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TAW - Tawana Resources NL - Quarterly activities report 1 July to 30

Release Date: 28/10/2011 10:53:02      Code(s): TAW
TAW - Tawana Resources NL - Quarterly activities report 1 July to 30            
September 2011.                                                                 
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")                                                     
Quarterly Activities Report 1 July - 30 September 2011                          
(Please note all maps and pictures have been removed and can be found on        
the Tawana website).                                                            
Tawana Resources NL (ASX: TAW) is pleased to present the report on              
activities for the period July to September 2011.                               
HIGHLIGHTS                                                                      
Sinoe Gold Project Acquisition                                                  
    *    Due diligence successfully completed and field exploration             
         programme underway                                                     
*    1000 soil samples collected from a planned initial 3000 sample         
         programme                                                              
    *    Extensive artisanal workings defined within a high priority            
         target area; sampling to focus in this area during the next            
quarter                                                                
    *    Dugbe F resource (AIM: HUM), 25 km along strike from the Sinoe         
         Project, upgraded from 0.8 Moz to 1.8 Moz; Dugbe Shear                 
         developing into a new gold province                                    
Nimba/Lofa Gold Exploration                                                     
    *    Initial sampling programmes completed; 575 samples collected           
    *    1/3 of assay results received to date; anomalous catchments            
         identified                                                             
*    Awaiting additional results                                            
Thabazimbi JV                                                                   
    *    Major JV partner planning to dispose of its interest in the            
         Gravenhage Manganese Project                                           
Corporate                                                                       
    *    Execution payment to secure Sinoe Project option agreement             
         paid; fieldwork commences                                              
Corporate                                                                       
The Company and Global Mineral Investments LLC (`GMI`), a private               
Liberian company signed a binding Heads of Agreement for an option to           
purchase outright the mineral exploration licence over the Sinoe Project        
held by GMI. Under the terms of the agreement the Company has the option        
to purchase outright the mineral exploration licence after meeting the          
following terms and conditions:                                                 
1.   US$10,000 Option payment to secure exclusivity - PAID                      
2.   US$40,000 Execution payment on successful due diligence - PAID             
3.   US$50,000 Execution payment within 6 months of the commencement of         
    exploration or announcing to market a significant exploration               
    target                                                                      
The Company is to fund exploration during the first year after which it         
has the right to purchase the licence outright or walk away                     
unencumbered. Should the Company choose to purchase the licence outright        
it does so at the following terms:                                              
1.   US$350,000 payment and 6 million shares in the Company                     
2.   US$1 million payment at announcement of 1 Moz JORC compliant               
    resource                                                                    
3.   Additional US$1 million payments for each additional 500 Koz JORC          
    compliant resource announced to market up to a maximum JORC                 
compliant resource of 2.5 Moz                                               
4.   US$5 million payment at pouring first gold from a mining operation         
    within the licence area.                                                    
Liberia                                                                         
The Company secured exclusive rights on a significant, highly                   
prospective Birimian land package in Sinoe County, South-Eastern Liberia        
referred to as the Sinoe Project. Due diligence was successfully                
completed and the Execution payment fulfilled on 18th August 2011. Field        
exploration activities commenced shortly thereafter and have been               
ongoing through the wet season. The Sinoe Project area covers 400 Km2           
within arguably one of the most prospective Birimian gold structures            
currently being explored in Liberia; the Dugbe Shear.                           
Exploration activities continued on the Nimba and Lofa licenses; two            
mineral permits issued in December 2010 and formally approved to Gryphon        
Minerals Ltd (ASX: GRY) on 23rd February 2011. Stream sediment sampling         
was completed during the quarter with a total of 575 samples collected          
over both licences. The Lofa License covers 596 Km2 and is along strike         
from the 1.52 Moz New Liberty gold deposit and the Nimba License covers         
995 Km2 and is adjacent to the 5.0 Moz Ity gold mine.                           
Laboratory turnaround and quality assurance/quality control delays have         
resulted in slower than expected assay turnaround at Nimba and Lofa. We         
are in regular contact with the laboratories and results will be                
announced to the market as soon as they are received. Full results are          
expected early December. Both licenses host highly prospective Archean          
greenstone belts that have had no modern day exploration and have               
confirmed artisanal workings.                                                   
The additional applications submitted under the Gryphon Strategic               
Alliance and pending approval were unsuccessful.                                
(Map showing granted licenses (1591 Km2) and GMI JV license (400 Km2)           
removed.)                                                                       
The Company moved quickly to commence field exploration programmes and          
secured the services of SEMS Exploration Services Ltd of Ghana. Field           
work commenced end March with the mobilisation of four sampling teams,          
securing of field base houses, completion of community liaison meetings,        
identification of alluvial gold workings, mapping of road and track             
network and collection of stream sediment and soil samples.                     
Sinoe Project                                                                   
After successful completion of due diligence, Tawana Resources has paid         
an execution fee to Global Mineral Investment Incorporated, the tenement        
holder of the Sinoe Project area, securing binding exclusivity and              
exclusive rights to purchase outright the Sinoe license pending results         
of the first year field exploration programme.                                  
Access is via paved and laterite road from Monrovia to Greenville and           
laterite road from Greenville to the project area. Under the terms of           
the agreement, the Company has secured the services of the vendor`s             
expatriate site manager to build access tracks, additional camp                 
facilities and maintain logistical supplies to facilitate exploration           
activities.                                                                     
The mineral exploration license covers 400 Km2 of Birimian aged rocks           
along arguably the most prospective gold mineralised structure being            
explored in Liberia today; the Dugbe Shear.                                     
(Graphic depicting Project location in SE Liberia showing road access           
(black lines; sealed and laterite) on topography (hot colors higher             
elevation, cool colors lower elevation) on left and regional tectonic           
setting with major shear zones marked on right removed.)                        
The project area is 25 Km along strike from Hummingbird`s (AIM: HUM) 0.8        
Moz Dugbe Project which was recently upgraded to 1.8 Moz (HUM, 26th             
September 2011) and 40 Km along strike from Equator Resources (ASX: EQU)        
Bukon Jedeh Project. Both projects are hosted along secondary and               
tertiary order structures adjacent to the main Dugbe Shear. Similar             
structural targets have been defined in the government regional                 
aeromagnetics data over the Sinoe Project area.                                 
The area is characterised by numerous artisanal alluvial and eluvial            
gold workings. The area is also characterised by numerous quartzite,            
graphite and manganese occurrences on the USGS Geological map of                
Liberia; all favourable indications for gold prospectivity.                     
(Graphics depicting artisanal workings observed within the Sinoe project        
area removed.)                                                                  
(Graphics depicting Sinoe Project area on regional total aeromagnetic           
imagery showing approximate locations of advanced projects along strike         
to the east and access removed.)                                                
Since field work commenced in late August 2011, field teams have                
collected over 500 soil samples on a targeted 800x100m grid within the          
reporting period. Samples to date have been submitted to the lab in             
Monrovia for preparation and onward shipping for assay. Field sampling          
is expected to be completed by the end 2011.                                    
Field mapping of access, artisanal workings and geology has continued in        
parallel with sampling activities. Mapping has highlighted an                   
interpreted fold closure within biotite schists with foliation dipping          
gently to the South in the southern portion and more steeply to the             
north-west in the northern portion. The fold axis coincides with an area        
of diffuse magnetic response in the government aeromagnetic Total               
Magnetic Intensity image, a greater density of narrow pegmatite dykes           
and sills and increased artisanal mining activity. This area is                 
considered a highly prospective target area.                                    
Nimba and Lofa Licenses                                                         
Stream sediment sampling of the Nimba and Lofa project areas was                
completed during the quarter with a total of 575 stream sediment and            
soil samples collected. To date 230 assay results have been received            
with the remainder pending. Anomalous catchments have been defined              
within results received to date; however, results of the full programme         
are awaited prior to prioritising follow-up target areas. Full assay            
results are expected early December.                                            
Access roads, tracks and paths have been mapped, and additional                 
artisanal gold workings located and sampled within the license areas.           
Numerous artisanal alluvial gold workings have been located and                 
confirmed within streams draining coincident topographic, aeromagnetic          
high anomalies and favourable greenstone lithological and structural            
settings in the south, central and northern zones of the Nimba license.         
The southern area of the Nimba license defines a 30 Km strike length            
ridge that represents a high priority target area.                              
(Maps showing Nimba license area over USGS geology (left) and government        
aeromagnetic survey total magnetic intensity (right). Additional                
artisanal workings found to date denoted by red hammer and pick symbols         
removed.)                                                                       
The Nimba license area is considered highly prospective for multi Moz           
gold deposits due to:                                                           
i.   Proximity to and on splays off the Cestos Shear; a major scale             
crustal structure which hosts known gold deposits and projects              
ii.  Proximity to the Ity Gold Mine (5 Moz)                                     
iii. Structurally complex zone at contact between the Archean Craton to         
    the west and Birimian complex to the east with inferred in-folding          
of Birimian aged rocks into Archean Craton and emplacement of               
    Palaeoproterozoic granitoids into the folded rock package along             
    major splay structures of the Cestos Shear.                                 
At Lofa artisanal alluvial workings have been confirmed along the               
southern boundary of the license area. Workings occur in streams                
draining the northern extension of the Kpo Range greenstone belt in the         
south-west of the licence area. This represents a similar geological            
setting to where a hard-rock artisanal gold workings (hammer and pick           
symbol on figure below) occurs within a competitors license area within         
strike continuations of the greenstone belt. Additional workings appear         
to occur within streams draining a leucogranite-gneiss and amphibolite          
unit in the south-east of the license area. Both target areas are               
highlighted in the figure below and pending assay results of the stream-        
sediments survey will be followed up with additional sampling and               
mapping to define possible drill targets.                                       
(Map showing Lofa license on geology (left) and on government total             
magnetic intensity aeromagnetic data (right) removed. Competitors               
license occurs within central area with hard rock gold artisanal gold           
working shown by red hammer and pick symbol. High priority target areas         
along similar magnetic ridge in SW and NE corners of Lofa license.)             
Work Plan going forward                                                         
Blanket 800x100m soil sampling will continue over the Sinoe license and         
focus within the central-northern area of the project area during the           
following quarter. Assessment of access, artisanal workings in the area         
and geological mapping will also be undertaken. The full soil sampling          
programme is expected to be completed by the end of the year.                   
Full stream sediment assay results from the Nimba and Lofa licenses are         
expected early December 2011. Pending results, target areas will be             
defined for follow-up field work in conjunction with possible air               
magnetics surveys.                                                              
About Liberia                                                                   
Liberia is a democratic country run by Her Excellency President Ellen           
Johnson Sirleaf; Africa`s first elected female head of state in 2005.           
The country is hugely prospective and hosts several world class iron ore        
deposits but yet is completely underexplored for gold and non-ferrous           
metals.  Liberia has a modern and transparent mining code and the               
government is supportive of foreign investment especially in the                
exploration and mining industry to help unlock the value of its                 
potential mineral wealth. Tawana will be one of the first ASX listed            
junior companies into Liberia following in the footsteps of mining              
majors BHP Billiton, Arcelor-Mittal and Severstal.                              
Liberia is located in West Africa dominantly within the Archean aged            
Kenema Man Domain and lesser Birimian sediments to the east.  There are         
a large number of world class mineral deposits located in the Archean           
and Birimian rock types throughout West Africa including Obuasi (40             
Moz+) and Tasiast (18 Moz+). West Africa is one of the fastest growing          
mineral provinces in the world and Liberia currently hosts several world        
class iron ore deposits and is underexplored for gold.                          
South Africa                                                                    
Rakana Consolidated Mining Pty Ltd (TAW 26%)                                    
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 Manganese              
Project and Meletse Iron Ore Project are incorporated in the Thabazimbi         
Joint Venture.                                                                  
Avontuur Manganese Project (TAW indirect interest 6.7%)                         
The Avontuur high-grade Manganese Project is located in the Northern            
Cape Province, South Africa. Aquila Resources (ASX: AQA) announced a            
JORC compliant resource upgrade of 108.9Mt at 38.6% Mn on 4th February          
2011.                                                                           
The Avontuur Project is incorporated in the Thabazimbi Joint Venture.           
Avontuur Resource Estimate (AQA, 4th Feb 2011) table removed. Can be            
found on the Tawana website.                                                    
Aquila Resources (ASX: AQA) is working on an expanded Feasibility Study         
from a base case of 1Mtpa to target an operation with an annual                 
production of 2Mtpa to initially mine the Gravenhage Deposit as an open         
pit, with subsequent underground mining from an open pit access. Strong         
exploration potential exists within the 10 Km long Avontuur Basin, which        
is wholly contained within the 370 Km2 Avontuur Prospecting Right.              
The Avontuur Project area is located approximately 30 Km north of the           
Kalahari Manganese Field, South Africa`s premier manganese producing            
area (see map below).                                                           
AQA announced on 28th July 2011 in its June 2011 Quarterly Report that a        
process has commenced to dispose of its interest in the Gravenhage              
Manganese Project and that indicative bids are expected during the July-        
September 2011 Quarter. No subsequent announcements have been made;             
results of process are awaited.                                                 
(Graphic depicting Avontuur Project location (AQA, 11th May                     
2010)removed.)                                                                  
Thabazimbi Iron Ore Project (TAW indirect interest 6.7%)                        
The Meletse Iron Ore Project 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.                                                 
(Table depicting Meletse Iron Ore Project Resource Estimate (AQA 30th           
Nov 2010)and Meletse Iron Ore Project location plan (AQA, 15th April            
2010) removed.)                                                                 
Kareevlei Wes Project, Kimberley Region (TAW 100%)                              
The Kareevlei Project Area is comprised of a cluster of five kimberlites        
located approximately 100 Km northwest of Kimberley.                            
Daniel Alluvial Project, Kimberley Region (TAW 100%)                            
The Daniel Alluvial Project is a large buried palaeo alluvial diamond           
project 2 Km south of the Finsch kimberlite diamond mine. It was                
discovered in 2003 following a FALCOMTM survey by BHPB targeting                
satellite kimberlite pipes around Finsch. The project consists of three         
diamondiferous palaeo gravel channels; Feeder Channel, Main Channel and         
Eastern Gravels. The Daniel diamonds are interpreted to be derived from         
eroded diamondiferous Finsch kimberlite material.                               
Perdevlei Kimberlite Project, Kimberley Region (TAW 100%)                       
The Perdevlei kimberlite project is located approximately 50 Km east of         
the Finsch diamond mine in the Kimberley Region of the Northern Cape            
Province. The kimberlite pipe is approximately 1.7Ha in size, drill             
confirmed to 150m depth and the project area is also prospective for            
alluvial diamonds.                                                              
St Augustine (TAW 30%) and Lexshell Projects, Kimberley Region                  
The St Augustine kimberlite project is located approximately 600m west          
of the Big Hole in Kimberley. It is a historic surface and underground          
mine reportedly mined to a depth of 800ft (242m). The conceptual target         
is primary kimberlite at depth below historic workings and remains              
untested.                                                                       
The Lexshell alluvial project is located 50 Km north-east of Kimberley,         
at the confluence of the Vaal and Harts rivers. The project has targeted        
and confirmed the presence of diamondiferous palaeo alluvial channels.          
The Company is seeking divestment opportunities for its South African           
diamond projects as part of its ongoing rationalisation.                        
Botswana                                                                        
Orapa Project (100% 0wned by Seolo Pty Ltd, a wholly owned subsidiary           
and Firestone Diamonds Ltd (AIM: FDI) having the right to initially earn        
70% interest in the Project)                                                    
The Orapa project consists of the BK24 kimberlite 22 Km north-north-east        
of Lelthalkane and under joint venture with Firestone Diamonds (AIM:            
FDI). Under the JVA Firestone has the right to initially earn 70% in the        
Project through funding and execution of exploration activities                 
including the collection and processing of a bulk sample of kimberlite.         
Large diameter drilling has been further delayed due to delays in the           
start-up of Firestone`s BK11 mine. Drilling is expected to commence             
during the third or fourth quarter of 2011.                                     
Australia                                                                       
Flinders Island & Venus Bay Projects, South Australia (TAW 80%, 20%             
Orogenic Exploration with Flinders Mines earning in)                            
The Flinders Island and Venus Bay Projects are located along the western        
Eyre Peninsula coast line, South Australia. Licenses are held by Tawana         
Resources NL (80%) and Orogenic Exploration Pty Ltd (20%) with Flinders         
Mines Ltd earning equity under a farm in JV.                                    
For further information, please contact:                                        
Lennard Kolff van Oosterwijk                                                    
Managing Director                                                               
Competent Persons Statements                                                    
The information in this report in so far that it relates to Liberian            
Project Exploration Results, Mineral Resources or Ore Reserves is based         
on information compiled by Lennard Kolff van Oosterwijk, who is a Member        
of the Australian Institute of Geoscientists included in a list                 
promulgated by the ASX from time to time. Lennard Kolff van Oosterwijk          
is a full-time employee of the company and has sufficient experience            
which is relevant to the style of mineralisation and type of deposit            
under consideration and to the activity which he is undertaking to              
qualify as a Competent Person as defined in the 2004 Edition of the             
`Australasian Code for Reporting of Exploration Results, Mineral                
Resources and Ore Reserves`. Lennard Kolff van Oosterwijk consents to           
the inclusion in the report of the matters based on his information in          
the form and context in which it appears.                                       
The information in this report, insofar as it relates to the Meletse            
Iron Ore Resource and the Gravenhage Manganese 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.                                                                     
28 October 2011                                                                 
Sponsor                                                                         
PricewaterhouseCoopers Corporate Finance (Pty) Ltd                              
Date: 28/10/2011 10:53:01 Supplied by www.sharenet.co.za                     
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