VANADIUM RESOURCES LIMITED — Regulatory Filings 2018

Nov 18, 2018

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19 November 2018

MT SYDNEY TENEMENT GRANTED

• E45/4939 granted covering Tando’s 100% owned Mt Sydney Project.

• Seventeen near surface EM anomalies delineated earlier in 2018 from Tando’s VTEM survey, along with a broad coincident EM and magnetic anomaly.

• EM anomalies are clustered along regional scale structures extending directly from Rumble’s Braeside Project into the Mt Sydney Project.

• Fieldwork can now commence to ground truth these anomalies and ascertain their geological setting as well as surface geochemistry.

Tando Resources (“ Tando ” or “ the Company ”) is pleased to advise that E45/4939 has been granted, which covers its 100% owned Mt Sydney Project in Western Australia.

The Mt Sydney Project is located adjacent to, and along strike from, Rumble Resources (ASX.RTR, “ Rumble ”) Braeside Project. Zinc-lead mineralisation within the Braeside Project has been confirmed by Rumble’s 2017 drill programme (refer ASX.RTR Announcement 16 January 2018) and is associated with major regional structures which extend directly from the Braeside Project into the Mt Sydney Project (Figure 1).

The company’s geophysical consultants Southern Geoscience Consultants carried out an interpretation of data from a VTEMmax survey flown by Tando in December 2017 (refer ASX Announcement 18 January 2018). Careful examination of the electromagnetic data 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 (refer ASX Announcements 26 February 2018 and 13 April 2018).

Due to the strong correlation between early time near surface conductors and known structures in the area, the EM interpretation is also likely to be a valuable tool to identify new structures of interest that have not been mapped in the surface geology. Most of the mapped structures in the area produced distinct early time EM responses probably caused by preferential weathering over structural features. More importantly, numerous stronger 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.

In addition a broad coincident magnetic and EM anomaly has been detected in the south of the Mt Sydney project area (Figure 2). While further processing and geological information is required to refine this target it appears to be a deeper-intrusive, larger body. Rumble has stated that the Braeside drill results supported a porphyry related base metal deposit style model and the magnetic and EM anomaly observed at Mt Sydney could be consistent with a target of this nature, or other intrusion related mineralisation styles. The current interest in intrusive hosted mineralisation in the Eastern Pilbara makes this target worth of further investigation.

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Figure 1 . Plan showing Tando’s Mt Sydney Project and RTR’s Braeside Project including conductors detected in each companies VTEM survey, key structures and underlying geology.

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Figure 2 . Image showing final EM data from VTEMmax survey (Channel 28) over magnetic data from the survey.

A total of seventeen targets were identified from the interpretation from which nine are considered high priority (refer ASX Announcement 13 April 2018, Figure 3 and Table 1). The main criterion for ranking the targets is based on the target strength, strike length and the correlation with prospective structures and lithological contacts.

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Figure 3. VTEMmax interpretation with nominated targets over EM channel amplitude image (channel 25, 0.44 milliseconds)

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Target_ID		Description	East (MGA51)	North (MGA51)	Priority
MS_VTEM_01		Discrete early to mid time conductor within volcanic rocks of the Hardey Fm	326133	7592526	Medium
MS_VTEM_02		Discrete early to mid time conductor within volcanic rocks of the Hardey Fm	325777	7594026	Medium
MS_VTEM_03		Early to mid time conductor coincident with secondary NNW- trending structure	321274	7594127	Low
MS_VTEM_04		Large, strong late time conductor. Correlates with mafic intrusive.	327805	7596740	Medium
MS_VTEM_05		Discrete mid to late time conductor	326836	7598696	High
MS_VTEM_06		Discrete mid to late time conductor	327154	7599513	High
MS_VTEM_07		stacked mid time conductors parallel and near NNW-trending target structure	325321	7601482	High
MS_VTEM_08		Elevated EM response along major NNW-trending target structure.	327669	7602503	High
MS_VTEM_09		Elevated EM response along major NNW-trending target structure.	323851	7604051	High
MS_VTEM_10		Elevated EM response along major NNW-trending target structure.	322275	7610703	High
MS_VTEM_11		Discrete mid time conductor. Possibly associated with secondary NW-trending structure	325897	7612805	Medium
MS_VTEM_12		Discrete mid time conductor. Possibly associated with secondary NW-trending structure	318434	7613848	Medium
MS_VTEM_13		Discrete mid to late time anomaly along major NNW-trending target structure.	323274	7615686	High
MS_VTEM_14		Moderate early to mid time conductor within Meddina Basalt	318694	7616772	Medium
MS_VTEM_15		Discrete mid to late time anomaly within volcanic rocks of the Hardey Fm	323424	7619309	Low
MS_VTEM_16		Elevated EM response along major NNW-trending target structure.	322002	7622088	High
MS_VTEM_17		Elevated EM response along major NNW-trending target structure.	321258	7623111	High
Table	1.	VTEM Targets delineated in survey.

Tando’s designed field activities at the Mt Sydney Project will make the anomalies detected in the VTEMmax survey the initial focus of on ground investigations. Detailed geological and geochemical information are planned to be collected to refine and prioritise these targets. Given the Company’s current priority at the SPD Vanadium Project the Company will also investigate whether a sale or joint venture of this 100% owned asset could provide fair value for shareholders.

For and on behalf of the board:

Mauro Piccini Company Secretary

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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 1.

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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