TIVAN LIMITED — Investor Presentation 2019

May 14, 2019

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Building a major strategic metals company: the Mount Peake Vanadium-Titanium-Iron Project Corporate Presentation May 2019 Paul Burton Managing Director & CEO

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 World-Class 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.

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 20 November 2017, (see ASX Announcement - 20 November 2017, “Updated Feasibility Study Results”, 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 20 November 2017 continue to apply and have not materially changed.

TNG Limited Corporate Overview

TNG is an Australian resources company that is progressing towards development of its 100%-owned world class Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory, Australia.

Board of Directors

John Elkington Non-Executive Chairman Experienced Chairman; Mining professional with development experience Paul Burton Managing Director & CEO Exploration and Mining Executive; Project Developer, Geologist John Davidson Non-Executive Director Resources, Energy & Tech Executive Greg Durack Non-Executive Director Mining Executive; Project Development, Delivery & Operations

Top Shareholders
Vimson Group- Indian iron ore mining conglomerate	11.49%
WWB Investments P/L- private investor	8.30%
Aosu Investment & Development Co- strategic Chinese investor	5.83%
SMS Investments SA- Mount Peake development partner	1.45%
JP Morgan Nominees Australia Limited– Institution	1.36%
TNG Directors’ holdings	0.89%
Corporate Data*
ASX code	TNG
Cash (31-Mar-19)	$12.0 million
Shares on issue	963.5m
Market capitalisation (at 10c)	$96.3m

* As at 10 May 2019

Mount Peake Project A WORLD CLASS STRATEGIC METALS DEPOSIT

• Large, long-life asset located in a stable and supportive jurisdiction for major resources projects

• Close proximity to existing transport and power infrastructure

• Extensive development studies completed; FEED (front-end engineering & design) underway

• Global network of strategic partners

• Project funding underway

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Mount Peake Project WELL LOCATED IN THE NORTHERN TERRITORY NEAR ALL KEY INFRASTRUCTURE

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Mount Peake Deposit

GEOLOGICALLY ADVANTAGEOUS – FLAT LYING, HOMOGENEOUS AND SHALLOW

Mineral Resources[1]

Category	Tonnes (Mt)	V2O5%	TiO2%	Fe%	Al2O3%	SiO2%
Measured	117	0.29	5.5	24	8.2	33
Indicated	20	0.29	5.3	23	8.7	33
Inferred	22	0.25	4.7	21	9.4	36
Total	159	0.28	5.4	23	8.4	33

Magnetite concentrate

V2O5	TiO2	Fe
1.04%	16.35%	51.42%

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1. As at March 2013

Mount Peake Mine Site

PLANNING FOR THE MAGNETITE CONCENTRATOR

Ore Concentration

BENEFICIATION PLANT FLOWCHART

• Mine site concentrator to produce a magnetite concentrate

• To utilise equipment that is proven in the application and provides flexibility in design to allow for plant expansion

• Extensive metallurgical testwork has been completed to optimise the flowsheet and ensure the magnetite concentrate meets the specifications of the downstream refinery

Magnetite Concentrate Logistics

• 900kt of concentrate planned to be produced per annum (Y1 to Y4), eventually expanding to 1,800ktpa (Y5 to Y17) under the stage 2 upgrade

• The magnetite concentrate to be trucked on a haul road to a purpose built rail siding and loading facility on the Alice Springs-Darwin Railway

• The concentrate then to be sent by rail 1,400km north to the project’s proposed Darwin based refinery

• A purpose built rail siding and unloading facility to be used to unload and stockpile concentrate at the refinery, ready for further processing

Darwin Processing facility location

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Legend
Railway line
Amadeus Gas Pipeline
Darwin Process Plant Site
Darwin City Centre
East Arm Port Facilities
Darwin LNG INPEX Ichthys
Refinery Site LNG Refinery Site
Darwin Process
Channel Island Plant Site
Power Station See inset
Power Station
Gas Terminus
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Mount Peake Downstream Processing TIVAN[®] Chemical Process

TNG DEVELOPED AND PATENTED PROCESSING TECHNOLOGY

• Conventional means of extracting vanadium from titano-magnetite ore is through a salt roasting, energy intensive, pyrometallurgical process

• Conventional processing unable to commercially extract all three elements

• TNG and its technical advisers, METS, CSIRO and SMS group, have developed the world first TIVAN® process to overcome these limitations

• TIVAN® utilises a combination of and pyro

• hydrometallurgical processes to extract vanadium as V2O5, and commercially recover titanium dioxide and iron

• SMS to provide a process and product guarantee following the FEED

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Production forecasts (in tpa)	Production forecasts (in tpa)	Production forecasts (in tpa)
V2O5	TiO2	Fe2O3
11,000	150,000	500,000

A Financially Robust Project

LIFE OF MINE OPERATIONAL AND FINANCIAL METRICS

Operational Metrics Annualized	Operational Metrics Annualized
Mine life	19 years
Mining Rate (ROM)	3Mtpa (Stage 1) expanding to 6Mtpa (Stage 2) after 4 years
Financial Metrics
Pre-production CAPEX	A$853m
Payback period	3 years
IRR %	44%
Total Revenue	A$29.2b
Operating Cash Flow	A$13.5b
Net Cash Flow	A$11.7b
Net Annual Operating Cash Flow	A$738m
NPV (at 8% discounted)	A$4.7b

(see ASX Announcement - 20 November 2017, “Updated Feasibility Study Results”)

Vanadium

OVERVIEW

• Vanadium is mainly mined in China, Russia, South Africa and Brazil;

• About 80% of the commercial vanadium is co- produced through

• production (smelting high V bearing slag), 12% through processing of primary ore and the remaining recovered from secondary production (oil residues, catalysts, stone coal);

• Over 90% of vanadium is used in the steel industry (strengthening agent). Recent regulations in China have been the main driver for a surge in demand;

• Demand in new markets such as and flow batteries is super alloys

• still small but set to grow rapidly;

• The current low stocks level, rapid demand increase and supply constraints have all contributed to a spectacular price rise (+500%) over the past 2 years;

• Global demand is estimated to be 90,000tpa V or 160,000tpa V2O5 equivalent. TNG’s production of 11,000tpa V2O5 will represent 6.8% of the world’s demand.

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Source: CRU

V O 2 5 TNG PRODUCT & OFFTAKE AGREEMENT

• TNG’s strategy is to be a fully integrated vanadium producer from mine to finished product

• High purity V2O5 will enable TNG to supply the steel industry as well as higher value niche markets such as Vanadium Redox Flow Batteries

• The vanadium industry is currently very strong, with high prices backed by structural changes pushing demand

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OFFTAKE AGREEMENT

• Binding Life-of-Mine (LOM) Off-take Agreement with Woojin (Korea) for a minimum of 60% of TNG’s production*

• is the second Ferro-Vanadium in Asia with a V O of and has a

• Woojin largest exporter 2 5 processing capacity 22,000tpa market share of 80%+ in its home market Korea

• Technology Transfer agreement with Woojin for V2O5 to FeV conversion plant

• Further negotiations for up to 40% offtake underway with leading vanadium buyers and distributors

• See ASX Announcement - 7 September 2015, “TNG Signs Life-of-Mine offtake and technology agreements”

Titanium dioxide pigment

OVERVIEW

• Titanium dioxide (TiO2) is the most used white pigment globally;

• The most of TiO are such as important properties 2 pigment optical

• opacity, brightness, gloss, weather resistance and durability;

• Pure TiO2 is produced by sulfate (SP) or chloride (CP) process, then milled and surface treated to make pigment (containing 80-98% TiO2);

• Historically not much vertical integration within the industry – producers are usually either upstream (feedstock) or downstream (pigment);

• TiO 2 pigment is non-toxic and environmentally friendly;

• Titanium dioxide market was worth around US$20bn in 2018;

• About 60% of the titanium dioxide is used in coatings market (paints, coatings, inks and enamels);

• China and APAC markets are the main growth regions; and

• During the 2015-2025 period, global demand is forecast to grow at 4.1% CAGR to 8.825m tones in 2025.

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Source: TIM

Oxides	Ilmenite	TiO2 Slag	Tivan
TiO2	44.0	79.4	74.20
FeTotal	35.5	9.40	2.34
SiO2	3.3	4.30	18.39
Cr2O3	0.09	0.13	0.03
Al2O3	0.7	1.80	2.43
MgO	4.5	5.70	0.42
CaO	0.35	0.66	0.91
V2O5	0.20	0.35	0.24

TiO2 Pigment TNG PRODUCT & OFFTAKE AGREEMENT

• TNG’s strategy is to be a fully integrated TiO2 pigment producer from mine to finished product

• Global demand is estimated at 6.5mtpa. TNG’s production of 150,000tpa will represent 2.3% of the world’s demand.

• Technology proposed to be provided by Ti-Cons (Germany), a leader in TiO2 technology

• A sustainable and environmentally friendly process using TNG’s own low iron feedstock and patented TIVAN® process

• First TiO2 pigment grade targeting the Paint & Coatings industry with a high-durable grade for outdoor applications and industrial market will then be followed by a pigment for plastics application

OFFTAKE

Binding Offtake executed

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• Binding LOM Off-take and Marketing Agreement signed with global leader DKSH (Switzerland)

• DKSH will provide full distribution services, including freight financing, technical support, logistics, marketing and sales for TNG’s TiO2 product(s)

• –

• ► TNG will sell, and DKSH will purchase, up to 150,000 tons per year or 100% of TNG’s TiO2 production on an FOB basis to distribute globally, excluding the Iberian Peninsula and European Nordic countries and subject to the terms and conditions of the agreement

• See ASX Announcement - 30 October 2018, “TNG Executes Binding Offtake Terms for its Titanium Pigment”

Fe O 2 3 TNG PRODUCT & OFFTAKE AGREEMENT

• TNG’s strategy is to be a fully integrated Fe2O3 fines producer from mine to finished product

• Global demand is estimated at 2btpa. TNG’s production of 500,000tpa will represent less than 0.001% of the world’s demand.

• High purity hematite with Fe content over 64.4% will command a strong premium over the benchmark 62% grade

• TNG’s ability to pelletise its product also has the potential to further improve the margin for its iron product (current premium of US$50+/t)

OFFTAKE Binding Terms Agreed

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

• Gunvor is one of the largest commodity trading companies worldwide with a turnover of US$63bn in 2017

• Further negotiations for offtake underway with leading iron ore buyers and distributors

• See ASX Announcement - 23 March 2016, “TNG Signs Binding Term Sheet for Iron Offtake”

Mount Peake Project STATUS OF APPROVALS

Mount Peake Mine Site

• 

• Environmental approval received (State & Federal)

• 

• Native Title Agreement executed with traditional owners

• 

• Mineral Leases granted

• Mining Management Plan being finalised (submission expected Q2 2019) underway

Mount Peake TIVAN Processing Plant

• Regulatory entities for processing plant environmental and operational approvals underway

• 

• Consultant engaged to progress EIS and approvals process (submission expected Q2 2019)

Mount Peake FEED

• Encompassing total plant equipment - mine and downstream processing underway

Mount Peake

PROJECT FINANCING

Debt

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KfW IPEX-Bank mandated to raise up to US$600 million (AU$850M) as part of the total finance package for the Mount Peake Project*

Equity funding

A range of potential options are available to TNG to raise the required project equity funding:

• Strategic investors

• Offtake partners

• Development partners

• ASX investors & institutions

• International institutions

• See ASX Announcement – 13 December 2018, “TNG Mandates KfW Bank for Debt Finance for Mount Peake”

Mount Peake Project KEY DEVELOPMENT MILESTONES AND ESTIMATED SCHEDULE

Mount Peake Development Pathway		Project Milestone	2014	2015	2016	2017	2018	2018	2019	2019	2020- 2021	2022
		Major project status
		TIVAN pilot study completion
		Discovery of LoM water aquifer
		DFS completion
		Vanadium Off-take Agreement - Woojin Metal
		Iron Off-take Agreement - Gunvor
		Project delivery agreement - Downer
		Titanium Pigment Off-take Agreement - DKSH
		Mine Site EIS Completion (Australia)
		Mine Site EIS Approval (Australia)
		Mining Agreement - Traditional Owners
		Mining Licence Approval
		Processing Plant EIS (underway)
		FEED - SMS group (underway)
		Equity & Debt Financing, FID
		EPC
		Production

• Project milestone schedules for 2019 & beyond are estimates only based on stated assumptions

Mount Peake: The Path Ahead

EXPECTED NEXT STEPS

• Full permitting for TIVAN® processing site

• Appointment of equity advisors

• Completion of final mine design and FEED for all process plants, leading to EPC tender process

• Equipment tender process

• Appointment of EPC contractor

• Establish full Project Development team

• TNG Board FID

• Commencement of development

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Paul Burton Managing Director & CEO

Suite 20, 22 Railway Road Subiaco 6008 Western Australia

www.tngltd.com.au

ASX : TNG

APPENDIX

Titano-Magnetite Ore Bodies KEY STRATEGIC ADVANTAGES

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• Abundant: many known, accessible and easy-to-mine deposits

• Ilmenite shortage: high-grade ilmenites, suitable for synthetic rutile production are becoming scarce

• Growing vanadium demand : urbanisation in fastgrowing emerging markets calls for the construction of high rises, requiring large quantities of vanadiumreinforced rebar

• Potential for additional products : the hydrometallurgical processing of titano-magnetite also allows for the extraction of other valuable fractions, such as scandium, high-purity silicon and MgO

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TNG Limited

CURRENT OWNERSHIP STRUCTURE

• TNG owns all Mining, Exploration and ancillary licences 100%

• TNG owns TIVAN Process and Patents

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TNG Limited
Enigma Mining Limited TIVAN Technology Pty Ltd
(100% TNG Limited) (100% TNG Limited)
Mount Peake Mine Site &
Concentrator, and Darwin TIVAN Process
Processing Plant
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Management profiles

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Mr Paul Burton - Managing Director & CEO

Mr Burton holds a B.Sc Honours Geology and M.Sc from McGill University, Canada and has over 20 years' experience in the resources sector throughout Australia and overseas.

He has been involved in the discovery and development of the Company's main projects, including their Flagship project Mount Peake and all projects spun out into Todd River Resources Ltd. (ASX:TRT). Previous career appointments include senior and executive roles at Anglo American, De Beers, Normandy Mining Ltd and Minotaur Exploration Ltd.

Mr Burton was appointed to the Board in 2008. He is a Member of the Australian Institute of Company Directors (GAICD); the Institute of Directors, London; the Australian Institute of Mining and Metallurgy (AusIMM); the Canadian Institute of Mining, Metallurgy and Petroleum (CIM); and, Fellow of the Association of Applied Geochemists.

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Mr Paul Vollant - General Manager, Sales & Marketing

Mr Vollant is highly experienced in the sales and marketing of metals and minerals in the commodity sector and has specialised in strategic metals, particularly vanadium and titanium.

Mr Vollant is a business graduate of the ESDES Business School, in Lyon France, and was formerly with the Noble Group in London and Hong Kong. He is a founding Director of global commodity distribution company Element Commodities that’s specialised in vanadium and titanium and a Director of the HLG Group. He is also a Non-Executive Director of Nairobi Securities Exchange.

Management profiles continued

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Mr Philippe Guillemaille – General Manager, TiO2

Mr Guillemaille is a highly experienced sales and marketing professional in the chemical industry. He gained experience in trading with companies like Fuji Film (Japan), Metallgesellschaft (Germany) and Monsanto/Exxon Chemicals (U.S.) among others.

He began his career in the TiO2 industry 20 years ago with Kronos and Argex Titanium. His academic studies include a degree from the Lyon Institute of Technology, France.

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Mr Jason Giltay – General Manager Commercial & Company Secretary

Mr Giltay is a senior financial manager with more than 17 years’ experience specialising in the areas of corporate finance and commercial management. This includes 13 years’ involvement in the resources industry in both consulting and in-house management roles, having worked for companies in the areas of exploration, project development, operations and mining services, and advised on corporate and fund raising transactions for a variety of companies.

His experience extends to investor relations, corporate communications, strategy development and corporate compliance. Mr Giltay previously held a senior commercial position for the redevelopment and restart of mining and processing operations at the Windimurra Vanadium Mine.

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Mr Tony Arena – General Manager Processing

Mr Arena has over 20 years’ experience across the Australian and global mining industry, including spending the last 10 years in managerial roles mentoring engineers, metallurgists, operators and supervisors. He has also had vast experience in the successful commissioning of mineral processing facilities within Australasia, including PNG and Laos. Mr Arena has held multiple roles within the processing discipline and has extensive experience in various commodity processing including Alumina, Gold, Copper, Lead, Vanadium, Iron Ore and Synthetic Rutile.

Mr Arena holds a Bachelor of Science (Extractive Metallurgy) from Murdoch University in WA, is an AUSIMM member and is currently undertaking a diploma in leadership.’

TIVAN[®]

PATENT AND TRADE MARK STATUS

TIVAN® Patent Status	TIVAN® Patent Status		TIVAN® Trade Mark Status
A Method for Extraction and Recovery of Vanadium			Registered in the following regions:
Australia	REGISTERED		Australia
Russian Federation	REGISTERED		Canada
United States of America	REGISTERED		China
Canada	REGISTERED		European Union
Vietnam	REGISTERED		Madrid Protocol
China	FILED - IN PROGRESS		Russian Federation
European Patent Federation	FILED - IN PROGRESS		South Africa
A Method for Preparing a Leach Feed Material			United States of America
Australia	FILED - IN PROGRESS
Titanium Dioxide Pigment Production Method
Australia	IN PREPARATION