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Tawana Resources Nl - Maiden Lithium Mineral Resource For Bald Hill Lithium And Tantalum Project

Release Date: 14/06/2017 09:08:00      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?)


Maiden Lithium Mineral Resource for Bald Hill Lithium and
Tantalum Project

Tawana Resources NL (?Tawana?) and Alliance Mineral Assets Limited (SGX: AMAL) are
pleased to announce a maiden Indicated and Inferred lithium Mineral Resource for the Bald Hill
Lithium and Tantalum Project.
Highlights

- Resource independently estimated by CSA Global Pty Ltd.
- Maiden Indicated and Inferred lithium Mineral Resource of:
       - High grade of 12.8 million tonnes at 1.18% Li2O and 158ppm Ta205 at a 0.5% Li20 cut-
         off.
- High grade tantalum Resources have increased 250% to 8.9 million tonnes at 304ppm Ta2O5
  containing 6 million pounds of tantalum pentoxide, including 5.7 million tonnes at 311ppm
  Ta2O5 not included in the +0.5% Li2O lithium resource.
- Approximately 80% of the lithium and tantalum resources above 0.5% Li20 occurs in a 100m
  deep interval commencing from about 30m below the lowest surface level.
- Maiden Resource covers only 20% of the known southern swarm of lithium pegmatites. Ongoing
  drilling continues to expand the resource footprint.
- The Resource satisfies the condition precedent to the second offtake prepayment with Burwill
  Holdings Ltd, due on 15 July 2017.
- The substantial Resource complements the excellent recoveries from metallurgical test work.
- Feasibility Study completion is imminent.
- First lithium shipment targeted for Q1 2018.

Tawana Resources Managing Director Mark Calderwood stated: ?The 18.5Mt of combined high-
grade lithium and tantalum resources is an excellent start from initial drilling at Bald Hill which has
only tested 20% of the initial mineralised target area. Exploration drilling is continuing at Bald Hill
with the intention of providing resource upgrades over the next six months. We are also pleased to
have met the Resource condition precedent of the off-take early.?

Mineral Resource Estimate

CSA Global Pty Ltd (?CSA Global?) was commissioned by Tawana to compile the maiden lithium
Mineral Resource estimate for the Bald Hill Project and update the tantalum Resource.
The Bald Hill Pegmatite Mineral Resource comprises one large, main, sub horizontal pegmatite
body, striking north-south, with a strike length of 1,070 metres, and a width at its widest point of
775 metres. This main body is surrounded by several smaller discrete pegmatite bodies, sub-
parallel to the main, which result in a total strike length for the whole resource of 1,245 metres,
and a total width of 990 metres. The Mineral Resource has a total vertical depth of 195 metres,
beginning 20 metres below the natural surface and plunging gently to the south along its entire
strike length.

The Mineral Resource has been classified as Indicated and Inferred in accordance with the JORC
Code, 2012 Edition on a qualitative basis; taking into consideration numerous factors including
drillholes spacing, estimation quality statistics (kriging slope of regression), number of informing
samples, average distance to informing samples in comparison to the semivariogram model ranges,
and overall coherence and continuity of the modelled mineralisation wireframes. All factors that
have been considered have been included in Section 1 and Section 3 of Appendix 1.

Table 1 | Bald Hill Project, Resources above 0.5% Li2O cut-off
                                 Grade         Contained         Grade        Contained
   Resource        Tonnes
                                 Li2O            Li2O            Ta2O5          Ta205
   Category         (Mt)
                                  %             Tonnes            ppm         (,000) Lbs
   Indicated         4.6         1.25           57,100            207            2,200
    Inferred         8.2          1.14          94,300            130           2,500
     Total          12.8          1.18          151,400           158           4,700


Table 2 | Bald Hill Project, Resources above 0.5% Li2O and 200ppm Ta2O5 cut-offs
   Resource        Tonnes        Grade         Contained         Grade        Contained
   Category         (Mt)         Li2O            Li2O            Ta2O5          Ta205
                                  %             Tonnes            ppm         (,000) Lbs
   Indicated         1.9          1.26          23,700            312           1,300
    Inferred         1.4          1.10          15,000            291            900
     Total           3.2          1.19          38,700            303           2,100
Note
The tantalum resources form part of the lithium/tantalum resources reported in Table 1
Table 3 | Bald Hill Project, Resources below 0.5% Li2O and above 200ppm Ta2O5 cut-offs
   Resource        Tonnes        Grade        Contained
   Category         (Mt)         Ta2O5          Ta205
                                  ppm         (,000) Lbs
   Indicated         2.8          325            2,000
    Inferred         2.9           297           1,900
     Total           5.7           311           3,900
Note
   1) The tantalum resources reported in Table 3 are additional to those reported in Table 1 and 2.

Off Take Condition Precedent 

The CSA Global Mineral Resource estimate at a 0.5% Li2O cut-off (refer Table 1 & 4) satisfies
the tonnage and grade condition precedent to the second and third prepayment due to AMA and
Tawana on 15 July 2017 (Refer Tawana ASX announcement on 26 April 2017 and AMA
Announcement on 27 April 2017) from Burwill Holdings Ltd (Burwill).
Burwill has agreed to advance Tawana and AMA a combined amount of A$25,000,000 in total
(?Advance Payment Amount?) in the amounts, and on the dates set below:
?      A$3,750,000 (to each Tawana and AMAL) was received on signing the Agreement;
?      On 15 July 2017, A$4,375,000 to each of Tawana and AMA; and
?      On 15 September 2017, A$4,375,000 to each of Tawana and AMA.
The Advance Payments shall be used for the development and operational costs of the Bald Hill Project.

Tawana and AMAL has committed all 2018 and 2019 lithium ore concentrate that comes from
the planned Bald Hill Lithium and Tantalum Project for a fix price of US$880/t (FOB
Esperance) for 6% Li2O with price adjustment increment/decrement of US$/15t based on grade
variation of 0.1%. The minimum accepted grade is 5.5%.

Prior Estimates

The current resource estimate supersedes the prior resource as reported in the August 2016
Independent Qualified Person?s Report for AMA, on the Bald Hill Tantalum Project. This prior
estimate was not completed by CSA Global.
Table 4 | Previous Mineral Resource Estimate (Prior Resource)
    Resource         Tonnes          Grade       Contained
    Category          (Mt)           Ta2O5          Ta205
                                      ppm         ,000 Lbs
    Indicated          2.3            304           1,600
     Inferred          1.1            339            800
      Total            3.4            315           2,400



Feasibility Study

The completion of the Resource estimate will enable proposed mine scheduling to be completed.
Mining scheduling was the last remaining component of the study which is in the process of being compiled.

ASX Listing Rule 5.8.1 Compliance

Geology and Geological Interpretation

The Bald Hill area is underlain by generally 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 cross cut 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.
The geological model developed is based on lithological logging of pegmatites within a
metasedimentary host, with occasional hypabyssal intrusions of dioritic composition.
The pegmatites on which this Mineral Resource was defined were domained internally on the basis
of a 7,500ppm Li2O cut-off, which itself was determined from exploratory data analysis as a point
of inflection within the Li2O grade distribution. This resulted in a high-grade core of Li2O
mineralisation surrounded by lower grade pegmatite, and is an interpretation supported by the
petrogenetic model for the formation of Li2O bearing pegmatites.

Drilling Techniques

Drilling supporting the Mineral Resource is predominately Reverse Circulation (RC) with minor
diamond core drilling (DD) and RC with diamond core tails (RCD). The Bald Hill deposit database
includes 728 drill holes for 63,539.2m of drilling, made up of 716 RC holes (61,621.2m), 9 RCD
holes (1,660.4m) and 3 DD holes (257.6m). The Mineral Resource is based on assay data from
460 RC holes, 9 RCD holes and 3 DD holes.
All historical holes drilled by Haddington were removed from the estimated as they were only
assayed for tantalum. Some recent drilling undertaken by Tawana has been excluded where collar
and/or down hole surveys have not been completed, and where final assay results have not been
received.

Drilling has been angled to achieve the most representative intersections through mineralisation.
All diamond drill holes and approx. 98% of RC drill holes are angled. The remaining holes have
been drilled vertically. Drilling has been conducted on a 40m by 40m grid extending to 80m by
80m on the peripheries of the deposit, with a 140m by 80m area in the northern portion of the
deposit drilled out at 20m by 20m.

Sampling Techniques

RC cuttings were continuously sampled at 1m intervals from the collar to the end of each drill hole
using a riffle or cone splitter on-site to produce a subsample less than 5kg.
DD core was typically continuously sampled at 2m intervals from the collar to the end of hole.
Where required by changes in lithology, mineralisation or alteration, core samples may be shorter
or longer than the typical 2m. Core was cut into half with one half sent for analysis and the other
half stored in the core library at the project site.

Sample Analysis Method

Drill samples were jaw crushed and riffle split to 2-2.5kg for pulverizing to 80% passing 75
microns. Prepared samples are fused with sodium peroxide and digested in dilute hydrochloric
acid. The resultant solution is analysed by ICP, by Nagrom Laboratory in Perth.
The assay technique is considered to be robust as the method used offers total dissolution of the
sample and is useful for mineral matrices that may resist acid digestions.
Standards and duplicates were submitted in varying frequency throughout the exploration
campaign and internal laboratory standards, duplicates and replicates are used for verification.

Estimation Methodology

The Bald Hill MRE uses a Surpac block model dimensions with parent cells of 10m by 10m by
5m (XYZ) sub-celled to 2.5 by 2.5 by 1.25m for resolution of volumes at lithological boundaries.
This compares to an average drillhole spacing of 20m within the more densely informed areas of
the deposit. Kriging Neighbourhood Analysis (KNA) was conducted within the SupervisorTM
software package to test a variety of block sizes across the deposit.
Samples were composited to 1m intervals based on assessment of the raw drill hole sample
intervals. Various high grade cuts were used for both Li2O and Ta2O5 based on statistical review
of each object.

Li2O and Ta2O5 grades for the main mineralised zones were interpolated using ordinary kriging.
High and low grade domains were estimated independently with hard boundaries assumed between
domains. A two search pass strategy was employed, with successive searches using more relaxed
parameters for selection of input composite data, and a greater search radius. Blocks not informed
for any given variable after two passes were assigned the Sichel Mean of the input data from that
particular domain.

In situ bulk densities for the Bald Hill Mineral Resource have been assigned on a lithological basis
for both mineralisation and waste, based 69 cores samples and values taken from those used in
similar deposits and lithologies. Fixed density values assigned into the block model included waste
back-fill to 1.8t/m3, transitional pegmatite to 2.5t/m3, fresh metasediment waste to 2.74t/m3, fresh
diorite dykes to 2.8t/m3 and fresh pegmatite to 2.65t/m3. Additional bulk density analysis is being
undertaken utilising DD core.

The resource model was validated both visually and statistically prior to final reporting.

Cut-off Grades

The Bald Hill MRE pegmatite wireframes were generated using logged pegmatite lithologies and
a minimum down hole width of 3m, while the internal ?high grade? lithium wireframes were
generated using a nominal 7,500ppm cut-off grade and a minimum down hole width of 3m
determined from exploratory data analysis as a point of inflection within the Li2O grade
distribution.

The Mineral Resource is reported using a 0.5% Li2O cut-off which approximates a conservative
cut-off grade used for potential open pit mining as determined from preliminary pit optimisations.
Mineral Resource Classification

The Mineral Resource has been classified in the Indicated and Inferred categories, taking into
consideration numerous factors including drillholes spacing, estimation quality statistics (kriging
slope of regression), number of informing samples, average distance to informing samples in
comparison to the semivariogram model ranges, and overall coherence and continuity of the
modelled mineralisation wireframes.

Eventual Economic Extraction

The Bald Hill pegmatite deposit has previously been mined for tantalum (Ta2O5), however no
account for Li2O was undertaken. A positive conceptual engineering study (refer Tawana ASX
release 16th January, 2017) undertaken by Tawana reported that the deposit could be mined
economically via open pit methods. Tawana subsequently announced the commencement of a full
feasibility study for the Bald Hill Lithium and Tantalum Project and has commenced early stage
earth works on site, with first production expected in the first quarter of 2018.

Independent Qualified Person?s Report by AMA

AMA will issue an independent qualified person?s report which complies with the requirements
as set out in paragraph 5 of Practice Note 4C of the Listing Manual Section B: Rules of the Catalist
of the Singapore Exchange Trading Limited (?Catalist Rules?) in due course.
Bald Hill Project (AMA 100%, TAW Earning 50%)

The Bald Hill project (Project) area is located 50km south east of Kambalda in the Eastern
Goldfields of Western Australia. It is located approximately 75km south east of the Mt Marion
Lithium project and is adjacent to Tawana?s Cowan Lithium project. The Project, owned by
Alliance Mineral Assets Limited (AMA), includes a permitted tantalum (pegmatite) mine,
processing facility and associated infrastructure.

Through Tawana?s 100% owned subsidiary Lithco No. 2 Pty Ltd (Lithco), Tawana entered into a
Farm-In Agreement on 23 February 2017 with Alliance Mineral Assets Limited with respect to
AMA?s Bald Hill project in Western Australia for the purpose of joint exploration and exploitation
of lithium and other minerals.

The commercial terms require Tawana:

   i. 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 (?Expenditure
      Commitment?); and at its election

   ii. 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?) by 31
       December 2019.

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?). AMA and Lithco
had on 10 April 2017 entered into a lithium rights joint venture agreement.
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). The portfolio of mineral tenements, comprising mining
leases, exploration licences, prospecting licences, miscellaneous licences, a general-purpose lease,
and a retention lease are in good standing. AMA and Lithco had on 18 April 2017 entered into a
Bald Hill Joint Venture Agreement.

Competent Persons Statement

The information in this news release that relates to Exploration Results is based on and fairly
represents information and supporting documentation compiled by Mr Mark Calderwood and Mr
Gareth Reynolds, both employees of Tawana Resources NL (?Tawana?). Mr Calderwood is a
member of The Australasian Institute of Mining and Metallurgy and Mr Reynolds is a member of
the Australian Institute of Geoscientists. Mr Calderwood and Mr Reynolds have sufficient
experience relevant to the style of mineralisation under consideration and to the activity which
they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the
?Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves?.
Mr Calderwood and Mr Reynolds consent to the inclusion in this report of the matters based on
their information in the form and context in which it appears. Mr Calderwood and Mr Reynolds
meet the requirements to act as a Qualified Person (as defined in the SGX Catalist rules).

Mr Calderwood is a significant shareholder in Tawana. Mr Calderwood and Tawana do not
consider these to constitute a potential conflict of interest to his role as Competent Person. Mr
Calderwood is not aware of any other relationship with Tawana which could constitute a potential
for a conflict of interest.

Mr Reynolds is an employee of Tawana. Mr Reynolds is not aware of any other relationship with
Tawana which could constitute a potential for a conflict of interest.

The information in this news release that relates to Resource Estimates (excluding prior estimates)
is based on and fairly represents information and supporting documentation compiled by Dr
Matthew Cobb and Mr Ralph Porter, both employees of CSA Global Pty Ltd. Dr Cobb is a member
of both The Australasian Institute of Mining and Metallurgy and Australian Institute of
Geoscientists, and Mr Porter is a member of the Australian Institute of Geoscientists. Both Dr
Cobb and Mr Porter have sufficient experience relevant to the style of mineralisation under
consideration and to the activity which they are undertaking to qualify as a Competent Person as
defined in the 2012 edition of the ?Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves?. Dr Cobb and Mr Porter consent to the inclusion in this
report of the matters based on their information in the form and context in which it appears. Dr
Cobb and Mr Porter meet the requirements to act as Qualified Persons (as defined in the SGX
Catalist rules).

Forward Looking Statement
This report may contain certain forward looking statements and projections regarding estimated,
resources and reserves; planned production and operating costs profiles; planned capital
requirements; and planned strategies and corporate objectives. Such forward looking
statements/projections are estimates for discussion purposes only and should not be relied upon as
representation or warranty, express or implied, of Tawana Resources NL and/or Alliance Mineral
Assets Limited. They are not guarantees of future performance and involve known and unknown
risks, uncertainties and other factors many of which are beyond the control of Tawana Resources
NL and/or Alliance Mineral Assets Limited. The forward looking statements/projections are
inherently uncertain and may therefore differ materially from results ultimately achieved.

Tawana Resources NL and/or Alliance Mineral Assets Limited does not make any representations
and provides no warranties concerning the accuracy of the projections, and disclaims any
obligation to update or revise any forward looking statements/projects based on new information,
future events or otherwise except to the extent required by applicable laws. While the information
contained in this report has been prepared in good faith, neither Tawana Resources NL and/or
Alliance Mineral Assets Limited or any of their directors, officers, agents, employees or advisors
give any representation or warranty, express or implied, as to the fairness, accuracy, completeness
or correctness of the information, opinions and conclusions contained in this presentation.
Accordingly, to the maximum extent permitted by law, none of Tawana Resources NL and/or
Alliance Mineral Assets Limited, their directors, employees or agents, advisers, nor any other
person accepts any liability whether direct or indirect, express or limited, contractual, tortuous,
statutory or otherwise, in respect of, the accuracy or completeness of the information or for any of
the opinions contained in this announcement or for any errors, omissions or misstatements or for
any loss, howsoever arising, from the use of this announcement.

14 June 2017
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd

Appendix 1
Section 1 Sampling Techniques and Data

Criteria     JORC Code Explanation                                  Commentary
Sampling     Nature and quality of sampling (e.g. cut channels,     Drilling consists of ~98% reverse circulation (RC), RC
techniques   random chips, or specific specialised industry         with diamond core tails (RCD) and diamond drilling
             standard measurement tools appropriate to the          (DD) for a total 728 holes for 63,539.2m of drilling in
             minerals under investigation, such as down hole        the Bald Hill project database. The Bald Hill Mineral
             gamma sondes, or handheld XRF instruments,             Resource is based on assay data from 460 RC holes, 9
             etc.). These examples should not be taken as           RCD holes and 3 DD holes.
             limiting the broad meaning of sampling.
                                                                    RC cuttings were continuously sampled at 1m
                                                                    intervals through all pegmatite intercepts including
                                                                    2m of waste above and below each intercept.
                                                                    DD core is typically continuously sampled at 2m
                                                                    intervals through pegmatite intercepts. Where
                                                                    required by changes in lithology, mineralization, or
                                                                    alteration, core samples may be shorter or longer
                                                                    than the typical 2m.


             Include reference to measures taken to ensure          The majority of drill hole collars are accurately
             sample representivity and the appropriate              surveyed using RTK DGPS equipment.
             calibration of any measurement tools or systems
                                                                    Drill samples are logged for lithology, weathering,
             used.
                                                                    structure (diamond core), mineralogy, mineralisation,
                                                                    colour and other features.

                                                                    Half diamond core was collected and placed in
                                                                    marked plastic sacks, and shipped to the assay
                                                                    laboratory.

                                                                    RC samples were collected and placed in marked
                                                                    plastic bags which were placed in sacks and then
                                                                    shipped to the assay laboratory.



             Aspects of the determination of mineralisation         Drill samples were jaw crushed and riffle split to 2-
             that are Material to the Public Report. In cases       2.5kg for pulverizing to 80% passing 75 microns.
             where ?industry standard? work has been done this      Prepared samples are fused with sodium peroxide and
             would be relatively simple (e.g. ?reverse              digested in dilute hydrochloric acid. The resultant
             circulation drilling was used to obtain 1 m samples    solution is analysed by ICP, by Nagrom Laboratory in
             from which 3 kg was pulverised to produce a 30 g       Perth.
             charge for fire assay?). In other cases more
                                                                    The assay technique is considered to be robust as the
             explanation may be required, such as where there
                                                                    method used offers total dissolution of the sample
             is coarse gold that has inherent sampling
                                                                    and is useful for mineral matrices that may resist acid
             problems. Unusual commodities or mineralisation
                                                                    digestions.
             types (e.g. submarine nodules) may warrant
             disclosure of detailed information.

Drilling     Drill type (e.g. core, reverse circulation, open-      RC was drilled using 4.5-inch (140 mm) rods with a
techniques   hole hammer, rotary air blast, auger, Bangka,          nominal 5.9-inch (150 mm) diameter hole. Diamond
             sonic, etc.) and details (e.g. core diameter, triple   core used either PQ, NQ2 or HQ3 diameter core. Core
             or standard tube, depth of diamond tails, face-        was oriented where possible.
Criteria         JORC Code Explanation                                  Commentary
                 sampling bit or other type, whether core is
                                                                        All DD holes and ~98% of RC drill holes are angled; the
                 oriented and if so, by what method, etc.).
                                                                        remainder were drilled vertically.



Drill sample     Method of recording and assessing core and chip        Chip recovery or weights for RC drilling were not
recovery         sample recoveries and results assessed.                recorded. Core recovery is very good through the
                                                                        mineralised zones and estimated to be greater than
                                                                        90%.



                 Measures taken to maximise sample recovery and         RC drilling generally utilised an external booster to
                 ensure representative nature of the samples.           keep samples dry and maximising recoveries. The
                                                                        majority of RC holes are shallow (<150m) with very
                                                                        few wet samples encountered.



                 Whether a relationship exists between sample           No relationship between grade and recovery has been
                 recovery and grade and whether sample bias may         identified.
                 have occurred due to preferential loss/gain of
                 fine/coarse material.

Logging          Whether core and chip samples have been                Geological logs exist for all drill holes with lithological
                 geologically and geotechnically logged to a level of   codes via an established reference legend.
                 detail to support appropriate Mineral Resource
                                                                        Drill samples were logged for lithology, weathering,
                 estimation, mining studies and metallurgical
                                                                        structure (diamond core), mineralogy, mineralisation,
                 studies.
                                                                        colour and other features. Logging and sampling has
                                                                        been carried out to ?industry norms? to a level
                                                                        sufficient to support the Mineral Resource estimate.



                 Whether logging is qualitative or quantitative in      Drill holes have been geologically logged in their
                 nature. Core (or costean, channel, etc.)               entirety. Where logging was detailed, the subjective
                 photography.                                           indications of spodumene content were estimated and
                                                                        recorded.



                 The total length and percentage of the relevant        All drill holes are logged in full, from start to finish of
                 intersections logged.                                  the hole.



Sub-sampling     If core, whether cut or sawn and whether quarter,      Where sampled, core is cut in half onsite using an
techniques and   half or all core taken.                                industry standard core saw, to produce two identical
sample                                                                  halves.
preparation

                 If non-core, whether riffled, tube sampled, rotary     Dry RC samples were collected at 1m intervals and
                 split, etc. and whether sampled wet or dry.            riffle or cone split on-site to produce a subsample less
                                                                        than 5kg.



                 For all sample types, the nature, quality and          Sample preparation is according to industry standard,
                 appropriateness of the sample preparation              including oven drying, coarse crush, and pulverisation
                 technique.                                             to 80% passing 75 microns.
Criteria           JORC Code Explanation                                Commentary
                   Quality control procedures adopted for all sub-      Subsampling is performed during the preparation
                   sampling stages to maximise representivity of        stage according to the assay laboratories? internal
                   samples.                                             protocol.



                   Measures taken to ensure that the sampling is        Field duplicates, laboratory standards and laboratory
                   representative of the in situ material collected,    repeats are used to monitor analyses.
                   including for instance results for field
                   duplicate/second-half sampling.

                   Whether sample sizes are appropriate to the grain    Sample sizes are considered to be appropriate and
                   size of the material being sampled.                  correctly represent the style and type of
                                                                        mineralisation.



Quality of assay   The nature, quality and appropriateness of the       The assay technique is considered to be robust as the
data and           assaying and laboratory procedures used and          method used offers total dissolution of the sample
laboratory tests   whether the technique is considered partial or       and is useful for mineral matrices that may resist acid
                   total.                                               digestions.



                   For geophysical tools, spectrometers, handheld       None were used.
                   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 adopted (e.g.   Standards and duplicates were submitted in varying
                   standards, blanks, duplicates, external laboratory   frequency throughout the exploration campaign and
                   checks) and whether acceptable levels of accuracy    internal laboratory standards, duplicates and
                   (i.e. lack of bias) and precision have been          replicates are used for verification.
                   established.

Verification of    The verification of significant intersections by     Significant intersections have been verified by
sampling and       either independent or alternative company            alternative TAW personnel and by a CSA Global
assaying           personnel.                                           Competent Person (Ralph Porter).

                                                                        The Ta and Li assays show a marked correlation with
                                                                        the pegmatite intersections via elevated downhole
                                                                        grades.

                   The use of twinned holes.                            Twinning of holes undertaken to date show
                                                                        reasonable continuity and representivity of the
                                                                        mineralised intervals.

                   Documentation of primary data, data entry            Drill logs exist for all holes as electronic files and/or
                   procedures, data verification, data storage          hardcopy (all 2017 logging has been input directly to
                   (physical and electronic) protocols.                 field logging computers).

                                                                        Digital log sheets have been created with inbuilt
                                                                        validations to reduce potential for data entry errors.

                                                                        All drilling data has been loaded to a database and
                                                                        validated prior to use.

                   Discuss any adjustment to assay data.                For the Mineral Resource estimate, adjustments were
                                                                        made to a number of down hole surveys. These
                                                                        adjustments were made where angled holes were
                                                                        blocked well before the end of hole, or where down
                                                                        hole surveys had not yet been undertaken but surveys
                                                                        had been completed for nearby holes.
Criteria           JORC Code Explanation                                  Commentary
                                                                          Where the drill hole was blocked, the last survey was
                                                                          copied to the end of hole depth. Where no down hole
                                                                          survey was completed or the hole was blocked at
                                                                          surface, the down hole surveys from a nearby hole,
                                                                          drilled by the same rig (and preferably same driller),
                                                                          was copied and applied to the hole. Some of these
                                                                          holes may need to be re-entered, cleaned and
                                                                          surveyed in the future. All changes were marked as
                                                                          ?nominal? in the database.

                                                                          In all cases, corrections to down hole surveys were
                                                                          reviewed against surrounding drill holes and
                                                                          pegmatite intervals to ensure error was minimised.

Location of        Accuracy and quality of surveys used to locate drill   Prior to drilling, collar coordinates are situated using
data points        holes (collar and down-hole surveys), trenches,        hand held GPS (considered accurate to within 4m).
                   mine workings and other locations used in Mineral      Following drilling, accurate surveying using RTK DGPS
                   Resource estimation.                                   is undertaken by trained site personnel.

                                                                          Hole collars are preserved until completion of down
                                                                          hole surveying. A significant portion of holes are
                                                                          surveyed down hole digital instruments dominated by
                                                                          gyro tools.

                   Specification of the grid system used.                 Grid used is MGA 94 Zone 51.

                   Quality and adequacy of topographic control.           Topographical survey is generated from detailed
                                                                          airborne survey with points generated on a 1m by 1m
                                                                          grid. Areas mined have been defined by final mine
                                                                          surveys.

Data spacing       Data spacing for reporting of Exploration Results.     Drilling has been conducted on a 40m by 40m grid
and distribution                                                          extending to 80m by 80m on the peripheries of the
                                                                          deposit, with a 140m by 80m area in the northern
                                                                          portion of the deposit drilled out at 20m by 20m.

                   Whether the data spacing and distribution is           The spacing of holes is considered of sufficient density
                   sufficient to establish the degree of geological and   to provide an ?Indicated? or ?Inferred? Mineral
                   grade continuity appropriate for the Mineral           Resource estimation and classification under JORC
                   Resource and Ore Reserve estimation procedure(s)       (2012).
                   and classifications applied.

                   Whether sample compositing has been applied.           There has been no sample compositing.

Orientation of     Whether the orientation of sampling achieves           Drilling has been angled to achieve the most
data in relation   unbiased sampling of possible structures and the       representative intersections through mineralisation.
to geological      extent to which this is known, considering the
                                                                          The majority of drilling is angled. Some vertical holes
structure          deposit type.
                                                                          have been drilled in areas where access is limited or
                                                                          the pegmatites are interpreted to be flat lying.

                   If the relationship between the drilling orientation   The lithium tantalite-bearing pegmatites are
                   and the orientation of key mineralised structures      generally flat to shallowly dipping in nature. The true
                   is considered to have introduced a sampling bias,      width of pegmatites is generally considered 80-95% of
                   this should be assessed and reported if material.      the intercept width, with minimal opportunity for
                                                                          sample bias.

Sample security    The measures taken to ensure sample security.          The drill samples are taken from the rig by
                                                                          experienced personnel, stored securely and
                                                                          transported to the laboratory by a registered courier
                                                                          and handed over by signature.
Criteria    JORC Code Explanation                              Commentary
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

 Criteria        Explanation                                           Commentary

 Mineral         Type, reference name/number, location and             The Bald Hill Resource is situated on Mining lease
 tenement and    ownership including agreements or material issues     M15/400 comprising 501Ha. M 15/400 is 100% owned
 land tenure     with third parties such as joint ventures,            by Australian incorporated, Singapore Exchange listed
 status          partnerships, overriding royalties, native title      Alliance Mineral Assets Limited (AMAL).
                 interests, historical sites, wilderness or national
                                                                       The Mining lease are subject to an earn-in agreement
                 park and environmental settings.
                                                                       between AMAL and Tawana Resources Limited.

                                                                       There are no other third-party interests or royalties.
                                                                       Government royalties are 5% for Lithium or Tantalum
                                                                       mineral concentrates.

                 The security of the tenure held at the time of        The portfolio of mineral tenements, comprising
                 reporting along with any known impediments to         mining leases, exploration licences, prospecting
                 obtaining a licence to operate in the area.           licences, miscellaneous licences, a general-purpose
                                                                       lease, and a retention lease are in good standing.

 Exploration     Acknowledgment and appraisal of exploration by        Alluvial tantalite has been mined periodically from
 done by other   other parties.                                        the early 1970s.
 parties
                                                                       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 Resources Limited (Haddington) entered
                                                                       agreement to develop the resource and mining
                                                                            ?   commenced in 2001 and continued until
                                                                                2005.
                                                                            ?   Haddington continued with exploration until
                                                                                2009.
                                                                       Living Waters acquired the project in 2009 and
                                                                       continued with limited exploration to the north of the
                                                                       main pit area.

 Geology         Deposit type, geological setting and style of         The Bald Hill area is underlain by generally north-
                 mineralisation.                                       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 cross cut 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.
Criteria         Explanation                                             Commentary

                                                                         Weathering of the pegmatites yields secondary
                                                                         mineralised accumulations  in  alluvial/elluvial
                                                                         deposits.

Drill hole       A summary of all information material to the            Not Applicable ? Not reporting exploration results.
Information      understanding of the exploration results including
                 a tabulation of the following information for all
                 Material drill holes:

                     ?   easting and northing of the drill hole collar

                     ?   elevation or RL (Reduced Level ? elevation
                         above sea level in metres) of the drill hole
                         collar

                     ?   dip and azimuth of the hole

                     ?   down hole length and interception depth

                     ?   hole length.

                 If the exclusion of this information is justified on    Not Applicable ? Not reporting exploration results.
                 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             Not Applicable ? Not reporting exploration results.
aggregation      averaging techniques, maximum and/or minimum
methods          grade truncations (e.g. cutting of high grades) and
                 cut-off grades are usually Material and should be
                 stated.

                 Where aggregate intercepts incorporate short            Not Applicable ? Not reporting exploration results.
                 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 reporting of metal         Not Applicable ? Not reporting exploration results.
                 equivalent values should be clearly stated.

Relationship     These relationships are particularly important in       Not Applicable ? Not reporting exploration results.
between          the reporting of Exploration Results.
mineralisation
                 If the geometry of the mineralisation with respect      The majority of drilling is angled. Some vertical holes
widths and
                 to the drill hole angle is known, its nature should     have been drilled in areas where access is limited or
intercept
                 be reported.                                            the pegmatites are interpreted to be flat lying.
lengths
                                                                         The lithium tantalite-bearing pegmatites are
                                                                         generally flat to shallowly dipping in nature. The true
                                                                         width of pegmatites are generally considered 85-95%
                                                                         of the intercept width, with minimal opportunity for
                                                                         sample bias.

                 If it is not known and only the down hole lengths       Not Applicable ? Not reporting exploration results.
                 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) and         Not Applicable ? Not reporting exploration results
                 tabulations of intercepts should be included for
                 any significant discovery being reported These
 Criteria       Explanation                                              Commentary
                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 Exploration         Not Applicable ? Not reporting exploration results
 reporting      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 and                The metallurgical test work for spodumene referred
 substantive    material, should be reported including (but not          to in the release was undertaken by Nagrom. Nagrom
 exploration    limited to): geological observations; geophysical        has extensive experience with tantalum and lithium
 data           survey results; geochemical survey results; bulk         extraction     testwork   and    has   ISO9001:2008
                samples ? size and method of treatment;                  accreditation. Results have been reported without
                metallurgical    test   results;  bulk    density,       interpretation.
                groundwater,       geotechnical      and     rock
                characteristics;    potential    deleterious    or
                contaminating substances.

 Further work   The nature and scale of planned further work (e.g.       Further RC and diamond drilling is warranted at the
                tests for lateral extensions or depth extensions or      deposit to explore for additional resources and
                large-scale step-out drilling).                          improve the understanding of the current resources
                                                                         prior to mining.

                Diagrams clearly highlighting the areas of possible      Diagrams have been included in the body of this
                extensions, including the main geological                report.
                interpretations and future drilling areas, provided
                this information is not commercially sensitive.



Section 3 Estimation and Reporting of Mineral Resources (Criteria listed in the
     preceding section also apply to this section)

 Criteria       Explanation                                              Commentary

 Database       Measures taken to ensure that data has not been          Logging is completed onto templates using standard
 integrity      corrupted by, for example, transcription or keying       logging codes into Toughbook laptops. Analytical
                errors, between its initial collection and its use for   results are imported directly into the database by a
                Mineral Resource estimation purposes.                    database specialist.

                                                                         The central database, from which the extract used for
                                                                         Mineral Resource estimation was taken, is managed
                                                                         by Tawana. Upon receipt of the extract, CSA Global
                                                                         validated the database for internal integrity as part
                                                                         of the import process for modelling in Surpac.

                Data validation procedures used.                         Data were validated for internal database integrity as
                                                                         part of the import process for use in Surpac. This
                                                                         includes logical integrity checks for data beyond the
                                                                         hole depth maximum, and overlapping from-to errors
                                                                         within interval data. Visual validation checks were
                                                                         also made for obviously spurious collar or downhole
                                                                         survey values, collars which were not assigned a
                                                                         proper RL value, and collars which may lack
                                                                         substantial downhole survey data.

 Site visits    Comment on any site visits undertaken by the             CSA Global Principal Consultant; Ralph Porter has
                Competent Person and the outcome of those visits.        visited site and reviewed the drilling, sample
Criteria         Explanation                                           Commentary
                                                                       collection, and logging data collection procedures,
                                                                       along with conducting a review of the site geology.

                                                                       The outcome of the site visits (broadly) were that
                                                                       data has been collected in a manner that supports
                                                                       reporting a Mineral Resource estimate in accordance
                                                                       with the JORC Code, and controls to the
                                                                       mineralisation are well-understood.

                 If no site visits have been undertaken indicate why   Not Applicable.
                 this is the case.

Geological       Confidence in (or conversely, the uncertainty of )    The geological model developed is based on
interpretation   the geological interpretation of the mineral          lithological logging of pegmatites within a
                 deposit.                                              metasedimentary host, with occasional hypabyssal
                                                                       intrusions of dioritic composition. The deposit geology
                                                                       is very well understood based on previous mining
                                                                       history and open pit exposures, and this is reflected
                                                                       in the generally high confidence in both the
                                                                       mineralisation and geological interpretations.

                 Nature of the data used and of any assumptions        The input data used for geological modelling has been
                 made.                                                 derived from the qualitative and quantitative logging
                                                                       of lithology, alteration, geochemical composition of
                                                                       samples returned from RC and DD drilling.

                 The effect, if any, of alternative interpretations    The geological model developed has a solid
                 on Mineral Resource estimation.                       lithological basis, and is controlled by the presence of
                                                                       visually distinct pegmatite within drillholes.
                                                                       Pegmatite structures have been modelled as
                                                                       predominantly low angle / sub-horizontal structures
                                                                       on the basis of a high density of input drillhole data
                                                                       and confirmation of the interpretation on the basis of
                                                                       mapping. The data do not readily lend themselves to
                                                                       alternative interpretations, and it is unlikely that such
                                                                       alternatives would yield a more geologically
                                                                       reasonable result.

                 The use of geology in guiding and controlling         The model developed for mineralisation is
                 Mineral Resource estimation.                          geologically driven; controlled by the presence or
                                                                       absence of pegmatite.

                 The factors affecting continuity both of grade and    Geological continuity is controlled by the preference
                 geology.                                              for fractionated pegmatitic fluids to follow
                                                                       preferential structural pathways through the host
                                                                       rocks (an intercalated pile of metasediments and
                                                                       metavolcanics. Grade within this pegmatite is
                                                                       controlled by numerous factors such as fluid residence
                                                                       time, degree of fluid fractionation and pegmatite
                                                                       thickness.

Dimensions       The extent and variability of the Mineral Resource    The Bald Hill Mineral Resource comprises one large,
                 expressed as length (along strike or otherwise),      main, sub horizontal pegmatite body, striking north-
                 plan width, and depth below surface to the upper      south, with a strike length of 1,070m, and a width at
                 and lower limits of the Mineral Resource.             its widest point of 775m. This main body is surrounded
                                                                       by several smaller discrete pegmatite bodies, sub-
                                                                       parallel to the main, which result in a total strike
                                                                       length for the whole resource of 1,245m, and a total
                                                                       width of 990m. The Mineral Resource has a total
                                                                       vertical depth of 195m, beginning 20m below the
Criteria         Explanation                                         Commentary
                                                                     natural surface and plunging gently to the south along
                                                                     its entire strike length.

Estimation and   The nature and appropriateness of the estimation    The Bald Hill Mineral Resource has been estimated
modelling        technique(s) applied and key assumptions,           using ordinary Kriging in a Surpac block model. The
techniques       including treatment of extreme grade values,        variables Li2O ppm and Ta2O5ppm were estimated
                 domaining,     interpolation   parameters    and    independently in a univariate sense. The pegmatites
                 maximum distance of extrapolation from data         on which this Mineral Resource was defined was
                 points. If a computer assisted estimation method    domained internally on the basis of a 7,500ppm Li2O
                 was chosen include a description of computer        cut-off, which itself was determined from exploratory
                 software and parameters used.                       data analysis as a point of inflection within the Li2O
                                                                     grade distribution. This resulted in a high-grade core
                                                                     of Li2O mineralisation surrounded by lower grade
                                                                     pegmatite, and is an interpretation supported by the
                                                                     petrogenetic model for the formation of Li 2O bearing
                                                                     pegmatites.

                                                                     Samples were composited to 1m intervals based on
                                                                     assessment of the raw drill hole sample intervals.
                                                                     Various high grade cuts were used for both Li2O
                                                                     (ranging from 10,000ppm to 40,000ppm) and Ta2O5
                                                                     (ranging from 300mm to 4,000ppm) based on
                                                                     statistical review of each object. Composites for some
                                                                     objects remained uncut depending on the statistical
                                                                     review.

                                                                     High and low grade domains were estimated
                                                                     independently with hard boundaries assumed
                                                                     between domains. Parameters for estimation and
                                                                     search ellipsoids were determined from quantitative
                                                                     kriging analysis performed within the SupervisorTM
                                                                     software package, which was also used to define
                                                                     semivariogram models for each variable. The
                                                                     parameters defined for the largest, most populated
                                                                     domains (main mineralised body and its high-grade
                                                                     core) were used to inform all smaller subsidiary
                                                                     domains during estimation.

                                                                     A two search pass strategy was employed, with
                                                                     successive searches using more relaxed parameters
                                                                     for selection of input composite data, and a greater
                                                                     search radius. Blocks not informed for any given
                                                                     variable after two passes were assigned the Sichel
                                                                     Mean of the input data from that particular domain.

                                                                     All geological modelling and grade estimation was
                                                                     completed using Surpac software.

                 The availability of check estimates, previous       No check estimates are available for the current
                 estimates and/or mine production records and        Mineral Resource. Historic estimates for the Bald Hill
                 whether the Mineral Resource estimate takes         deposit focussed on Ta2O5 only, and as such are not
                 appropriate account of such data.                   directly comparable to the current estimate for which
                                                                     Li2O is the primary target variable.

                 The assumptions made regarding recovery of by-      The only significant by-product to be considered is
                 products.                                           Ta2O5 which has been estimated within the domains
                                                                     defined by Li2O.

                 Estimation of deleterious elements or other non-    No deleterious elements have been identified or
                 grade variables of economic significance (eg.       estimated.
                 sulphur for acid mine drainage characterisation).
Criteria     Explanation                                            Commentary

             In the case of block model interpolation, the block    Block model dimensions used for the Bald Hill Mineral
             size in relation to the average sample spacing and     Resource estimate were 10 by 10 by 5m (XYZ) sub-
             the search employed.                                   celled to 2.5 by 2.5 by 1.25m for resolution of volumes
                                                                    at lithological boundaries. This compares to an
                                                                    average drillhole spacing of 20m within the more
                                                                    densely informed areas of the deposit. This 20m
                                                                    spacing increases to up to 80m between drillholes in
                                                                    less well informed portions of the deposit.

                                                                    Kriging Neighbourhood Analysis (KNA) was conducted
                                                                    within the SupervisorTM software package to test a
                                                                    variety of block sizes in both well and poorly informed
                                                                    areas of the deposit. The chosen block size represents
                                                                    the smallest block size that yields a robust set of
                                                                    estimation statistics, which are comparable to the
                                                                    results also yielded from larger blocks sizes.

             Any assumptions behind modelling of selective          No assumptions were made regarding selective mining
             mining units.                                          units.

             Any assumptions      about   correlation   between     The two variables under consideration; Li2O and Ta2O5
             variables.                                             are uncorrelated within both the pegmatite as a
                                                                    whole, and within the high-grade domain (correlation
                                                                    coefficient of -0.04). Consequently, no correlation
                                                                    between variables was considered. Both variables
                                                                    were treated in a univariate sense.

             Description of how the geological interpretation       The nature of the mineralised body is such that the
             was used to control the resource estimates.            definition of the pegmatite host also defines the
                                                                    mineralisation. Within that, and based on a
                                                                    combination of petrogenetic process and statistical
                                                                    appraisal, an internal high-grade Li2O domain was
                                                                    defined.

             Discussion of basis for using or not using grade       Domained data for both variables were assessed using
             cutting or capping.                                    histogram and log probability plots to define potential
                                                                    top cuts to data. Where the Competent Person
                                                                    observed likely breaks in the continuity of the grade
                                                                    distributions, a top cut was chosen and applied. This
                                                                    was conducted on a per-domain basis.

             The process of validation, the checking process        The results of estimation into the block model for the
             used, the comparison of model data to drill hole       Bald Hill Mineral resource were validated visually and
             data, and use of reconciliation data if available.     statistically. Estimated block grades were compared
                                                                    visually in section against the corresponding input
                                                                    data values. Additionally, trend plots of input data
                                                                    and block estimates were compared for swaths
                                                                    generated in each of the three principal geometric
                                                                    orientations (northing, easting and elevation).

Moisture     Whether the tonnages are estimated on a dry basis      Tonnages are reported on a dry basis.
             or with natural moisture, and the method of
             determination of the moisture content.

Cut-off      The basis of the adopted cut-off grade(s) or quality   Modelling of mineralisation for the resource was
parameters   parameters applied.                                    based on a combination of pegmatite lithological
                                                                    logging. Within this mineralisation shape, a higher
                                                                    grade core was defined on the basis of a 7,500 ppm
                                                                    Li2O cut-off.

                                                                    The Mineral Resource is reported using a 0.5% Li2O
                                                                    cut-off which approximates a conservative cut-off
Criteria         Explanation                                            Commentary
                                                                        grade used for potential open pit mining as
                                                                        determined from preliminary pit optimisations.

Mining factors   Assumptions made regarding possible mining             The methods used to design and populate the Bald Hill
or assumptions   methods, minimum mining dimensions and internal        Mineral Resource block model were defined under the
                 (or, if applicable, external) mining dilution. It is   assumption that the deposit is likely to be mined via
                 always necessary as part of the process of             open pit methods.
                 determining reasonable prospects for eventual
                 economic extraction to consider potential mining
                 methods, but the assumptions made regarding
                 mining methods and parameters when estimating
                 Mineral Resources may not always be rigorous.
                 Where this is the case, this should be reported with
                 an explanation of the basis of the mining
                 assumptions made.

Metallurgical    The basis for assumptions or predictions regarding     The material targeted for extraction predominantly
factors or       metallurgical amenability. It is always necessary as   comprises the mineral spodumene, for which
assumptions      part of the process of determining reasonable          metallurgical    processing     methods    are    well
                 prospects for eventual economic extraction to          established. No specific detail regarding metallurgical
                 consider potential metallurgical methods, but the      assumptions have been applied in the estimation the
                 assumptions regarding metallurgical treatment          current Mineral Resource, however at the current
                 processes and parameters made when reporting           level of detail available, the Competent Person
                 Mineral Resources may not always be rigorous.          believes with sufficient confidence that metallurgical
                 Where this is the case, this should be reported with   concerns will not pose any significant impediment to
                 an explanation of the basis of the metallurgical       eventual economic extraction.
                 assumptions made.

Environmental    Assumptions made regarding possible waste and          No assumptions have been made regarding waste
factors or       process residue disposal options. It is always         products, however the Mineral Resource has
assumptions      necessary as part of the process of determining        previously been mined by open pit methods with a
                 reasonable prospects for eventual economic             processing facility, stacked waste dumps and tailings
                 extraction to consider the potential environmental     storage facilities on site. It is reasonable to assume
                 impacts of the mining and processing operation.        that in the presence of this infrastructure, the
                 While at this stage the determination of potential     creation and storage of waste products on site will not
                 environmental impacts, particularly for a              be of concern for future mining activities.
                 greenfields project, may not always be well
                 advanced, the status of early consideration of
                 these potential environmental impacts should be
                 reported. Where these aspects have not been
                 considered this should be reported with an
                 explanation of the environmental assumptions
                 made.

Bulk density     Whether assumed or determined. If assumed, the         In situ bulk densities for the Bald Hill Mineral Resource
                 basis for the assumptions. If determined, the          have been assigned on a lithological basis for both
                 method used, whether wet or dry, the frequency         mineralisation and waste, based on historical values
                 of the measurements, the nature, size and              derived from mining and values taken from those used
                 representativeness of the samples.                     in similar deposits and lithologies.

                                                                        The Competent Person considers the values chosen to
                                                                        be suitably representative.

                 The bulk density for bulk material must have been      Densities have been assigned on a lithological basis
                 measured by methods that adequately account for        based on a total of 44 metasediment and 25 pegmatite
                 void spaces (vugs, porosity, etc), moisture and        core samples measured at the Nagrom laboratory and
                 differences between rock and alteration zones          values derived from surrounding deposits and rock
                 within the deposit.                                    types.
Criteria         Explanation                                            Commentary

                 Discuss assumptions for bulk density estimates         Bulk densities have been applied on a lithological unit
                 used in the evaluation process of the different        basis. Values assigned were as follows:
                 materials.                                                  ?   Fresh pegmatite mineralisation 2.65 t/m3
                                                                             ?   Transitional pegmatite 2.5t/m3
                                                                             ?   Fresh diorite 2.8t/m3
                                                                             ?   Transitional diorite 2.6t/m3
                                                                             ?   Fresh metasediments 2.74t/m3
                                                                             ?   Transitional metasediments 2.6t/m3
                                                                             ?   Oxide metasediments 2.2t/m3
                                                                             ?   Waste fill 1.8t/m3

                                                                        additional bulk density testwork utilising drill core
                                                                        across the mineralised zones and less common waste
                                                                        units is recommended for future estimates.

Classification   The basis for the classification of the Mineral        The Mineral Resource has been classified as Indicated
                 Resources into varying confidence categories.          and Inferred on a qualitative basis; taking into
                                                                        consideration numerous factors such as drillhole
                                                                        spacing, estimation quality statistics (kriging slope of
                                                                        regression), number of informing samples used in the
                                                                        estimate, average distance to informing samples in
                                                                        comparison to the semivariogram model ranges, and
                                                                        overall coherence and continuity of the modelled
                                                                        mineralisation wireframes.

                 Whether appropriate account has been taken of all      The classification reflects areas of lower and higher
                 relevant factors (ie relative confidence in            geological confidence in mineralised lithological
                 tonnage/grade estimations, reliability of input        domain continuity based on the intersecting drill
                 data, confidence in continuity of geology and          sample data numbers, spacing and orientation.
                 metal values, quality, quantity and distribution of    Overall mineralisation trends are reasonably
                 the data).                                             consistent within the various lithology types over
                                                                        numerous drill sections.

                 Whether the result appropriately reflects the          The Mineral Resource estimate appropriately reflects
                 Competent Person?s view of the deposit.                the Competent Person?s views of the deposit.

Audits or        The results of any audits or reviews of Mineral        Internal audits were completed by CSA Global which
reviews          Resource estimates.                                    verified the technical inputs, methodology,
                                                                        parameters and results of the estimate.

                                                                        The current model has not been audited by an
                                                                        independent third party

Discussion of    Where appropriate a statement of the relative          The Mineral Resource accuracy is communicated
relative         accuracy and confidence level in the Mineral           through the classification assigned to the deposit. The
accuracy/        Resource estimate using an approach or procedure       Mineral Resource estimate has been classified in
confidence       deemed appropriate by the Competent Person. For        accordance with the JORC Code, 2012 Edition using a
                 example, the application of statistical or             qualitative approach. All factors that have been
                 geostatistical procedures to quantify the relative     considered have been adequately communicated in
                 accuracy of the resource within stated confidence      Section 1 and Section 3 of this Table.
                 limits, or, if such an approach is not deemed
                 appropriate, a qualitative discussion of the factors
                 that could affect the relative accuracy and
                 confidence of the estimate.

                 The statement should specify whether it relates to     The Mineral Resource statement relates to a global
                 global or local estimates, and, if local, state the    estimate of in-situ tonnes and grade.
                 relevant tonnages, which should be relevant to
                 technical      and      economic        evaluation.
                 Documentation should include assumptions made
                 and the procedures used.
Criteria   Explanation                                     Commentary

           These statements of relative accuracy and       The deposit has been historically mined for tantalum
           confidence of the estimate should be compared   (Ta2O5), however no accounting for Li2O had been
           with production data, where available.          undertaken, and therefore no production records are
                                                           available for comparison to the current estimate.

Date: 14/06/2017 09:08:00 Supplied by www.sharenet.co.za                     
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