TIVAN LIMITED — Investor Presentation 2016

Aug 1, 2016

2 August 2016

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ASX ANNOUNCEMENT
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Revised Diggers and Dealers Presentation

Australian strategic metals company TNG Limited (ASX: TNG) ( TNG or the Company ) advises that the presentation made to Diggers and Dealers and lodged on ASX today has been revised by removing page 13 titled “Project Finance: Finance Model Scenario and Conceptual Breakdown”.

Investors and potential investors should be aware that project finance for Mount Peake is still to be secured and is a matter of ongoing consideration.

The revised presentation is attached.

Paul E Burton Managing Director

2 August 2016.

Inquiries:

Paul E Burton Managing Director + 61 (0) 8 9327 0900 Nicholas Read Read Corporate + 61 (0) 8 9388 1474

About TNG

TNG is building a world‐scale strategic metals business based on its flagship 100%‐owned Mount Peake Vanadium‐Titanium‐ Iron Project in the Northern Territory. Located 235km north of Alice Springs, Mount Peake will be a 20‐year plus project producing a suite of high‐quality, high‐purity strategic metals products for global markets including vanadium pentoxide, iron oxide and titanium dioxide. The project, which will be a top‐10 global producer, has received Major Project Facilitation status from the NT Government.

The Mount Peake Feasibility Study is well advanced and due for completion by mid‐2015, paving the way for project financing and development to proceed. An integral part of TNG’s emerging strategic metals business its 100% ownership of the unique and patented TIVAN® hydrometallurgical process, which offers significantly lower capital and operating costs, lowers risk and successfully extracts two other valuable metals from the resource in addition to vanadium – titanium dioxide and high‐purity iron oxide.

Vanadium is a highly strategic metal which is used as an alloy in steel. It is also in strong demand for use in energy storage, with vanadium redox batteries used to store electricity generated by solar and wind power, and lithium‐vanadium ion batteries used to power hybrid cars.

Forward‐Looking Statements

This announcement has been prepared by TNG Ltd. This announcement 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.

W www.tngltd.com.au E corporate@tngltd.com.au

ASX CODE: TNG ABN 12 000 817 023

REGISTERED OFFICE T +61 8 9327 0900 Level 1, 282 Rokeby Road F +61 8 9327 0901 Subiaco, Western Australia 6008

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This is for information purposes only. Neither this 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 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 announcement. No responsibility for any errors or omissions from this arising out of negligence or otherwise is accepted.

This 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.

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ASX: TNG
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Mount Peake Vanadium Project:

• A world-class strategic metals project

• A$4.9 billion NPV, 41% IRR (2015 DFS)

• Binding off-take agreements in place

• Financing discussions underway

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Developing Mount Peake: The right partners, the right metals, the right time Diggers & Dealers, August 2016 – 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 STATEMENTS

• The information in this report that relates to the Mount Peake Mineral Resource estimates is extracted from an ASX Announcement dated 26 March 2013, (see ASX Announcement – 26 March 2013, “Additional Information on the Mount Peake Resource”, www.tngltd.com.au and www.asx.com.au ), and was completed in accordance with the guidelines of the JORC Code (2012). Initial mining and financial assessment work, based on the Mineral Resource, followed (see ASX Announcement – 15 July 2013, “TNG Considers Two-Stage Development Option for Mount Peake Project, NT ”, www.tngltd.com.au and www.asx.com.au). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the Mineral Resource estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are represented have not been materially modified from the original market announcement.

• The information in this report that relates to the Mount Peake Ore Reserve estimates is extracted from an ASX Announcement dated 31 July 2015, (see ASX Announcement – 31 July 2015, “Mount Peake Feasibility Study Confirms a WorldClass Project”, www.tngltd.com.au and www.asc.com.au) and was completed in accordance with the guidelines of the JORC Code (2012). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the Ore Reserve estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are represented have not been materially modified from the original market announcement.

• The information in this report that relates to Exploration Results for Mount Peake and Mt Hardy projects are based on information compiled by Exploration Manager Mr Kim Grey B.Sc. and M. Econ. Geol. Mr Grey is also a member of the Australian Institute of Geoscientists and a full time employee of TNG Limited. Mr Grey 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Grey consents to the inclusion in the report of the matters based on his information in the form and context in which it appear.

PRODUCTION TARGETS AND FINANCIAL INFORMATION

• Information in relation to the Mount Peake Definitive Feasibility, including production targets and financial information, included in this report is extracted from an ASX Announcement dated 31 July 2015, (see ASX Announcement – 31 July 2015, “Mount Peake Feasibility Study Confirms a World-Class Project”, www.tngltd.com.au and www.asx.com.au). The Company confirms that all material assumptions underpinning the production target and financial information set out in the announcement released on 31 July 2015 continue to apply and have not materially changed.

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TNG Limited Corporate Structure

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TNG Limited
TIVAN
Todd River Tennant Creek Enigma TNG Gold
Technology Pty
Resources Limited Gold Pty Ltd Mining Limited Pty Ltd
Ltd
Todd River TNG Energy
Metals Pty Ltd Pty Ltd
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TNG: Corporate Overview

Key Corporate and Financial Data ASX code: TNG Market capitalisation (at 15c): $107M	Major Shareholders	Major Shareholders
	WWB Investments P/L	11.11%
	Aosu Investment & Development Co	7.88%
Shares on issue: 714M Cash (at 30 June 2016): $7.1M Auditors: KPMG Lawyers: Clifford Chance
	Ao-Zhong International Mineral Resources	5.73%
	SMS Investments SA 1.86% (Directors and their related companies hold approximately 4% of issued capital)
Board of Directors Paul Burton Managing Director Stuart Crow Non-executive Director Rex Turkington Non-executive Director

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TNG: A Global Network for Funding, Development and Off-take

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Binding agreement for refinery construction – SMS Group (Germany)
MOU Potential Partner – Hyundai Steel (Korea) MOU EPMC – POSCO E&C (Korea)
Binding vanadium off-take agreement with WOOJIN (Korea)
Paul Vollant, TNG’s General Manager, Business Development (Shanghai)
Binding term sheet for iron off-take with Gunvor (Singapore)
MOUNT PEAKE
Project
TNG HEAD OFFICE
PERTH
MOU for titanium off-take with Global Pacific Partners (Australia)
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Mount Peake: Located in Australia’s Fast-Growing North

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• Located 235km north-west of Alice Springs

• Close to key transport and power infrastructure:

• Alice Springs-Darwin Railway, Stuart Highway, gas pipeline

• One of the largest undeveloped vanadium projects in the world

• Awarded Major Project status by the NT Government

• Highly successful DFS completed in 2015

• World-scale project with 17-year mine life

• Total forecast life-of-mine revenue: A$27.3 billion

• Forecast annual production: 17,560t V2O5, 236,000t TiO2 pigment, 637,000t pig iron

• Robust economics: A$4.9 billion NPV, 41% IRR

• Pre-production capital estimate: A$970 million

• Ready for development: final environmental approvals expected 2H2016

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Mount Peake: Project Layout

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Mount Peake: Concept Mine Layout

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Mount Peake: Definitive Feasibility Study – July 2015

Key Consultants Feasibility Study Leaders: Snowden Mining Group Advisors: Feasibility; metallurgical; plant design: SMS Group Metallurgical testwork and flowsheet design: CSIRO (Perth), METS, ALS Ammtec, SMS Environmental, hydrology, Environmental Impact Statement: GHD Engineering, mine plant design: Como Engineers Mine and Infrastructure: Snowden, McMahon Services

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Mount Peake Feasibility Study: Key Metrics

Project life	17 years
Mining rate	3Mtpa(Stage 1)expanding to 6Mtpa(Stage 2)after 4 years
Pre-production capital estimate(including all infrastructure)	A$970 million(Stage 2 expected to be covered from revenue)
Total operating costs(including mining, processing, transport & royalties)	A$167 per tonne
Total revenue (life-of-mine)	A$27.3 billion
Operating cash flow (life-of-mine)	A$13.6 billion
Net cash flow (life-of-mine)	A$11.6 billion
Payback period	4 years
Net annual operating cash flow	A$780M
IRR pre-tax	41%
NPV (at 8% discounted)	A$4.9 billion

Refer ASX announcement 31 July 2015.

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Definitive Feasibility Study: CAPEX Breakdown

CAPEX – Stage 1 – Total $970M AUD

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Definitive Feasibility Study: Revenue per Commodity

DFS pre-tax Annual Revenue $780M AUD

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Mount Peake: Binding Off-take Agreements

Binding LOM Off-take Agreements

• Vanadium Products:

• Binding Life-of-Mine (LOM) Off-take Agreement and Technology Transfer agreement with WOOJIN Metals

• WOOJIN’s proprietary technology currently has the world’s highest vanadium recovery rate and is expected to significantly enhance the Mount Peake Project’s profitability

• Iron Products:

• Binding Term Sheet for LOM Off-take Agreement with major global commodity trader Gunvor (Singapore) for iron products

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Mount Peake: Project Development Agreements

► European-based global engineering giant

Project development agreements

• Binding agreement for engineering, design and construction of the TIVAN™ refinery in Darwin

• MOU for joint commercial exploitation of TIVAN™ technology

• Assisting TNG to obtain funding for refinery construction through Export Credit Agencies or other structured finance

• SMS is one of the most significant writers of new business for Germany’s Export Credit Agencies, which provide finance on competitive terms to new projects or industries which could benefit German industry

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► Global engineering and services provider

• Pre-Mine development, operations and investment agreement for total project delivery

• Downer is a leading service provider in markets including mining, minerals and metals processing, transport services, technology and communication services, utilities services, engineering, construction and maintenance (EC&M) and rail, employing around 20,000 people worldwide

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TIVAN’S Products: Vanadium Pentoxide

Vanadium Pentoxide (V2O5)

World demand: 140,000tpa TNG’s Phase 1 production: 17,560tpa (12.5% of world demand) Main usage: Steel, non-ferrous alloys, chemicals, catalysts and energy storage (VRB) TNG’s cost of production: Approx US$2.50/lb (shaded line below)

20 US$2.50/lb V2O5 US$/lb 18 16 14 12 10 8 6 4 2 0

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Vanadium Pentoxide: Market Overview

Vanadium production, consumption and price

Specific Vanadium Consumption Rates 2015

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“Roskill expects demand to increase to about 131,000tpa of vanadium by 2025, a CAGR of 3.1% from 2014.”

Source: TTP Squared, Inc and Roskill

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Vanadium Redox Flow Batteries : The future concept for energy storage

Market Forecast – Development of Power on the Energy Storage Market

• Industry CAGR 2015-2020: 30.8%

• Stronger growth in utility scale from 2018 onwards

• US$6 billion market opportunity in 2020

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Sources: Gildemeister, Pike Research, Navigant Research, Lux Research, Roland Berger, IHS, SNL Power

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TIVAN’S Products: Titanium Dioxide

Titanium dioxide pigment (TiO2)

• World demand: 6,600,000tpa

• TNG’s Phase 1 production: 236,000tpa (3.5% of world demand)

• Main usage: Paint, plastics, paper and inks

• TNG’s cost of production: Approx US$1,380/tonne (shaded line below)

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Titanium Dioxide: Market Overview

Demand Closely Correlated to Global GDP Growth

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2010 TiO2 Per Capita

Titanium Pigment Consumption by End-use Sector

Source: TiPMC Solutions

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TIVAN’S Products: Pig Iron

Pig Iron World demand: 1.2 billion tpa TNG’s Phase 1 production: 637,000tpa (0.05% of world demand) Main usage: Steel making TNG’s cost of production: Approx US$137/t (shaded line below)

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1,200
US$137/t Pig Iron US$/t
1,000
800
600
400
200
0
Jul'06 Oct'06 Jan'07 Apr'07 Jul'07 Oct'07 Jan'08 Apr'08 Jul'08 Oct'08 Jan'09 Apr'09 Jul'09 Oct'09 Jan'10 Apr'10 Jul'10 Oct'10 Jan'11 Apr'11 Jul'11 Oct'11 Jan'12 Apr'12 Jul'12 Oct'12 Jan'13 Apr'13 Jul'13 Oct'13 Jan'14 Apr'14 Jul'14 Oct'14 Jan'15 Apr'15 Jul'15 Oct'15 Jan'16 Apr'16
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TNG and the Northern Territory

- NT Government is Pro Resource development

• Major Project Status awarded to Mount Peake in 2012

• Excellent geological and infrastructure support

• Darwin – North Australia’s development hub

• Rapidly developing region

TNG’s Corporate aim is to be a leader in indigenous involvement in NT

• Demonstrated commitment to working with employing Traditional Owners

• Long-standing relationships developed from decades of successful exploration on indigenous land

• Positive support for Mount Peake project development

• Clearance obtained for mine and infrastructure

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Mount Peake: Development Pathway

TIVAN pilot study completion Discovery of LOM water aquifer 2015 Definitive Feasibility Study completion Vanadium off-take agreement – Woojin Metal co. ltd EIS completion Project Delivery Agreement – Downer Mining Agreement – Traditional Owners 2016 Iron offtake agreement – Gunvor (Singapore Development Agreement – SMS Group Mining Licence Approval – NT Government FID Financing completion 2017 Development + Construction 2018 Production 2019 2020

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TNG Corporate: Non-Core Projects Demerger Proposal

TNG pre-demerger

TNG post-demerger 100% Mount Peake, TIVAN®

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TNG Corporate: Post-Demerger of Non-Core Projects

► Todd River Resources Limited

• Largest base metal coverage in NT

• Advanced to grassroots projects:

• Timetable to be advised

• Manbarrum

  • 45Mt of combined Zn-Pb-Ag in 2 JORC resources

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• Mount Hardy

• 2 large intersections of Cu (5%) and Au (7g/t)

• McArthur

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• 9km Cu-Zn zone; Surface grades up to 20% Cu

• Walabanba

Sn / W / Au

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TNG / SMS group: Frequently Asked Questions

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TNG / SMS group: Frequently Asked Questions

Disclaimer. The following slides, bearing the SMS group logo, have been provided by SMS group. SMS group is a minority shareholder in TNG. SMS does not control or represent TNG and/or its management. Any information provided by SMS group and/or its representative(s) in this presentation represents the sole present opinion of SMS group which is not necessarily in line with TNG’s own assessments and communications.

This presentation utilizes information which has not been independently verified (including opinion, anecdote and speculation) and which has been sourced from one or more third parties. Further, this presentation contains statements, estimates, forecasts and projections that: may be affected by inaccurate assumptions, expectations and estimates and by known or unknown risks and uncertainties; are predictive in character and inherently speculative; and may or may not be achieved or prove to be correct.

SMS group makes no representations nor provides any warranty (express or implied), except to the extent required by law, in relation to the content of this presentation or the accuracy of the information on which it is based. SMS group has no obligation to update this presentation and has no responsibility to advise of any changes to its views expressed in this presentation or any new information bearing upon it.

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FAQ: Who is SMS Group?

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leading, global supplier of
1
metallurgical plants
12 turn over: 5B AUD p.a.
technical services
13 13.000 employees
plant and equipment supply
14 150 years old plant engineering financial engineering
15 family owned process development project development
one of Germany’s leading
16
users of ECA -finance
SMS value chain
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FAQ: What is TIVAN all about?

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1 processing polymetallic ores 12 utilization of well proven technology
• use of abundant and low cost raw material : titanomagnetite • TIVAN is based on an innovative reconfiguration
of proven components
• extraction of three target metals : Fe, V and Ti
• individual process steps have been successfully demonstrated
at industrial scale
13 small environmental footprint 14 highly economic process
• hydrometallurgical process • multiple revenue streams from products, which sequentially drop out
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• multiple revenue streams from products, which sequentially drop out of one common processing train

• no smelters involved

• low operating cost

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FAQ: Why Titanomagnetite?

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1 abundant many known, accessible and easy to mine deposits
high grade Ilmenites, suitable for synthetic rutile production are
12 Ilmenite shortage
getting scarce
urbanization in fast growing emerging markets calls for the
Growing Vanadium
13 construction of high risers , requiring large quantities of V-
demand reinforced rebar
Potential for additional The hydrometallurgical processing of Titanomagnetite also allows
14 the extraction of other valuable fractions
products
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FAQ: What about beneficiation efficiency?

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Mt. Peake material 95% of non-payables 72% payable metal
amendable to effective
mechanical beneficiation can be removed recovery
1000kg 700kg 300kg
92% payable metals
44% payable metals
TiO2 (Pigment) 249 USD -78 USD 171 USD
Pig Iron 61 USD -17 USD 44 USD
V2O5 51 USD -4 USD 47 USD
Value per ton ROM 361 USD/t -99 USD/t 262 USD/t
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Assumption: Pig Iron: 400 USD/d, TiO2 Pigment: 3.570 USD/t, V2O5: 13.500 USD/t

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FAQ: How does TIVAN work? (Mt Peake phase 1 case)

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3 Mtpa
Titanomagnetite TIVAN TIVAN
Ore Process Tailings
0.9 Mtpa
150 ktpa
11 ktpa
Beneficiation
Plant
Synthetic TiO2
500 ktpa Rutile Pigment Plant Pigment
V2O5 FeV
Mine Ferrovanadium Plant
Tailings
Fe2O3 Pig Iron
Iron Making Plant
or HBI
Feedstock Products Refined Products
Mine Site
Processing Plant Site
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FAQ: How are SMS and TNG collaborating?

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1 IP sharing / Licensing SMS IP TNG IP
joint TIVAN IP
Mt. Peake
12 Process Plant
Engineering/Supply
Mt. Peake
13 Project Optimization ECA Application
Financial Engineering
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TNG: Investment Summary

• Developing a Tier-1 strategic metals project

• Outstanding location and infrastructure

• Robust Feasibility Study completed

• Further optimization underway

• Diversified, high-quality range of products

• Strong long-term demand outlook

• Binding off-take agreements in place

• Strong global network of development, off-take partners

• Financing discussions well advanced

• Spin-off of non-core base metal assets underway

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THANK YOU! Visit us at Booth #103

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