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TAW - Tawana Resources NL - Positive Scoping Study for the Meletse Iron Ore

Release Date: 17/05/2011 09:31:01      Code(s): TAW
TAW - Tawana Resources NL - Positive Scoping Study for the Meletse Iron Ore     
Project                                                                         
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")                                                     
HIGHLIGHTS                                                                      
Through Tawana`s 6.76% indirect equity interest in the Meletse Iron Ore project,
the Company highlights the results announced by Aquila Resources Ltd on 13th May
2011.                                                                           
The Scoping Study:                                                              
*    Confirms the technical and financial viability of a development of the 
         Meletse Iron Ore Deposit                                               
    *    Identified two preferred viable options at a production rate of 2      
         million tonnes per annum with "direct shipped" product sold either     
into the export market or domestically                                 
    *    Confirmed that a larger Resource could support a 4 million tonne per   
         annum Project with improved economic results                           
    *    Recognised that the Meletse ore body remains open along strike and at  
depth                                                                  
    *    Estimated capital expenditure in the range of USD150 million to USD190 
         million                                                                
    *    Estimated operating costs of USD55 per tonne FOB                       
*    Considered export of ore using existing infrastructure from Thabazimbi 
         to the port of Maputo in Mozambique at benchmark pricing               
    *    Considered domestic ore sold at a rail siding at Thabazimbi at a       
         benchmark related price                                                
*    Tawana Resources NL (ASX: TAW) is pleased to announce that Aquila      
         Resources Ltd (ASX: AQA) has completed a Scoping Study for the         
         development of the Meletse Iron Ore Deposit; a project incorporated in 
         the Thabazimbi Joint Venture (`TJV`).                                  
The Meletse Iron Ore Deposit has a JORC compliant indicated and inferred        
resource estimate of 47.6Mt at 62.9% Fe in the Limpopo Province, South Africa.  
The Meletse Project is incorporated in the Thabazimbi Joint Venture. Significant
expansion potential exists as the deposit remains open at depth and along       
strike.                                                                         
MELETSE IRON ORE RESOURCES                                                      
Resources             Tonnes Mt    Fe %            SiO2%       AlO3%            
Classicication                                                                  
Indicated             15.9         63.6            6.22        1.07             
Inferred              31.7         62.5            8.89        0.82             
Total                 47.6         62.9            8           0.91             
MELETSE IRON ORE RESOURCES                                                      
Resources             P%      S%           MnO%      MgO%           LOI%        
Classicication                                                                  
Indicated             0.031   0.05         0.783     0.076          1           
Inferred              0.044   0.04         1.078     0.054          1.19        
Total                 0.04    0.04         0.979     0.061          1.13        
Meletse Iron Ore Project Resource Estimate (AQA 30th Nov 2010)                  
Development (Details below are from Aquila`s ASX Release on 13th May 2011)      
The Scoping Study has evaluated an open pit mining operation with options for   
both direct shipping product and beneficiation of lower grade ores. Several     
modes of transport of ore from the deposit to the crushing and screening plant  
have been evaluated. These modes include truck haulage, conveyor and ore passes,
all of which will be analysed in detail in subsequent studies.                  
Options were considered for the transport of the product from the mine to a     
siding located at                                                               
Thabazimbi, the nearest point on Transnet Freight Rail`s ("TFR`s") rail network.
These included rail, conveyor and truck haulage solutions, with truck haulage   
proving to be the most economic at 2 million tonnes per annum.                  
Opportunities were identified for both the supply of ore to domestic steel mills
and the export of iron ore from the eastern ports of Maputo and Richards Bay. An
initial production rate of 2 million tonnes per annum has been considered, with 
the potential to increase this to 4 million tonnes per annum in the expectation 
of a larger final ore body.                                                     
TFR is reviewing the infrastructure needs of the Project within the context of  
the broader expansion needs of the area, including the Waterberg Coal Field. The
results of this review will provide input for further development studies.      
The Scoping Study has also canvassed the opportunity to beneficiate more        
marginal ore to increase the saleable product from the ore body. Further        
metallurgical test work will be required to establish the viability of such a   
beneficiation process and to establish the lump to fines ratio of the "direct   
shipped" product. Based on similar Thabazimbi ore bodies, lump ratios in excess 
of 60% are expected.                                                            
Thabazimbi Joint Venture                                                        
The Company holds a 26% equity stake in Rakana Consolidated Mining Pty Ltd      
("Rakana") the joint venture partner of Aquila Resources Ltd ("Aquila") in the  
Thabazimbi Joint Venture.                                                       
The Avontuur Project is also incorporated in the Thabazimbi Joint Venture. The  
Avontuur high-grade Managanese Project is located in the Northern Cape Province,
South Africa. Aquila announced a JORC compliant resource upgrade of 108.9Mt at  
38.6% Mn on 4th February 2011.                                                  
For further information, please contact:                                        
Lennard Kolff van Oosterwijk                                                    
Chief Executive Officer                                                         
Competent Persons Statements                                                    
The information in this release that relates to the Meletse Iron Ore Resource   
was prepared under the supervision of Mr Brent E Green who is a member of the   
Australian Institute of Geoscientists and Mr Bernhard Siebrits who is a member  
of the Australasian Institute of Mining and Metallurgy. Mr Green is full-time   
employee of Aquila Resources Ltd and Mr Siebrits is a full-time employee of     
Golder Associates Africa Ltd. Mr Green and Mr Siebrits have sufficient          
experience which is relevant to the style of mineralisation and type of deposit 
under consideration and to the activity which they are undertaking to qualify as
Competent Persons as defined in the 2004 Edition of the `Australasian Code of   
Reporting of Exploration Results, Mineral Resources and Ore Reserves`.          
Both Mr Green and Mr Siebrits consent to the inclusion in the announcement of   
the above matters based on the information in the form and context in which it  
appears.                                                                        
17 May 2011                                                                     
Sponsor                                                                         
PricewaterhouseCoopers Corporate Finance (Pty) Ltd                              
Date: 17/05/2011 09:31:01 Supplied by www.sharenet.co.za                     
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