TIVAN LIMITED — Investor Presentation 2012

Sep 18, 2012

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ASX Code: TNG

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Strategic metals for global growth September 2012

Paul Burton, Managing Director

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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.

This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of TNG Ltd shares in any jurisdiction.

This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction.

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.

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.

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 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.

Mr Damian Connelly, MAAusIMM, Chartered Processional (MET), tMMICA, MSME, MSAIMM was responsible for the preparation of the metallurgical test work results reported herein. Mr Connelly has sufficient experience 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 the Exploration Results, Mineral Resources and Ore Reserves. Mr Connelly consents to the inclusion in the report of the matters based on his information in the form and context in which is appears.

Why Strategic Metals?

Vanadium Price Forecast

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The outlook for vanadium and titanium prices is strong:

• Strong continued growth in demand from high-tech steels

► New opportunities in medical products, industrial and vehicle battery markets

Titanium Production & Price Forecasts

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Source: Roskill

Vanadium: The Critical Element

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Roland IJdema / Shutterstock.com
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Steel

• Rebar & structured beams

• High speed tools and surgical steels

Aerospace and Defence

• Titanium vanadium alloys for all high-technology metals aircraft, missiles, personnel transports, etc

Chemicals and Pollution Control

• Production of synthetic rubber, polyester, fibreglass, sulfuric acid, etc

• Critical component of catalytic converters to remove sulphur dioxide and other pollutants

Energy Store – THE SLEEPING GIANT

• The grid scale Vanadium Flow Battery

• Lithium Vanadium Batteries for electric vehicles

TIVAN[TM] : TNG’s Competitive Advantage

• Patented hydrometallurgical process – extracts vanadium, titanium and iron

• Pilot plant test work shows high recoveries and purities:

• 99% V205 (+80% recovery)

• 99.9 % Fe203 (69.2% Fe) (80% recovery)

• 55% Ti02 (+75% recovery)

• Reduced OPEX and CAPEX by 50%

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TIVAN[TM] : Commercial Products

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Total Metal Production	Tonnes	Tonnes
V2O5	236,000
TiO2	5,822,000
Fe2O3	17,400,000
Average Concentrate Grade
V2O5		1.2%
TiO2		18%
Fe		55%
Metal Purity
V2O5	99%
TiO2	55%
Fe2O3	99.9%

Key Assets

TNG’s extensive Australian mineral portfolio encompasses Mount Peake ( moving to Feasibility ), 10,000 sq km of highly prospective copper exploration tenements ( exploration underway ), a bauxite project on Melville Island ( JV with Rio Tinto ) and the Manbarrum Zinc Project in WA ( JV with KBL Mining – moving to production ).

Flagship Asset: Mount Peake

Strategic metals: Vanadium , Titanium and Iron

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• 100%-owned, 2,000km[2] leases

• Close to key infrastructure: road , rail and gas

• Direct rail access to Darwin Port

• Large, shallow resource (160Mt)

• Exploration Target = 500-700Mt *

• PFS completed moving to DFS Q4 2012

• High purity, high-grade products

• PFS results show robust project

* Exploration Target of 500-700Mt with a grade range of 0.2-0.4% V205, 5-8% TiO2, and 25-35% Fe. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Mount Peake Resource

Shallow large-scale resource underpins long-life project

	JORC Category Tonnes V2O5% TiO2% Fe% Al2O3% SiO2% Indicated 110,000,000 0.29 5.3 23 8.1 34 Inferred 48,000,000 0.24 4.5 21 8.8 35 Total 160,000,000 0.27 5.0 22 8.3 34

Pre-Feasibility: Key Outcomes

Key Physicals

•	Total material mined:	147.9Mt
•	Total waste movement:	72Mt
•	Total ore mined:	75.9Mt
•	Strip ratio:	0.95
•	Mine life:	20 years
•	Processing rate:	2.5Mtpa, increasing
		to 5Mtpa in year 4

Key Financial Outcomes

• Total revenue (LOM): A$11.8 billion

• • Operating cash flow (LOM): A$5.8 billion • Net cash flow (LOM): A$5.05 billion • Pre-production capital: A$563M • Total operating costs: A$75.50/tonne of plant feed*

• • Net annual cash flow: A$294M • IRR pre-tax: 31.8%

Total Metal Production	Tonnes
V2O5	236,000
TiO2	5,822,000
Fe2O3	17,400,000

Average Concentrate Grade	Average Concentrate Grade	Average Concentrate Grade
V2O5		1.2%
TiO2		18%
Fe		55%
Metal Purity
V2O5	99%
TiO2	55%
Fe2O3	99.9%

* including all infrastructure

• ** including mining, processing, transport & royalties

Mount Peake: Quality & Quantity

Vanadium Deposits (Relative size in contained V2O5)

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* Exploration Target of 500-700Mt with a grade range of 0.2-0.4% V205, 5-8% TiO2, and 25-35% Fe. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Corporate Comparison

Company Market Capitalisation (A$’M) Comparison

ET = Exploration Target

Mount Peake is a world-scale vanadium deposit with the potential to supply up to 10% of current global demand.

* Exploration Target of 500-700Mt with a grade range of 0.2-0.4% V205, 5-8% TiO2, and 25-35% Fe. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Mount Peake: Project Realisation

TNG has outlined a clear development pathway, leveraging off its key relationships and alliances in China

Project Delivery

• Strategic Chinese partners secured

• Off-take and EPCM (Engineering, Procurement & Construction Management) discussions commenced

• Marketing and sales of products discussion commenced

• The next steps…

• Finalise processing plant options – include overseas location or near Darwin Port

• Commence Definitive Feasibility Study

• Commence Environmental Impact Statement

• Secure partner for EPCM

• Secure long-term sales contracts

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Copper Exploration Ramping Up

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• Extensive 10,000km[2] copper exploration portfolio in NT

• No previous modern exploration

• Mount Hardy Copper Project (TNG: 100%)

• Extensive high-grade surface Cu with anomalous Au, Ag and Pb

• Historical rock chip grades of 19% Cu, 18% Pb, 1.52% Zn, 2.66g/t Au, 170g/t Ag

• Walabanba Hills (JV with Toro Energy – earning up to 80%)

• Numerous magnetic targets anomalous in Ni, Cu and PGM

• Historical results up to 3,581ppm Ni and 2,410ppm Cu over 2050m

Copper Exploration: HELITEM[®] Survey

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• Major HELITEM[®] airborne survey recently completed over key NT copper projects

• World’s most powerful helicopter time-domain electromagnetic (EM) system for detecting magnetic targets

• Demonstrated success in locating buried sulphide mineralisation

• Results show cluster of anomalies coincident with existing copper prospects

• Follow-up ground EM underway

• • Drilling to commence in Q4 of 2012

Corporate Overview

Key Corporate and Financial Data	Key Corporate and Financial Data
ASX code:	TNG
Market capitalisation: (at 8c)	$32M
Shares on issue:	406M
Cash and liquids:	$10.5M

Major Shareholders	Major Shareholders
Ao-Zhong International Mineral Resources	15.30%
Aosu Investment & Development Co	14.70%
WWB Investments P/L	6.51%
CBH Resources Limited	3.48%
(Directors hold >20% issued capital)

Board of Directors	Board of Directors
Jianrong Xu	Chairman
Paul Burton	Managing Director
Neil Biddle	Non-executive Director
Stuart Crow	Non-executive Director
Rex Turkington	Non-executive Director
Zhigang Wang	Non-executive Director

THE VISION:

to build a diversified Australian resources company focused on supplying key strategic metals to Chinese and world markets from our extensive portfolio of mineral projects in the Northern Territory.

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TNG Snapshot

• Mineral-asset rich project portfolio in NT

• Developing world-class Vanadium-Titanium Project

• Major Chinese investors / partners

• Robust project: LOM revenue of $12B

• Experienced management team

• TIVAN™ process: competitive advantage

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• Outlook for strategic metals strong

• Huge upside to resource potential – 500-700Mt*

• Major copper exploration portfolio : drilling imminent

• Well-funded for growth

* Exploration Target of 500-700Mt with a grade range of 0.2-0.4% V205, 5-8% TiO2, and 25-35% Fe. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

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ASX Code: TNG

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Strategic metals for global growth September 2012

Paul Burton, Managing Director

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Appendix – Mount Peake: Project Upside

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• Additional large magnetitegabbro zones

• Potential for new vanadium and titanium-bearing zones confirmed

• Supports Exploration Target of 500-700Mt * within 2,000 sq km tenement holding

* Exploration Target of 500-700Mt with a grade range of 0.2-0.4% V205, 5- 8% TiO2, and 25-35% Fe. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Appendix – Graphite Potential

• Significant 40m intercept of graphite mineralisation intersected in 2011 drilling targeting base metal mineralisation

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• Hole located 100m south of a historic graphite intersection

• Potential for an extensive zone of graphite mineralisation

• Metallurgical testwork underway to assess ability to upgrade graphite to economic grade using simple beneficiation (froth flotation)

• Further assessment of economic potential of graphite mineralisation underway

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Appendix – Background Data

Exploration Targets:

The potential quantity and grade in any reference to exploration targets and resource potential is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Pre-Feasibility Study:

Reference to the PFS is to the ASX announcement in July 2012, which was prepared based on the Company’s presently delineated mineral resource estimate. Any investment decision should be considered based on this information.

Key assumptions of PFS include:

• Operating costs and pit slope angles related to mining estimated to a Pre-Feasibility Study level (±25%)

• V2O5 price of US$19,841/tonne (> 99% grade)

• TiO2 price of US$400/tonne (> 64% grade)

• Fe2O3 price of US$200/tonne (> 99.9% grade)

• Royalty rate of 2.5% per tonne of plant feed

• Discount rate of 8%

• AUD$/US$ exchange rate of 1US$ = 1AU$

Nett Annual Cash Flow:

Is defined as the average discounted cash flow 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.