TIVAN LIMITED — Interim / Quarterly Report 2010

Jan 27, 2011

TNG[limited]

QUARTERLY REPORT

DECEMBER 2010

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highlights

summary

Mount Peake Scoping Study on schedule for completion at end January 2011

New exploration licences secured contains historic results up to 30% Copper (Cu). Tenements cover a total area over 650km[2]

Assays results confirm copper grades at Mount Peake (NT) with grades of up to 6.07% Cu from sampling of newly discovered Gossan

Joint international patent application lodged to protect revolutionary metallurgical process developed jointly by TNG and METS

New upgraded company website launched

The Company’s exploration focus during the quarter remained on its 100% owned Mount Peake project in the Northern Territory.

Interim results from the new Scoping Study at Mount Peake continue to be positive and indicate the new metallurgical process developed by TNG and METS could significantly reduce the project Capital expenditure and operating expenditure. The Scoping Study is nearing completion and following internal reviews, results will be announced when available.

New exploration licences were acquired in the Northern Territory covering areas highly prospective for copper with historic results >30% Cu. These represent a significant addition to TNG’s Northern Territory minerals portfolio, providing an exciting new target for copper exploration alongside its flagship 100% owned Mount Peake Project.

The Company plans to accelerate its copper exploration activities this year, alongside its plans to rapidly progress the Mount Peake Ferro-Vanadium Project and its newly-developed hydrometallurgical process for titanomagnetite vanadium ores.

Discussions continued with Asian and Australian resource companies with a view to progressing with both the Mount Peake and Manbarrum projects to feasibility stages.

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

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TNG OPERATIONS

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Northern Territory
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Figure 1: TNG Limited Tenement Map

TNG LIMITED QUARTERLY REPORT DECEMBER 2010

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PROJECTS

IRON–VANADIUM–TITANIUM

Mount Peake Project: TNG 100%

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

The project currently has a JORC inferred resource estimate of 139Mt @ 0.29% vanadium (V205), 5.3% titanium (TiO2)and 23.7% iron (Fe), with an Exploration Target[1] of 500 - 700Mt with a grade range of 0.2% - 0.4% V205 and 25% - 35% Fe.

Metallurgical Test Work and Scoping Study:

The new Scoping Study to evaluate the commercial extraction of the three key commodities from the titanomagnetite ore – namely iron, vanadium and titanium – is on schedule for completion by end January 2011.

Results continue to be encouraging and during the quarter METS advised the following key interim findings from the Scoping Study;

• The vanadium concentrate grade is consistent at 1.2% V205 after preliminary grinding and magnetic separation:

• V205 recovery is 91 – 95%;

• The iron concentrate grade is consistent at 54-55% Fe after preliminary grinding and magnetic separation:

• Fe recovery is approximately 71-75%;

• The titanium grade is consistent at 16 – 17% TiO2 after preliminary grinding and magnetic separation:

• TiO2 recovery is 75%;

• The ore is low in phosphorus, silica and alumina below commercial penalty values;

• In the leach process, the vanadium is readily leached with an extraction of >90% achieved and 80% for iron;

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Vanadinite
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¹The 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 DECEMBER 2010

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TNG remains positive that the new process and recovery of all three marketable products will significantly boost the Project’s economics

• METS consider that further test work may potentially eliminate the need for fine grinding, resulting in a further reduction in capital and operating expenditures;

• METS consider that the Capex and Opex estimates using the new hydrometallurgical processing technique will be much lower than for existing standard processes, which will provide the company with a distinct competitive advantage.

Following the establishment of the new hydrometallurgical process developed by TNG and METS, a decision has been made to progress this to International Patent status.

TNG remains positive that the new process and recovery of all three marketable products will significantly boost the Project’s economics.

Mineral Lease Application

A Mineral Lease Application (MLA) has been submitted over the existing vanadium resource at Mount Peake. The MLA is the first stage in seeking agreement with the Traditional Owners, Central Land Council and the Northern Territory Government for development of the project and mining.

NICKEL, COPPER, PGM

Copper Gossan Discovery

Laboratory assay results have confirmed the significant copper grades from newly-discovered copper mineralisation in the northern licences of the Mount Peake Project (see Figure 2).

The results, which included peak sample grades of up to 6.07% Cu, are from samples taken from a gossanous outcrop, which was located during a recent geological mapping programme being undertaken close to recently identified EM targets. The outcrop lies within a package of prospective ultramafic rock units.

The confirmation of high copper values from this new mineral occurrence supports the additional participative of the licence area for copper–nickel exploration targets at Mount Peake.

A programme of detailed geological mapping, geophysics, geochemical and rock chip sampling is now in preparation to fully assess the occurrence and define targets for drilling.

NEW PROJECT

McArthur Copper Project TNG 100%

Figure 2: Project Location

The company further expanded its Northern Territory copper exploration portfolio after securing new Exploration Licences (EL) covering both a small historic copper mine and numerous known occurrences of copper mineralisation including grades from historic surface rock chip samples of up to 30% Cu (see Figure 3).

TNG LIMITED QUARTERLY REPORT DECEMBER 2010

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PROJECTS

The new ELs, which cover a total area over 650km[2] were explored for base metals in the 1970s by companies Mt Isa Mines, BHP Minerals Pty Ltd and CRA Exploration Pty Ltd, returning numerous anomalous results over a widespread area. No modern exploration for copper has been undertaken since the 1970s.

Plans are in preparation to complete a thorough rock chip sampling program over the region in order to confirm the scope and tenor of mineralisation, and then potentially conduct geophysical surveys to delineate drill targets.

NEW COPPER PROJECT

Exploration will be aimed at largescale sedimentary-hosted copper deposits similar to Mount Isa and Gunpowder in Queensland and the large copper deposits of Zambia and the Democratic Republic of Congo.

No modern exploration for copper has been undertaken since the 1970s, with TNG identifying the prospects through its own in-house research work.

The new projects represent a significant addition to TNG’s Northern Territory minerals portfolio.

The Company plans to accelerate its copper exploration activities this year, alongside its plans to rapidly progress the Mount Peake Vanadium Project and its newly-developed hydrometallurgical process for titanomagnetite vanadium ores.

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Figure 3: New McArthur Licences
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TNG LIMITED QUARTERLY REPORT DECEMBER 2010

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PROJECTS

ZINC-LEAD-SILVER, IRON-ORE

Manbarrum Project: TNG 100%

The Manbarrum Project is located in the Northern Territory 82km north-east of the township of Kununurra (see Figure 4). The current granted Manbarrum tenements comprise three Exploration Licences and two Authority to Prospect licences (under Section 178)

covering a combined area of approximately 407km[2] .

The Project remains a significant asset for the company in a highly prospective region. Two deposits totalling in excess of 35Mt of combined zinc-lead-silver mineralisation has been discovered to date, with a number of untested targets gaining a significant Exploration Target[1] of 80 - 100Mt with a grade range of 1.5%-2% Zn.

TNG’s strategy in the area is to define a large inventory of base-metal mineralisation prior to commencing feasibility studies. The Browns prospect is large and there is significant scope to locate more mineralisation with a number of other structural targets untested.

The project remains 100% owned by TNG and discussions have advanced with other Asian and Australian companies over a sale or joint venture to progress the project.

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Figure 4: Manbarrum Project area
with main prospects & deposits
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Nb: The Sorby Hills deposit is not owned by TNG and is noted for location purposes only. ¹The 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 DECEMBER 2010

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JOINT VENTURE PROJECTS

WESTERN DESERT RESOURCES LTD. (WDR) JOINT VENTURE

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

WDR is progressing exploration on EL 25581, where it has completed one programme of Reverse Circulation (RC) drilling. No mineralisation was intersected and further drilling is required to adequately test the selected targets (see Figure 5).

WDR is planning a proposed detailed gravity survey on EL 25581, adjacent to their Rover 1 and Rover 4 deposits.

MCTAVISH PROJECT JOINT VENURE

TNG 30%, Barminco 70%

No work undertaken.

KINTORE EAST JOINT VENTURE

TNG 20%, La Mancha 80%

TNG retains a 2% gold royalty in these prospective tenements.

OTHER OPPORTUNITIES

TNG has continued its assessment and review of other potential project opportunities both in Australia and overseas.

MINING PROJECTS: NICKEL CAWSE EXTENDED JOINT VENTURE TNG 20%, Norilsk 80%

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

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Figure 5: East Rover - Location of
drillholes on magnetic image
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TNG LIMITED QUARTERLY REPORT DECEMBER 2010

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CORPORATE

DAVIS SAMUEL

Competent Person’s Statement

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.

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

CORPORATE

The company’s AGM was held on 10th November 2010. All resolutions were passed.

CASH AND INVESTMENTS

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.

At Quarter end, the Company had cash and current investments totalling in excess of $2,937,840.47.

WEBSITE

A new updated website was released providing more information for investors on TNG’s projects and outlook for 2011.

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Forward-Looking Statements

TNG LIMITED Paul E Burton Director & CEO 28 January 2011

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 forwardlooking 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 forwardlooking 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 DECEMBER 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 TNG100% TNG (NT) 15/12/04 Granted 16.85
Manbarrum (NT) A 26581 TNG100% TNG (NT) 14/01/08 Granted 14.65
Manbarrum (NT) EL 24395 TNG100% TNG (NT) 8/09/04 Granted 200.5
Manbarrum (NT) EL 25470 TNG100% TNG (NT) 13/07/06 Granted 199.3
Manbarrum (NT) EL 25646 TNG100% TNG (NT) 16/10/06 Granted 129.3
Manbarrum (NT) ML(A)27357 TNG100% TNG (NT) 15/05/09 Pending 2.04
Manbarrum (WA) EL 80/3772 TNG100% TNG (NT) 16/10/06 Granted 402
Manbarrum (WA) EL 80/3816 TNG100% TNG (NT) 30/11/06 Granted 224
Mount Peake (NT) EL 23271 Enigma100% TNG (NT) 20/07/01 Granted 95.9
Mount Peake (NT) EL 23074 Enigma100% TNG (NT) 2/03/01 Granted 169.2
Mount Peake (NT) EL 27069 Enigma100% TNG (NT) 1/12/08 Granted 245.9
Mount Peake (NT) EL 27070 Enigma100% TNG (NT) 1/12/08 Granted 89.46
Mount Peake (NT) ELA 27706 Enigma100% TNG (NT) 7/10/09 Granted 579.58
Mount Peake (NT) ELA 27787 Enigma100% TNG (NT) 16/11/09 Granted 139.19
Mount Peake (NT) ELA 27941 Enigma100% TNG (NT) 15/02/10 Granted 660.82
Mount Peake (NT) ELA 28491 Enigma 100% TNG (NT) 29/11/10 Pending 17 SBKS
Mount Peake (NT) MLA 28341 Enigma 100% TNG (NT) 14/10/10 Pending 358 HECT
McArthur River (NT) ELA 27711 Enigma100% Enigma 14/10/09 Granted 170.77
McArthur River (NT) ELA 28503 Enigma100% Enigma 09/12/10 Pending 229.62
McArthur River (NT) ELA 28509 Enigma100% Enigma 13/12/10 Pending 29.55
East Arnhem Land (NT) ELA 28218 Enigma100% Enigma 16/08/10 Pending 6 SBKS
East Arnhem Land (NT) ELA 28219 Enigma100% Enigma 16/08/10 Pending 9 SBKS
Warramunga (NT) MLC 647 TNG100% WDR 23/03/70 Granted 0.08
Warramunga (NT) EL 24471 TNG100% WDR 23/11/04 Granted 454.95
Warramunga (NT) EL 25581 TNG100% WDR 6/09/06 Granted 1170
Warramunga (NT) ELA 25582 TNG100% WDR 6/09/06 Moratorium 1207
Warramunga (NT) ELA 25587 TNG100% WDR 11/09/06 Pending 248.2
Tanami East (NT) ELA 24260 TNG100% WDR 15/04/04 Pending 462.3
Petermans (NT) ELA 25562 TNG100% WDR 23/08/06 Pending 942.15
Petermans (NT) ELA 25564 TNG100% WDR 23/08/06 Pending 1546.49
Petermans (NT) ELA 26382 TNG100% WDR 16/08/07 Pending 406.4
Petermans (NT) ELA 26383 TNG100% WDR 16/08/07 Pending 1300
Petermans (NT) ELA 26384 TNG100% WDR 16/08/07 Pending 909.51
Geothermal (NT) GEP27825 TNG Energy100% TNG (NT) 1/12/09 Pending 409
Geothermal (NT) GEP27826 TNG Energy100% TNG (NT) 1/12/09 Pending 1602
Geothermal (NT) GEP27827 TNG Energy100% TNG (NT) 1/12/09 Pending 1125
Geothermal (NT) GEP27828 TNG Energy100% TNG (NT) 1/12/09 Pending 5905
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TNG LIMITED QUARTERLY REPORT DECEMBER 2010

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TENEMENT SCHEDULE

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Project Tenement ID Holder Operator Date Applied Status Area Km²
Cawse Ext. (WA) M 24/547 TNG20% Norilsk 2/02/96 Granted 8.6
Cawse Ext. (WA) M 24/548 TNG20% Norilsk 2/02/96 Granted 8.6
Cawse Ext. (WA) M 24/549 TNG20% Norilsk 2/02/96 Granted 8.6
Cawse Ext. (WA) M 24/550 TNG20% Norilsk 2/02/96 Granted 8.6
McTavish JV (WA) M 40/119 Enigma10.1% FMR 31/12/93 Granted 1.5
McTavish JV (WA) M 40/157 Enigma10.1% FMR 18/01/95 Granted 0.3
McTavish JV (WA) M 40/77 Enigma10.1% Nex Metals 13/06/88 Granted 1.2
McTavish JV (WA) P 40/1193 Enigma10.1% FMR 2/02/07 Granted 1.71
McTavish JV (WA) P 40/1194 Enigma10.1% FMR 2/02/07 Granted 1.82
Kintore East JV (WA) P 16/2370 TNG17.55% LMRA 20/12/06 Granted 1.83
Kintore East JV (WA) P 16/2371 TNG17.55% LMRA 20/12/06 Granted 1.2
Kintore East JV (WA) P 16/2372 TNG17.55% LMRA 20/12/06 Granted 1.5
Kintore East JV (WA) P 16/2373 TNG17.55% LMRA 20/12/06 Granted 1.21
Kintore East JV (WA) P 16/2374 TNG17.55% LMRA 20/12/06 Granted 2
Kintore East JV (WA) P 16/2459 TNG17.55% LMRA 20/12/06 Granted 2
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Mount Peake Project Drill Core
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TNG LIMITED QUARTERLY REPORT DECEMBER 2010

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CONTACT INFORMATION

DIRECTORS

AUSTRALIAN STOCK EXCHANGE LISTING

John W Barr | Chairman

Shares | TNG

Paul Burton | Director & CEO Neil Biddle | Non-Executive Director Eddie Fry | Non-Executive Director

FRANKFURT STOCK EXCHANGE LISTING

Shares | A0B60K

COMPANY SECRETARY

Simon Robertson

MAJOR SHAREHOLDERS

CBH Resources Limited 6.28%

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

CBH Resources Limited	6.28%
RAB Special Situations
(Master) Fund Ltd	4.51%
Colbern Fiduciary
Nominees Pty Ltd	3.59%
JW Barr	3.77%
N Biddle	2.73%
Total Directors Holdings	7.68%

CONTACT

PO Box 1126

Subiaco WA 6904

Telephone: 08 9327 0900 Facsimile: 08 9327 0901 Email: corporate@tngltd.com.au Web: www.tngltd.com.au

CAPITAL STRUCTURE - DECEMBER 2010

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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) 15,600,000 $0.15
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SHAREHOLDER ENQUIRIES

Paul Burton

Simon Robertson

TNG LIMITED QUARTERLY REPORT DECEMBER 2010

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