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TAW - Tawana Resources NL - Botswana Joint Venture agreement signed with Firestone Diamonds PLC 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") 21 December 2009 BOTSWANA JOINT VENTURE AGREEMENT SIGNED WITH FIRESTONE DIAMONDS PLC Tawana Resources NL ("Tawana") is pleased to announce that it has entered into a joint venture agreement with Firestone Diamonds plc ("Firestone") a diamond mining and exploration company, over its kimberlite exploration and evaluation projects in Botswana, which includes 8 kimberlites in the Orapa kimberlite field. Under this agreement Firestone has the opportunity to earn initially up to a 70% interest in any kimberlites in the prospecting licences controlled by Tawana. Firestone is an international diamond mining and exploration company with operations in Botswana and South Africa. Firestone is the largest holder of mineral rights in Botswana`s diamondiferous kimberlite fields, controlling over 25,000 square kilometres around the major Orapa and Jwaneng mines and the entire Tsabong kimberlite field. Highlights - Firestone to acquire an interest in Tawana`s kimberlite projects in Botswana: - Firestone can earn 70% by carrying out costs for the first stage bulk sampling; - Tawana has the option to fund its remaining 30% interest from that point and in the event it does not its interests shall reduce to 15%. - Orapa prospecting licence: - contains 8 kimberlites and covers 57 square kilometers; - located close to Debswana`s Damtshaa Mine; - 26 kilometers from Firestone`s BK11 mine development project; review of historical data due to be completed in January 2010. - Francistown prospecting licences - cover an area of 1,500 square kilometers; - located in the right geological setting for discovery of diamondiferous kimberlites; - Firestone`s review of historical data due to be completed in Q1 2010. Euan Luff, chairman of Tawana commented "with Firestone`s major project close to Tawana`s project, Tawana now has the ability to access the infrastructure of Firestone to develop and exploit the economic potential of its kimberlites in the Orapa area quickly and at relatively low cost. We are excited about the potential of our kimberlites in the Opara area, and look forward to updating our shareholders about the results of Firestone`s initial review of the project in early 2010." Orapa prospecting licence The Orapa prospecting licence covers an area of 57 square kilometres in the Orapa kimberlite field and contains a cluster of 8 kimberlites, BK19-26. The largest of these kimberlites, BK24, is located 2.5 kilometres from Debswana`s Damtshaa Mine and 26 kilometres from Firestone`s BK11 kimberlite, which is due to commence commercial production in Q2 2010. Firestone has commenced a review of the historical data available from work carried out by Tawana and other operators on BK19-26. This review is expected to be completed in January 2010. Francistown prospecting licences The Francistown prospecting licences cover an area of 1,500 square kilometres close to the town of Francistown in eastern Botswana. Although no kimberlites have been discovered in this area before now, the prospecting licences are located in the right geological setting for the discovery of diamondiferous kimberlites. Firestone also commenced a review of the historical data available from work carried out by Tawana and other operators in this area. This review is expected to be completed in Q1 2010 Firestone can earn a 70% interest in any kimberlite by financing all evaluation work on that kimberlite up to the completion of a bulk sample of a minimum of 150 tonnes from kimberlites less than 1 hectare in size, and of a minimum of 250 tonnes from kimberlites greater than 1 hectare in size. Tawana will then have an option to fund its pro-rata share of all further work on that kimberlite. If Tawana is unwilling or unable to exercise this option, Firestone will be entitled to earn an additional 15% by financing all further evaluation work up to and including the making of a mine development decision on that kimberlite. The agreement is subject to the approval of the Minister of Minerals, Energy & Water Resources. Yours faithfully Mr Euan Luff Chairman Tel: +61 3 9224 1000 Email: eluff@wfw.com.au South African Sponsor PricewaterhouseCoopers Corporate Finance (Pty) Ltd Date: 22/12/2009 09:14:13 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
