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Tawana Resources Nl - Quarterly Activities Report For The Quarter To 31 December 2016 And Appendix 5b

Release Date: 31/01/2017 10:30:00      Code(s): TAW     
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
JSE ISIN: AU0000TAWDA9
Share code on the Australian Securities Exchange Limited: TAW
ASX ISIN: AU000000TAW7
(?the Company? or ?Tawana?)

Quarterly Activities Report For the quarter to 31 December 2016 and appendix 5B

PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES.
PLEASE REFER TO TAWANA WEBSITE FOR THE COMPLETE ANNOUNCEMENT.

Highlights

Bald Hill Lithium Project
- Tawana Resources NL (?Tawana? or ?the Company?) acquired Lithco No.2 Pty Ltd
   (Lithco), giving it the right to earn a 50% interest in all minerals (including lithium and
   tantalum), processing plant and infrastructure.
- The Project is currently owned by Alliance Mineral Assets Limited (AMAL) and is
   adjacent to Tawana?s Cowan Project.
- A conceptual engineering study was completed which highlighted a potentially highly
   profitable operation, rapid payback and a low capital cost by retrofitting a spodumene
   circuit.
- Experienced lithium plant engineering company Primero Group was engaged to
   conduct a Feasibility Study. Primero was involved with the latter stages of construction
   and is currently involved with the commissioning of Galaxy Resources Limited?s Mt
   Cattlin Project.
- Tawana well-positioned to potentially become an Australian spodumene producer in the
   second half of 2017.

Cowan Lithium Project
- Spodumene, tantalum and tin pegmatites were intercepted at Cotters North located
   10km NNW of the Bald Hill Mine in first pass drilling.

Uis Lithium Project
- Resource drilling of large stockpile is complete and results confirm to contain
  significant lithium and tin mineralisation.

Corporate
- A placement to raise $7.2 million completed to advance lithium projects.

Plans for March quarter

Bald Hill
- Maiden Lithium Resource estimate;
- Metallurgical test-work with optimised flow sheet;
- Feasibility Study - detailed design and order of key capital components;
- Award EPC contract; and
- Narrow down potential off-takers

Other Projects

-   Further drilling on Cowan Project and Resource estimate and metallurgical test work on
    Uis Project.

Bald Hill Project (TAW earning 50%)
Acquisition During the quarter, Tawana acquired 100% of Lithco No.2 Pty Ltd (Lithco),
which has rights to earn into the Bald Hill Mine. The Bald Hill Project area is located 50km
south east of Kambalda in the Eastern Goldfields, approximately 75km south east of the Mt
Marion Lithium project, and is adjacent to the Company?s Cowan Lithium Project. The
Project comprises four mining leases, eight exploration licences, eight prospecting licences
and five tenement applications totalling 791.3km2 .

It is owned by Australian-incorporated, Singapore Exchange-listed Alliance Mineral Assets
Limited (AMAL). Lithco entered a Farm-In and Joint Venture arrangement with AMAL to
jointly explore lithium and other minerals at the Project.

Spodumene-rich pegmatites have been discovered at the project and partially mined for
tantalum. Spodumene was not recovered during prior mining, however recently AMAL
produced spodumene-rich by-product concentrates up to 6.73% Li2O during
recommissioning of its refurbished tantalum plant.

By acquiring Lithco, the commercial terms under the agreement with AMAL require
Tawana:
1. to spend, by 31 December 2017 (or such later date as may be agreed between the
   parties), a minimum of $7.5 million on exploration, evaluation and feasibility
   (including administrative and other overhead costs in relation thereto) (Expenditure
   Commitment); and
2. . to spend, $12.5 million in capital expenditure required for upgrading and converting
   the plant for processing ore derived from the Project, infrastructure costs, pre-stripping
   activities and other expenditures including operating costs (Capital Expenditure).

Upon completion of the Expenditure Commitment, Tawana shall be entitled to 50% of all
rights to lithium minerals from the tenements comprising the Project (Tenements).

Upon completion of the Expenditure Commitment and Capital Expenditure, Tawana will be
entitled to a 50% interest in the Project (being all minerals from the Tenements and the
processing plant and infrastructure at Bald Hill).

Upon completion of the Expenditure Commitment and Capital Expenditure and subject to
binding definitive farm-in and joint venture agreements, a Joint Venture between Tawana
and AMAL will be formed and funded 50:50 by Tawana and AMAL.

Exploration conducted December quarter

During the quarter a total of 91 exploration, resource, metallurgical and sterilization drill
holes were completed totalling 8521m RC and 952.3m of core.

The drilling intercepted significant spodumene mineralisation south of the largest pit (South
Pit) within pegmatites that are interpreted as those previously mined and newly discovered
larger pegmatite/s located in the footwall. (Refer ASX Announcement 17 November 2016
for full results).
There are strong indications that the pegmatites in the Bald Hill mine grade from narrow
and tantalum-rich in the north to north-east to wider and lithium-rich in the south to south-
west. Where there are multiple sub-horizontal pegmatites, the shallow ones tend to be richer
in tantalum and deeper ones richer in lithium.

Metallurgical Testwork and Flowsheet Metallurgical test work results (Refer ASX
Announcement 24 October 2016) showed potential to produce high grade DMS
concentrates. Subsequently sighter floatation test-work on combined 1mm DMS gravity
concentrates (middlings) has been undertaken. The resulting floatation recovery was
favourable with returning a recovery of 74.7% at a grind size of P80 0.18mm, with a
combined concentrate grade of 6.42% Li2O.

The combined DMS and Flotation concentrates accounted for 83% of the calculated
contained lithium at an average grade of 6.1% Li2O with very low mica content. Further
work will be undertaken to optimise recovery and concentrate grade.

Although Tawana is still undertaking confirmatory metallurgical testwork, it is proposed to
approach the project in two phases to reduce time and cost to initial production. This will
also allow a fast track approach from study to detailed design, construction, commissioning
and lithium concentrate production.

The very coarse spodumene at Bald Hill is noted for its unusually high recovery in DMS
testwork and the ability to produce high grade spodumene concentrates.

The Phase 1 flowsheet will consist of a 1Mtpa spodumene concentrator circuit using dense
medium separation (DMS) with fines (representing 20-30% of the feed) either temporarily
stockpiled or passed through the existing spiral circuit to remove tantalum and potentially
produce a rougher spodumene concentrate.

The Phase 2 flowsheet, which may not be required, takes fines, spiral concentrates and the
DMS mid-floats product and re-processes by flotation after milling to produce a high grade
fine lithium product.

Feasibility Study

A conceptual engineering study at the Bald Hill Mine highlighted a potentially highly
profitable operation, rapid payback and a low capital cost by retrofitting a spodumene
circuit.

As a result, Tawana has commenced a Feasibility Study for the Bald Hill Lithium and
Tantalum Mine which will include capital costs to an accuracy of +/- 15% and operating
costs to an accuracy of +/-25%.

The study, which is expected to be completed by the end of March 2017 is being conducted
by lithium plant engineering company Primero Group who was the project manager for the
final stages of construction, commissioning and ramp-up of Galaxy Resource Limited?s Mt
Cattlin Lithium Project.

Detailed Design
A proposal and a scope of work including deliverables has also been received from Primero
which should allow a seamless flow on from the Study to detailed design. This is important
to allow long lead items to be procured during the early stages of detailed design to meet
construction completion in late October 2017.

Marketing and Off-Take

Tawana and AMAL have been approached by several significant entities within the lithium
supply chain with strong demand to obtain near-term spodumene concentrate and received
written proposals. There appears to be a significant shortage of uncommitted spodumene in
2017-2018 to feed new Chinese convertors, which thereby places Tawana in an enviable
position.

Table 1| 2017 Milestones

 Bald Hill Project Commissioning Timeline                 Q1           Q2          Q3        Q4
  Conceptual Engineering Study                            -
  Resource                                                Q1
  Completion of metallurgical test work with              Q1
  optimised flow sheet

  Conditional offtake agreement                           Q1
  Feasibility study                                       Q1
  Place orders for long lead items                        Q1
  Place orders for other capital requirements                          Q2
  EPC process plant contract award                        Q1
  Construction commence                                                Q2
  Commissioning commence                                                                     Q4


Cowan Lithium Project (Option to Purchase 100%)
The Cowan Lithium Project is located 50km south east of Kambalda in the Eastern
Goldfields of Western Australia. It is 75km south-east of the Mt Marion Lithium project
and is adjacent to the more advanced Bald Hill Mine Project (see Figure 1).

Tawana commenced first pass exploratory drilling on Cowan in September 2016,
completing 189 holes totalling 14,419m to date, in five areas based on geochemical,
geophysical and outcrop information. Due to shallow weathering, RC drilling was adopted
over RAB drilling.

Spodumene pegmatites were intercepted in four areas with the Cotters North prospect
appearing the most promising, where a total of 43 holes were drilled over an area 1.4km by
0.8km. Pegmatites were intercepted in 16 of the drill holes of which 10 contained
spodumene, and seven contained elevated tantalum and tin. Significant intercepts are
contained within Tables 2 and 3.

Though pegmatites intercepted to date at Cotters North are generally narrow, some are sub-
horizontal, which provide the best targets for resource tonnage. The northern limit of the
current footprint of the prospect is the most prospective and open to the north and west
under soil cover. Pegmatite fractionation appears to be generally increasing towards the
north.
Based on successful early results from the St John pegmatites on the adjoining Bald Hill
tenements, a prime drill target within the Cowan Project area south of St John awaits
testing.

Table 2| Drill Summary, Cotters North Pegmatite Intercepts

  Hole ID    Easting   Northing    RL     Depth     Azm          Dec.    From     To      Width   Pegmatite

 TRC0046     416633    6521854     300     40        90          -60         0       2      2.0    Li,Ta
 TRC0047     416680    6521880     300     79        90          -60      16.8      18      1.2    Li
 TRC0048     416720    6521880     300     80        90          -60       0.8     3.6      2.8    barren
 TRC0050     416620    6522000     300     80        90          -60       5.2       8      2.8    barren
 TRC0055     416640    6521999     300     42        90          -60         0     4.9      4.9    Ta, Be
 TRC0058     416500    6522400     300     80        90          -60      20.6    27.9      7.3    Li, Ta
 TRC0067     415820    6522800     300     80        90          -60      22.5    24.1      1.6    Ta
 TRC0070     416220    6522800     300     80        90          -60      19.4    20.9      1.5    Sn, Ta
 TRC0071     416260    6522800     300     80        90          -60        22      24      2.0    Li, Ta
 TRC0072     416300    6522800     300     80        90          -60        35      38      3.0    Li, Ta
 TRC0073     416340    6522800     300     80        90          -60      61.1    66.5      5.4    Li, Ta
 TRC0075     416420    6522800     300     80        90          -60      35.4    38.5      3.1    Li, Ta, Sn
                                                                          76.7    77.7      1.0    Li
 TRC0078     416400    6522600     300     80        90          -60      10.1    11.9      1.8    Li
                                                                            13      16      3.0    Li
 TRC0079     416600    6522600     300     80        90          -60      37.1      43      5.9    Li
                                                                          44.4      47      2.6    Li
Notes
   1) The true width of pegmatites are generally considered 70-95% of the intercept
      width except for TRC0027 where the true width is likely less that 30% of the
      intercept width.
   2) Holes remain to be surveyed therefore elvations are nominal

Table 3| Significant Intercepts, Cotters North
                       From          To           Interval              Li2O      Ta2O5           Nb2O5         SnO2
 Hole ID                m            m               m                   %        ppm              ppm          ppm
 TRC0026                      40          42                 2             0.46           77          79               50
                              45          50                 5             0.83           57          63               63
             incl.            47          49                 2             1.16           67          11               63
 TRC0027                      35          51              16               0.54           93          79               55
             incl.            44          48                 4             0.91          114          80               58
 TRC0038                      0            1                 1             1.69          175          72              364
                              26          36              10               0.18           37          57               50
                              39          49              10               0.22           27          39               71
 TRC0043                      19          26                 7             0.30           72          92               67
                              33          35                 2             0.70           35          50               55
                              44          48                 4             0.31            9          13               63
 TRC0046                      0            3                 3             0.65          129          69              353
 TRC0047                      22          23                 1             0.31           11              7            17
 TRC0058                      18          21                 3             0.24           63          39              230
                              21          28                 7             1.23          132          109             121
                          From           To        Interval             Li2O           Ta2O5         Nb2O5              SnO2
 Hole ID                   m             m            m                  %             ppm            ppm               ppm
              incl.              22           27              5            1.40            126              107            119
 TRC0067                         23           24              1            0.01            735              64             142
 TRC0070                         20           21              1            0.10            258              93            1,351
 TRC0072                         36           38              2            0.49            194              93             184
 TRC0073                         62           67              5            1.09            172              103            132
              incl.              64           66              2            1.72            192              90             151
 TRC0075                         36           39              3            0.19            230              67             592
              incl.              37           38              1            0.42            208              57            1,125
                                 77           78              1            0.32                57           36             184
 TRC0078                         10           16              6            0.88                71           63             132
              incl.              14           15              1            2.37                68           64                 95
 TRC0079                         36           48          12               0.83                93           72             154

Notes
    1)   Intercepts of 0.3% Li2O or 150ppm Ta2O5 considered significant.
    2)   Intercepts of 0.1-0.3% Li2O are considered anomalous in early staged exploratory drilling.



Uis Project, Namibia (Option to Purchase 100%)
In September 2016, Tawana entered an agreement to acquire mining rights to the giant Uis
pegmatite tailings stockpile in Namibia. The Uis Project located in Namibia comprises large
coarse and fine tailings stockpiles from the Uis tin mine which operated between 1924 and
1990. The Project is located close to the former mining town of Uis some 165km NNE of
the coast city of Swakopmund, 270km NW of the capital Windhoek.

The stockpile hosts an estimated 20Mt of tailings stockpile derived from one of the largest
pegmatite tin mines in the world and limited sampling to date has indicated potentially
attractive lithium grades present.

Tawana completed its initial resource drilling of the stockpile during the quarter using an
air core rig. A 1,531m program consisting of 20 deeper holes and 43 shallow holes was
completed and results consist of significant lithium and tin grades. 23 intercepts within the
sands up to 72m deep ranged in grade from 0.35% Li2O in the northern dumps to 0.41%
Li2O in the southern dumps with 473ppm and 431ppm SnO2 respectively, drill results are
contained in Tables 4 and 5. Though intercepts were more extensive, the shallower fines
dumps averaged 0.57% Li20 and 762ppm SnO2. Tantalum grades were consistent with Uis
cassiterite which is known to contain up to 9% Tantalum. The grade range of 0.35-0.57%
Li2O in the large dumps is considered potentially economic subject to mettalurigical
recoveries. Based on current market indicator concentrate pricing, the contained lithum
value per tonne of stockppile is expected to be in the range of US$50-US$90/t before tin
credits and potential concentrate penalties and recoveries. Metallurgical testwork will
commence and a Resource estimate will be completed in the March Quarter.

Table 4| Sands Dump Intercepts (Uis Project)

                                                                            
  Hole      Depth East     North     RL         Dec.    Azi     from  to   Intercept  Li2O    SnO2    Ta205
                                                                                  m         
 UAC001      74   487225   7652827   741.09     -90       0       0   72         72    0.39    448      61
 UAC002      78   487302   7652867   740.17     -90       0       0   70         70    0.35    447      60
 UAC003      67   487385   7652911   727.36     -90       0       0   60         60    0.31    391      55
 UAC004      62   487467   7652956   720.32     -90       0       0   60         60    0.32    492      55
 UAC005      65   487510   7652981   720.97     -90       0       0   60         60    0.33    466      51
 UAC006      62   487579   7652975   721.04     -90       0       0   61         61    0.38    486      48
 UAC007      58   487622   7652931   716.59     -90       0       0   56         56    0.41    527      49
 UAC008      62   487538   7652933   719.97     -90       0       0   60         60    0.33    514      45
 UAC009      39   487507   7652876   718.70     -90       0       0   38         38    0.27    509      51
 UAC010      47   487465   7652794   717.68     -90       0       0   38         38    0.34    389      46
 UAC011      50   487423   7652727   718.68     -90       0       0   38         38    0.43    368      53
 UAC012      49   487400   7652668   719.56     -90       0       0   44         44    0.41    352      52
 UAC013      61   487360   7652817   721.33     -90       0       0   50         50    0.40    391      55
 UAC014      57   487326   7652777   721.17     -90       0       0   50         50    0.44    396      61
 UAC015      56   487263   7652692   721.43     -90       0       0   50         50    0.43    421      61
 UAC016      56   487229   7652636   722.00     -90       0       0   50         50    0.37    385      46
 UAC017      57   487257   7652741   720.75     -90       0       0   50         50    0.38    347      50
 UAC018      52   487185   7652746   720.68     -90       0       0   51         51    0.41    455      52
 UAC019      45   487096   7652754   720.12     -90       0       0   44         44    0.46    416      69
 UAC020      44   487030   7652755   722.00     -90       0       0   42         42    0.40    418      53
 UAC021      23   487604   7652810   683.36     -90       0      10   22         12    0.47    638      69
 UAC022      21   487569   7652801   682.59     -90       0      12   21          9    0.44    686      69




Table 5| Fines Dump Intercepts (Uis Project)

                                                                           Intercept
  Hole    Depth    East     North     RL       Dec.     Azi    from   to       m       Li2O   SnO2   Ta205
                                                                               
 UAC002      78   487302   7652867   740.17    -90.00   0.00     70   76          6    0.55    667      61
 UAC003      67   487385   7652911   727.36    -90.00   0.00     60   67          7    0.48    738      68
 UAC010      47   487465   7652794   717.68    -90.00   0.00     38   47          9    0.53    877      47
 UAC011      50   487423   7652727   718.68    -90.00   0.00     38   50         12    0.52    857      61
 UAC012      49   487400   7652668   719.56    -90.00   0.00     44   49          5    0.51    815      52
 UAC013      61   487360   7652817   721.33    -90.00   0.00     50   60         10    0.48    817      63
 UAC014      57   487326   7652777   721.17    -90.00   0.00     50   56          6    0.52    910      70
 UAC015      56   487263   7652692   721.43    -90.00   0.00     50   56          6    0.51    882      61
 UAC016      56   487229   7652636   722.00    -90.00   0.00     50   54          4    0.59    749      64
 UAC017      57   487257   7652741   720.75    -90.00   0.00     50   56          6    0.50    825      70
 UAC021      23   487604   7652810   683.36      -90    0.00      0   10         10    0.50   1023      59
 UAC022      21   487569   7652801   682.59      -90    0.00      0   12         12    0.54    853      58
 UAC023      18   487603   7652731   682.76      -90    0.00      0   18         18    0.49    907      62
 UAC024      18   487520   7652723   682.48      -90    0.00      0   16         16    0.60    770      50
 UAC025      18   487504   7652667   681.77      -90    0.00      0    9          9    0.54    901      60
 UAC026      13   486960   7652244   675.15      -90    0.00      0   11         11    0.55    740      66
 UAC027       8   486962   7652172   674.48      -90    0.00      0    8          8    0.63    695      65
 UAC028       7   486952   7652094   674.11      -90    0.00      0    7          7    0.65    635      64
 UAC029       6   487034   7652091   674.90      -90    0.00      0    4          4    0.60    686      68
 UAC030       8   486810   7652160   671.84      -90    0.00      0    8          8    0.60    741      63
 UAC031       9   486805   7652091   671.39      -90    0.00      0    8          8    0.61    654      58
 UAC032       7   486796   7652009   671.69      -90    0.00      0    6          6    0.64    698      64
 UAC033       7   486888   7652003   672.23      -90    0.00      0    2          2    0.62    711      69
 UAC034       6   486647   7652176   672.90      -90    0.00      0    5          5    0.61    866      73
 UAC035       3   486582   7652175   672.67      -90    0.00      0    2          2    0.62    609      66
 UAC036       9   486565   7652082   671.49      -90    0.00      0    8          8    0.61    733      67
 UAC037      12   486643   7652084   671.71      -90    0.00      0   10         10    0.62    711      60
 UAC038      12   486642   7652020   671.07      -90    0.00      0   11         11    0.60    645      57
 UAC039       9   486656   7651929   671.62      -90    0.00      0    8          8    0.65    711      60
 UAC040       2   486728   7651847   672.66      -90    0.00     NSI
 UAC041       5   486659   7651846   672.23      -90    0.00      0    3          3    0.66    639      57
 UAC042       7   486638   7651861   672.12      -90    0.00      0    6          6    0.60    746      63
 UAC044       6   486571   7651924   672.02      -90    0.00      0    6          6    0.61    738      63
 UAC045      12   486567   7652026   670.95      -90    0.00      0   12         12    0.56    710      61
 UAC046       7   486730   7651930   672.69      -90    0.00      0    7          7    0.60    822      65
 UAC047      10   486695   7652004   671.94      -90    0.00      0    9          9    0.60    738      63
 UAC048      11   486710   7652113   672.60      -90    0.00      0   10         10    0.58    785      72
 UAC049      12   486693   7652168   673.17      -90    0.00      0    9          9    0.54    819      73
 UAC050       3   486673   7652276   673.67      -90    0.00      0    3          3    0.49    614      49
 UAC051       6   486713   7652290   673.17      -90    0.00      0    4          4    0.53    717      55
 UAC052       5   486713   7652324   673.11      -90    0.00      0    3          3    0.57    707      57
 UAC053       3   486745   7652374   672.50      -90    0.00      0    2          2    0.56    787      49
 UAC054       3   486825   7652473   672.62      -90    0.00      0    3          3    0.55    592      53
 UAC055       9   486963   7652378   673.22      -90    0.00      0    6          6    0.54    851      71
 UAC056       8   486911   7652324   672.61      -90    0.00      0    6          6    0.60    639      60
 UAC057       9   486869   7652298   672.24      -90    0.00      0    9          9    0.57    735      66
 UAC058      10   486806   7652252   672.32      -90    0.00      0   10         10    0.56    701      58
 UAC059       9   486732   7652245   672.90      -90    0.00      0    9          9    0.55    655      57
 UAC060       9   486775   7652128   671.71      -90    0.00      0    8          8    0.59    707      61
 UAC061       9   486784   7652090   671.57      -90    0.00      0    8          8    0.61    686      63
 UAC062       9   486919   7652207   674.51      -90    0.00      0    8          8    0.59    698      63
 UAC063       8   486996   7652173   674.61      -90    0.00      0    8          8    0.60    650      59
 UAC064       9   486986   7652085   674.48      -90    0.00      0    6          6    0.52    715      66

Corporate

Cash

As at 31 December 2016, Tawana Resources held $7.0 million in cash.
In October 2016, Tawana announced it had received commitments for a placement to raise
$7.2 million before costs via the issue of 60 million shares at an issue price of $0.12 per
share.
The Company issued 29,628,825 shares under its 15% placement capacity (Tranche 1) and
30,371,175 shares after receiving shareholder approval in December (Tranche 2). Note that
3,171,000 shares were issued after 31 December 2016.

1,000,000 options were also exercised at $0.06 per option.

Results of Meeting
A general meeting of Tawana shareholders was held on 23 December 2016 with all
resolutions put to the meeting passed on a show of hands. These were:
1. The Acquisition of Lithco No. 2 Pty Ltd
2. The Acquisition of Lithco No. 2 Pty Ltd ? Related Party
3. Ratification of Prior Issue of Shares ? Tranche 1 of Capital
4. Issue of Shares ? Tranche 2 of Capital Raising
5. Issue of Shares in Consideration of Milestone Payments for the UIS Tailings Project
6. Ratification of Prior Issue of Shares ? Purchase of Lithium Africa No 1 Pty Ltd.

Board Changes
Michael Bohm stepped down on 21 October 2016 as a Director due to increased other work
commitments. Mr Bohm was replaced in the role of Chairman by Mr. Rob Benussi who is
an existing non-executive Director of the Company. Mark Calderwood, the Company?s
Chief Executive Officer was appointed Managing Director also effective 21 October 2016.

Tawana Resources NL Tenements

Tenement             Location        Registered Owner           Structure and Ownership

Mofe Creek Iron
Ore Project

MEL-12029
                     Liberia         Tawana Liberia Inc         100%
Mofe Creek

MEL-1223/14
                     Liberia         Tawana Liberia Inc         100%
Mofe Creek Sth

Cowan Lithium
Project

                     Western         Maxwell Peter
E15/1205                                                        0%, Option agreement
                     Australia       Strindberg

                     Western         ABEH Pty Ltd
E15/1377                                                        0%, Option agreement
                     Australia

                     Western         Brooke Louise Strindberg
E15/1446                                                        0%, Option agreement
                     Australia

Yallari Project
                 Western     ABEH Pty Ltd              Pending and 0%, Option
E15/1401
                 Australia                             agreement

                 Western     Mt Belches Pty Ltd
E15/1526                                               Pending, 100%
                 Australia

Bald Hill Mine

                 Western     Alliance Mineral Assets
M15/400                                                0%, Earning in 50%
                 Australia   Limited

                 Western     Alliance Mineral Assets
M15/1470                                               0%, Earning in 50%
                 Australia   Limited

                 Western     Alliance Mineral Assets   0%, Earning in 50%
M15/1811
                 Australia   Limited

                 Western     Alliance Mineral Assets   0%, Earning in 50%
M15/1305
                 Australia   Limited

                 Western     Alliance Mineral Assets   0%, Earning in 50%
M15/1308
                 Australia   Limited

                 Western     Alliance Mineral Assets   0%, Earning in 50%
M59/714
                 Australia   Limited

                 Western     Alliance Mineral Assets   0%, Earning in 50%
G15/17
                 Australia   Limited

                 Western     Alliance Mineral Assets   0%, Earning in 50%
L15/265
                 Australia   Limited

                 Western     Alliance Mineral Assets   0%, Earning in 50%
L15/266
                 Australia   Limited

                 Western     Alliance Mineral Assets   0%, Earning in 50%
L15/267
                 Australia   Limited

                 Western     Alliance Mineral Assets   0%, Earning in 50%
L15/268
                 Australia   Limited

                 Western     Alliance Mineral Assets   0%, Earning in 50%
L15/269
                 Australia   Limited

                 Western     Alliance Mineral Assets   0%, Earning in 50%
L15/270
                 Australia   Limited

                 Western     Alliance Mineral Assets   0%, Earning in 50%
P15/5465
                 Australia   Limited

                 Western     Alliance Mineral Assets   0%, Earning in 50%
P15/5466
                 Australia   Limited

                 Western     Alliance Mineral Assets   0%, Earning in 50%
P15/5467
                 Australia   Limited
                    Western       Alliance Mineral Assets   0%, Earning in 50%
P15/5862
                    Australia     Limited

                    Western       Alliance Mineral Assets   0%, Earning in 50%
P15/5863
                    Australia     Limited

                    Western       Alliance Mineral Assets   0%, Earning in 50%
P15/5864
                    Australia     Limited

                    Western       Alliance Mineral Assets   0%, Earning in 50%
P15/5865
                    Australia     Limited

                    Western       Alliance Mineral Assets   0%, Earning in 50%
P15/5866
                    Australia     Limited

                    Western       Alliance Mineral Assets   0%, Earning in 50%
R15/1
                    Australia     Limited

                    Western       Alliance Mineral Assets   0%, Earning in 50%
E15/1058
                    Australia     Limited

                    Western       Alliance Mineral Assets   0%, Earning in 50%
E15/1212
                    Australia     Limited

                    Western       Alliance Mineral Assets   0%, Earning in 50%
E15/1161
                    Australia     Limited

                    Western       Alliance Mineral Assets   0%, Earning in 50%
E15/1162
                    Australia     Limited

                    Western       Alliance Mineral Assets   0%, Earning in 50%
E15/1166
                    Australia     Limited

                    Western       Alliance Mineral Assets   0%, Earning in 50%
E15/1353
                    Australia     Limited

                    Western       Alliance Mineral Assets   0%, Earning in 50%
E15/1066
                    Australia     Limited

                    Western       Alliance Mineral Assets   0%, Earning in 50%
E15/1067
                    Australia     Limited

                    Western       Alliance Mineral Assets   0%, Earning in 50%
M15/1811
                    Australia     Limited



Beneficial percentage interests in farm-in agreements acquired

Tenement            Location      Registered Owner          Structure and Ownership

Bald Hill Mine

                    Western       Alliance Mineral Assets
M15/400                                                     0%, Earning in 50%
                    Australia     Limited
           Western     Alliance Mineral Assets
M15/1470                                         0%, Earning in 50%
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
M15/1811
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
M15/1305
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
M15/1308
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
G15/17
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
L15/265
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
L15/266
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
L15/267
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
L15/268
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
L15/269
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
L15/270
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
P15/5465
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
P15/5466
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
P15/5467
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
P15/5862
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
P15/5863
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
P15/5864
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
P15/5865
           Australia   Limited

           Western     Alliance Mineral Assets   0%, Earning in 50%
P15/5866
           Australia   Limited
                    Western          Alliance Mineral Assets       0%, Earning in 50%
R15/1
                    Australia        Limited

                    Western          Alliance Mineral Assets       0%, Earning in 50%
E15/1058
                    Australia        Limited

                    Western          Alliance Mineral Assets       0%, Earning in 50%
E15/1212
                    Australia        Limited

                    Western          Alliance Mineral Assets       0%, Earning in 50%
E15/1161
                    Australia        Limited

                    Western          Alliance Mineral Assets       0%, Earning in 50%
E15/1162
                    Australia        Limited

                    Western          Alliance Mineral Assets       0%, Earning in 50%
E15/1166
                    Australia        Limited

                    Western          Alliance Mineral Assets       0%, Earning in 50%
E15/1353
                    Australia        Limited

                    Western          Alliance Mineral Assets       0%, Earning in 50%
E15/1066
                    Australia        Limited

                    Western          Alliance Mineral Assets       0%, Earning in 50%
E15/1067
                    Australia        Limited

                    Western          Alliance Mineral Assets       0%, Earning in 50%
M15/1811
                    Australia        Limited



Mining Tenements disposed: Nil
Mining Tenements acquired: Nil
Beneficial percentage interests held in farm in or farm-out agreements: Refer above.
Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed:
Refer above.


Appendix 1

Section 1 Sampling Techniques and Data ? Cowan Lithium Project


 Criteria     JORC Code Explanation                                 Commentary
 Sampling     Nature and quality of sampling (e.g. cut channels,    ?   Reverse Circulation Drilling
 techniques   random chips, or specific specialised industry
              standard measurement tools appropriate to the         ?   1m samples collect
              minerals under investigation, such as down hole
              gamma sondes, or handheld XRF instruments, etc.).     ?   Samples jaw crushed and riffle split
              These examples should not be taken as limiting the        to 2-2.5kg for pulverizing to 80%
              broad meaning of sampling.                                passing 75 microns.

              Include reference to measures taken to ensure
                                                                    ?   Prepared samples are fused with
              sample representivity and the appropriate
Criteria       JORC Code Explanation                                   Commentary
               calibration of any measurement tools or systems             sodium peroxide and digested in
               used.                                                       dilute hydrochloric acid. The
                                                                           resultant solution is analysed by ICP,
               Aspects of the determination of mineralisation that
                                                                           by Nagrom.
               are Material to the Public Report. In cases where
               ?industry standard? work has been done this would
                                                                       ?   Certified standards or blanks. Field
               be relatively simple (e.g. ?reverse circulation
               drilling was used to obtain 1 m samples from which          duplicates submitted at irregular
               3 kg was pulverised to produce a 30 g charge for            intervals at the rate of approximately
               fire assay?). In other cases more explanation may           1:25.
               be required, such as where there is coarse gold
               that has inherent sampling problems. Unusual            ?   Limited re-sampling and re-assay of
               commodities or mineralisation types (e.g.                   pegmatite samples was undertaken.
               submarine nodules) may warrant disclosure of
               detailed information.
Drilling       Drill type (e.g. core, reverse circulation, open-hole   RC drilling conducted in line with general
techniques     hammer, rotary air blast, auger, Bangka, sonic,         industry standards.
               etc.) and details (e.g. core diameter, triple or
               standard tube, depth of diamond tails, face-            All drill holes are angled
               sampling bit or other type, whether core is
               oriented and if so, by what method, etc.).
Drill sample   Method of recording and assessing core and chip         Chip recovery or weights for RC were not
recovery       sample recoveries and results assessed.                 conducted.

               Measures taken to maximise sample recovery and          Each metre of drill sample recovery and
               ensure representative nature of the samples.            moisture content is visually estimated and
                                                                       recorded.
               Whether a relationship exists between sample
               recovery and grade and whether sample bias may
               have occurred due to preferential loss/gain of          Opportunity for sample bias is considered
               fine/coarse material.                                   negligible for dry samples.
Logging        Whether core and chip samples have been                 Geological logs exist for all drill holes
               geologically and geotechnically logged to a level of    with lithological codes via an established
               detail to support appropriate Mineral Resource          reference legend.
               estimation, mining studies and metallurgical
               studies.                                                Drillholes have been geologically logged in
               Whether logging is qualitative or quantitative in       their entirety. Where logging was
               nature. Core (or costean, channel, etc.)                detailed the subjective indications of
               photography                                             spodumene content
               The total length and percentage of the relevant
               intersections logged.                                   Assays have generally only been
                                                                       submitted through and adjacent to the
                                                                       pegmatites.
Criteria       JORC Code Explanation                                Commentary
Sub-sampling   If core, whether cut or sawn and whether quarter,    RC samples were collected at 1m intervals
techniques     half or all core taken.                              and riffle split on-site to produce a
and sample     If non-core, whether riffled, tube sampled, rotary   subsample less than 5kg.
preparation    split, etc. and whether sampled wet or dry.
               For all sample types, the nature, quality and        The RC drilling samples are considered
               appropriateness of the sample preparation            robust for sampling the spodumene and
               technique.                                           tantalite mineralisation.
               Quality control procedures adopted for all sub-
               sampling stages to maximise representivity of        Most samples were dry.
               samples.
               Measures taken to ensure that the sampling is        Sampling is in line with general sampling
               representative of the in situ material collected,    practices.
               including for instance results for field
               duplicate/second-half sampling.                      Field duplicates, laboratory standards and
               Whether sample sizes are appropriate to the grain    laboratory repeats are used to monitor
               size of the material being sampled.                  analyses.

                                                                    Sample size for RC drilling is considered
                                                                    appropriate.



Quality of     The nature, quality and appropriateness of the       The assay technique is considered to be
assay data     assaying and laboratory procedures used and          robust as the method used (see above)
and            whether the technique is considered partial or       offers total dissolution of the sample and
laboratory     total.                                               is useful for mineral matrices that may
tests          For geophysical tools, spectrometers, handheld XRF   resist acid digestions.
               instruments, etc., the parameters used in
               determining the analysis including instrument make   Standards and duplicates were submitted
               and model, reading times, calibrations factors       in varying frequency throughout the
               applied and their derivation, etc.                   exploration campaign and internal
               Nature of quality control procedures adopted (e.g.   laboratory standards, duplicates and
               standards, blanks, duplicates, external laboratory   replicates are used for verification
               checks) and whether acceptable levels of accuracy
               (i.e. lack of bias) and precision have been
               established.
Verification   The verification of significant intersections by     No twinning of holes was undertaken
of sampling    either independent or alternative company
and assaying   personnel.                                           The Ta and Li assays show a marked
                                                                    correlation with the pegmatite
               The use of twinned holes.                            intersections via elevated downhole
                                                                    grades.
               Documentation of primary data, data entry
               procedures, data verification, data storage          Drill logs exist for all holes as both
               (physical and electronic) protocols.                 electronic files and hardcopy.

               Discuss any adjustment to assay data.                All drilling data has been loaded to a
                                                                    database and validated prior to use.
 Criteria        JORC Code Explanation                                    Commentary
 Location of     Accuracy and quality of surveys used to locate drill     Collar coordinates are currently only
 data points     holes (collar and down-hole surveys), trenches,          approximate and considered accurate to
                 mine workings and other locations used in Mineral        within 4m measured using hand held GPS.
                 Resource estimation.                                     Accurate surveying will be undertaken at
                                                                          a later time. Hole collars have been
                 Specification of the grid system used.                   preserved until completion of survey.
                 Quality and adequacy of topographic control.




 Data spacing    Data spacing for reporting of Exploration Results.       The spacing of holes is considered not
 and                                                                      currently adequate for the Mineral
 distribution    Whether the data spacing and distribution is             Resource estimation and classification.
                 sufficient to establish the degree of geological and
                 grade continuity appropriate for the Mineral             There has been no sample compositing.
                 Resource and Ore Reserve estimation procedure(s)
                 and classifications applied.

                 Whether sample compositing has been applied.

 Orientation     Whether the orientation of sampling achieves             The drilling is angled.
 of data in      unbiased sampling of possible structures and the
 relation to     extent to which this is known, considering the           The lithium tantalite-bearing pegmatites
 geological      deposit type.                                            are generally flat to shallowly dipping in
 structure       If the relationship between the drilling orientation     nature. The true width of pegmatites are
                 and the orientation of key mineralised structures is     generally considered 60-95% of the
                 considered to have introduced a sampling bias, this      intercept width, with minimal opportunity
                 should be assessed and reported if material.             for sample bias.
 Sample          The measures taken to ensure sample security.            The RC samples are taken from the rig by
 security                                                                 experienced personal and stored securely
                                                                          and transport to the laboratory by a
                                                                          registered courier and handed over by
                                                                          signature.
 Audits or       The results of any audits or reviews of sampling         No audits have been undertaken to date.
 reviews         techniques and data.




Section 2 Reporting of Exploration Results ? Cowan Lithium Project

 Criteria           Explanation                                           Commentary
 Mineral            Type, reference name/number, location and             The portfolio of mineral tenements,
 tenement and       ownership including agreements or material            comprising mining leases, exploration
 land tenure        issues with third parties such as joint ventures,     licences, prospecting licences, miscellaneous
 status             partnerships, overriding royalties, native title      licences, a general-purpose lease, and a
                    interests, historical sites, wilderness or national   retention lease are in good standing.
                    park and environmental settings.
                    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.
 Exploration        Acknowledgment and appraisal of exploration           Alluvial tantalite has been mined periodically
 done by other      by other parties.                                     from the early 1970s.
 parties
Criteria   Explanation                                     Commentary
                                                           Gwalia Consolidated Limited undertook
                                                           exploration for tantalite-bearing pegmatites
                                                           from 1983-1998.

                                                           Work included mapping, costeaning, and
                                                           several phases of drilling using RAB, RC, and
                                                           diamond methods. The work identified
                                                           mineral resources that were considered
                                                           uneconomic at the time.

                                                           Haddington entered agreement to develop
                                                           the resource and mining
                                                                ?   commenced in 2001 and continued
                                                                    until 2005.

                                                               ?    Haddington continued with
                                                                    exploration until 2009.



Geology    Deposit type, geological setting and style of   The Bald Hill area is underlain by generally
           mineralisation.                                 north-striking, steeply dipping Archaean
                                                           metasediments (schists and greywackes) and
                                                           granitoids.

                                                           Felsic porphyries and pegmatite sheets and
                                                           veins have intruded the Archaean rocks.
                                                           Generally, the pegmatites parallel the
                                                           regional foliation, occurring as gently dipping
                                                           sheets and as steeply dipping veins.

                                                           The pegmatites vary in width and are
                                                           generally comprised quartz-albite- muscovite-
                                                           spodumene in varying amounts. Late-stage
                                                           albitisation in the central part of the main
                                                           outcrop area has resulted in fine- grained,
                                                           banded, sugary pegmatites with visible fine-
                                                           grained, disseminated tantalite. A thin
                                                           hornfels characterised by needle hornblende
                                                           crystals is often observed in adjacent country
                                                           rocks to the pegmatite.

                                                           Intrusives. Tantalite generally occurs as fine
                                                           disseminated crystals commonly associated
                                                           with fine-grained albite zones, or as coarse
                                                           crystals associated with cleavelandite.

                                                           Weathering of the pegmatites yields
                                                           secondary mineralised accumulations in
                                                           alluvial/eluvial deposits.
Criteria         Explanation                                         Commentary
Drill hole       A summary of all information material to the        Only results for drill holes that have
Information      understanding of the exploration results            intercepted lithium and or tantalum
                 including a tabulation of the following             pegmatites of 1m or more in width that have
                 information for all Material drill holes:           been assayed for lithium have been included
                      ? easting and northing of the drill hole       in the release.
                         collar
                      ? elevation or RL (Reduced Level ?             All drill hole details are contained in Tables 2
                         elevation above sea level in metres) of     and 3 of the release.
                         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 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             In reporting Exploration Results, weighting         No cutting to intercept grades has been
aggregation      averaging techniques, maximum and/or                undertaken.
methods          minimum grade truncations (e.g. cutting of
                 high grades) and cut-off grades are usually         Assays are report as pure elements such as Li,
                 Material and should be stated.                      Ta, Nb, Sn and converted to oxides using
                 Where aggregate intercepts incorporate short        atomic formulas.
                 lengths of high grade results and longer lengths
                 of low grade results, the procedure used for        Reported intervals in Table 1 and 4 represent
                 such aggregation should be stated and some          the aggregation of the intercepts containing
                 typical examples of such aggregations should be     samples of at least 0.3% Li2O and/or 150ppm
                 shown in detail.                                    Ta2O5, lower grade zones are included
                 The assumptions used for any reporting of           adjacent to higher grade zones where the
                 metal equivalent values should be clearly           grade varies significantly from the average of
                 stated.                                             the entire width of the mineralised
                                                                     pegmatite. Only lithium, tin and niobium
                                                                     tantalum oxide results are tabled, other
                                                                     potential by-products are currently
                                                                     considered to be insignificant in economic
                                                                     importance.



Relationship     These relationships are particularly important      All recent drilling is angled.
between          in the reporting of Exploration Results.
mineralisation                                                       The lithium tantalite-bearing pegmatites are
widths and       If the geometry of the mineralisation with          generally flat to shallowly dipping in nature.
intercept        respect to the drill hole angle is known, its       The true width of pegmatites are generally
lengths          nature should be reported                           considered 60-95% of the intercept width,
                 If it is not known and only the down hole           with minimal opportunity for sample bias
                 lengths are reported, there should be a clear
                 statement to this effect (e.g. ?down hole
                 length, true width not known?).
Diagrams         Appropriate maps and sections (with scales)         N/A
                 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.
Balanced         Where comprehensive reporting of all                Results for all drill holes that have
Criteria           Explanation                                       Commentary
reporting          Exploration Results is not practicable,           intercepted lithium pegmatites that have
                   representative reporting of both low and high     been assayed for lithium have been included
                   grades and/or widths should be practiced to       in the release.
                   avoid misleading reporting of Exploration
                   Results.
Other              Other exploration data, if meaningful and         N/A
substantive        material, should be reported including (but not
exploration data   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.
Further work       The nature and scale of planned further work      Further RC and diamond drilling is warranted
                   (e.g. tests for lateral extensions or depth       at the various deposits to explore for
                   extensions or large-scale step-out drilling).     additional resources and improve the
                                                                     understanding of the current resources prior
                   Diagrams clearly highlighting the areas of        to mining.
                   possible extensions, including the main
                   geological interpretations and future drilling
                   areas, provided this information is not
                   commercially sensitive.
Appendix 2

Section 1 Sampling Techniques and Data ? Uis Project

 Criteria      JORC Code Explanation                      Commentary
 Sampling      Nature and quality of sampling (e.g.       ?   Air Core drilling
 techniques    cut channels, random chips, or
               specific specialised industry standard     ?   1m samples collected
               measurement tools appropriate to the
               minerals under investigation, such as      ?   Samples jaw crushed and riffle split to 1kg for
               down hole gamma sondes, or                     pulverizing to 80% passing 75 microns. by
               handheld XRF instruments, etc.).               Bureau Veritas Namibia Pty Ltd in
               These examples should not be taken
                                                              Swakopmund.
               as limiting the broad meaning of
               sampling.
                                                          ?   Prepared samples are fused with sodium
                                                              peroxide and digested in dilute hydrochloric
                                                              acid. The resultant solution is analysed by
                                                              ICP, by Bureau Veritas Namibia Pty Ltd in
                                                              Perth.

                                                          ?   Certified standards or blanks. Field duplicates
                                                              submitted at irregular intervals at the rate of
                                                              approximately 1:25.



               Include reference to measures taken        Based on available data, there is nothing to
               to ensure sample representivity and        indicate that drilling practices were not to normal
               the appropriate calibration of any         industry standards for the type of drilling. Air
               measurement tools or systems used.         core drilling is a type of reverse circulation method
                                                          using inner tubes for sample return from the bit
                                                          face. All drilling was dry and hole stability was
                                                          good.



               Aspects of the determination of            Ssampling practices were normal industry standard
               mineralisation that are Material to the    and appropriate.
               Public Report. In cases where
               ?industry standard? work has been          None of the drilling sampling is appropriate or was
               done this would be relatively simple       or is intended to be used for Resource estimates.
               (e.g. ?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 (e.g. submarine
               nodules) may warrant disclosure of
               detailed information.
 Drilling      Drill type (e.g. core, reverse             Air Core drilling, all holes were vertical.
 techniques    circulation, open-hole hammer, rotary
               air blast, auger, Bangka, sonic, etc.)     No drill holes have been surveyed, they have been
               and details (e.g. core diameter, triple    located using hand held GPS
               or standard tube, depth of diamond
Criteria         JORC Code Explanation                     Commentary
                 tails, face-sampling bit or other type,
                 whether core is oriented and if so, by
                 what method, etc.).
Drill sample     Method of recording and assessing         There are no records of sample recovery.
recovery         core and chip sample recoveries and
                 results assessed.
                 Measures taken to maximise sample         Drill sample quality was to industry standard
                 recovery and ensure representative
                 nature of the samples.
                 Whether a relationship exists between     Due to the fine dry fine nature of material there is
                 sample recovery and grade and             unlikely to be any bias in sampling.
                 whether sample bias may have
                 occurred due to preferential loss/gain
                 of fine/coarse material.
Logging          Whether core and chip samples have        Logging was undertaken from stockpile material
                 been geologically and geotechnically      type
                 logged to a level of detail to support
                 appropriate Mineral Resource              No resources estimates were calculated
                 estimation, mining studies and
                 metallurgical studies.
                 Whether logging is qualitative or         Logging is qualitative
                 quantitative in nature. Core (or
                 costean, channel, etc.) photography
                 The total length and percentage of        Entire holes were logged
                 the relevant intersections logged.
Sub-sampling     If core, whether cut or sawn and          No core drilling has been undertaken.
techniques and   whether quarter, half or all core
sample           taken.
preparation
                 If non-core, whether riffled, tube        Sampling was by riffle splitting of drill cuttings at
                 sampled, rotary split, etc. and           1m or 2m (or part thereof) intervals
                 whether sampled wet or dry.
                 For all sample types, the nature,         Air Core samples were bagged. The sampling
                 quality and appropriateness of the        technique were appropriate
                 sample preparation technique.

                 Quality control procedures adopted        no QAQC procedures were adopted.
                 for all sub-sampling stages to
                 maximise representivity of samples.
                 Measures taken to ensure that the         No duplicate sampling was undertaken
                 sampling is representative of the in
                 situ material collected, including for
                 instance results for field
                 duplicate/second-half sampling.
                 Whether sample sizes are appropriate      The sampling method was likely appropriate for
                 to the grain size of the material being   the material being sampled given the purpose of
                 sampled.                                  sampling.
Quality of       The nature, quality and                   All samples were prepared by Bureau Veritas
assay data and   appropriateness of the assaying and       Namibia Pty Ltd in Swakopmund and assayed by
laboratory       laboratory procedures used and            the same company in Perth.
tests            whether the technique is considered
                 partial or total.                         The samples have been fused with Sodium
                                                           Peroxide and subsequently the melt has been
                                                           dissolved in dilute Hydrochloric acid for analysis.
                                                           Because of the high furnace temperatures, volatile
Criteria          JORC Code Explanation                     Commentary
                                                            elements are lost.
                                                            This procedure is particularly efficient for
                                                            determination of major element composition
                                                            (including Silica) in the samples or for the
                                                            determination of refactory mineral species.

                                                            Fe
                                                            have been determined by Inductively Coupled
                                                            Plasma (ICP) Optical Emission Spectrometry.

                                                            Cs,Li,Nb,Sn,Ta,U
                                                            have been determined by Inductively Coupled
                                                            Plasma (ICP) Mass Spectrometry.

                  For geophysical tools, spectrometers,     Not applicable
                  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.
                  Nature of quality control procedures      QAQC procedures were adopted apart from ?in-
                  adopted (e.g. standards, blanks,          house? laboratory repeats and standards
                  duplicates, external laboratory
                  checks) and whether acceptable
                  levels of accuracy (i.e. lack of bias)
                  and precision have been established.
Verification of   The verification of significant           No verification exploration work has been
sampling and      intersections by either independent or    undertaken.
assaying          alternative company personnel.

                  The use of twinned holes.                 No twin holes were drilled
                  Documentation of primary data, data       The assay data from the drilling was presented in
                  entry procedures, data verification,      digital and hard copy formats.
                  data storage (physical and electronic)
                  protocols.
                  Discuss any adjustment to assay data.     No data has been adjusted
Location of       Accuracy and quality of surveys used      Drill hole locations were surveyed by a licenced
data points       to locate drill holes                     surveyor.
                  (collar and down-hole surveys),
                  trenches, mine workings and
                  other locations used in Mineral
                  Resource estimation.
                  Specification of the grid system used.    WGS 84/ Zone 33 south.
                  Quality and adequacy of topographic       In addition to drill hole collar surveys, the
                  control.                                  stockpiles have been surveyed.
Data spacing      Data spacing for reporting of             The drill density is appropriate given no selectivity
and               Exploration Results.                      of drill results are being adopted, entire intervals
distribution                                                of sands and fines are being reported.
                  Whether the data spacing and              Not applicable
                  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.
Criteria           JORC Code Explanation                     Commentary
                   Whether sample compositing has been       2m composite were used for deeper holes.
                   applied.
Orientation of     Whether the orientation of sampling       Not applicable
data in relation   achieves unbiased sampling of
to geological      possible structures and the extent to
structure          which this is known, considering the
                   deposit type.

                   If the relationship between the           There is no apparent bias in the drilling orientation
                   drilling orientation and the              used.
                   orientation of key mineralised
                   structures is considered to have
                   introduced a sampling bias, this
                   should be assessed and reported if
                   material.
Sample             The measures taken to ensure sample       Not applicable.
security           security.
Audits or          The results of any audits or reviews of   Not applicable
reviews            sampling techniques and data.
Section 2 Reporting of Exploration Results ? UIS

 Criteria        Explanation                                 Commentary
 Mineral         Type, reference name/number,                The tailings stockpile is no covered by a specific
 tenement and    location and ownership including            licence. The right to process the stockpiles is
 land tenure     agreements or material issues with          covered by various contractual agreements.
 status          third parties such as joint ventures,
                 partnerships, overriding royalties,
                 native title interests, historical sites,
                 wilderness or national park and
                 environmental settings.
                 The security of the tenure held at          See above, no other known impediments to
                 the time of reporting along with any        undertaking exploration work
                 known impediments to obtaining a
                 licence to operate in the area.
 Exploration     Acknowledgment and appraisal of             There is no available sample data available from the
 done by other   exploration by other parties.                stockpile.
 parties
                                                             A detailed survey of the stockpiles was undertaken
                                                             by Strydom & Associates, licenced land surveyors in
                                                             February 2010. A total of 4,250 spot survey shots
                                                             were taken to create a detailed topographical survey
                                                             over about 90 hectares. Volume calculations were
                                                             undertaken using ReGIS software to produce sections
                                                             at a 30m interval. Several assumptions were applied
                                                             to estimate the base of the stockpile. Until drilling
                                                             is completed the volume estimate is considered
                                                             preliminary. Density of the stockpiles were assumed
                                                             to be 1,800kg/m3 for sands and 2,296kg/m3 for fines
                                                             stockpiles.

 Geology         Deposit type, geological setting and        The Project comprises a large +/- 20Mt crushed
                 style of mineralisation.                    tailings stockpile comprising pegmatite material
                                                             containing minerals of lithium, tin and tantalum.




 Drill hole      A summary of all information                Location of Aircore Drill holes a tabled in the body of
 Information     material to the understanding of the        text
                 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.

                 If the exclusion of this information is     No material information was excluded.
                 justified on the basis that the
                 information is not Material and this
Criteria           Explanation                               Commentary
                   exclusion does not detract from the
                   understanding of the report, the
                   Competent Person should clearly
                   explain why this is the case.
Data               In reporting Exploration Results,         Not applicable
aggregation        weighting averaging techniques,
methods            maximum and/or minimum grade
                   truncations (e.g. cutting of high
                   grades) and cut-off grades are
                   usually Material and should be
                   stated.
                   Where aggregate intercepts                Not applicable
                   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.
                   The assumptions used for any              Not applicable
                   reporting of metal equivalent values
                   should be clearly stated.
Relationship       These relationships are particularly      A number of holes may have failed to reach the
between            important in the reporting of             bottom of the stockpile.
mineralisation     Exploration Results.
widths and
intercept          If the geometry of the mineralisation
lengths            with respect to the drill hole angle is
                   known, its nature should be reported
                   If it is not known and only the down      Not applicable
                   hole lengths are reported, there
                   should be a clear statement to this
                   effect (e.g. ?down hole length, true
                   width not known?).
Diagrams           Appropriate maps and sections (with       Figure 5 shows the locations of the air core holes
                   scales) and tabulations of intercepts     and an air photo of the stockpiles.
                   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.
Balanced           Where comprehensive reporting of          All results have been included.
reporting          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.
Other              Other exploration data, if meaningful     There is no other exploration data which is
substantive        and material, should be reported          considered material to the results or statements
exploration data   including (but not limited to):           reported in this announcement.
                   geological observations; geophysical
                   survey results; geochemical survey
                   results; bulk samples ? size and
                   method of treatment; metallurgical
                   test results; bulk density,
 Criteria             Explanation                                Commentary
                      groundwater, geotechnical and rock
                      characteristics; potential deleterious
                      or contaminating substances.
 Further work         The nature and scale of planned            Further work will include resource estimation of the
                      further work (e.g. tests for lateral       stockpiles and metallurgical test-work.
                      extensions or depth extensions or
                      large-scale step-out drilling).

                      Diagrams clearly highlighting the          Not applicable
                      areas of possible extensions,
                      including the main geological
                      interpretations and future drilling
                      areas, provided this information is
                      not commercially sensitive.




31 January 2017

Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Limited


                                                                                                 +Rule 5.5


                                         Appendix 5B

 Mining exploration entity and oil and gas exploration
                entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13,
01/09/16




Name of entity

                                             Tawana Resources NL

ABN                                                            Quarter ended (?current quarter?)

                  69 085 166 721                                               31 December 2016



Consolidated statement of cash flows                              Current quarter                Year to date
                                                                      $A?000
                                                                                                 (12 months)
                                                                                                    $A?000
1.      Cash flows from operating activities
1.1     Receipts from customers                                                         -                          -
1.2     Payments for                                                            (1,371)                      (1,741)
Consolidated statement of cash flows              Current quarter       Year to date
                                                      $A?000
                                                                        (12 months)
                                                                           $A?000
      (a) exploration & evaluation
      (b) development                                               -                     -
      (c) production                                                -                     -
      (d) staff costs                                         (192)                (802)
      (e) administration and corporate costs                  (318)                (758)
1.3   Dividends received (see note 3)                               -                     -
1.4   Interest received                                             5                   14
1.5   Interest and other costs of finance paid                      -                     -
1.6   Income taxes paid                                             -                     -
1.7   Research and development refunds                              -                     -
1.8   Other (provide details if material)                           -                     -
1.9   Net cash from / (used in) operating                   (1,876)              (3,287)
      activities



2.     Cash flows from investing activities
2.1    Payments to acquire:
       (a) property, plant and equipment                       (26)                    (26)
       (b) tenements (see item 10)                                  -                     -
       (c) investments                                              -                     -
       (d) other non-current assets                                 -                     -
2.2    Proceeds from the disposal of:
       (a) property, plant and equipment                            -                     -
       (b) tenements (see item 10)                                  -                     -
       (c) investments                                              -                   71
       (d) other non-current assets                                 -                     -
2.3    Cash flows from loans to other entities                      -                     -
2.4    Dividends received (see note 3)                              -                     -
2.5    Other (provide details if material)                          -                     -
2.6    Net cash from / (used in) investing                     (26)                     45
       activities



3.     Cash flows from financing activities
3.1    Proceeds from issues of shares                         7,015                9,843
3.2    Proceeds from issue of convertible notes                     -                     -
3.3    Proceeds from exercise of share options                  60                      60
3.4    Transaction costs related to issues of                 (432)                (489)
       shares, convertible notes or options
Consolidated statement of cash flows                    Current quarter        Year to date
                                                            $A?000
                                                                                (12 months)
                                                                                   $A?000
3.5    Proceeds from borrowings                                           -                      -
3.6    Repayment of borrowings                                            -                      -
3.7    Transaction costs related to loans and                             -                      -
       borrowings
3.8    Dividends paid                                                     -                      -
3.9    Other (provide details if material)                                -                      -
3.10   Net cash from / (used in) financing                          6,643                 9,414
       activities



4.     Net increase / (decrease) in cash
       and cash equivalents for the period
4.1    Cash and cash equivalents at beginning of
       period                                                       2,219                     788
4.2    Net cash from / (used in) operating                        (1,876)                (3,287)
       activities (item 1.9 above)
4.3    Net cash from / (used in) investing activities                (26)                     45
       (item 2.6 above)
4.4    Net cash from / (used in) financing activities               6,643                 9,414
       (item 3.10 above)
4.5    Effect of movement in exchange rates on                            -                      -
       cash held
4.6    Cash and cash equivalents at end of                          6,960                 6,960
       period



5.     Reconciliation of cash and cash                  Current quarter       Previous quarter
       equivalents                                          $A?000                 $A?000
       at the end of the quarter (as shown in the
       consolidated statement of cash flows) to the
       related items in the accounts
5.1    Bank balances                                                4,960                 2,219
5.2    Call deposits                                                2,000                        -
5.3    Bank overdrafts                                                    -                      -
5.4    Other (provide details)                                            -                      -
5.5    Cash and cash equivalents at end of                          6,960                 2,219
       quarter (should equal item 4.6 above)
6.      Payments to directors of the entity and their associates                    Current quarter
                                                                                        $A'000
6.1     Aggregate amount of payments to these parties included in item 1.2                            97
6.2     Aggregate amount of cash flow from loans to these parties included                               -
        in item 2.3
6.3     Include below any explanation necessary to understand the transactions included in
        items 6.1 and 6.2


Directors? salaries, directors? fees and superannuation




7.      Payments to related entities of the entity and their                        Current quarter
        associates                                                                      $A'000

7.1     Aggregate amount of payments to these parties included in item 1.2                               -
7.2     Aggregate amount of cash flow from loans to these parties included                               -
        in item 2.3
7.3     Include below any explanation necessary to understand the transactions included in
        items 7.1 and 7.2
N/A




8.      Financing facilities available                    Total facility amount    Amount drawn at
        Add notes as necessary for an                        at quarter end          quarter end
        understanding of the position                            $A?000                $A?000
8.1     Loan facilities                                                       -                          -
8.2     Credit standby arrangements                                           -                          -
8.3     Other (please specify)                                                -                          -
8.4     Include below a description of each facility above, including the lender, interest rate and
        whether it is secured or unsecured. If any additional facilities have been entered into or are
        proposed to be entered into after quarter end, include details of those facilities as well.
N/A
9.       Estimated cash outflows for next quarter                                 $A?000
9.1      Exploration and evaluation                                                               4,516
9.2      Development                                                                                  -
9.3      Production                                                                                   -
9.4      Staff costs                                                                               265
9.5      Administration and corporate costs                                                        146
9.6      Other (provide details if material)                                                          -
9.7      Total estimated cash outflows                                                            4,927



10.      Changes in                 Tenement     Nature of interest           Interest at   Interest at
         tenements                  reference                                 beginning     end of
         (items 2.1(b) and          and                                       of quarter    quarter
         2.2(b) above)              location
10.1     Interests in mining
         tenements and
         petroleum tenements
         lapsed, relinquished
         or reduced
10.2     Interests in mining
         tenements and
         petroleum tenements
         acquired or increased




Compliance statement

1       This statement has been prepared in accordance with accounting standards and
        policies which comply with Listing Rule 19.11A.

2       This statement gives a true and fair view of the matters disclosed.



Sign here:                                                  Date 31 January 2017
                  (Director/Company secretary)



Print name:            Michael Naylor



Notes

1.      The quarterly report provides a basis for informing the market how the entity?s
        activities have been financed for the past quarter and the effect on its cash position.
        An entity that wishes to disclose additional information is encouraged to do so, in a
        note or notes included in or attached to this report.

2.      If this quarterly report has been prepared in accordance with Australian Accounting
        Standards, the definitions in, and provisions of, AASB 6: Exploration for and
     Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to
     this report. If this quarterly report has been prepared in accordance with other
     accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the
     corresponding equivalent standards apply to this report.

3.   Dividends received may be classified either as cash flows from operating activities or
     cash flows from investing activities, depending on the accounting policy of the entity.

Date: 31/01/2017 10:30:00 Supplied by www.sharenet.co.za                     
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