0.036
Share price	\$0.072
Exercise price	\$0.15
Expected volatility	100%
Risk free interest rate (based	4.58%
on government bonds)
Expected dividends	-
Option Life	3 years

The basis of measuring fair value is consistent with that disclosed in the consolidated financial report as at and for the year ended 30 June 2008.

During the half year 1,200,000 options for consultants and employees were forfeited due to vesting conditions not being met. As a result, shared based payment expense incurred for these options in prior periods of \$187,858 have been reversed in the current period.

Notes to the consolidated financial statements

5. Exploration, Evaluation and Development Expenditure

Cost	31 December 2008 \$	30 June 2008 \$
Balance at the beginning of the period Exploration expenditure	16,985,982 847,317	9,433,453 7,552,529
Impairment	(8,566,546)	-
Balance at the end of the period	9,266,753	16,985,982
Asset revaluation reserve Impairment expense – profit and loss Total impairment	972,410 7,594,136 8,566,546	- -

The ultimate recoupment of costs carried forward for exploration and evaluation phases is dependent on the successful development and commercial exploitation or sale of the respective areas.

Management reassessed the carrying value of its tenements during the half year ended 31 December 08 by obtaining an independent estimation of their fair values. The range of the subsequent valuation for the company's Manbarrum project was between \$5 million and \$8 million. Given the current economic climate management has chosen a conservative estimate of \$5 million for Manbarrum which resulted in an impairment loss of \$8,566,546.

6. Contingent Liabilities – Davis Samuel

Constructive Trust Claim

Resolution of matters arising from 1998

TNG, as a party to the proceedings instituted by the Commonwealth, issued cross-claims against Davis Samuel and several other parties including Messrs Allan Endresz, Peter Cain, William Forge, David Muir and Peter Clark.

The court hearing commenced in June 2008 and concluded in the last quarter of 2008. The court has reserved its decision, which is not expected for some time due to the length on the hearing. There has been no material change to the details disclosed in the 2008 annual report in relation to the case.

7. Subsequent events

TNG management has made the decision to close its Kununurra logistics base and sell plant and equipment stored on that premises. TNG has actively been seeking offers for the sale of these assets during February 2009.

Directors' Declaration

In the opinion of the directors of TNG Limited ("the Company"):

• 1 the financial statements and notes set out on pages 8 to 14, are in accordance with the Corporations Act 2001, including:
• (a) giving a true and fair view of the financial position of the consolidated entity as at 31 December 2008 and of its performance, for the six months ended on that date; and
• (b) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001; and
• 2 there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

______________________________________________________________________________________

Signed in accordance with a resolution of the Directors.

John W Barr Chairman

11 March 2009

Independent auditor's review report to the members of TNG Limited

We have reviewed the accompanying half-year financial report of TNG Limited, which comprises the consolidated interim balance sheet as at 31 December 2008, income statement, statement of changes in equity and cash flow statement for the half-year ended on that date, a statement of accounting policies and other explanatory notes 1 to 7 and the directors' declaration set out on page 15 of the Group comprising the company and the entities it controlled at the halfyear's end or from time to time during the half-year.

Directors' responsibility for the half-year financial report

The directors of the Company are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of Interim and Other Financial Reports Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Group's financial position as at 31 December 2008 and its performance for the half-year ended on that date; and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As auditor of TNG Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of TNG Limited is not in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the Group's financial position as at 31 December 2008 and of its performance for the half-year ended on that date; and

(b) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

obuson G Robinson Partner

Perth 11 March 2009