TIVAN LIMITED — Interim / Quarterly Report 2010

Jul 21, 2010

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QUARTERLY REPORT

JUNE 2010

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highlights

summary

New hydrometallurgical process established for treatment of Mount Peake ore.

A Joint Patent Application by TNG and Mineral Engineering Technical Services (“METS”) has been submitted.

Detailed re-assessment of Airbourne electomagnetics delineates 35 potential sulphide targets at Mount Peake.

Updated Scoping Study

commissioned at Mount Peake to incorporate hydrometallurgical processing for the recovery of all three components – vanadium, titanium and iron.

Binding contract signed to sell Manbarrum Project to China’s Teng Fei Mining for USD$8.5 million. Initial payment of US$4.5 million has not been received. TNG has served default notice on TFM.

The Company’s 100 percent owned Mount Peake project remained the focus of the exploration strategy during this quarter, with metallurgical testwork continuing under management by metallurgical consultants METS, and several priority geophysical targets delineated for drilling as part of the broader Nickel / Copper exploration programme.

In addition, Joint Venture and investment discussions continued with several Asian resource companies with a view to developing Mount Peake.

TNG LimiTed PO Box 1126 Subiaco Western Australia 6904 | T +61 8 9327 0900 | F +61 8 9327 0901 TNG LIMITED QUARTERLY REPORT JUNE 2010 www.tngltd.com.au | corporate@tngltd.com.au | Contact: Paul Burton, Director & CEO

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TNG OPERATIONS

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Figure 1: TNG Limited Tenement Map

TNG LIMITED QUARTERLY REPORT JUNE 2010

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PROJECTS

MoUNT PEAkE ProJEcT IroN–VANADIUM– TITANIUM TNG 100%

The Mount Peake project is located close to existing power and transport infrastructure in the centre of the Northern Territory. The area under licence covers a highly prospective, but poorly explored area of the Western Arunta geological province.

TNG has defined a JORC resource of 140Mt @ 0.3% V205, 5.3% TiO2 and 24% Fe, with a potential Exploration Target[1] of 500-700Mt with a grade range of 0.2% - 0.4% V205 and 25%35% Fe.

Based on this current resource the project is well positioned for eco-

nomic assessment compared to other Australian Vanadium deposits (Figure 2).

Figure 2: Australian Vanadium Deposits

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Australian Vanadium Deposits
65 177 140 502
3.5
3
2.5
2 Barrambie
1.5 Windimurra Balla Balla
1
0.5 Mount Peake
0
0 200 400 600
Million Tonnes
Tenor (% V205 in Magnetite Concentrate)
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The area is also highly prospective for Nickel, Copper and Platinum group minerals and several priority geophysical targets have been delineated under the company’s “Stirling Deeps” (see below) program.

Metallurgical Test Work and Patent Application

TNG has commissioned Mineral Engineering Technical Services Pty Ltd (“METS”) to design and manage the metallurgical testwork programme.

METS has in-depth experience with Vanadium deposits, particularly with Australian projects, and is well suited to evaluate the Mount Peake mineralisation.

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Drilling at Mount Peake
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¹ The potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resources.

TNG LIMITED QUARTERLY REPORT JUNE 2010

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The new hydrometallurgical process represents a major

step forward for the Mount Peake Project

A joint Patent Application to protect the invention and allow commercialisation at a later date has been submitted

Results of all metallurgical testwork has demonstrated the amenability of the host rock, a magnetite olivine pyroxenite, to produce a high grade Vanadium concentrate over 1% V2O5.

Optimising has improved both grade and recovery of V205, Fe and Ti02 while also successfully reducing the Si02 and Al203 components to acceptable commercial levels.

Further testwork carried out by TNG/ METS has shown that the magnetic concentrate is amenable to hydrometallurgical processing, resulting in very high recoveries of vanadium (98%) and iron (83-99%) in the acid leaching.

Importantly, these new test results have demonstrated that the iron can be separated from the vanadium by using solvent extraction, producing high-grade iron in addition to vanadium and may therefore have a

positive impact on the overall project economics. However the anticipated lower capital and operating costs and the higher recovery would need to be demonstrated in further test work.

The new hydrometallurgical process represents a major step forward for the Mount Peake Project and TNG and METS have submitted a joint Patent Application to protect the invention and allow commercialisation at a later date.

Further optimisation tests are underway. TNG will continue to advance the test work with METS to optimise the process prior to a decision on whether to proceed with a full feasibility study.

NIckEl, coPPEr, PGM “STIrlING DEEPS” ProJEcT

As part of TNG’s nickel-copper exploration strategy a complete review of both airborne magnetic and electromagnetic data over the Mount Peake licence area has been completed resulting in a new magnetic model for the project area.

Magnetic Model

Figure 3: Mount Peake Geophysics - Reduced to pole magnetics

The northern extension of the 9km linear magnetic anomaly present at Mount Peake is interpreted to contain magmatic feeder zones. This is not dissimilar to other mineralised linear zones where magmatic feeder zones in containing Pd, Pt, Au, Cu and Ni, also coincide. Assessment of the linear northern extension of the magnetic anomaly at Mount Peake has delineated several priority targets within the interpreted feeder zones (see Figure 3) that may represent focus of sulphide accumulation. These will be tested in the next drilling programme.

Airborne GEoTEM

Detailed assessment of the airborne Electro-Magnetics has been completed, 35 late-time, intermediate to strong conductive features identified for further work.

TNG LIMITED QUARTERLY REPORT JUNE 2010

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PROJECTS

Anomaly BGc1

Two anomalies coinciding in the area are interpreted to be potential feeder zones. These will be drill tested in the programme scheduled to commence in August.

Drilling of this high-priority electromagnetic anomaly was postponed due to wet weather preventing drill

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our people Samuel Moyle

Most recently Sam has been an integral member of the team assessing new exploration ground and will be involved in the new Scoping Study on the Mount Peake project. We appreciate his enthusiasm for the company’s projects and welcome him into the company.

SAM MoylE hAS BEEN AN ExPlorATIoN GEoloGIST WITh TNG SINcE FEBrUAry 1[ST] 2010.

TNG would like to welcome Sam Moyle to our team. Sam graduated with a Bachelor of Science - Mineral Exploration Mining Geology from Curtin University, he is a Graduate Member AusIMM and a member of the Association of Applied Geochemists.

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Sam has had a varied experience so far in his time as a geologist with TNG, working in several projects across a number of minerals including Iron ore, base metals and gold.

rig access. This remains a high priority target. This has now been scheduled to be drilled in August.

Geochemical & Geophysical review

TNG has engaged Dr. Nigel Brand of Geochemical Services Pty Ltd to review and assess TNG’s geochemical data from the Mount Peake project area with a view to selecting prospective areas for nickel-copper and platinum group mineralisation.

Dr. Brand is a highly respected geochemist and experienced nickel explorer and was formerly part of the highly successful Jubilee Mines exploration team.

TNG has also been successful in engaging the Geophysical expertise of Mr. Ben Jones who was also part of the Jubilee exploration team and more recently held the position of Chief Exploration Geophysicist with Xstrata Nickel Australasia before joining Southern Geoscience Consultants.

Mr. Jones has been involved in the current review of the data and target selection.

MANBArrUM ProJEcT ZINc-lEAD-SIlVEr, IroN-orE TNG 100%.

The Manbarrum Project was sold to Teng Fei Mining Ltd (TFM) under a binding contract to acquire the Manbarrum tenements for a consideration of USD$8.5 million provided for TNG to retain a 2% net smelter return.

The initial payment on the sale of US$4.5 million was not received by the due date of 10 June, and TNG has served a default notice on TFM requiring the default to be remedied by 27th July 2010.

TNG LIMITED QUARTERLY REPORT JUNE 2010

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The matter is currently in the hands of TNG’s lawyers. TNG is unable to comment on the outcome at this time. The Company is progressing with the Mineral Licence Application (MLA) over the Sandy Creek Deposit.

JoINT VENTUrE ProJEcTS

TNG holds an interest in other tenement groups. However, under the terms of the Joint Venture, the Company does not contribute towards exploration expenditure.

WESTErN DESErT rESoUrcES lTD. (WDr) JoINT VENTUrE

TNG 100%, (WDr initially earning 51% with scope to earn up to 80%)

During the quarter, WDR completed three holes (ERRC002, ERRC005 and ERRC006) to their planned depths with a diamond drill rig (Figure 4).

The lithologies intersected in these drillholes were a mixture of volcanics, volcaniclastics and igneous rocks which are probably from the Flynn Subgroup which overlies the prospective Warramunga Formation.

The rocks intersected in the drillholes contained zones of magnetite enrichment which explained the target magnetic anomalies.

Composite sampling at 3m intervals was undertaken on the first 100m of

Table 1: Phosphate values

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Hole Number From To Width P2O5 % (>1%) Depth of
m m m Cambrian
ERRC001 No values >1% 24m
ERRC002 82 91 3 1.72 108m
102 107 5 1.61
ERRC003 No values >1% 44m
ERRC004 46 58 12 1.81 99m
82 91 9 1.74
ERRC005 70 79 9 1.55 117m
88 104 16 2.58
includes 97 104 7 4.53
ERRC006 No values >1% 12m
ERRC007 No values >1% 36m
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(Source: WDR)

oThEr oPPorTUNITIES

the original RC percussion holes.

Assaying for phosphate (P2O5) gave the results as shown in table 1 above.

TNG has maintained its assessment and review of other project opportunities during the quarter.

The best intersection was found in hole ERRC005 with 7m at 4.5% P2O5 from a downhole depth of 97m.

MINING ProJEcTS

Further work is warranted to determine if shallower phosphate mineralisation occurs within the project.

cawse Extended JV Nickel, TNG 20%, Norilsk 80%

The Cawse laterite nickel operation has been placed on indefinite care and maintenance by Norilsk Nickel Australia.

McTavish Project TNG 30%, Barminco 70%

No work undertaken.

kintore East Joint Venture TNG 20%, la Mancha 80%

TNG has elected to retain a 2% gold royalty in these tenements following dilution to 20% by La Mancha.

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Figure 4: East Rover - Location of
drillholes on magnetic image
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(Source: WDR)

TNG LIMITED QUARTERLY REPORT JUNE 2010

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CORPORATE

DAVIS SAMUEl

competent Person’s Statement

TNG is a party to proceedings instituted by the Commonwealth of Australia in the Supreme Court of the Australian Capital Territory.TNG anticipates that the judge will announce his decision in 2010. No firm timetable for the decision has been advised to date.

The information in this report that relates to Exploration Results and Exploration Targets is based on information compiled by Paul Burton who is a Member of The Australasian Institute of Mining and Metallurgy and a Director of TNG Limited. Paul Burton has sufficient experience 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.

corPorATE

At Quarter end, the Company had cash, investments and receivables totalling in excess of $3,800,602 million.

The information in this report that relates to Mineral Resources is based on information compiled by Michael Andrew who is a Member of The Australasian Institute of Mining and Metallurgy and a full time employee of Snowden Mining Industry Consultants Pty Ltd. Michael Andrew has sufficient experience 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’. Michael Andrew consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

TNG lIMITED

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Paul E Burton Director & cEo 22[nd] July 2010

Forward-looking Statements

This report contains ‘forward-looking information’ that is based on the Company’s expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company’s business strategy, plans, objectives, performance, outlook, growth, cash flow, earnings per share and shareholder value, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses, property acquisitions, mine development, mine operations, drilling

activity, sampling and other data, grade and recovery levels, future production, capital costs, expenditures for environmental matters, life of mine, completion dates, and currency exchange rates. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as ‘outlook’, ‘anticipate’, ‘project’, ‘target’, ‘likely’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘may’, ‘would’, ‘could’, ‘should’, ‘scheduled’, ‘will’, ‘plan’, ‘forecast’ and similar expressions. Persons reading this report are cautioned that such statements are only predictions, and that the Company’s actual future results or performance may be materially different.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to the risk factors set out in the Company’s Annual Information Form.

This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. The Company disclaims any intent or obligations to update or revise any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.

Exploration Target

The potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resources.

TNG LIMITED QUARTERLY REPORT JUNE 2010

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TENEMENT SCHEDULE

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Project Tenement ID Holder Operator Date Applied Status Area Km²
Manbarrum (NT) A 24518 TNG 100% TNG (NT) 15/12/04 Granted 16.85
Manbarrum (NT) A 26581 TNG 100% TNG (NT) 14/01/08 Granted 14.65
Manbarrum (NT) EL 24395 TNG 100% TNG (NT) 08/09/04 Granted 200.5
Manbarrum (NT) EL 25470 TNG 100% TNG (NT) 13/07/06 Granted 199.3
Manbarrum (NT) EL 25646 TNG 100% TNG (NT) 16/10/06 Granted 129.3
Manbarrum (NT) ML(A) 27357 TNG 100% TNG (NT) 15/05/09 Pending 2.04
Manbarrum (WA) EL 80/3772 TNG 100% TNG (NT) 16/10/06 Granted 402
Manbarrum (WA) EL 80/3816 TNG 100% TNG (NT) 30/11/06 Granted 224
Mount Peake (NT) EL 23271 Enigma 100% TNG (NT) 20/07/01 Granted 95.9
Mount Peake (NT) EL 23074 Enigma 100% TNG (NT) 02/03/01 Granted 169.2
Mount Peake (NT) EL 27069 Enigma 100% TNG (NT) 01/12/08 Granted 245.9
Mount Peake (NT) EL 27070 Enigma 100% TNG (NT) 01/12/08 Granted 89.46
Mount Peake (NT) ELA 27706 Enigma 100% TNG (NT) 07/10/09 Pending 579.58
Mount Peake (NT) ELA 27787 Enigma 100% TNG (NT) 16/11/09 Pending 139.19
Mount Peake (NT) ELA 27941 Enigma 100% TNG (NT) 15/02/10 Pending 660.82
McAurthur River (NT) ELA 27711 Enigma 100% Enigma 14/10/09 Pending 170.77
Warramunga (NT) MLC 647 TNG 100% WDR 23/03/70 Granted 0.08
Warramunga (NT) EL 24471 TNG 100% WDR 23/11/04 Granted 454.95
Warramunga (NT) EL 25581 TNG 100% WDR 06/09/06 Granted 1170
Warramunga (NT) ELA 25582 TNG 100% WDR 06/09/06 Moratorium 1207
Warramunga (NT) ELA 25587 TNG 100% WDR 11/09/06 Pending 248.2
Tanami East (NT) ELA 24260 TNG 100% WDR 15/04/04 Pending 462.3
Petermans (NT) ELA 25562 TNG100% WDR 23/08/06 Pending 942.15
Petermans (NT) ELA 25564 TNG 100% WDR 23/08/06 Pending 1546.49
Petermans (NT) ELA 26382 TNG 100% WDR 16/08/07 Pending 406.4
Petermans (NT) ELA 26383 TNG 100% WDR 16/08/07 Pending 1300
Petermans (NT) ELA 26384 TNG 100% WDR 16/08/07 Pending 909.51
Geothermal (NT) GEP 27825 TNG Energy 100% TNG (NT) 01/12/09 Pending 409
Geothermal (NT) GEP 27826 TNG Energy 100% TNG (NT) 01/12/09 Pending 1602
Geothermal (NT) GEP 27827 TNG Energy 100% TNG (NT) 01/12/09 Pending 1125
Geothermal (NT) GEP 27828 TNG Energy 100% TNG (NT) 01/12/09 Pending 5905
Cawse Ext. (WA) M 24/547 TNG 20% Norilsk 02/02/96 Granted 8.6
Cawse Ext. (WA) M 24/548 TNG 20% Norilsk 02/02/96 Granted 8.6
Cawse Ext. (WA) M 24/549 TNG 20% Norilsk 02/02/96 Granted 8.6
Cawse Ext. (WA) M 24/550 TNG 20% Norilsk 02/02/96 Granted 8.6
McTavish JV (WA) M 40/119 Enigma 10.1% FMR 31/12/93 Granted 1.5
McTavish JV (WA) M 40/157 Enigma 10.1% FMR 18/01/95 Granted 0.3
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TNG LIMITED QUARTERLY REPORT JUNE 2010

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TENEMENT SCHEDULE

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Project Tenement ID Holder Operator Date Applied Status Area Km²
McTavish JV (WA) M 40/77 Enigma 10.1% Nex Metals 13/06/88 Granted 1.2
McTavish JV (WA) P 40/1193 Enigma 10.1% FMR 02/02/07 Granted 1.71
McTavish JV (WA) P 40/1194 Enigma 10.1% FMR 02/02/07 Granted 1.82
Kintore East JV (WA) P 16/2370 TNG 17.55% LMRA 20/12/06 Granted 1.83
Kintore East JV (WA) P 16/2371 TNG 17.55% LMRA 20/12/06 Granted 1.2
Kintore East JV (WA) P 16/2372 TNG 17.55% LMRA 20/12/06 Granted 1.5
Kintore East JV (WA) P 16/2373 TNG 17.55% LMRA 20/12/06 Granted 1.21
Kintore East JV (WA) P 16/2374 TNG 17.55% LMRA 20/12/06 Granted 2
Kintore East JV (WA) P 16/2459 TNG 17.55% LMRA 20/12/06 Granted 2
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Mount Peake Project Drill Core
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TNG LIMITED QUARTERLY REPORT JUNE 2010

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CONTACT INFORMATION

DIrEcTorS

John W Barr | Chairman Paul Burton | Director & CEO Neil Biddle | Non-Executive Director Eddie Fry | Non-Executive Director

AUSTrAlIAN STock ExchANGE lISTING

Shares | TNG

FrANkFUrT STock ExchANGE lISTING

Shares | A0B60K

coMPANy SEcrETAry

Simon Robertson

ShArE rEGISTry

computer Share Investor Services Pty ltd

Level 2, 45 St Georges Terrace

Perth WA 6000

Telephone: 08 9323 2000 Facsimile: 08 9323 2033

MAJor ShArEholDErS

6.28% CBH Resources Limited 4.73% RAB Special Situations (Master) Fund Ltd 3.99% ANZ Nominees

• 3.77% J W Barr 2.73% N Biddle 7.68% Total Directors Holdings

cAPITAl STrUcTUrE - JUly 2010

coNTAcT

PO Box 1126 Subiaco WA 6904 Telephone: 08 9327 0900 Facsimile: 08 9327 0901

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Type of Exercise class Number Exercise
Security Date Price
Shares fully paid ordinary 258,055,076
options 31.08.11 (unlisted) 500,000 $0.15
options 31.12.11 (unlisted) 1,800,000 $0.32
options 15.12.12 (unlisted) 13,000,000 $0.15
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Email: corporate@tngltd.com.au Web: www.tngltd.com.au

ShArEholDEr ENqUIrIES

Paul Burton

Simon Robertson

TNG LIMITED QUARTERLY REPORT JUNE 2010

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