VANADIUM RESOURCES LIMITED — Interim / Quarterly Report 2019

Jan 30, 2019

31 January 2019

QUARTERLY ACTIVITIES REPORT

DECEMBER 2018

• Intensive activity during quarter provides compelling results supporting Tando’s strategy to generate early production by processing near-surface high-grade material at SPD.

• Strategy involves low capital costs due to the shallow nature of these zones and the simple magnetic separation process, meaning short lead time to production

• Massive Maiden Inferred Mineral Resource of 588Mt at a grade of 0.78% V2O5.

• Resource includes high grade, surface component (80 Mt at 1.07% V2O5)

• Significant increase in size of Resource and improved delineation of high grade zones compared with historic SAMREC resource

• High grade surface zones and pipes the focus as Tando fast tracks its near-term low capex production opportunity based on simple beneficiation

• Scoping Study progressing rapidly with metallurgical and engineering studies well advanced

• High quality concentrate generated by simple magnetic separation.

• Concentrate samples return vanadium analyses grading well over 2% V2O5:

  • 25m at 2.42% V2O5 from 23m (VRC008) incl. 8m at 2.32% V2O5 (mass recovery 41%)

  • 34m at 2.32% V2O5 from 21m (VDD001)

  • 35m at 2.15% V2O5 from 21m (VDD001) incl. 9m at 2.20% V2O5 (mass recovery 45%)

  • 24m at 2.16% V2O5 from 0m / surface (VRC002) incl. 12m at 2.15% V2O5 (mass recovery 41%) incl. 2m at 2.20% V2O5 (mass recovery 74%)

  • 35m at 2.11% V2O5 from 47m (VRC001) incl. 9m at 2.19% V2O5 (mass recovery 47%) incl. 2m at 2.24% V2O5 (mass recovery 68%)

• Excellent mass recovery across mineralised intervals, increasing to +40% in higher grade zones (+1.0% V2O5)

• Continued high grade whole rock assay results.

• Numerous shallow intersections + 1% V2O5 including:

  • 34m at 1.03%V2O5 from 22m (VDD001)

  • 10m at 1.17% V2O5 from 35m (VRC045) within a wider intersection of 43m at 0.77% V2O5 from 18m

6559 1792

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• 11m at 0.99% V2O5 from 17m (VRC040) incl. 2m at 1.67% V2O5 from 25m

• 10m at 0.99% V2O5 from 9m (VRC036) incl. 3m at 1.37% V2O5 from 16m

• • 14m at 0.98% V2O5 from 0m / surface (VRC043)

• 18m at 0.80% V2O5 from surface (VRC017) incl. 4m at 1.16% V2O5 from 0m

• 11m at 0.98% V2O5 from 24m (VRC019) incl. 8m at 1.15% V2O5 from 27m incl. 2m at 1.65% V2O5 from 33m

• Other high grade results include:

• 20m at 1.20% V2O5 from 86m includes 7m at 1.48% V2O5 (VRC038)

• 12m at 1.00% V2O5 from 46m (VRC014) incl. 9m at 1.13% V2O5 from 49m incl. 2m at 1.74% V2O5 from 56m

• 15m at 0.99% V2O5 from 94m (VRC022) including 8m at 1.11% V2O5 from 95m

• 12m at 1.08% V2O5 from 79m (VRC043) incl. 5m at 1.29% V2O5 from 86m

• 12m at 0.98% V2O5 from 76m (VRC017) including 9m at 1.12% V2O5 from 79m

Maiden JORC Mineral Resource estimated

The Company estimated the maiden JORC Mineral Resource for the SPD Vanadium Project based on the Phase 1 drilling completed during the Quarter (refer Figure 1, Appendix 1 and ASX Announcement 18 December 2018).

The resource comprises 588 million tonnes at 0.78% V2O5 which is wholly classified in the Inferred category. This is a significant increase in the size of the Resource compared with the historic SAMREC resource.

In addition the drilling improved the delineation of high grade zones resulting in the ability to define coherent highgrade, near surface zones of mineralisation. These total 87 million tonnes at 1.07% V2O5 (defined above a cut off grade of 0.9% V2O5, within 100m of surface).

The Mineral Resource will be updated with the results of further infill drilling at the Project (Figure 1, discussed below) during Q1 2019. The updated Mineral Resource will then form the basis of a Scoping Study on the SPD Vanadium Project. This Scoping Study will consider both the larger project, which would produce vanadium pentoxide, and a near term low capex production option which would produce a precursor product to vanadium pentoxide.

The near term production option would seek to generate a magnetic concentrate from the high grade portions of the Mineral Resource via simple beneficiation (using magnetic separation). Preliminary pit optimisation work is in progress, with mine designs to be completed on the update Mineral Resource in Q1 2019.

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Figure 1 . Oblique view from the south showing block model (resource blocks in pink), drillhole traces (black lines) and topography. Note outcropping mineralisation at surface.

Outstanding Vanadium Magnetic Concentrate Results

During the Quarter the Company received concentrate analyses from drill samples submitted for magnetic separation by Davis Tube. Results demonstrated that vanadium concentrate grading well over 2 per cent V2O5 can be produced by simple magnetic separation of high-grade samples (>1% V2O5 unprocessed) from SPD. Metallurgical testwork is currently underway on wide diameter drill core samples from the project (Figure 2), aiming to replicate these results on a larger, process plant scale, and results will be reported in Q1 2019. Concentrate samples, along with specifications, have been provided to potential offtake partners for their review. The concentrate analysis is high quality with low levels of silica and alumina (refer ASX Announcements of 13 January 2019 and 29 January 2019) with results :

• 25m at 2.42% V2O5 from 23m (VRC008) Mass recovery 23%, whole rock 0.68% V2O5

• including 8m at 2.32% V2O5 from 40m Mass recovery 41%, whole rock 1.03% V2O5

• 34m at 2.32% V2O5 from 21m (VDD001) Mass recovery 41%, whole rock 1.03% V2O5

• 35m at 2.15% V2O5 from 23m (VRC003) Mass recovery 28%, whole rock 0.65% V2O5

• including 9m at 2.20% V2O5 from 49m Mass recovery 45%, whole rock 1.04% V2O5

• 38m at 2.13% V2O5 from 93m (VRC010) Mass recovery 27%, whole rock 1.03% V2O5

• including 9m at 2.19% V2O5 from 123m Mass recovery 47%, whole rock 1.11% V2O5

• including 2m at 2.20% V2O5 from 129m Mass recovery 68%, whole rock 1.61% V2O5

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• 35m at 2.11% V2O5 from 47m (VRC001) Mass recovery 28%, whole rock 0.66% V2O5

• including 9m at 2.19% V2O5 from 73m Mass recovery 47%, whole rock 1.11% V2O5

• including 2m at 2.24% V2O5 from 80m Mass recovery 68%, whole rock 1.61% V2O5

• 24m at 2.16% V2O5 from 0m / surface (VRC002) Mass recovery 29%, whole rock 0.73% V2O5

• including 12m at 2.15% V2O5 from 12m Mass recovery 41%, whole rock 1.00% V2O5

• including 2m at 2.20% V2O5 from 22m Mass recovery 74%, whole rock 1.72% V2O5

The mass recovery expressed above refers to the weight of magnetic material recovered as a percentage of the total sample weight. The higher the mass recovery, the less material is required to be processed to achieve a production target and the less waste needs to be disposed of or stored.

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Figure 2 . Examples of magnetic (LH) and non-magnetic (RH) products from magnetic separation testwork (wet). Note analyses are awaited. Samples were taken from VDD003

Continued excellent drilling results from surface

During the Quarter the Company received a steady flow of drilling results from its Phase 1 and Phase 2 drilling programs completed at the SPD Vanadium Project. In total the Company completed a total of 83 holes for 6002 metres in 2018 (51 RC holes and 32 diamond core holes, Figure 3). The Company is pleased that the 2018 drilling programme was able to engage a number of local businesses to provide support services to the drilling programme along with workers from the communities receiving employment and training from the drilling contractor and other contractors.

Only a few samples from diamond core holes in the Phase 2 drilling programme remain to be delivered to the laboratory until mid-January, with results from these samples to be used to update the Mineral Resource for the SPD Vanadium Project in Q1 2019.

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Results received to date from Phase 2 demonstrate excellent consistency between adjacent drillholes, both in analytical results and in the geological sequence, which should enable a high proportion of the Mineral Resource to be upgraded into the Indicated category when the Mineral Resource is updated. In addition, the increased detail from the infill drilling will enable the higher-grade massive magnetite layers to be better delineated, increasing the potential for selective mining to meet offtake specifications. Results received during the Quarter (refer ASX Announcements 28[th] November 2018, 18[th] December 2018 and 16[th] January 2019) included:

• 14m at 0.98% V2O5 from 0m / surface (VRC043)

• within a wider interval of 24m at 0.86% V2O5 from 0m

• 11m at 0.99% V2O5 from 17m (VRC040)

• incl. 2m at 1.67% V2O5 from 25m

• 10m at 0.99% V2O5 from 9m (VRC036)

• 10m at 0.95% V2O5 from 17m (VRC037)

• 9m at 1.06% V2O5 from 22m (VRC015)

• incl. 3m at 1.45% V2O5 from 28m

• 18m at 0.80% V2O5 from surface (VRC017)

• incl. 4m at 1.16% V2O5 from 0m

• 12m at 1.00% V2O5 from 46m (VRC014, Lower Layer)

• incl. 9m at 1.13% V2O5 from 49m

• incl. 2m at 1.74% V2O5 from 56m

• 11m at 0.98% V2O5 from 24m (VRC019, Lower Layer)

• incl. 8m at 1.15% V2O5 from 27m

• incl. 2m at 1.65% V2O5 from 33m

• 7m at 1.06% V2O5 from 61m (VRC009, Upper Layer)

• within an interval of 54m at 0.70% V2O5 from 47m

• 11m at 0.89% V2O5 from 36m (VRC018, Lower Layer)

• including 7m at 1.09% V2O5 from 39m

• 15m at 0.99% V2O5 from 94m (VRC022)

• including 8m at 1.11% V2O5 from 95m

• 12m at 0.98% V2O5 from 76m (VRC017)

• including 9m at 1.12% V2O5 from 79m

• 10m at 1.17% V2O5 from 35m (VRC045)

• within a wider interval of 43m at 0.77% V2O5 from 18m

• 20m at 1.20% V2O5 from 86m (VRC038)

• incl. 7m at 1.48% V2O5 from 91m

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All intersections are reported in this statement as whole-rock, or pre-concentrate grades. The magnetic concentrates from these intervals are anticipated to be consistent with recent and historical results which yielded concentrate grades above 2% V2O5 (refer section above and ASX Announcements 29 January 2019, 14 January 2019 and 22 March 2018). Drillhole locations are shown on Figure 3.

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Figure 3 . Plan showing location of drilling at SPD as well as historical and planned drilling.

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High grade vanadium pipes being drill tested

Exploration by Tando at the SPD Vanadium Project has identified a total of 12 high grade vanadium pipes within the property. 20 surface samples from these pipes returned an average of 1.87% V2O5 with seven samples returned grades of more than 2% V2O5 (refer ASX Announcements 7 May 2018, 5 July 2018).

It should be emphasised that the results discussed here are whole rock (or in situ) results, not concentrate grades, and compare favourably to the already-high in-situ grade of the SPD Project (0.78% V2O5). These excellent results provide firm evidence of the potential for these pipes to contribute to a lowcost, high-grade DSO operation with a short development timetable. Drilling will continue on these pipes in 2019 with assays still awaited from the Cluster 1 pipes drilled last month.

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Figure 4 . Helicopter in operation at the SPD Vanadium Project.

Background on the SPD Vanadium Project

Global vanadium projects are summarised in Figure 5 (also refer Appendix 2), demonstrating that the SPD Vanadium Project has the potential to be globally significant based on its tonnage and grade in concentrate. Currently approximately 85% of the world’s vanadium is produced in China, Russia and South Africa, and with the SPD Project located in one of these producing regions there is potential for the Project to be fast tracked into production. As previously detailed the SPD Vanadium Project is located in a region with substantial infrastructure including high voltage grid power, water, rail and road along with support services for the mining industry.

The SPD Vanadium Project is located in a similar geological setting to the mining operations of Rhovan (Glencore), Vametco (Bushveld Minerals) and Mapochs (on care and maintenance) in the Gauteng and Limpopo provinces of South Africa (Figure 6). Both the Rhovan and Vametco processing plants include refining to generate products used in the global steel making industry and aim to develop downstream processing to produce materials used in the battery market.

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Figure 5 . Global vanadium projects categorised by resource grade and grade in concentrate. Label states concentrate grade based on reported testwork. Bubble size denotes tonnage. Tonnes and grade based on reported total resources

Source: Company websites, ASX / TSX / LSE announcements, as detailed in Appendix 2.

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Figure 6. Location of the SPD Vanadium Project and other vanadium deposits in the Bushveld Igneous Complex.

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Quartz Bore – High Grade Zinc Mineralisation in the Pilbara

The Quartz Bore Project is located in the Pilbara region of Western Australia, adjacent to Venturex Resources’ Whim Creek Project. The Project contains the Balla Balla Prospects which were discovered via heliborne EM with some 11,193 metres of RC and DD drilling by previous explorers successfully delineating high grade zinc mineralisation (refer ASX Announcement 3 November 2017). Review by the Company indicates a spacing of 80m by 20m is the optimum drill spacing to delineate a Mineral Resource (assuming results are consistent with historical intersections). The current drill spacing at the Balla Balla Prospect is 80m by 80m (approximately).

The Company completed a successful diamond drilling programmes at the Quartz Bore Project in Dec 2017 with intersections including a high grade copper zone (17m at 2.95 % Cu + 1.48% Zn incl. 7m at 6.44% Cu + 3.21% Zn incl. 2m at 14.3% Cu + 6.33% Zn, refer ASX Announcement 21 February 2018). Downhole surveying detected strong, coincident, DHEM and DHMMR anomalies interpreted to represent the extension of high grade mineralisation intersected in historical drilling (refer ASX Release 21 February 2018). Surface MMR surveying also identified potential targets. The Company is considering the best methodology to advance the project.

Mt Sydney –Shallow EM anomalies along strike from known mineralisation

The Mt Sydney Project is 100% owned by the Company and is located adjacent to, and along strike from, Rumble Resources (ASX.RTR, “ Rumble ”) Braeside Project (Figure 7). In January Rumble announced zinclead mineralisation had been intersected in its maiden drilling programme including a high grade zinc discovery at the Braeside Project (refer ASX.RTR Announcement 16 January 2018). The reconnaissance nature of this drilling makes the presence of mineralisation very encouraging for regional base metal prospectivity and enhances the potential of the base metal targets within Tando’s Mt Sydney Project.

Tando flew a VTEMmax survey over the Mt Sydney Project in December 2017 (refer ASX Announcement 18 January 2018). Careful examination of the electromagnetic data has delineated numerous conductors that correlate with important target structures interpreted to be part of the Braeside Fault Zone, as well as stratigraphic contacts of prospective volcanic lithologies. EM anomalies are also evident over strike limited portions of these significant structures which extend directly from Rumble Resources’ Braeside Project further north. These conductors are considered high priority targets and warrant follow-up.

Mt Vernon – Zn-Pb targets in same region as Abra Deposit

The Mt Vernon Project overlies sediments of the Edmund and Collier Groups adjacent to the regional scale Mt Vernon Fault in the Pilbara region of Western Australia. The Company has completed a detailed review of historical exploration at the project and identified geophysical and geochemical targets worthy of further inspection (refer ASX Announcement 15 March 2018).

E52/3560 lies wholly within the Nharnuwangga Wadjarri Ngarlawangga ( NWN ) Indigenous Land Use Agreement area and therefore access to the area of E52/3560 is not permitted until an agreement has been entered into with the NWN. The Company has received a draft heritage agreement from the legal representatives of the Jidi Jidi Aboriginal Corporation (JJAC), which is the registered native title body corporate for the NWN determination area and is reviewing this.

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For and on behalf of the board:

Mauro Piccini Company Secretary

Media

For further information, please contact:

Paul Armstrong Read Corporate +61 8 9388 1474

Tenement Table: ASX Listing Rule 5.3.3

Mining tenement interests held at the end of the quarter and their location

PERMIT NAME	PERMIT NUMBER	REGISTERED HOLDER / APPLICANT	AREA IN km2	PERMIT STATUS	PERMIT EXPIRY	INTEREST / CONTRACTUAL RIGHT
Pilbara Region, Western Australia
Quartz Bore	E47/3352	VMS Resources Pty Ltd	15	Granted	21/12/2021	100%
Mt Sydney	E45/4939	Tando Resources Ltd	508	Application		100% on grant
Mt Vernon	E52/3560	Tando Resources Ltd	463	Granted	23/08/2022	100%
Limpopo Region, South Africa
Steelpoortdrift KT365	10095MR	Vanadium Resources (Pty) Ltd	24.6	Granted	04/09/2048	Right to own 73.95%

The mining tenement interests relinquished during the quarter and their location

Nil.

The mining tenement interests acquired during the quarter and their location

Nil.

Beneficial percentage interests held in farm-in or farm-out agreements at the end of the quarter

Not applicable.

Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during the quarter

Nil.

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Competent Persons Statement

The information in this announcement that relates to drilling, sampling and the geological interpretation derived from the 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 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 the Announcements referred to in the text.

The information in this announcement that relates to Mineral Resources complies with the JORC Code and has been compiled, assessed and created under the supervision of Mr Kell Nielsen, BSc.(Geology), MSc.(Mineral Econ.) and a Member of the Australasian Institute of Mining and Metallurgy, the Principal of Mannika Resources Group Pty Ltd, a consultant to the Company. Mr Nielsen 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 Persons as defined in the JORC Code. Mr Nielsen is the competent person for the estimation and has relied on provided information and data from the Company, including but not limited to the geological model, database and expertise gained from site visits. Mr Nielsen consents to the inclusion in this announcement of matters based on his information in the form and context in which it appears. The Mineral Resource is based on standard industry practises for drilling, logging, sampling, assay methods including quality assurance and quality control measures as detailed in the ASX Announcement dated 18 December 2018.

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: Mineral Resource Statement for the SPD Vanadium Project

Table 1 . SPD Vanadium Project Global Mineral Resource (JORC 2012, classified as Inferred, quoted above a 0.45% V2O5 cut-off to 200m depth).

Layer	SG	Tonnes (Mt)	Whole Rock **V2O5% **
Upper Layer	3.5	211	0.84
Intermediate Layer	3.1	188	0.55
Lower Layer (disseminated)	3.5	137	0.77
Lower Layer (massive)	3.5	52	1.37
Total		588	0.78

Table 2 . SPD Vanadium Project Mineral Resource to 100m depth (0.45% V2O5 cut-off).

Layer	Tonnes (Mt)	Whole Rock **V2O5% **
Upper Layer	155	0.84
Intermediate Layer	36	0.55
Lower Layer (disseminated)	70	0.77
Lower Layer (massive)	24	1.30
Total	364	0.77

Table 3 . SPD Vanadium Project Mineral Resource to 100m depth (0.9% V2O5 cut-off).

Layer	Tonnes (Mt)	Whole Rock **V2O5% **
Upper Layer	55	1.00
Lower Layer (disseminated)	7	0.95
Lower Layer (massive)	24	1.30
Total	87	1.07

Table 4 . SPD Vanadium Project Mineral Resource to 50m depth (0.9% V2O5 cut-off).

Layer	Tonnes (Mt)	Whole Rock **V2O5% **
Upper Layer	27	1.01
Lower Layer (disseminated)	4	0.93
Lower Layer (massive)	11	1.30
Total	42	1.09

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Notes to Tables 1 - 4:

The Mineral Resource Estimate was completed using the following parameters:

• The SPD Vanadium Resource extends over a strike length of 4000m and has been drilled up to 150m vertically below surface (1100m down-dip);

• Mineralisation is hosted in a series of magnetite bearing layers at the contact between the Upper and Main Zone of the Bushveld Igneous Complex. These layers have been denoted the Upper, Intermediate and Lower Layers with average thicknesses of 19, 14 and 12m respectively. At the base of the Lower Layer there is a marker horizon of massive magnetite (the “MML”) which is 1 – 2m thick.

• 64 drillholes (43 RC and 21 diamond core holes) were used in the resource estimate representing a total of 4018.8m of drilling. 22 RC holes and 7 diamond core holes drilled by Tando were included along with 21 RC holes and 1 diamond core hole drilled previously by Vanadium Resources (Pty) Ltd ( Vanres ) and 13 DD holes drilled by Vanadium Technology (Pty) Ltd, a subsidiary of Xstrata ( Vantech ). Drilling was carried out on sections spaced approximately 300m apart, with mineralisation intersected at approximately 150m intervals on section.

• RC drilling by Tando and Vanres was sampled via face sampling hammer, collected by a rig mounted cyclone and split using a riffle. Diamond core drilling by Tando sampled NQ core by splitting the core in half. Historical drilling also sampled diamond core, predominantly BQ size, by sawing in half.

• Samples were analysed at commercial laboratories (SGS, ALS) using pressed disc XRF.

• Quality control protocols for all drilling included the use of certified reference materials (CRMs), blanks and duplicates. For Tando drilling control samples were inserted every 20 samples for RC drilling and every 10 samples for DD drilling.

• All drillholes were surveyed in both South Africa LO29 grid (WGS84 projection) and UTM Zone 35S.

• All holes were vertical. Downhole surveys have been carried out on selected holes to confirm no excessive deviation.

• Geological domains were constructed using a 0.25% V = 0.45% V2O5 cut-off grade. Intersections used in the interpretation are listed in Appendix 2.

• 4 wireframe solids were constructed based on the geological interpretation (refer images below: UML = blue, IML = green, LML = red). Samples within the wireframe were composited to 1m intervals.

• Block grades were estimated using interpolation of the 1m composite data by the Ordinary Kriging method. Search ellipses were set based on geostatistics with search distances ranging from 315 to 945m along strike. A first pass search of 315m with a minimum of 14 samples and maximum of 22 samples was used. A second pass search of 473m with a minimum of 10 samples and maximum of 22 samples was then used. A third pass search of 945m with a minimum of 6 samples and maximum of 22 samples was finally used. Refer below for comparison of blocks vs drilling on section.

• The model was constrained to a depth of 200m below surface.

• A Surpac block model was used for the estimate with a block size of 20m X by 20m Y by 5m Z, with sub-blocking to 10mX by 10m Y by 2.5m Z.

• Bulk density values used for mineralisation are detailed in the table above. These were sourced from SG data measurements on core.

• The deposit has been classified as an Inferred Mineral Resource based on data quality and sample spacing. Modelling of other elements (including Fe, Ti, Si, Al, P amongst others) is recommend so that their impact on the economics of the project can be determined. Infill drilling to reduce the reliance on historical drill data, to better delineate geological features such as massive magnetite layers and later structures is recommended to improve the confidence of the model.

These notes should be read in conjunction with the information detailed in the ASX Announcement of 18 Decemeber 2018. The Company is not aware of any new information which materially changes this resource. Phase 2 or infill drilling has been completed and results will be used to update the Mineral Resource.

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APPENDIX 2: Data and sources for Peer Comparison (Figure 5)

Company	Project	Stage	Resource Category	Resource Tonnes	Resource Grade	Concentrate Grade	Information Source
Largo LGO.TSX	Maracas	Production	Measured, Indicated & Inferred (43-101)	49.25	0.99	3.10	43-101 Technical Report dated 26/10/2017 http://www.largoresources.com/op erations/maracas-menchen-mine
Bushveld BMN.LSE	Vametco	Production	Indicated & Inferred	142	0.57	1.96	https://www.bushveldminerals.com /bushveld-vametco/ ; https://www.bushveldminerals.com /presentations/
	Mokopane	Development	Indicated & Inferred	285	0.68	1.75	Mokopane PFS Study Report Jan 2016 https://www.bushveldminerals.com /technical-reports/
TNG TNG.ASX	Mt Peake	Development	Measured, Indicated &Inferred	160	0.28	1.20	ASX Announcement 26/03/2013
King River KRR.ASX	Speewah	Development	Measured, Indicated &Inferred	4,712	0.30	2.11	ASX Announcement 02/11/2018 21/03/2018
Australian Vanadium AVL.ASX	Gabanintha	Development	Measured, Indicated &Inferred	176	0.77	1.39	ASX Announcement 26/09/2018
Technology Metals TMT.ASX	Gabaninth	Development	Indicated & Inferred	120	0.8	1.39 – 1.53	ASX Announcement 21/06/2018 21/06/2018

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