Response to ASX price and volume query 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”) Response to ASX price and volume query Dear Hayley We refer to your letter dated 6 July 2017 querying the change in trading price of TAW shares from a closing price of $0.19 on Wednesday 5 July 2017, to an intra-day high of $0.245 today, 6 July 2017, and an increase in the volume of trading in Company’s securities over this period (“Letter”). In response to your questions outlined in the Letter, we provide the following information: 1. The Company is not aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in the Company’s securities. 2. Not applicable. 3. The Company provides the following potential explanations for the recent trading in the Company’s securities: a) On Wednesday 5 July 2017, Volvo Car Group announced that it will cease producing petrol-only vehicles from 2019 and has thereby become the first major traditional automaker to set a date for phasing out vehicles powered by internal combustion engines. As lithium is a major component of lithium-ion batteries that are used in the electric vehicle industry, it is likely to have provided market assurance about the longevity of current lithium pricing which Tawana, being a near-term producer, can take advantage of. b) This has also been compounded by Neometals Limited (ASX: NMT) and Mineral Resources Limited (ASX: MIN ) announcing on 5 July 2017 that it had reached agreement with Ganfeng Lithium that effective 1 July 2017 the price payable per tonne of 6% spodumene concentrate produced at Mt Marian and delivered CFR had increased from US$750 to US$841, also confirming that the current pricing of lithium concentrate is sustainable. c) All major Australian, listed lithium producers and/or developers have also enjoyed increased trading and price appreciation. 4. The Company confirms it is in compliance with its continuous disclosure obligations and the Listing Rules of the ASX, in particular Listing Rule 3.1. 5. The Company can confirm that its responses to the questions above have been authorised and approved in accordance with its published continuous disclosure policy and approved by the Board. Please do not hesitate to contact me if further information is required. Yours sincerely Michael Naylor Company Secretary 06 July 2017 Sponsor PricewaterhouseCoopers Corporate Finance (Pty) Ltd Date: 06/07/2017 10:55:00 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.