VANADIUM RESOURCES LIMITED — Capital/Financing Update 2017

Dec 12, 2017

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13 December 2017

NEW TENEMENT ACQUISITION STRENGTHENS CONGLOMERATE GOLD PORTFOLIO

• Option acquired over tenement prospective for conglomerate-hosted gold in the Pilbara region of Western Australia.

• E45/4621 contains outcropping Mt Roe Basalts with conglomerate units observed within the tenement area.

• Adds to the Company’s existing package including the substantial strike length of Hardey Formation underlying the Mt Sydney Project.

Tando Resources (“ Tando ” or “ the Company ”) is pleased to advise that it has acquired an option over E45/4621 (the “ Tenement ”) located in the Pilbara region of Western Australia (Figure 1). The tenement is located to the east of Marble Bar, with other operators in the belt including Novo Resources Corporation (“ Novo ”), Haoma Mining NL, Impact Minerals and DGO Gold (Figure 2). Details of the tenement, and a summary of the terms of the agreement entered into by the Company, are included as Appendix 1.

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Figure 1 . Plan of the Pilbara Region showing tenement optioned along with gold projects and explorers.

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Within E45/4621 rocks of the Mt Roe Sequence have been observed including basalt, rhyolite, conglomerate and limestone. The conglomerate unit is recorded as being matrix supported with cobbles and pebbles to 20cm in diameter. The matrix is angular to rounded sand sized quartz, feldspar and trace pyrite with the lithology of the pebbles/cobbles being basalt, granite, shale and quartzite. A PhD study completed across the tenement area by M.P. Alvin in 1998 and reviewed by the vendor suggested that the observed conglomerate may be the basal conglomerate at the bottom of the Mount Roe Sequence but did not provide further evidence for this claim.

As announced the Company has defined conglomerate-hosted gold targets within the Hardey Formation at the Mt Sydney Project, analogous to the Beatons Creek Deposit owned by Novo (refer ASX Announcement 12 December 2017). The acquisition of E45/4621 will enable the Company to explore settings analogous to Purdy’s Reward (owned by Novo and Artemis Resources).

Managing Director Bill Oliver commented:

“The gold potential of the Pilbara region has been brought to international attention in recent months. This acquisition provides our shareholders with direct exposure to this emerging sector at a minimal up front cost. We view this tenement as highly prospective and complementary to our existing holdings, with the ability to advance exploration in parallel with current work programmes and in response to developments in the sector.”

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Figure 2 . Plan showing regional setting of E45/4621 and other operators in the area.

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For and on behalf of the board:

Mauro Piccini

Company Secretary

Competent Persons Statement

The information in this announcement that relates to Exploration Results complies with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ( JORC Code ) and has been compiled and assessed under the supervision of Mr Bill Oliver, the Managing Director of Tando Resources Ltd. Mr Oliver is a Member of the Australasian Institute of Mining and Metallurgy and the Australasian Institute of Geoscientists. He has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Mr Oliver consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. The Exploration Results are based on standard industry practises for drilling, logging, sampling, assay methods including quality assurance and quality control measures as detailed in Appendix 2.

Disclaimer

Some of the statements appearing in this announcement may be in the nature of forward looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which Tando operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward looking statement. No forward looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside Tando’s control.

Tando does not undertake any obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of Tando, its Directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward looking statement. The forward looking statements in this announcement reflect views held only as at the date of this announcement.

This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities by Tando. Nor does this announcement constitute investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.

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APPENDIX 1: Summary of the Agreement

• A six month option to purchase the non-flourite rights in the tenement for $60,000 in cash.

• Commitment to meet expenditure commitments from date of signing the Agreement through the option period

• Acquisition of 100% of non-flourite rights in the tenement for consideration of either:

• $50,000 in cash and issuing 500,000 shares to the vendor, or

• payment of $100,000 cash and issuing 250,000 shares.

Table 1 . Details of the Tenement.

TENEMENT	HOLDER	AREA	GRANT DATE	EXPENDITURE
		(km2)		COMMITMENT($)
E45/4621	GEKO-CO PTY LTD	22.4	21/09/2015	$20,000

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