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TAWANA RESOURCES NL - Strike Extension, Grade Continuity and Significant Infill Intersections at Koehnko

Release Date: 05/03/2014 09:51:00      Code(s): TAW       PDF(s):  
Strike Extension, Grade Continuity and Significant Infill Intersections at Koehnko

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”)

  Strike Extension, Grade Continuity and Significant Infill Intersections at Koehnko



   -   High-grade itabirite mineralisation extended at the Koehnko Deposit;
       mineralisation remains open to the West and East
   -   Maiden Resource Drilling Programme at Mofe Creek Project completed and
       results announced; Maiden Resource Statement by Coffey Mining being
   -   Strong continuity between existing drill sections confirmed; grade continuity
       and structure across the extended deposit
   -   Grade continuity highlights potential for Final product grades in excess of
       +65% Fe could be achieved
   -   Broad intersections from surface up to 50m depth on the Koehnko hill,
       implying low stripping ratios for future mine planning
   -   Significant mineralised drilling intersections from surface:
          o KRC022: 0-50m @ 37.87% Fe
          o KRC024: 0-34m @ 36.5% Fe
          o KRC019: 0-50m @ 29.88% Fe
          o KRC018: 0-32m @ 29.61% Fe
   -   Major exploration upside with numerous iron formation footprints defined
       within 1-2km radius of Koehnko mineralisation
   -   All metallurgical samples from Maiden Resource Drilling Programme have
       arrived at ALS laboratories in Perth; detailed metallurgical program
       supporting Scoping Study has commenced
   -   Baseline environmental and social studies in support of Scoping Study have
       been completed in Liberia; report pending
   -   Barging and transhipment study forecast for completion by month-end

Tawana Resources NL (ASX: TAW) (“Tawana” or “the Company”) is very pleased to announce
the discovery of additional broad, mineralised intersections of friable itabirite iron
formations at the Koehnko prospect at its flagship Mofe Creek Iron Ore Project in Liberia.

Managing Director Len Kolff said “Infill and extensional drilling results continue to define
a coherent mineralised itabirite footprint with low contaminant levels at the Koehnko target.”

“Positive drilling observations during the reconnaissance phase programme resulted in Koehnko
drilling being extended and in-filled to 200m x 60m drill spacing in support of a maiden 
inferred and indicated resource model” he said.

“Excellent geological continuity was observed in the infill holes and extensional drilling 
lead to the drilled mineralised footprint extending to 1.2km long.”

“Significant exploration upside exists within a 2km radius of the currently drilled area with 
additional mineralised footprints having previously been defined in hand-auger drilling and 
rock chip sampling.”

“Infill and extensional drilling results continue to deliver broad, low level contaminant iron
intersections, providing confidence in upgradability to a +65% Fe premium iron product as reported 
in the recent Koehnko metallurgical test work results.” (Refer ASX release of 14th January 2014).

Drilling Results

A total of 10 RC holes for 536m were completed at the Koehnko prospect and all assays received.
Significant drilling intersections are reported in the table below.

 Hole_ID  From       To     Interval Comments     Fe    SiO 2   Al2O3     P     TiO2     S     LOI 1000
 KRC017    0         8        8                 39.61   30.58   8.04    0.025   0.15   0.042    4.24
 KRC017    58        66       8        EOH      32.76   47.52   2.78    0.051   0.02   0.001    -0.73
 KRC018    0         32       32                29.61   45.88   7.93    0.043   0.14   0.020    3.09
 KRC019    0         50       50                29.88   47.03   6.17    0.043   0.13   0.025    2.13
 KRC020    0         8        8                 38.52   26.02   11.04   0.034   0.30   0.078    6.64
 KRC020    32        54       22                37.66   43.17   1.29    0.044   0.04   0.005    0.38
 KRC021    16        20       4                 40.17   39.09   3.34    0.037   0.02   0.010    1.20
 KRC022    0         50       50                37.87   34.19   7.38    0.047   0.24   0.029    4.25
 KRC023    50        54       4        EOH      28.66   46.98   5.33    0.023   0.07   0.174    1.18
 KRC024    0         34       34                36.50   40.35   3.69    0.025   0.14   0.173    3.16

Table 1 | Significant intersections from maiden RC resource drilling at the Koehnko prospect

Drilling results have defined a 1.2km strike length, low contaminant level itabirite deposit 
along the Koehnko hill. Mineralisation is open to the west and east along the main Koehnko hill,
with additional target footprints yet untested by drilling to the north, east and south.

Contaminant levels within the reported drill intersections are low in Al2O3, P, TiO2 and sulfur,
and are broadly similar to the high-grade itabirite intersections reported at Gofolo Main and Zaway.

Recently completed metallurgical test work on reconnaissance phase drilling at Koehnko last 
February (2013) suggests that a +65% Fe and up to 68% Fe premium product is achievable at Koehnko
(Refer ASX release of 14th January 2014). The extensional and infill drill results announced here 
confirm similar grades as used for the metallurgical test work providing confidence that a premium 
product can be generated for the project area.

Exploration Potential

Significant exploration potential exists within hills to the north, east and south of the main 
Koehnko prospect. Hand auger drilling and rock chip sampling has defined over 7km of additional
prospective strike with iron formation in outcrop returning assays between 37% Fe and up to 53% Fe.
Based upon the current aeromagnetic footprints, the Koehnko deposit (in its entirety) has the 
potential to be significantly extended from its current size. This mineralization extension upside 
at Koehnko, coupled with the additional outstanding anomalies for Gofolo and Zaway, provides confidence
in the potential attainment of the long-term exploration target.

Scoping Study Update

Metallurgical diamond core test work samples from the Maiden Resource drilling campaign undertaken
from October 2013 to January-end 2014, were dispatched from Monrovia on 02 February, cleared 
customs and arrived at the ALS laboratory in Perth by 07 February. Approximately 3,000kg of full
HQ drill core will be processed in 10 representative composites of mineralisation from the Gofolo Main
and Zaway prospects. Metallurgical test work is underway with initial results expected over the coming 
weeks. Physical testing of the ore has commenced,along with relevant specific gravity and density 
testing – to assist with the future mine planning and mining methodology studies.

Resource modelling for the Mofe Creek Maiden Resource Statement is well underway with all results 
now incorporated into a database and QA/QC’ed, whilst wire framing is currently well advanced.
A review of the modelling will commence this week, and the resource statement is scheduled to be released end
March/early April 2014.

An environmental, social and community baseline site review and mapping in support of the 
Scoping Study was completed on site during February. A preliminary report is being prepared 
and will be issued for review in the forthcoming weeks. A scope of works in support of baseline 
data requirements for the Pre-Feasibility Study is currently being generated.

A part-time Study Manager has been appointed to Tawana, to champion the coordination and timely
completion of the Mofe Creek Project Scoping Study. The study remains on-track for completion 
in early July 2014. Additionally, a part-time Chief Financial Officer has been employed to 
structure the Company’s corporate financial systems to effect the timely and accurate migration 
of the Company financial systems from an explorer to a future developer. The appointee will also
be accountable for operating the financial model for the Scoping Study and assist with future 
financial analyses of various operating scenarios and varying ownership and development scenarios.

Detailed proposals and development scenarios were presented to relevant Ministries and Authorities 
within Liberia, confirming Tawana’s business development and execution plans for both an early 
start-up scenario (1-2 Mtpa) and the Company’s longer-term 5-10 Mtpa production plan. Discussions
and proposals have also been presented to the existing third-party owner/operators of the Monrovia 
deep water port facilities to seek port access and/or port gate/rail siding sales agreements in 
support of the early production start-up scenario.

An in-country Manager was appointed and commenced employment at the Project,within Liberia on 
February 07 2014. Both the Managing Director and Executive Chairman were in country during 
February, to meet with the relevant Ministers,Ministries and Environmental Protection Authority 
(“EPA”) to advance the Project and guide the newly appointed Manager in his future roles and tasks.

Both senior executives also attended the recent Indaba Conference in Cape Town.

About Tawana (ASX & JSE: TAW)

Tawana Resources NL is an iron ore focused ASX and JSE-listed Company with its principal project
in Liberia, West Africa. Tawana’s 100% owned Mofe Creek Project (“the Project”) is a new 
discovery in the heart of Liberia’s historic iron ore district, located 20km from the coast and
80km from the country’s capital city and major port, Monrovia.

Tawana is committed to becoming a mid-tier iron ore producer through the development of the Mofe
Creek Project, which covers 285km2 of highly prospective tenements in Grand Cape Mount County. 
The Project hosts high-grade friable itabirite mineralisation which can be easily upgraded to
a superior quality iron ore product in the 65-68% Fe grade range, for which there is consistent
global demand, attracting significant price premiums.

The Company has concluded its maiden resource drilling program and is well advanced in the 
completion of its Scoping Study on the Mofe Creek Project. The Scoping Study will consider both
an early start-up, low capital cost project with a production rate of 1-2 million tonnes per 
annum (Mtpa), as well as a longer-term project capable of producing 5-10 Mtpa of iron ore product.

About Liberia
Liberia is a democratic West African country with a modern and transparent mining code and a 
government proactively engaged with the mining industry to help unlock the value of its 
potential mineral wealth. Her Excellency President Ellen Johnson Sirleaf was Africa’s first 
elected female head of state in 2005 and was re-elected in November 2011 for a second term. The 
country is hugely prospective for minerals exploration and production, hosting several world-class 
iron ore deposits. Liberia has historically been the largest exporter of iron ore in Africa and was 
the 5th largest iron ore producer globally during the 1960’s to 1980’s.

For further information please contact:
Lennard Kolff van Oosterwijk
Managing Director
Tel: +61 7 35102115
Mob: +61 424942589

Detailed information on all aspects of Tawana’s projects can be found on the
Company’s website www.tawana.com.au.

Competent Persons Statement
The information in this report that relates to 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 2012 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.

Forward Looking Statement
Statements regarding plans with respect to the Company’s mineral properties, including statements, assumptions and
targets relating to the Preliminary Assessment are forward looking statements. There can be no assurance that the
Company’s plans for development of its mineral properties will proceed as currently expected, nor in accordance with the
Preliminary Assessment. There can also be no assurance that the Company will be able to confirm the presence of a mineral
deposit, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the
Company’s mineral properties, either in accordance with the Preliminary Assessment or otherwise.

05 March 2014

PricewaterhouseCoopers Corporate Finance (Pty) Ltd

APPENDIX 1: Reported intersections from Koehnko RC resource drilling recently completed

Hole_ID           From             To       Interval     Comments       Fe       SiO 2     Al2O3       P       TiO2      S      LOI 1000
 KRC017             0               8            8                     39.61     30.58     8.04      0.025     0.15    0.042       4.24
 KRC017             58             66            8          EOH        32.76     47.52     2.78      0.051     0.02    0.001       -0.73
 KRC018             0              32            32                    29.61     45.88     7.93      0.043     0.14    0.020       3.09
 KRC019             0              50            50                    29.88     47.03     6.17      0.043     0.13    0.025       2.13
 KRC020             0               8            8                     38.52     26.02     11.04     0.034     0.30    0.078       6.64
 KRC020             32             54            22                    37.66     43.17     1.29      0.044     0.04    0.005       0.38
 KRC021             16             20            4                     40.17     39.09     3.34      0.037     0.02    0.010       1.20
 KRC022             0              50            50                    37.87     34.19     7.38      0.047     0.24    0.029       4.25
 KRC023             50             54            4          EOH        28.66     46.98     5.33      0.023     0.07    0.174       1.18
 KRC024             0              34            34                    36.50     40.35     3.69      0.025     0.14    0.173       3.16

APPENDIX 2: Hole location data:

 DataSet     Prospect   Hole_ID Hole_type UtmE_29N  UtmN_29N Reg_RL Plan_dip Plan_Azim Hole_depth(m) Hole_Start Hole_Finish    Drill_Prog
Mofe Creek   Koehnko    KRC016      RC      272973   762095   67      -50       24         54        28/1/14     29/1/14   Resource RC Driling
Mofe Creek   Koehnko    KRC017      RC      273188   762147   67      -50       24         66         291/14     30/1/14   Resource RC Driling
Mofe Creek   Koehnko    KRC018      RC      273172   762087   60      -50       24         52        31/1/14     31/1/14   Resource RC Driling
Mofe Creek   Koehnko    KRC019      RC      273203   762210   77      -50       24         54        31/1/14     31/1/14   Resource RC Driling
Mofe Creek   Koehnko    KRC020      RC      273557   762030   75      -50       24         56        1-Jan-14    1-Jan-14  Resource RC Driling
Mofe Creek   Koehnko    KRC021      RC      273544   761974   51      -50       24         50        1-Jan-14    1-Jan-14  Resource RC Driling
Mofe Creek   Koehnko    KRC022      RC      273580   762092   78      -50       24         54        1-Jan-14    2-Jan-14  Resource RC Driling
Mofe Creek   Koehnko    KRC023      RC      273692   761919   63      -50       24         54        2-Feb-14    2-Feb-14  Resource RC Driling
Mofe Creek   Koehnko    KRC024      RC      273887   761896   81      -50       24         48        2-Feb-14    2-Feb-14  Resource RC Driling
Mofe Creek   Koehnko    KRC025      RC      273883   761830   69      -50       24         48        2-Feb-14    3-Feb-14  Resource RC Driling

APPENDIX 3: JORC Table; Sampling techniques and data – Reporting of Exploration Results

Drilling and               -   All drilling was conducted by reverse circulation
Sampling                       drilling with sampling conducted by riffle splitting to 2-
Techniques                     3kg for dispatch to the assay laboratory
                           -   All sampling conducted on a 1m basis and composited
                               to 2m intervals for assay
Drill Sample               -   Moisture content and recovered sample weight were
Recovery                       recorded at time of sample recovery on a 1m basis
                           -   Data used to verify recoveries and sample quality
                           -   No sample recovery or quality issues were encountered
                               during the current drill program likely to impact on the
                               quality of data derived
                           -   Lower RC drill chip recovery was recognised in the top
                               10 to 15m from surface and twinned diamond core
                               holes planned at each prospect to check for any
                               potential sample bias
Logging                    -   All drill chips logged on site for lithology and
                               mineralisation. A representative sample of the chips on
                               a 1m basis retained on site.
                           -   All RC chips are photographed for digital storage
Sub-sampling               -   Assaying and sample preparation conducted at SGS
techniques and sample
preparation                    laboratory in Monrovia
                           -   2-3kg samples as received from Tawana Resources are
                               dried and crushed to 75% passing 2mm
                           -   1.5kg riffle split is then pulverised by ring & puck mill
                               to 85% passing 75µm and 200g recovered for analysis
Quality of Assay and       -   All assaying conducted by Lithium metaborate /lithium
laboratory tests               tetraborate mixture digest and XRF finish for major
                               elements and Thermo Gravimetric Analyser (TGA) for
                               loss on ignition
                           -   Blind standards, blanks and field duplicates inserted
                               every 50th sample by Tawana Resources in the field.
                               Acceptable accuracy and precision have been
                               established for all samples reported
                           -   SGS laboratory conducts internal QA/QC on sample
                               preparation; every 50th sample screened to confirm %
                               passing 2 mm and 75 um
                           -   Crusher and pulverizers cleaned with barren material
                               at the start of every batch
                           -   % dust loss determined once per week.
                           -   SGS laboratory conducts QA/QC on sample analysis; 1
                               Reagent Blank in 40, 1 Preparation Blank (prep process
                               blank) in 40, 1 Weighed replicate in 40, 1 Preparation
                               Duplicate (resplit) in 40 and 1 SRM’s in 40
Verification of sampling   -   All sampling data is recorded in hardcopy format
and assaying                   before data entry on site.
Location of Data points    -   Collar surveys conducted by DGPS survey after hole
                               completion. Down hole surveys conducted at collar and
                               hole bottom and at 5m intervals downhole by Reflex
                               gyroscopic tool
                           -   Drill results reported in UTM 29N
Data Spacing and           -   Drilling conducted on 400 x 60m and 200 x 60m
Distribution                   nominal grid for resource drilling at Gofolo Main,
                               Zaway and Koehnko
                           -   Drilling conducted on a nominal 400 x 60m grid for
                               exploration drilling at Gofolo NE
Orientation of data in     -   Drilling has been conducted inclined 50o towards 024 at
relation to geological         Gofolo Main and Koehnko
                           -   Drilling has been conducted inclined 50o towards 007
                               UTM at Zaway
                           -   Drilling has been conducted inclined 50o towards 327
                               UTM at Gofolo NE
                           -   The orientations are essentially perpendicular to the
                               main structural trends at the prospects.
Sample Security            -   All samples are stored in a secure and gated compound
                               at Tawana Resources Camp facility until handover to
                               the independent laboratory in Monrovia
Audits or Reviews          -   Field duplicates are reviewed periodically by Tawana
                               Resources technical staff and confirm the validity of
                               the current sampling practice
Mineral tenement and       -   All drilling has been conducted on the Mofe Creek
land tenure status             exploration license MEL-12029.
                           -   Tawana Resources is 100% holder of the Mofe Creek
                               exploration license.
Exploration done by        -   No other parties have conducted exploration on the
other parties                  license
Geology                    -   Mineralization is associated with moderately to steeply
                               dipping iron formation; likely metamorphosed BIF to
                               itabirite and recrystallised within a package of
                               intermixed      itabirite   and     amphibolite    and
                               hanging/footwall      basement    granite-gneiss.  The
                               itabirite is medium to coarse grained with relict
                               banded texture and is friable where weathered from
                               surface to an average depth of 25-45m vertical. In-situ
                               iron grades are increased where weathered to form an
                               enrichment blanket from surface to average 25-45m
                               vertical depth and locally higher iron grades are
                               associated with primary magnetite accumulations.

Data Compositing           -   Data composited using weighted average and a
                               maximum of 4m of consecutive internal dilution
Relationship between       -   Drilling has been planned to intersect mineralisation
mineralisation widths          perpendicular to strike and as near as possible to true
and intercept lengths
                               thickness of the lithological units hosting iron
                           -   Intersections through friable mineralisation associated
                               with the weathering profile are typically 25% longer
                               than vertical depth
Balanced reporting         -   All drill intersections have been included in the
                               appendices for received results and QA/QC reviewed
Other substantive          -   For initial exploration drilling conducted, refer to ASX
exploration data               release of 12th March 2013 and subsequent Gofolo Main
                               drilling intersections refer to ASX release of 20th
                               November 2013
Further Work               -   Further work will include diamond core drilling for
                               metallurgical test-work and twinning of RC drilling for

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