VANADIUM RESOURCES LIMITED — Capital/Financing Update 2017

Nov 2, 2017

==> picture [596 x 128] intentionally omitted <==

3 November 2017

EXPLORATION AND CORPORATE UPDATE

• Focussed Pilbara Zinc & Gold explorer debuts on ASX.

• Drilling targeting extensions to known zinc mineralisation to commence at Quartz Bore in late November following completion of heritage survey.

• Mineralisation at Quartz Bore has been defined by drilling over a strike length of 600m and is open at depth and along strike

• Geotech engaged to fly airborne EM survey at Mt Sydney Project, adjacent to Rumble Resources Limited’s (ASX:RTR) Braeside Project.

• Mt Vernon tenement granted, historical copper-zinc targets to be reviewed with drilling occurring at the nearby Abra Base Metals Deposit by Galena Mining Limited (ASX:G1A).

• Pilbara Conglomerate-hosted gold potential at the Company’s tenements to be investigated this quarter.

• The Quartz Bore Project is adjacent to Venturex’s Loudens Patch Prospect and and proximate to recent “nugget patch” discoveries by De Grey Mining and DGO Gold

• Proposed Option Entitlement Issue to shareholders

Tando Resources (“ Tando ” or “ the Company ”) is pleased to advise on the current status of its exploration projects in the Pilbara region of Western Australia prior to its listing today on the ASX.

Quartz Bore – Drilling to Commence

In preparation for its maiden drill programme the Company will commence a heritage survey at the Quartz Bore Project (E47/3352) with the Ngarluma Aboriginal Corporation, representatives of the Native Title Claimant Group.

It is anticipated that drilling will commence later in November. An Exploration Programme of Works has already been approved by the Department of Mines Industry, Regulation and Safety.

Drilling aims to verify historical results from the Quartz Bore Project including:

• 15m @ 5.92% Zn, 0.80% Cu and 1.45% Pb (BBD009) o including 6m @ 7.34% Zn

• 15m @ 5.11% Zn, 0.12% Cu and 1.89% Pb (BBRC007) o including 5m @ 12.5% Zn

==> picture [596 x 106] intentionally omitted <==

• 3m @ 15.5% Zn, 0.76% Cu and 4.90% Pb (BBD003)

• 7.6m @ 4.86% Zn, 2.13% Cu and 1.56% Pb (BBD002) o including 2m @ 13.71% Zn

• 10m @ 4.45% Zn, 0.22% Cu and 2.54% Pb (BBRC005) o including 2m @ 9.74% Zn

All drillhole results are listed in Appendix 1 and shown on Figure 1.

Downhole geophysical surveys will be completed on all holes with the aim of detecting extensions to mineralisation via the DHMMR and DHEM methods. These methods have been successfully employed by the Company’s consultants Southern Geoscience at the adjacent Salt Creek Deposit, owned by Venturex Resources (refer VXR’s ASX Announcement 31 May 2017).

Figure 1 . Long Section showing historical drilling results from the Balla Balla Prospect, Quartz Bore Project.

==> picture [452 x 325] intentionally omitted <==

----- Start of picture text -----

W E
----- End of picture text -----

==> picture [473 x 66] intentionally omitted <==

2

==> picture [596 x 106] intentionally omitted <==

Mt Sydney – Airborne EM survey planned for November

The Mt Sydney Project (E47/4939) lies immediately south of the Braeside Project where drilling will commence in late November by Rumble Resources Limited (ASX.RTR, “ Rumble ”). The Braeside Project is centred on the historical Ragged Hills Mining centre, at which mineralisation is now interpreted to be associated with sub-volcanic rhyolite porphyries. The deposit model at Braeside highlights regional scale NWSE structures as a key target for Volcanogenic Massive Sulphide ( VMS ) mineralisation.

On 4 September 2017 Rumble announced the results of an airborne EM survey using the VTEMmax system which detected a substantial number of early- and late-time conductors associated with the structures mentioned above. On 16 October 2017 Rumble announced the presence of high grade zinc, lead and copper results from grab sampling over the conductors detected in the VTEMmax survey and other geochemical anomalies within their tenements. Significantly Rumble have not yet announced the presence of “false positives” such as graphitic shales and are currently completing a ground EM survey at the Braeside Project with drilling planned for later in November 2017

The same structures and lithologies which host mineralisation at the Braeside Project extend into the Company’s Mt Sydney Project. As a result Tando has engaged Geotech Airborne to fly a VTEMmax survey over the Mt Sydney Project. This survey is anticipated to commence in 2 - 3 weeks with results likely to be received in early December following which field inspection and ground surveys will be planned. This systematic exploration approach resembles the exploration derisking applied on Rumbles Braeside Project.

Mt Vernon – Review of historical exploration underway following tenement grant,

The tenement which comprises the Mt Vernon Project (E52/3560) was granted on 24 August 2017. Review of historical exploration is already underway including a number of historical geochemical and geophysical surveys including drainage, soil and rock sampling; radiometric, gravity and IP surveys; and RC and diamond drilling.

Previous exploration in the area of the Mt Vernon Project was completed by Westfield Minerals, Aberfoyle Resources, BHP Minerals, CRA Exploration, Rio Tinto Exploration, Geotech International, Independence Group and Pioneer Resources.

Historical explorers have identified targets related to both sediment-hosted zinc-lead and structurally controlled copper mineralisation in the area of the Mt Vernon tenement, in similar settings to the Abra Base Metals Deposit (owned by Galena Mining (ASX.G1A)) and Newman Base Metals Project (owned by Marindi Metals (ASX.MZN)).

Tando will complete an initial review aimed at confirming the data which supports these targets and then design work programmes to test the most prospective targets.

==> picture [473 x 66] intentionally omitted <==

3

==> picture [596 x 106] intentionally omitted <==

Figure 2 . Figure showing Tando’s Mt Sydney Project (red outline) and RTR’s Braeside Project including conductors detected in the recent VTEM survey (RTR.ASX Announcement 4 September 2017).

==> picture [353 x 568] intentionally omitted <==

==> picture [473 x 66] intentionally omitted <==

4

==> picture [596 x 106] intentionally omitted <==

Prospectivity for Conglomerate-hosted Gold and other Pilbara gold potential

Recent activity in the Pilbara region has focussed on conglomerate-hosted gold mineralisation as well as other gold mineralisation. While the focus of Tando Resources is on its advanced and prospective zinc targets it is worth noting that the Company’s tenements are within, or adjacent, to areas of interest for gold mineralisation:

• The Mt Sydney tenement is underlain by the base of the Fortescue Group, including the Hardey Formation within which a number of conglomerate units have been mapped

• The Quartz Bore Project is adjacent to Venturex’s Loudens Patch Prospect and proximate to recent “nugget patch” discoveries by De Grey Mining and DGO Gold (refer ASX.VXR Announcement 18 October 2017, ASX.DEG ASX Announcements 26 September 2017 & 30 October 2017 and ASX.DGO Announcement 25 October 2017).

Identification of prospective lithologies on the Company’s tenements, or of potential gold occurrences, is complicated by the present of recent cover. The Company plans to investigate a number of areas of interest on its tenure as fieldwork commences in each area.

In addition the Company plans to evaluate and take advantage of any new opportunities that it identifies in the region.

Figure 3 . Gold occurrences and landholdings across the Pilbara region. Also shown is the interpreted extents of the Mt Roe Basalt and the Hardy Formation (Source: GSWA).

==> picture [418 x 313] intentionally omitted <==

==> picture [473 x 66] intentionally omitted <==

5

==> picture [596 x 106] intentionally omitted <==

Corporate Update

The Company advises that it intends to lodge a prospectus regarding a non-renounceable option entitlement issue to shareholders (the Offer). Shareholders will be entitled to one (1) option for every four (4) shares held in the Company at the record. The entitlement offer is being managed by Xcel Capital Pty Ltd.

The options will have a price of $0.01, a term of 2 years and a strike price of $0.25. The Company will seek to have the options listed on the ASX.

The prospectus is anticipated to be lodged within the next week with the record date for these options to be four days after the date of lodgement, however investors should refer to the prospectus for the actual record date and other key dates of the Offer.

For further information please contact:

Sarah Smith

Company Secretary

+61 8 6559 1792

contact@tandoresources.com.au

==> picture [473 x 66] intentionally omitted <==

6

==> picture [596 x 106] intentionally omitted <==

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.

==> picture [473 x 66] intentionally omitted <==

7

==> picture [596 x 106] intentionally omitted <==

ANNEXURE A: Significant Drillhole Intercepts from the Quartz Bore Project

Table 1: Balla Balla Prospect

HOLE ID	EAST	NORTH	RL	EOH (m)	Drill Type	DIP	AZI	INTERSECTION	INTERSECTION
								From	Width	Zn %	Cu %	Pb %
BBD001	579437	7706645	12	327.4	RCD	-61	169	289	2	3.96	0.06	1.23
						and		294	5	6.55	0.08	2.68
						and		303	1	2.46	0.91	0.63
BBD002	579357	7706630	12	270.5	RCD	-61	170	235	7.6	2.13	1.56	4.86
						incl		235	5	7.20	1.14	2.34
						incl		237	2	13.71	1.05	4.02
						incl		239	3.6	1.02	3.84	0.25
						and		249	3.5	5.68	0.39	2.03
BBD003	579516	7706654	12	312.4	DD	-52	173	271	1	1.14	1.09	0.01
						and		276	3	15.50	0.76	4.90
BBD004	579525	7706570	13	201.8	DD	-55	170	NSI
BBD005	579275	7706620	12	238.1	RCD	-60	170	NSI
BBD006	579160	7706419	12	243.6	RCD	-60	340	188	5	2.69	0.27	0.65
						and		207	1	1.38	0.38	0.19
BBD007	579082	7706430	12	204.7	RCD	-60	344	121	13	2.72	0.37	0.63
BBD008	579044	7706592	12	240.5	RCD	-55	167			NSI
BBD009	579146	7706330	13	378.5	DD	-60	2	334	15	5.92	0.80	1.45
						incl		334	2	3.07	5.66	0.63
						incl		337	6	7.34	0.08	2.81
BBD009A	579146	7706329	12	84	RC	-60	1
BBD010	579213	7706400	12	238.3	DD	-60	0	192	14	2.91	0.09	0.83
						incl		195	2	6.62	0.26	2.86
						incl		200	3	6.01	0.15	1.01
BBD011	579376	7706292	13	468.5	DD	-60	0	NSI
BBD012	579466	7706246	13	501.4	DD	-60	358	NSI
BBD013	579561	7706271	13	459.4	DD	-60	1	NSI
BBD014	579269	7706674	12	357.5	RCD	-60	170	NSI
BBD015	579222	7706331	12	439	DD	-60	0	358	1	1.27	0.78	0.06
BBD016	579476	7706630	13	363.4	NR	-60	170			NSI
BBD017	579006	7706411	12	255.2	NR	-60	0			NSI
BBD018	579476	7706633	13	381.5	DD	-70	170			NSI
BBD019	579618	7706334	13	166.3	NR	-55	0			NSI
BBD020	579521	7706692	12	348.4	DD	-58	170			NSI
BBD021	579422	7706690	13	420.4	DD	-58	170	385	5	3.15	0.09	0.84
BBD022	579120	7706731	11	501.3	DD	-58	170			NSI
BBD023	579550	7706602	13	294.8	DD	-60	181	247.4	2.6	7.15	0.31	2.98
						and		256	2	5.18	0.14	1.86
BBD024	579500	7706577	13	83	DD	-63	182			NSI
BBD025	579450	7706598	13	258.8	DD	-61	181			NSI
BBD026	579350	7706585	13	62	DD	-61	183			NSI
BBD027	579400	7706594	13	183.8	DD	-62	181			NSI
BBRC003	579285	7706560	13	119	RC	-60	170			NSI
BBRC004	579209	7706547	12	95	RC	-60	170	57	5	2.46	0.04	0.87
						incl		58	2	3.34	0.10	1.84
BBRC005	579132	7706536	12	100	RC	-60	160	64	2	2.19	0.10	1.14
								74	10	4.45	0.22	2.54
						incl		74	2	9.74	0.30	2.92
						incl		79	2	7.51	0.21	1.98
BBRC006	579369	7706551	13	100	RC	-60	170	56	4	1.09	0.02	0.44
						and		68	3	10.08	0.32	3.54
BBRC007	579448	7706566	13	130	RC	-60	170	84	4	1.25	0.03	0.47
						and		94	15	5.11	0.12	1.89
						incl		103	5	12.50	0.28	4.54

==> picture [473 x 66] intentionally omitted <==

8

==> picture [596 x 106] intentionally omitted <==

Table 2: West Balla Prospect

HOLE ID	EAST	NORTH	RL	EOH	Drill	DIP	AZI	INTERSECTION	INTERSECTION
				(m)	Type
								From	Width	Zn %	Cu %	Pb %
BBD028	577750	7706303	13	207.8	DD	-60	180			NSI
BBD029	577850	7706388	13	288.8	DD	-60	180			NSI
BBD030	577950	7706368	13	258.8	DD	-60	180			NSI
BBD031	577450	7706203	13	273.9	DD	-60	180			NSI
WBD001	577495	7706256	10	363.3	RCD	-71	162	275	1.5	2.75	0.13	0.76
						and		278	1	1.71	0.02	0.06
WBD002	577454	7706233	10	106	RC	-70	160
WBD003	577957	7706271	10	189.6	DD	-70	160	107	1	2.98	0.07	0.64
						and		109	1	1.51	0.03	0.33
WBD004	578136	7706359	10	210.6	DD	-60	170			NSI
WBD023	577634	7706193	10	182.6	RCD	-70	160			NSI
WBD032	577341	7706126	9	282.4	RCD	-60	160			NSI
WBRC001	576494	7706159	6	200	RC	-60	150			NSI
WBRC002	576523	7706331	5	160	RC	-70	120			NSI
WBRC003	576563	7706299	6	160	RC	-70	305			NSI
WBRC004	576437	7706106	6	192	RC	-60	173			NSI
WBRC005	576340	7706098	7	189	RC	-60	173			NSI
WBRC006	576587	7706210	7	150	RC	-65	150			NSI
WBRC007	577403	7706065	10	135	RC	-70	160			NSI
WBRC008	578005	7706129	11	178	RC	-65	340			NSI
WBRC009	578048	7706326	10	167	RC	-65	160			NSI
WBRC010	577496	7706106	10	179	RC	-65	160	73	8	0.42	0.73	0.99
						incl		73	3	0.90	0.15	0.14
						incl		74	1	1.99	0.12	0.25
						and		79	2	0.08	2.31	0.03
WBRC011	577446	7706080	10	36	RC	-65	160			NSI
WBRC012	577344	7706046	10	197	RC	-65	160			NSI
WBRC013	577444	7705959	10	197	RC	-65	340	181	1	1.18	1.60	0.07
WBRC014	577502	7705960	10	192	RC	-70	340	NSI
WBRC015	577487	7706139	10	203	RC	-70	160	141	7	9.72	0.05	2.82
WBRC016	577445	7706123	10	179	RC	-63	161	NSI
WBRC017	577542	7706123	10	170	RC	-65	160	NSI
WBRC018	577773	7706203	10	174	RC	-65	160			NSI
WBRC019	577865	7706232	10	131	RC	-65	160	114	3	1.38	0.09	0.13
WBRC020	577963	7706262	10	101	RC	-65	160			NSI
WBRC021	577530	7706171	10	209	RC	-70	160			NSI
WBRC022	577586	7706184	10	200	RC	-70	160	148	4	1.73	0.01	0.79
						and		156	2	1.27	0.02	0.50
WBRC024	577844	7706272	10	179	RC	-71	159	135	2	7.61	0.19	0.72
						and		138	2	1.36	0.08	0.04
WBRC025	578140	7706360	10	89	RC	-70	160			NSI
WBRC026	576959	7706100	9	191	RC	-70	160			NSI
WBRC027	577108	7706080	9	163	RC	-70	160			NSI
WBRC028	577256	7706074	10	138	RC	-70	160	122	1	1.09	0.01	0.14
WBRC029	577124	7706011	9	54	RC	-60	160			NSI
WBRC030	576984	7705950	9	120	RC	-60	160			NSI
WBRC031	576962	7706039	9	108	RC	-60	160			NSI

==> picture [473 x 66] intentionally omitted <==

9

==> picture [596 x 106] intentionally omitted <==

Table 3: East Balla Prospect

HOLE ID	EAST	NORTH	RL	EOH	Drill	DIP	AZI	INTERSECTION	INTERSECTION
				(m)	Type
								From	Width	Zn %	Cu %	Pb %
BBR001	581475	7706974	14	172	RC	-60	180
BBR002	581073	7706852	14	76	RC	-60	180
BBR003	580700	7706731	14	172	RC	-60	180
BBR004	580712	7706780	14	262	RC	-60	180
BBR005	580652	7706738	15	214	RC	-60	180
BBR006	581068	7706855	12	172	RC	-60	180
BBR007	580759	7706799	15	268	RC	-60	180
EBD001	580701	7706678	14	141.5	DD	-60	160	106.3	0.8	2.30	17.15	0.03
EBD002	580754	7706747	14	207	DD	-60	160
EBD003	580699	7706677	14	156.4	DD	-70	180
EBRC001	580577	7706531	14	100	RC	-60	340
EBRC002	580631	7706545	14	100	RC	-60	340
EBRC003	580695	7706563	14	100	RC	-60	340
EBRC004	580623	7706571	14	54	RC	-60	340

Notes:

• NSI refers to No significant intercepts

• NA refers to Not assayed

• All coordinates are in MGA94.

• Quartz Bore significant intercepts calulated using the following parameters: Zn≥1.0%, Cu≥1.0%, Pb≥1.0%, minimum width of 1m, internal dilution up to 3m

• Results should be read in conjunction with the data provided in Appendix 2.

==> picture [473 x 66] intentionally omitted <==

10

==> picture [596 x 106] intentionally omitted <==

APPENDIX 2.

The following Tables are provided to ensure compliance with the JORC Code (2012 Edition) requirements for the reporting of the Exploration Results at the Quartz Bore Project.

Section 1: Sampling Techniques and Data (Criteria in this section applies to all succeeding sections)

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.	Several generations of drilling have been undertaken on the Quartz Bore Project since the 1970’s. The drilling results detailed in this report were from drilling undertaken by Straits Resources Ltd (ASX:SRL) during 2005-2007 and Venturex Resources Limited (ASX:VXR) during 2010-2012. All results have been previously reported under JORC 2004 reporting standards to the Australian Stock Exchange. Main exploration activities included a combination of surface geochemical sampling and several drilling methods. Conventional Diamond Drilling (DD), Reverse Circulation (RC), Aircore (AC) and Auger were used to the test the Quartz Bore Project.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Core sample intervals vary depending on geological contacts and are generally between 0.3m and 4.0m, with the most often sample interval being 1.0m. Prior to cutting, the core was marked up by a geologist, orienting the core where possible to ensure the relative orientation of consecutive pieces of core. All core wasphotographed for reference.
	Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	All aspects of the determination of mineralisation are described in this table. The core sampling method and the RC sampling method is considered appropriate for the VMS mineralisation. All of the drill samples were sent to a commercial laboratory for crushing, pulverising and chemical analysis by industry standard practises.
Drilling techniques	Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic etc) and details (e.g. core diameter, triple of standard tube, depth of diamond tails, face-sampling bit or other type, whether core is orientated and if so, by what method, etc).	Drilling methods included Diamond Drilling (DD), Reverse Circulation (RC), Rotary Air Blast (RAB) and Auger. Diamond drilling used HQ and NQ2 core sizes. Coring was from surface using HQ. Core was changed to NQ2 when ground conditions were competent. All NQ2 core was orientated. All diamond core was stored in industry standard core trays labelled with the drill hole ID and core interval. RC drilling used an industry standard 5.5 inch face sampling hammer.

==> picture [473 x 66] intentionally omitted <==

11

==> picture [596 x 106] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	All operators recorded diamond drill core recovery as a percentage of measured recovered cores versus drilled distance. Recoveries were generally high except for cavity zones in the oxide zone. RC samples were collected to industry standards of the day. The locations of intervals of damp or wet samples and/or low recovery were recorded at the drill site and entered into the database.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	RC drilling - the cyclone and splitter were routinely inspected and cleaned during the drilling, ensuring no excessive material build-up. Care was taken to ensure the split samples were of a consistent volume. Diamond drilling - coring was from surface using HQ and only changed to NQ2 when ground conditions were competent.
	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	There is no known or reported relationship between sample recovery and grade with the RC drilling. With the Diamond Drilling, recoveries were generally high except for cavity zones in the oxide zone.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	The RC drill holes were geologically logged at 1m intervals for the total length of the hole using the company standard logging legend. The logs were recorded on company standard paper logging sheets and entered into the company database. Diamond drill core was geologically logged for the total length of the hole using a graphic logging method. All core was photographed and images were stored in the company database. Logging routinely recorded lithology, mineralogy, alteration, veining, structure, mineralisation and weathering. Logs were coded using the company geological coding legend and entered into the company database. Logging is appropriate and sufficiently detailed to support Mineral Resource estimates.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.	Logging of chips and diamond core is both qualitative (eg. colour) and quantitative (eg. minerals percentages). All core was photographed and images were stored in the company database. Various historical reports contain petrography reports.
	The total length and percentage of the relevant intersections logged.	100% of all core and RC samples which included all mineralised intervals was logged.
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	Sampling for all of the diamond core was undertaken on split core, halved via a core saw. Where duplicate samples were required the core was quartered with two duplicate quarter core samples sent for assay and the remaining half-core returned to the tray as a record.
	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	AllRCdrill holes and pre-collars were sampled from the rig via 1m splits to calico bags, with a target weight of between 2kg to 4kg. The bulk sample reject was collected in a UV-destabilised green plastic bag and kept at the drill site. All sample bags were sampled by

==> picture [473 x 66] intentionally omitted <==

12

==> picture [596 x 106] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
		spear on a 4m compositing interval. Sample intervals which returned significant anomalies in base metals (>0.2% Cu, >0.2% Zn, >0.2% Pb) were then resampled via collection of the 1m splits from the drill rig. Where sample quality was insufficient, the bulk sample was dry split through a 2- tier riffle splitter and a split sample was collected.
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	The sampling techniques for both diamond drilling and RC drilling are of consistent quality and appropriate.
	Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples.	Detailed QAQC procedures and data for the historical drilling is not available. Field duplicates were collected as quartered diamond core, as 1m spear samples, or as 4m composite samples identical as much as practically possible to the original sample.
	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second- half sampling.	QAQC has been reported to have been routinely conducted throughout historical drilling and geochemical sampling, however methodologies are not documented.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	The material and sample sizes are considered appropriate given the volcanic massive sulphide style of mineralisation beingtargeted.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	The analytic methods for the programs with significant results which have been tabled in Appendix 1 are outlined below. Theaircoresamples were collected were for litho- geochemical purposes both at the end of the hole, and as 3 metre composite samples. Down hole samples were taken and analysed by ALS in Perth. Samples were analysed for Au by fire assay (Method AA25) using a nominal 30 gram sample weight. The samples were also digested with HF-HNO3-HCLO4acid, leached in HCl, and analysed for ICP-AES method MEICP61. Via this method assays for the following elements were recorded: Au, Ag, Al, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Fe, Ga, K, La, Mg, Mn, Mo, Na, Ni, P, Pb, S, Sb, Sc, Sr, Th, Ti, Tl, U, V, W and Zn. Any samples with a Cu value exceed 0.3% (3000ppm) were also analysed for Cu sequentially, determining the amount of Cu dissolvable in H2SO4, dissolvable in cyanide, and the residual amount of Cu. AllRCdrillholes and pre-collars were sampled from the rig via 1m splits to calico bags, with a target weight of between 2kg to 4kg. The bulk sample reject was collected in a UV-destabilised green plastic bag and kept at the drill site. All sample bags were sampled by spear on a 4m compositing interval and sent for indicative geochemistry to ALS-Chemex Laboratories, Perth, for analysis via method MEICP61 (see analysis details above in auger section). Sample intervals which returned significant anomalies in base metals (>0.2% Cu, >0.2% Zn, >0.2% Pb) were then resampled via collection of the 1m splits from the drill rig. Where sample quality was insufficient, the bulk sample was dry split through a 2- tier riffle splitter and a split sample was collected. Samples were sorted,dried,coarse crushed and

==> picture [473 x 66] intentionally omitted <==

13

==> picture [596 x 106] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
		pulverised to p80-5um. Base metals and trace elements were analysed by method MEICP61 4 acid-digest and analysed by ICP-AES. The samples were analysed for Au by fire assay with an AAS (Atomic Absorption Spectrometer) finish, using a nominal 30 gram sample weight. The following multi-elements were digested in Ag, Al, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Fe, K, Mg, Mn, Mo, Na, Ni, P, Pb, S, Sb, Sr, Ti, V, W & Zn. Where any samples exceeded a Cu value 0.3% (3000ppm) another sample was taken from the sample pulp and analysed for Cu sequentially, determining the amount of Cu dissolvable in H2SO4, dissolvable in cyanide, and the residual amount of Cu. Sampling for all of thediamond corewas undertaken on split core, halved via a core saw. Where duplicate samples were required the core was quartered with two duplicate quarter core samples sent for assay and the remaining half-core returned to the tray as a record. The samples were sent to ALS for preparation and analysis. All samples were analysed for Au by fire assay (method AA25) and AAS (Atomic Absorption Spectroscopy), using a nominal 30 gram sample weight. The following multi-elements were digested by 4-acid digest with ICP-AES finish; Ag, Al, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Fe, K, Mg, Mn, Mo, Na, Ni, P, Pb, S, Sb, Sr, Ti, V, W, and Zn. Where any samples exceeded a Cu value 0.3% (3000ppm) another sample was taken from the sample pulp and analysed for Cu sequentially, determining the amount of Cu dissolvable in H2SO4, dissolvable in cyanide, and the residual amount of Cu.
	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	Hand held assay devices have not been reported.
	Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	Quality control exercised upon laboratory analyses included the insertion of standards and the collection of field duplicates. Field duplicates were collected as quartered diamond core, as 1m spear samples, or as 4m composite samples identical as much as practically possible to the original sample. All standards and blanks were inserted blind into the sample stream sent to the laboratory and assessed for variance from expected norms via statistical analysis. Where QAQC was insufficient, the batch was re-analysed.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	No verification of sampling and assaying has been undertaken by Tando for the historical drilling.
	The use of twinned holes.	No specific twinned holes have been drilled.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Detailed procedures for drilling, sampling and geological logging are not comprehensively including in Open File reports, although summaries of the processes employed are provided in various drilling reports. Digital data has been collated from digital data submitted to the Department of Mines and Petroleum.

==> picture [473 x 66] intentionally omitted <==

14

==> picture [596 x 106] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
		Validation occurs during the data merge through the database software and with visual validation in GIS software packages.
	Discuss any adjustment to assay data.	The digital data shows no indication of assay adjustment being performed.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Rock samples were located in the field with survey control via handheld Global Positioning System (GPS), with an assumed accuracy (dither factor) of ±5m accuracy on easting and northing and ±10m accuracy on RL, Location data for aircore, RC and diamond drillhole data included in Annexure A was initially recorded by handheld GPS (±5m accuracy on easting and northing and (±10m accuracy on RL). Subsequent to drilling, RC and diamond drill collars were surveyed via Differential Global Positioning System (DGPS), with accuracy of ±0.1 meters on easting, northing and RL. Drillhole deviation for diamond drilling was measured via in-rod surveys during drilling, This was conducted using Eastman camera surveys. Interference from the drill rods cannot be ruled with the RC drillholes, so these results are only considered indicative, however a stainless steel started rod was used to increase confidence in the results. WBRC028 through WBRC031 were drilled subsequent to the loss of the stainless steel equipment, and as such down-hole deviation is unknown. This is considered acceptable given the results returned from these holes. Diamond drilling received down hole surveys every 30 metres were possible, via in-rod shots, which are considered reasonably reliable. Holes that struck mineralisation had 50mm PVC pipe installed, keeping the hole open and allowing a gyro survey to be undertaken. A selection of these holes were surveyed with a north-seeking gyroscopic survey tool by ABMI Solutions Pty Ltd to give a true down-hole survey free from magnetic interference. The accuracy of this tool is warranted to ±0.5° of dip and azimuth. Deviation in the holes drilled during the 2007-2009 reporting periods were generally low. The majority of the holes surveyed with the gyroscopic tool confirmed the previous in-rod surveys, and thereby the Eastman results were considered accurate.
	Specification of the grid system used.	The grid system for the Quartz Bore Project is Map Grid of Australia GDA 94, Zone 50.
	Quality and adequacy of topographic control.	The RL of drill collars (RC and diamond) was measured by DGPS survey to an accuracy of ±0.1 meters which gives a satisfactory control over the topography.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	The spacing and location of the majority of the drilling at the Quartz Bore Project is, by the nature of early exploration variable. Drilling to date over the Balla Balla Prospect is on approximately 50m - 100m centres east- west and 25m -100m centres north-south over the

==> picture [473 x 66] intentionally omitted <==

15

==> picture [596 x 106] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
		mineralised body.
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	Data spacing is deemed sufficient to establish geological and grade continuity to establish a mineral resource estimate but a mineral resource has not been estimated.
	Whether sample compositing has been applied.	No sample compositing has been applied.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	The majority of the drilling at Quartz Bore is inclined to the north-west which is considered appropriate given the regional and local geological fabric and structures.
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	To date, orientation of the mineralised domain has been favourable for perpendicular drilling and sample widths are not considered to have added a significant sampling bias.
Sample security	The measures taken to ensure sample security.	Samples were store at the secure Whim Creek yard. Samples were collected from site by a transport company and delivered to the assay laboratory in Perth.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	No independent audits have been undertaken.

Section 2: Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section)

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	The Quartz Bore Project comprises a single granted Exploration Licence, namely E47/3352 covering a land area of 15 km2. Tando has acquired 100% of the tenement from the current holder, VMS Resources Ltd, following the listing of the Company. The tenement is within land where native title has been determined. The traditional owners of the land are the Ngarluma People. A Heritage Agreement has been signed with the Ngarluma Aboriginal Corporation to manage access.
	The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The tenement is in good standing.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	The Project has previously been explored for volcanic massive sulphide deposits by a number of companies. Work has ranged from early stage soil sampling to auger and diamond drilling. Work reported in the IGR is documented within this Table.
Geology	Deposit type, geological setting and style of	The Quartz Bore Project is located within the

==> picture [473 x 66] intentionally omitted <==

16

==> picture [596 x 106] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
	mineralisation.	Archaean Whim Creek Basin, a sequence of intermediate to felsic volcanic, volcanoclastic and sediments. Tando is exploring for volcanogenic massive sulphide (VMS) deposits. Massive sulphide and stringer sulphide mineralisation has been deposited at the top of the Cistern Formation which comprises a thick sequence of volcanogenic siltstone, sandstone and conglomerate with minor shale units.
Drill hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • hole length.	All hole collar locations, depths, azimuths and dips are provided within this announcement (Appendix 1) for drilling completed by Straits and Venturex.
	If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	Not applicable.
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.	Reported intersections are downhole, length- weighted averages that were calculated using a nominal ≥1.0% Cu lower cut-off, ≥1.0% Pb lower cut-off or ≥1.0% Zn lower cut-off; 1m minimum reported length and up to 3m of internal waste. Geochemical sampling results presented are single point data.
	Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.	No top cuts have been considered in reporting of grade results, nor was it deemed necessary for the reporting of significant intersections.
	The assumptions used for any reporting of metal equivalent values should be clearly stated.	No metal equivalent values are currently being used for reporting exploration results.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	All intersections are reported as downhole lengths. Drillholes were predominantly drilled perpendicular to the interpreted strike of the geological terrain so that downhole lengths approximate true widths as close as possible. Additional drill holes are required to confirm the relationship between downhole lengths and true widths.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Refer to Figures in body of announcement and in the Prospectus released to the ASX on 1 November 2017.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleadingreportingof Exploration	All representative results have been reported.

==> picture [473 x 66] intentionally omitted <==

17

==> picture [596 x 106] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
	Results.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	All relevant exploration data is shown on figures, in text and in Appendix 1.
Further work	The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	A follow up exploration work program has been proposed and is outlined in this announcement and the Prospectus released to the ASX on 1 November 2017. All relevant diagrams and inferences have been illustrated in this report.

==> picture [473 x 66] intentionally omitted <==

18