TIVAN LIMITED — Management Reports 2011

Feb 6, 2011

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OUTSTANDING SCOPING STUDY RESULTS FOR MOUNT PEAKE IRON - VANADIUM PROJECT, NT SCOPE FOR ADDITIONAL FEROVANDIUM PRODUCTION POTENTIAL

Highlights

• Positive Scoping Study on Mount Peake Vanadium Project completed by Snowden Mining Industry Consultants, confirms the Project’s technical and financial strength.

• Substantial improvement on July 2009 Scoping Study driven by development of revolutionary new patented hydrometallurgical process for recovery of all three valuable metals.

• Production commencing at 2Mtpa and ramping up after three years to 5Mtpa over a 24 year mine life,

• Production of calcined vanadium pentoxide (V2O5), titanium dioxide (TiO2) and iron oxide (Fe2O3) concentrate, to be railed to Darwin Port for export.

• Preliminary optimisations and financial modelling indicates robust economics and returns with an average ANNUAL Nett Cash Flow after CAPEX exceeding $148M over a 24 year mine life.

• Company now evaluating feasibility and pilot plant options.

Australian resources company TNG Limited (ASX: TNG ) is pleased to report positive results from an independent Scoping Study to evaluate the development potential of its 100%-owned Mount Peake Iron-Vanadium Project in the Northern Territory.

The Study, which was conducted by Snowden Mining Industry Consultants Pty Ltd (“Snowden”), indicates positive economics from preliminary optimisations and modelling.

These outstanding results provide significant momentum to TNG’s evaluation and development plans for the Mount Peake Project, building on its recent success in codeveloping a revolutionary new patented hydrometallurgical process which now underpins the project.

This process – which was jointly developed in 2010 in conjunction with TNG’s metallurgical consultants, Mineral Engineering Technical Services Pty Ltd (“METS”) – has for the first time using hydrometallurgy successfully extracted the valuable metal units of vanadium, titanium and iron from the titanomagnetite ores which make up most of Australia’s known vanadium deposits.

TNG and METS have agreed to jointly apply for full international patent protection for this process following successful test work conducted, providing TNG with a distinct competitive advantage.

Scoping Study

The February 2011 Scoping Study was based on the revised JORC Inferred Resource for Mount Peake published in 2010 of 139.1Mt @ 0.29% V2O5, 5.34% TiO2 and 23.66% Fe. In addition to this resource, TNG has published an Exploration Target[1] of 500-700Mt grading 0.2-0.4% V2O5 and 25-35% Fe.

1 The potential quantity and grade is conceptual in nature, 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.

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The Scoping Study was commissioned based on a conventional open pit mining operation processing 5Mtpa, which is significantly higher than the original 2Mtpa processing rate contemplated in the original 2009 Scoping Study. Initial optimization work by Snowden indicates that the economics of the Project is sensitive to commodity pricing, exchange rates and processing rates.

Open pit optimizations were performed based on a 5Mtpa operation, with production commencing at 2Mtpa and ramping up after three years to the long-term processing rate of 5Mtpa. The study was based on a total identified mining inventory of 106Mt @ 0.33% V2O5, 6.04% TiO2 and 25.39% Fe with ore processed initially through a 2Mtpa plant designed to produce vanadium pentoxide (V2O5), titanium dioxide (TiO2) and iron oxide (Fe2O3) concentrate utilizing the newly developed hydrometallurgical process.

The initial plant total CAPEX[2] included in the modeling has been estimated by METS to be $370M, with a +- 35% accuracy. This would be expanded to 5Mtpa capacity at an additional estimated total CAPEX of $307M after three years, partially funded by cash flow.

Test work carried out by TNG and METS has shown that the magnetic concentrate that would be produced from Mount Peake material is amenable to hydrometallurgical processing, resulting in high recoveries of vanadium (90%) and iron (58%) in the acid leaching. METS advise that recoveries may continue to improve with further optimization work currently underway.

Concentrate product would be trucked to a conceptual railhead near Barrow Creek on the Alice Springs-to-Darwin railway line (approximately 70km) and then railed to Darwin (approximately 1,180km) for shipping.

The key findings of the Scoping Study are as follows:

• Mine Life: 23.63 years

• • Ore processing rate (life-of-mine): 5 Mt /annum • Life-of-mine ore production: 107.1 million tonnes • 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[2] : $370.3M (for Stage 1 – 2Mtpa) $307.6M (for Stage 2 – 5Mtpa)

• • Nett Cash Flow[3] $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$

A conservative operating cost has been estimated to take into account potential high re-agent costs, however METS are confident that lower costs could be expected in an operational mine scenario.

The exchange rate was selected as the average forecast from 7 banks for the next 4 years. A parity exchange rate test using $1 US = $1 AUD, was also performed by Snowden producing a robust Nett Cash Flow[3] of $73.49M per annum.

Commenting on the Scoping Study, TNG’s CEO Mr Paul Burton said: “We are very pleased with the results of the Scoping Study which has highlighted the substantial value which could potentially be unlocked by developing the large Iron-vanadium resource at Mount Peake, utilising the hydrometallurgical processing breakthrough which we achieved in collaboration with METS last year. This process has provided the company with a distinct competitive advantage, is cheaper and importantly has a lower environmental footprint compared to standard processing”

“The Mount Peake Project now provides TNG with the opportunity to develop a world-class ferrous metals business in the Northern Territory,” he continued. “Demand for vanadium is forecast to increase as a result of the rapidly expanding high tech-industry demand in addition to high-quality steel demand. Building on the strong foundations established by this Scoping Study, we intend to rapidly proceed to the next evaluation stage of bulk sample evaluation and pilot plant test work in conjunction with recommendations made by our consultants”

The study also highlighted the potential for producing an additional ferrovanadium product (FeV), as a further value-add to the vanadium pentoxide concentrate produced. This would involve the establishment of a separate ferrovanadium plant in Darwin. This study has been commissioned and results will be reported when they are available.

The Company will now immediately proceed with evaluation of next stage options including pilot plant test work and feasibility studies, which will include further resource drilling to bring the current JORC resource to Indicated and or Measured standard, and environmental studies.

TNG LIMITED

Paul E Burton

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Director & CEO

7[th] February 2011.

COMPETENT PERSON STATEMENT

The information in this report that relates to Exploration Results is based on information compiled by Paul Burton who is a Member of The Australasian Institute of Mining and Metallurgy , an employee and 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.

Mr Damian Connelly, MAAusIMM, Chartered Processional (MET), MMICA, 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.

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.

DISCLAIMER

The scoping study has been prepared based on the Company’s presently delineated inferred mineral resource estimate and any investment decision should be considered based on this information.

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Enquiries:

Paul E Burton,

Director & CEO + 61 (0) 8 9327 0900

Nicholas Read ,

Read Corporate + 61 (0) 419 929 046

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2Estimate of Capital cost supplied by METS include both Direct and Indirect costs (estimated to a Scoping Study level +-35% )

2Mtpa plant capacity capital cost estimate

Area	A$ Million
Direct cost
Crushing	13.8
Beneficiation	2.3
Leaching and CCD	32.5
Metal extraction and purification	24.1
Vanadium precipitation, drying and packing	12.3
Acid regeneration and precipitation of iron oxide	131.2
Reagent and utilities	26.9
Direct cost sub-total	243.0
Indirect cost
Field indirects	29.2
EPCM	36.4
Vendor reps	1.8
Capital spares	6.0
Commissioning spares	1.8
Insurance	3.7
Indirect cost sub-total	79.0
Total cost
Contingency	48.3
Grand total	370.3

5Mtpa plant capacity capital cost estimate (includes existing 2Mt, ie upgrade is $307.5M)

Area	A$ Million
Direct cost
Crushing	25.2
Beneficiation	4.2
Leaching and CCD	59.4
Metal extraction and purification	44.2
Vanadium precipitation, drying and packing	22.5
Acid regeneration and precipitation of iron oxide	240.1
Reagent and utilities	49.2
Direct cost sub-total	444.8
Indirect cost
Field indirects	53.4
EPCM	66.7
Vendor reps	3.3
Capital spares	11.2
Commissioning spares	3.3
Insurance	6.7
Indirect cost sub-total	144.6
Total cost
Contingency	88.4
Grand total	677.8

3Nett Cash Flow

Nett Cash Flow is defined as the average undiscounted 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.