TAWANA RESOURCES NL - Tawana Commences Drilling Cowan Lithium Project

Tawana Commences Drilling Cowan Lithium Project

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”)


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

TAWANA COMMENCES DRILLING COWAN LITHIUM PROJECT

Tawana Resources NL (“Tawana” or the “Company”) is pleased to announce it has
commenced drilling on the Cowan lithium project, located in the Goldfields region of
Western Australia. Phase 1 of the drilling program will consist of at least 10,000m of RC
drilling within the large LCT1 pegmatite belt and has been planned to test:

    - Areas containing outcropping LCT pegmatites, including spodumene rich
      pegmatites previously reported.
    - Areas without outcrops but anomalous bottom of hole lithium geochemical
      anomalies from prior shallow RAB drilling.
    - Areas of gravity anomalies from a recent close spaced trial gravity survey with
      the aim of calibrating sub-surface geology.

Approximately 140 holes are expected to be completed on wide spaced drill traverses
(refer figure 3). The angled holes are expected to average 80m depth and spaced at
between 40 and 80m along the traverses. A further 90 hole locations (phase 2) have been
marked, however final locations will vary dependent on the geology encountered in initial
drilling.

Preparations during August have included outcrop and scree mapping, rock chip and spot
soil sampling and a close spaced trial gravity survey. Results of mapping broadly confirm
previous results with several additional LCT pegmatites identified including an apparent
extension of 3.3km to the known extent of the western LCT pegmatite belt. Gravity
images are showing fabric which appears to align with limited outcropping pegmatites,
drilling will assist in final interpretation of the gravity surveys.

CEO Mark Calderwood said “With the key areas of interest within the pegmatite belt being
mostly soil covered the initial drill program will help us gain an understanding of the
underlying geology and the distribution of sub-vertical and flat lying pegmatites within our
extensive LCT pegmatite belt. The program will also give us insight into the various types
of LCT pegmatites and the distribution of the lithium mineral spodumene.”

For further information, please contact:

Mark Calderwood                               Nathan Ryan
Chief Executive Officer                       Investor Relations
Tawana Resources NL                           NWR Communications
T: +61 8 9489 2600                            T: +61 407 440 882
E: mark.calderwdoo@tawana.com.au              E:Nathan.ryan@nwrcommunications.com.au

1Lithium-Caesium-Tantalum type (“LCT”) pegmatites are derived from highly fractionated granitic
melts and contain higher levels of the rare elements (Be, Rb, Cs, Sn, Nb, Ta etc) and a high volatile
content (H2O, F, B, P and Li).

Cowan Project
The Cowan 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.

Geology

The Project area comprises Archaean quartz-biotite metasediments and amphibolite of the Eastern
Goldfields Terrane of the Yilgarn Craton. These metasediments trend north-south and have been
intruded by large numbers of pegmatites.
Two main belts of rare element Lithium-Caesium-Tantalum type (“LCT”) pegmatites are known in
the Project area. The two large LCT type pegmatite belts defined within the Project area are:

1) Mt Belches – Bald Hill (“MBBH Belt”)

This pegmatite belt striking north to northwest extends for at least 15km, however the pegmatite
belt likely extends for a further 10km under transported cover. A large number of albite rich and
LCT type Albite-Spodumene pegmatites occur over a width of about 4km. Previous exploration and
exploitation has been focused on tantalum and tin. At least 10km strike of the pegmatite belt is
located on the Mount Belches tenements.

2) Claypan Dam- Madoonia (“CDM Belt”)

This less explored northeast-southwest oriented LCT pegmatite belt has a strike of at least 22km
and width of at least 7km. The belt is known to contain LCT Albite pegmatites with tantalite and
tin and potentially hosts LCT Albite-Spodumene pegmatites. A significant portion of the belt is
covered by the Mount Belches tenements.

The pegmatites occur as gently dipping sheets and as steeply dipping veins which are all elongate in
a northerly direction, parallel to the regional foliation. They range in thickness from a few metres
to as much as 30 metres and in some instances occur as multiple, parallel dykes or swarms
separated by a few metres of sheared metasediments.

Outcrops of exposed schist and pegmatites are restricted to limited areas; most of the tenement
area is concealed by bluebush floodplain and sandplain and wash zones. Remnants of Eocene
sediments also mask bedrock.

Previous Work
Prior exploration by tantalum explorers was essentially limited to:
A)      Wide spaced (~200m x 400m) shallow RAB (and minor RC) drilling for bottom of hole
        geochemistry including lithium assays. The resulting lithium geochemical database has
        resulted in the identification of a significant number of anomalies worthy of follow-up
        drilling.
B)      Rock chip sampling, prior explorers collected more than 226 pegmatite samples from with
        the Project area of which 219 were assayed for Li. A total of 95 (42%) of the rock chip
        samples contained anomalous levels of one or more of Li, Cs, Ta or Sn.
C)      The extensive shallow auger/vacuum drilling and soil sampling is considered to be of limited
        value due to the unknown regolith profile and the likely leaching of lithium from the
        weathered sampling medium.
D)      RC drilling of 24 pegmatites (or pegmatite clusters) was undertaken however lithium was not
        analysed in pegmatite samples. A total of 70 RC and RAB holes intercept pegmatites within
        the Cowan Project area.

Refer to ASX announcement on 11 July 2016 for further information on previous exploration
programs.

Mapping and rock chip sampling of outcropping spodumene bearing pegmatites located
within the Cowan Project area, completed in the June Quarter 2016 returned lithium
values from 15 samples of pegmatite. Lithium values range from 3,762 ppm (0.81% Li2O) in
pegmatite containing moderate spodumene content up to 18,545 ppm (3.99% Li2O) in
pegmatites with high spodumene content. Refer to ASX announcement on 11 July
2016 for details of the previous samples.

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, an employee of the Company. Mr
Calderwood is a member of The Australasian Institute of Mining and Metallurgy. Mr Calderwood has 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 consents to the
inclusion in this report of the matters based on their information in the form and context in which it appears.

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. 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. The forward looking statements/projections are inherently uncertain and may therefore
differ materially from results ultimately achieved.

Tawana Resources NL 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 TAW or any of its 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 TAW, its 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 presentation or for any errors, omissions or misstatements or for
any loss, howsoever arising, from the use of this presentation.


15 September 2016

Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd

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