VANADIUM RESOURCES LIMITED — Regulatory Filings 2017

Dec 17, 2017

==> picture [561 x 120] intentionally omitted <==

18 December 2017

QUARTZ BORE DRILLING SUCCESSFULLY COMPLETED

• Tando’s maiden drill programme has been completed at the Quartz Bore Project.

• Thick zones of sulphide minerals (up to 25m) were intersected in each of the four holes drilled with massive and semi-massive sulphides present.

• All holes are being surveyed using DHEM and DHMMR techniques to detect potential extensions.

• Assay results expected through January 2018.

Tando Resources (“ Tando ” or “ the Company ”) is pleased to advise that its maiden drilling programme has been completed at the 100% owned Quartz Bore Project, in the Pilbara region of Western Australia.

Encouragingly zones of sulphide mineralisation were intersected in all holes, with cumulative downhole thicknesses ranging from 15m (QBDD0001) to 25m (QBDD0004). These intervals are delineated on the basis of containing greater than 5% sulphide minerals over the interval and include bands of disseminated, semimassive and massive sulphides. Minerals observed including sphalerite, chalcopyrite, and galena along with pyrite. Examples of the sulphide mineralisation intersected are shown in Figures 1, 2 and 3.

==> picture [457 x 257] intentionally omitted <==

Figure 1 . Photographs showing semi-massive sphalerite (zinc sulphides) in QBDD0004 at 206m downhole.

6559 1792

==> picture [561 x 100] intentionally omitted <==

==> picture [459 x 227] intentionally omitted <==

Figure 2 . Photograph showing chalcopyrite (left) and sphalerite (right) in QBDD0003 at 193m downhole.

==> picture [459 x 83] intentionally omitted <==

==> picture [459 x 83] intentionally omitted <==

==> picture [459 x 51] intentionally omitted <==

Figure 3 . Photograph showing semi-massive sphalerite in QBDD0004 at 208.5m downhole.

==> picture [445 x 62] intentionally omitted <==

2

==> picture [561 x 100] intentionally omitted <==

A total of 4 holes for 1595.7m were completed as detailed in Appendix 1 and shown on Figures 3 and 4. With the completion of drilling the final intervals of core are being processed for submission to the laboratory. First assays from drilling are now anticipated to be finalised over the Christmas-New Year period with further results expected to be received and announced during January 2018.

Drilling aimed to validate mineralisation intersected in historic drilling and delineate potential extensions for future drilling. To aid the latter goal all holes have been surveyed using both DHEM and DHMMR techniques, with surveys currently being completed on site. These surveys will be interpreted in conjunction with assay results to define targets for follow up drilling in 2018.

==> picture [456 x 79] intentionally omitted <==

==> picture [456 x 79] intentionally omitted <==

==> picture [456 x 79] intentionally omitted <==

==> picture [456 x 78] intentionally omitted <==

Figure 3 . Long Section through the Balla Balla Prospect showing Tando’s 2017 drilling. Historical drilling results shown are detailed in the ASX Announcement of 3 November 2017. Base image is a gridded image of %S returned in historical assays.

==> picture [445 x 62] intentionally omitted <==

3

==> picture [561 x 100] intentionally omitted <==

==> picture [455 x 81] intentionally omitted <==

==> picture [455 x 82] intentionally omitted <==

==> picture [455 x 81] intentionally omitted <==

==> picture [455 x 81] intentionally omitted <==

Figure 4 . Plan showing Tando’s 2017 drilling along with historical drilling and intersections.

For and on behalf of the board:

Mauro Piccini Company Secretary

==> picture [445 x 62] intentionally omitted <==

4

==> picture [561 x 100] 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 [445 x 62] intentionally omitted <==

5

==> picture [561 x 100] intentionally omitted <==

APPENDIX 1: Significant Drillhole Intercepts from the Quartz Bore Project

HOLE ID	EAST	NORTH	RL	EOH	Drill	DIP	AZI	INTERSECTION	INTERSECTION
				(m)	Type			From	Width	Zn % Cu % Pb %
QBDD0001	579420	7706695	12	444.7	DD	-60	170			Assays Pending
QBDD0002	579145	7706325	12	399.7	DD	-60	002			Assays Pending
QBDD0003	579074	7706411	12	399.7	DD	-60	355			Assays Pending
QBDD0004	579304	7706414	12	351.6	DD	-60	005			Assays Pending

Notes:

• Intersections discussed in text are based on visual inspection of sulphides, with no assay data received to date.

• All coordinates are in MGA94 Zone 50.

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

==> picture [445 x 62] intentionally omitted <==

6

==> picture [561 x 100] intentionally omitted <==

APPENDIX 2.

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

Section 1: Sampling Techniques and Data

(Criteria in this section applies to all succeeding sections)

==> picture [473 x 508] intentionally omitted <==

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

Criteria JORC Code explanation Commentary
Sampling techniques Nature and quality of sampling (eg cut channels, Diamond core drilling using NQ sized core.
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.
Include reference to measures taken to ensure sample Core is being sampled at 1m intervals except where
representivity and the appropriate calibration of any these are adjusted for geological features.
measurement tools or systems used.
Core is cut in half, away from the orientation line.
All core is being photographed for reference.
Aspects of the determination of mineralisation that are All aspects of the determination of mineralisation are
Material to the Public Report. In cases where ‘industry described in this table.
standard’ work has been done this would be relatively
simple (eg ‘reverse circulation drilling was used to The core sampling method is considered appropriate
obtain 1 m samples from which 3 kg was pulverised to for VMS mineralisation.
produce a 30 g charge for fire assay’). In other cases
more explanation may be required, such as where All of the drill samples will be sent to a commercial
there is coarse gold that has inherent sampling laboratory for crushing, pulverising and chemical
problems. Unusual commodities or mineralisation types analysis by industry standard practises.
(eg submarine nodules) may warrant disclosure of
detailed information.
Drilling techniques Drill type (e.g. core, reverse circulation, open-hole Diamond drilling uses HQ and NQ2 core sizes. Coring
hammer, rotary air blast, auger, Bangka, sonic etc) was from surface using HQ. Core was changed to NQ2
and details (e.g. core diameter, triple of standard tube, when ground conditions were competent. All NQ2 core
depth of diamond tails, face-sampling bit or other type, is orientated. All diamond core is stored in industry
whether core is orientated and if so, by what method, standard core trays labelled with the drill hole ID and
etc). core interval.
Drill sample Method of recording and assessing core and chip Diamond drill core recovery is being recorded as a
recovery sample recoveries and results assessed. percentage of measured recovered cores versus drilled
distance. Recoveries have been high to date.
Measures taken to maximise sample recovery and Diamond drilling - coring from surface uses HQ and
ensure representative nature of the samples. only changes to NQ2 when ground conditions were
competent.
Whether a relationship exists between sample recovery No assays reported as assay data is pending.
and grade and whether sample bias may have
There is no known or reported relationship in historical
occurred due to preferential loss/gain of fine/coarse
material. drilling between sample recovery and grade.
Logging Whether core and chip samples have been geologically Diamond drill core is being geologically logged for the
and geotechnically logged to a level of detail to total length of the hole. Logging is recording lithology,
support appropriate Mineral Resource estimation, mineralogy, alteration, veining, structure,
mining studies and metallurgical studies. mineralisation and weathering.
Logs are coded using the company geological coding
legend and entered into Excel worksheets prior to
being loaded into the company database.
----- End of picture text -----

==> picture [445 x 62] intentionally omitted <==

7

==> picture [561 x 100] intentionally omitted <==

==> picture [473 x 604] intentionally omitted <==

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

Criteria JORC Code explanation Commentary
All core is being photographed with images to be
stored on the company server.
Logging is appropriate and sufficiently detailed to
support Mineral Resource estimates.
Whether logging is qualitative or quantitative in nature. Logging of chips and diamond core is both qualitative
Core (or costean, channel, etc) photography. (eg. colour) and quantitative (eg. minerals
percentages).
The total length and percentage of the relevant 100% of all core drilled by the Company has been
intersections logged. logged.
Sub-sampling If core, whether cut or sawn and whether quarter, half Sampling for all of the diamond core will be undertaken
techniques and or all core taken. on split core, halved via a core saw.
sample preparation
If non-core, whether riffled, tube sampled, rotary split, No non core drilling is being reported here.
etc and whether sampled wet or dry.
For all sample types, the nature, quality and The sampling techniques for both diamond drilling and
appropriateness of the sample preparation technique. RC drilling are of consistent quality and appropriate.
Quality control procedures adopted for all sub- QA/QC protocols are in place and will be reported along
sampling stages to maximise representivity of samples. with assay data.
Measures taken to ensure that the sampling is QA/QC protocols are in place and will be reported along
representative of the in situ material collected, with assay data.
including for instance results for field duplicate/second-
half sampling.
Whether sample sizes are appropriate to the grain size The material and sample sizes are considered
of the material being sampled. appropriate given the volcanic massive sulphide style of
mineralisation being targeted.
Quality of assay The nature, quality and appropriateness of the No assay data is being reported, assays are pending.
data and laboratory assaying and laboratory procedures used and whether
tests the technique is considered partial or total.
For geophysical tools, spectrometers, handheld XRF Hand held assay devices have not been reported.
instruments, etc, the parameters used in determining
the analysis including instrument make and model,
reading times, calibrations factors applied and their
derivation, etc.
Nature of quality control procedures adopted (eg QA/QC protocols are in place and will be reported along
standards, blanks, duplicates, external laboratory with assay data.
checks) and whether acceptable levels of accuracy (ie
lack of bias) and precision have been established.
Verification of The verification of significant intersections by either No verification of sampling and assaying has been
sampling and independent or alternative company personnel. undertaken by Tando for the historical drilling.
assaying
The use of twinned holes. No specific twinned holes have been drilled.
Documentation of primary data, data entry procedures, Primary data is collected in the field and entered into
data verification, data storage (physical and electronic) Excel worksheets prior to being loaded into the
protocols. company database. Validation is completed in
Micromine as part of the data merge.
All core is being photographed with images to be
stored on the company server.
Discuss any adjustment to assay data. No assay data being reported.
----- End of picture text -----

==> picture [445 x 62] intentionally omitted <==

8

==> picture [561 x 100] intentionally omitted <==

==> picture [473 x 402] intentionally omitted <==

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

Criteria JORC Code explanation Commentary
Location of data Accuracy and quality of surveys used to locate drill Location data has been recorded by handheld GPS
points holes (collar and down-hole surveys), trenches, mine (±5m accuracy on easting and northing).
workings and other locations used in Mineral Resource
estimation. Drillhole deviation for diamond drilling is being
measured via in-rod surveys during drilling. This is
being conducted using an axis north seeking gyro tool.
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. Adequate.
Data spacing and Data spacing for reporting of Exploration Results. The spacing and location of the majority of the drilling
distribution 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
mineralised body.
Whether the data spacing and distribution is sufficient Data spacing is deemed sufficient to establish
to establish the degree of geological and grade geological and grade continuity to establish a mineral
continuity appropriate for the Mineral Resource and resource estimate but a mineral resource has not been
Ore Reserve estimation procedure(s) and estimated.
classifications applied.
Whether sample compositing has been applied. No sample compositing has been applied.
Orientation of data Whether the orientation of sampling achieves unbiased The majority of the drilling at Quartz Bore is inclined to
in relation to sampling of possible structures and the extent to which the north which is considered appropriate given the
geological structure this is known, considering the deposit type. regional and local geological fabric and structures.
If the relationship between the drilling orientation and To date, orientation of the mineralised domain has
the orientation of key mineralised structures is been favourable for perpendicular drilling and sample
considered to have introduced a sampling bias, this widths are not considered to have added a significant
should be assessed and reported if material. sampling bias.
Sample security The measures taken to ensure sample security. Samples are stored at the 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 No independent audits have been undertaken.
techniques and data.
----- End of picture text -----

Section 2: Reporting of Exploration Results

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

==> picture [471 x 19] intentionally omitted <==

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

Criteria JORC Code explanation Commentary
----- End of picture text -----

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 owns 100% of the tenement holder, VMS Resources Ltd. 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.

==> picture [445 x 62] intentionally omitted <==

9

==> picture [561 x 100] intentionally omitted <==

==> picture [471 x 593] intentionally omitted <==

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

Criteria JORC Code explanation Commentary
The security of the tenure held at the time of reporting The tenement is in good standing.
along with any known impediments to obtaining a
licence to operate in the area.
Exploration done by Acknowledgment and appraisal of exploration by other The Project has previously been explored for
other parties parties. volcanic massive sulphide deposits by a number of
companies. Work has ranged from early stage soil
sampling to auger and diamond drilling.
Geology Deposit type, geological setting and style of The Quartz Bore Project is located within the
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 All hole collar locations, depths, azimuths and dips
understanding of the exploration results including a are provided within this announcement
tabulation of the following information for all Material (Appendix 1) for drilling completed by the Company.
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.
If the exclusion of this information is justified on the Not applicable.
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.
Data aggregation In reporting Exploration Results, weighting averaging No assays are reported as no assay data has been
methods techniques, maximum and/or minimum grade received.
truncations (eg cutting of high grades) and cut-off
grades are usually Material and should be stated.
Where aggregate intercepts incorporate short lengths No assays are reported as no assay data has been
of high grade results and longer lengths of low grade received.
results, the procedure used for such aggregation
should be stated and some typical examples of such
aggregations should be shown in detail.
The assumptions used for any reporting of metal No metal equivalent values are currently being used
equivalent values should be clearly stated. for reporting exploration results.
Relationship between These relationships are particularly important in the All intersections are reported as downhole lengths.
mineralisation widths reporting of Exploration Results. If the geometry of the Additional drill holes are required to confirm the
and intercept lengths mineralisation with respect to the drill hole angle is relationship between downhole lengths and true
known, its nature should be reported. If it is not known widths.
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’).
----- End of picture text -----

==> picture [445 x 62] intentionally omitted <==

10

==> picture [561 x 100] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
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.	Diagrams will be prepared based on assay results.
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 misleading reporting of Exploration Results.	No assays are reported as no assay data has been received.
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 has been reported in previous announcements by the Company.
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.	Based on the sulphide zones intersected (as detailed in this announcement) it is anticipated that assays and downhole geophysical surveys will define targets for follow up drilling. The specifics of this drilling will be designed and announced once all results have been received and interpreted.

==> picture [445 x 62] intentionally omitted <==

11