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Tawana Resources NL - Company Press Release Tawana Resources NL (Incorporated in Australia) (Registration number ACN 085 166 721) Share code on the JSE Limited: TAW & ISIN: AU000000TAW7 Share code on the Australian Stock Exchange Limited: TAW & ISIN: AU000000TAW7 ("Tawana" or "the Company") Project Update 26 June,2006 Highlights Engineering planning for Kareevlei Wes trial mining commenced Mining Right application proceeding Trial Mining of Perdevlei kimberlite nearing completion Results expected early Q3 Drilling of Daniel Kimberlite targets re-commenced 20 targets being drilled during first phase BHP Billiton contributing its share of expenditure Bulk sampling of kimberlites at Falcon targets A9/10 and A25 commenced Construction of access to Blacktop kimberlite commenced Aboriginal clearances for plant site completed Kareevlei Wes Project (Tawana 74% and operator/Seven Falls 26%) In anticipation of the granting of a new order Mining Right, Tawana has appointed a South African based consultant mining engineer to design and oversee the trial mining of kimberlite KV2. In addition the Company has appointed Melbourne-based mining engineering firm, Mining One to assist in the planning and monitoring of the trial mining design and implementation. The Mining Right application has been accepted by the Department of Minerals and Energy (DME) and processing of the application is progressing. Perdevlei Kimberlite Project (Tawana 74% and operator /Seven Falls 26 %) The Company is conducting a trial mining program of the Perdevlei kimberlite K1 and recently recognized surficial diamondiferous gravels surrounding the kimberlite. 2000 tonnes of kimberlite have been excavated from the kimberlite pipe and 2500 tonnes of gravels. This material is being processed through the Company"s 10 tonne per hour dense media separation plant located on site. Meaningful results can only be determined when all of this material has been processed and the value of the diamonds recovered has been ascertained. Such results are expected to be released in Q3 2006. Daniel Kimberlite Project (Tawana 22.2% and operator/ BHP Billiton 51.8% /Seven Falls 26 %) Joint Venture Agreement Amended Tawana and BHP Billiton have agreed to amend the joint venture agreement to rationalise the equity earning stages. The terms whereby Tawana could earn an additional 10% equity in any kimberlite by processing a 25 tonne bulk sample has been amended so that Tawana can earn the additional equity by processing sufficient kimberlite to produce 400 carats. Previously BHP Billiton could earn back the 10% by processing an additional 100 tonnes of kimberlite. This has been amended to require treatment of sufficient kimberlite to produce 2000 carats. (Equities are expressed net of the equity held by Seven Falls.) These amendments are considered prudent in the light of the experience gained processing kimberlites in this region of South Africa where the calcretisation of kimberlites renders small samples inappropriate for meaningful bulk testing. Falcon Targets With completion of the recent Rights Issue, drilling of the Falcon kimberlite targets has recommenced. A program for this exploration has been agreed by the joint venture partners with the first phase entailing drilling approximately 20 Falcon targets identified by BHP Billiton. Tawana will continue as operator. Drilling will be conducted in several phases during 2006 as target access becomes available. The current drilling is on ground covered by granted new order Prospecting Rights. Applications for additional Prospecting Rights have been submitted to cover several other Falcon targets, which will be drilled once Rights have been granted. These new applications have been accepted by the Department of Minerals and Energy and the granting of the Rights is expected during Q4 2006. A9/10 and A25 Kimberlites Tawana has commenced a bulk sampling program designed to determine the grade and diamond quality of the kimberlites identified as Falcon targets A9, A10 and A25. 1000 tonnes of kimberlite were excavated from each of the three kimberlites and transported to the Company"s Dense Media Separation plant located at Perdevlei. This material will be processed once the Perdevlei trial mining is completed, which is expected early in Q3. The A9, A10 and A25 kimberlites are located on the farm Vleiplaats and were discovered by previous explorers but were only tested by drilling and by a small bulk sample of calcretised surficial material. Diamonds were reportedly recovered but the quality of the diamonds and the grade is not known. A9 and A10 are in close proximity and are interpreted to be part of the same kimberlite pipe of approximately 3 hectares surface area. A25 is a smaller kimberlite pipe located some 2km from A9/10. The BHP Billiton Falcon survey identified these kimberlites and similar targets are being drilled within the joint venture area. While BHP Billiton is contributing to drilling costs, the bulk sampling program is being sole funded by Tawana. On completion of the program, Tawana may increase its equity in these kimberlites. Tawana Alluvial Project (Tawana 74% and operator /Seven Falls 26 %) The Company has continued its discussions with third parties with the aim to identify suitable partners to progress the project to large scale mining. Blacktop Kimberlite Project (Tawana 50% and operator /De Beers Australia Exploration 50%) The severe cyclonic conditions of the 2005/2006 Wet Season affecting the Pilbara region has delayed the start up of the Blacktop exploration program. Preparation of the contractor"s DMS plant, and planning and supplier procurement for the project has proceeded. Rehabilitation of the access road to the treatment plant site has commenced. The route to access the first sites for excavation of kimberlite samples has been selected. Aboriginal clearance of the plant and camp site has been completed. Commencement of DMS processing is expected during Q3 2006. JSE Presentation On June 12 the Company"s Managing Director, Wolf Marx, gave a presentation on Tawana at a Mining Companies Showcase hosted by the JSE in Johannesburg. This presentation can be viewed and listened to on the JSE website (www.jse.co.za) by following the links. Contact: Wolf Marx Tel: +61 3 98635222 Mob: 0428 398446 Email:wolf.marx@tawana.com.au Andrew Smith Tel: 08 82768794 Mob: 0428 265205 Email: andrew.smith@tawana.com.au Representative Office: Kimberley South African Sponsor to Tawana: PricewaterhouseCoopers Corporate Finance (Pty) Limited All press releases and announcements may be inspected on the Company"s web site: www.tawana.com.au This report is based on information compiled by Wolf Marx BSc, BA, FAusIMM, CPGeo, Managing Director of Tawana Resources NL. He has sufficient experience relevant to the style of mineralisation and types of deposits under consideration, and to the activities undertaken, to qualify as a competent person as defined in the 2004 addition of the "Australasian Code for the Reporting of Mineral Resources and Ore Reserves" Date: 26/06/2006 09:52:05 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
