TIVAN LIMITED — Investor Presentation 2011

Aug 28, 2011

Presentation August 2011

ASX Code: TNG

Disclaimer

Forward-Looking Statements

This presentation has been prepared by TNG Ltd. This document contains background information about TNG Ltd current at the date of this presentation. The presentation is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation.

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This presentation does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

To the fullest extent permitted by law, TNG Ltd, its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.

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.

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.

The information in this report that relates to Financial and Mining analysis is based on information compiled by Jeremy Peters who is a Member of The Australasian Institute of Mining and Metallurgy and a full time employee of Snowden Mining Industry Consultants Pty Ltd. Jeremy Peters 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’. Jeremy Peters consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of TNG Ltd. Actual values, results or events may be materially different to those expressed or implied in this presentation.

on track to building a world class ferrous metals business

• TNG forms strategic partnership with Jiangsu Eastern China Non-Ferrous Metal Investment Holding Co., Ltd (ECE).

• $13.4m investment via binding Letter Of Intent by ECE to underpin development of Mt Peake Project.

• Scoping Study Forecasts Nett Annual Cashflow of up to A$226M over 24 year Mine life.

• Patented new Hydrometallurgical process TIVAN[TM] provides ability to recover 3 products, Iron-Vanadium and Titanium at lower CAPEX & OPEX.

• Pre-Feasibility Study progressing on schedule and on budget

Location & Infrastructure

• Project advantageously located close to local infrastructure in the Northern Territory

• Darwin to Alice Gas Pipeline

• Stuart Highway

• Adelaide to Darwin Railway

• Discussions relating to port and rail access confirm available capacity.

• Ability to supply cheap gas power to site potentially makes Mount Peake one of the lowest-cost ferrous projects in Australia.

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Exploration Targets

Mount Peake Licences

• Exploration licence > 2000Km[2 ]

• New targets give potential for 500-700Mt[1 ]

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

Why STRATEGIC METALS? Vanadium

• Primary use in steel production, batteries and motor vehicles

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• Demand for Vanadium forecast to significantly increase with hi- technology advances including (battery cells), and steel production.

• Titanium and Vanadium prices on the rise…

V205 - US$8 / llb and Ferro-vanadium – US$30 / lb

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• ….and set to increase further

Vanadium-Titanium-Iron: STRATEGIC METALS

• JORC inferred resource: 140Mt @ 0.3% V205, 5% Ti02, 24% Fe

• Concentrate upgrading:

>1.2% V205, 18% Ti02, 55% Fe

• :

• Exploration Target[1]

500 – 700Mt

• (0.2% - 0.4% V205, 5%-9% TiO2, 25% - 35% Fe)

  • Provides vertically integrated development capability with the ability to recover all three commodities at commercial grades

• Commercial grade concentrate produced by coarse crush and LIMS

• 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

Breakthrough Technology – TIVAN[TM] Process

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• Hydrometallurgy - successfully extracts vanadium, titanium and iron from titanomagnetite ores.

• International patent application lodged

• acid leaching and solvent extraction enables +90% recovery of V2O5, Fe, TiO2

• Cheaper OPEX and CAPEX

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The TIVAN[TM] Process

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2011 Scoping Study – Key Findings

Mine Life:

24 years

Processing rate (life-of-mine): 5 Mt /annum

Life-of-mine production:

107.1 million tonnes

Process head grade:

Process head grade: 0.33% V2O5, 25.39% Fe, 6.04% TiO2 Total metal production: 349kt V2O5, 27,182kt Fe, 6,463kt TiO2

Total operating costs (excluding royalties): $46.6/tonne

Preliminary capital estimate: $370.3M (for Stage 1 – 2Mtpa) Se $307.6M (for Stage 2 – 5Mtpa) Nett Cash Flow[2] $148.37M / annum

Key assumptions of the Scoping Study included:

Operating costs and pit slope angles related to mining estimated to a Scoping Study level (±50%) Commodity pricing based on a previous 4 year average V2O5 price of US$8.00/lb TiO2 price of US$155.60/tonne Fe2O3 price of US$200/tonne Royalty rate of 2.5% per tonne of plant feed A$/US$ exchange rate of 0.85 US$ = 1A$ 2 capital, hedging, tax, depreciation, rehabilitation and salvage.

FeV Production –

a value add product

Mine Life:

24 years

Processing rate (life-of-mine): 2 Mt/annum

Total FeV metal production: 105,000 tonnes

Total operating costs (excluding royalties): $5.36/tonne Primary Capital Estimate[3] : $43.8M (for Stage 1-2Mtpa)

Nett Cash Flow[4] : $78M/annum

New Total Nett Cashflow[4] :

$226M/annum

Key assumptions of the Scoping Study included:

3 FeV plant capacity capital cost estimate supplied by Snowden and METS includes both direct and Indirect costs (at a Scoping Level Study of ±35%).

4 Nett Cashflow is defined as the average undiscounted cashflow per annum after all CAPEX (pre-strip CAPEX, initial CAPEX, and expansion CAPEX has been deducted), but ignores cost or source of capital, hedging, tax, depreciation, rehabilitation and salvage.

Quality & Quantity

Australian Vanadium Deposits (Relative size in contained V2O5)

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in Magnetite Concentrate
5
O
2
Tenor (% V
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65
140
177
Reed Resources Barrambie
502
Atlantic Windimurra TNG
Aurox Balla Balla Expl Target
Speewah
TNG
Mt Peake Speewah
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Million Tonnes

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

Corporate Comparison

Company Market Capitalisation (m) comparison

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ET = Exploration Target
Reed Resources
Atlantic
Speewah
40
ET 500-700mt
TNG
15
Market Capital (Sm)
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Jorc resources
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Mount Peake Pre-Feasibility Study Preliminary Development Schedule

	TNG Limited Mt Peake Preliminary Development Schedule	TNG Limited Mt Peake Preliminary Development Schedule	TNG Limited Mt Peake Preliminary Development Schedule	TNG Limited Mt Peake Preliminary Development Schedule	TNG Limited Mt Peake Preliminary Development Schedule
	Task	J F M A M J J A S O N D 2011	J F M A M J J A S O N D 2012	J F M A M J J A S O N D 2013	J F M A M J J A S O N D 2014
	Resource Drilling & Sampling Process Trials Undertake PFS Study Value Improvement Studies Feasibility Study Early Engineering and Design Early Procurement Activities Project Financing Execution Handover

Board and Management

Managing Director – Mr Paul Burton

• With over 20 years experience in exploration and mining throughout Australia and overseas, Mr Burton has managed successful mineral exploration and feasibility study programs for a range of different commodities including base-metals, precious-metals, diamonds and ferrous metals.

Chairman/Non–Executive Director – Mr Neil Biddle

• A geologist with over 25 years experience in precious metal, base metal and iron ore exploration throughout Australia and overseas, as well as in the establishment, development and management of listed mining and exploration companies.

Non–Executive Director – Mr Stuart Crow

• Mr Crow has more than 25 years experience in all aspects of corporate finance and investor relations in Australia and international markets, and has owned and operated his own businesses in these areas for the last twelve years. He brings extensive working knowledge of capital markets to the Board.

Company Secretary - Mr Simon Robertson

• Mr Robertson currently holds the position of Company Secretary for a number of publically listed companies and has experience in corporate finance, accounting and administration, capital raisings and ASX compliance and regulatory requirements.

Corporate Summary

Shares on Issue 285m Cash Top 20 Shareholders hold Investments 35.9% of Issued Capital Receivables $4.51m Major Shareholders 8.50% WWB Investments CBH 4.98% JP Morgan 3.25% TNG ASX Code:

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ASX Code:
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Other TNG Projects and Tenements in NT & WA

• Manbarrum (Zn-Pb-Ag)

• McArthur Project (Cu)

• Rover (Cu-Au)

• Petermans (Au-Cu-U)

• Mount Peake (Fe-V-Ti)

• Goddards (Cu)

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THANK YOU