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TAWANA RESOURCES NL - 61.9 Mt Maiden Resources Estimate at Mofe Creek Project including indicated Resources of 16.2Mt

Release Date: 31/03/2014 13:14:00      Code(s): TAW       PDF(s):  
61.9 Mt Maiden Resources Estimate at Mofe Creek Project including indicated Resources of 16.2Mt

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”)


61.9Mt Maiden Resource Estimate at Mofe Creek
Project, including Indicated Resource of 16.2Mt
PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS
PURPOSES. PLEASE REFER TO TAWANA WEBSITE FOR THE
COMPLETE ANNOUNCEMENT

-    Maiden Mineral Resource estimate for the Mofe Creek Project of 61.9Mt at
     33% Fe
-    Includes an Indicated Mineral Resource of 16.2Mt at 35.4% Fe
-    Only 8km of a potential 65km prospective strike drilled to date; potential exists
     to significantly increase the current resource
-    The resource is coarse-grained, friable itabirite mineralisation, readily
     upgradable and outcropping from surface, leading to potentially low stripping
     ratios for mine development
-    Mineralisation upgradable to a potential 62-68% Fe premium product with
     extremely low Silica and Alumina levels (3%)
-    Scoping Study well advanced; completion targeted for July 2014

Tawana Resources NL (ASX: TAW) (“Tawana” or “the Company”) is very pleased
to announce its maiden estimated Mineral Resource for its 100% owned Mofe Creek
Iron Ore Project located in Grand Cape Mount County, Republic of Liberia, West
Africa (“Mofe Creek” or “Mofe Creek Project”).

A Maiden Mineral Resource of 61.9Mt with an in-situ iron grade of 33% (“Maiden
Mineral Resource”) has been calculated for the Mofe Creek Project and comprises
the Gofolo Main, Zaway and Koehnko deposits. The Maiden Mineral Resource
includes Indicated Mineral Resources of 16.2Mt at 35.4% Fe, with the balance of the
Mineral Resource classified as Inferred (45.7Mt at 32.1% Fe –refer summary Table 1
below).

Classification      Tonnes   Fe     SiO2     Al2O3    P        LOI     MnO      S     TiO2
                    (Mt)     (%)    (%)      (%)      (%)      (%)     (%)      (%)   (%)
Total Indicated     6        33.4   43.3     4.4      0.03     1.7     0        0     0.2
Zaway
Total Indicated     10.2     36.5   38.8     3.4      0.05     2.9     0.1      0.1   0.1
Gofolo Main
Total Indicated     16.2     35.4   40.5     3.8      0.04     2.5     0.1      0.1   0.1
Total Inferred      16       31     42.5     7.9      0.04     3.4     0        0     0.2
Koehnko
Total Inferred      6.3      33.7   40.9     5.7      0.03     3.3     0        0     0.3
Zaway
Total Inferred      23.4     32.5   36.3     8.4      0.04     5.8     0.1      0.1   0.3
Gofolo Main
Total Inferred      45.7     32.1   39.1     7.9      0.04     4.6     0.1      0.1   0.3
TOTAL Indicated +   61.9     33.0   39.5     6.8      0.04     4.0     0.1      0.1   0.2
Inferred
Table 1 | Summary Grade-Tonnage for Mofe Creek (20 % Fe lower cut-off is applied)



Commenting on the Maiden Mineral Resource, Tawana’s Managing Director Mr Len
Kolff said: “The Maiden Mineral Resource is a major milestone for Tawana in the
transition from an explorer to a developer. Classification of 16.2Mt in the Indicated
category as part of the Maiden Resource provides additional confidence in the
geological robustness of the Mofe Creek Project and is a critical step in allowing the
Company to assess the technical and economic viability of a proposed 1 to 2 Million
tonne per annum (Mtpa) early start-up operation (Stage 1 scenario) and a later stage
(Stage 2 scenario), 5 to 10Mtpa project”.

“Considering Tawana has only drilled 8km of a total 65km of potential interpreted
prospective strike within its 100% owned Mofe Creek licence area, the potential
expansion of the resource remains extremely viable” he said.

 “The Project’s proximity to existing infrastructure, recently commissioned mines and
an operational deep-water iron ore port in Monrovia, along with the confirmation that
the mineralisation is coarse-grained, high-grade friable itabirite with a 33.6% Fe
average grade and exceptionally low contaminants, sets the Mofe Creek Project
apart from other West African iron ore projects” he concluded.

“These dynamic attributes of the Resource and Project, coupled with the
mineralisation being at or near surface, with low strip-ratio potential for future mine
developments, places Tawana in an optimal position to fast-track the development of
its Mofe Creek Project, and provide reasonable prospects for eventual economic
extraction of the resources” Mr Kolff said. “Recent Metallurgical results also
confirmed the simple upgradability of the iron formation to a premium grade product
ranging from 62-68% Fe”.

Coffey Mining Pty Ltd (Coffey) was retained by Tawana Resource NL (Tawana) to
undertake the maiden resource estimates for three of the prospects (Gofolo Main,
Zaway and Koehnko) at their Mofe Creek Iron Ore Project in Liberia.

Technical Discussion

The Mofe Creek Project is located 80km northwest of the operating deep-water port
of Monrovia; the capital city of Liberia, West Africa. The project is well serviced by a
sealed bitumen road from Monrovia through the licence area that is located within 20
km of the Liberia coastline. The Company through its wholly owned Liberia
subsidiary Tawana Liberia Inc was granted mineral exploration licence MEL12029 in
December 2012 for a period of 3 years and renewable for an additional 2 years. The
Company has a 100% beneficial interest in the tenement.

The Mofe Creek deposits consist of a series of approximately 1 to 2km strike length
semi-contiguous hills with coincident magnetic anomalies within an approximate
65km strike length of prospective magnetic anomalies. The hills tested to date and
included within the Maiden Mineral Resource estimate are the Gofolo Main, Zaway
and Koehnko deposits, with additional hills yet to be tested.

Iron mineralisation is hosted within steeply to gently dipping, folded and faulted
coarse, partially recrystallised itabirite units of both oxide and minor silicate
composition of likely Archaean or Palaeoproterozic age. Three significant iron
formation units (IF) are recognized; a lower mixed oxide and silicate facies unit
(“IF1”), middle and most significant oxide dominant unit (“IF2”) and upper mixed
oxide and silicate facies unit (“IF3”). The iron formations occur within a mixed
bedded to massive metasedimentary sequence with cross-cutting intrusives, which
unconformably overlies granitic gneiss basement of the West African Archean
Craton.

Secondary recrystallisation of the itabirite units has caused recrystallisation,
coarsening and potential enrichment of the magnetite within the parent iron
formation. Deep, tropical weathering has caused surface enrichment of the iron
formation and oxidation of magnetite to hematite and variable hydration to goethite
and limonite.

Mineralogical work carried out as part of the early metallurgical test-work indicates
that the dominant iron oxides present are hematite (after oxidised magnetite) and
subordinate magnetite within the weathering profile, with goethite and limonite more
prevalent within weathered silicate iron facies units and towards the surface within a
ferruginous ‘hard-cap’, and magnetite dominant below base of oxidation.

Summary of Drilling
The deposits consist of a series of semi-contiguous hills with coincident magnetic
anomalies within an approximate 45km strike length magnetic anomaly corridor. The
iron formations appear to represent strike continuations of the Bomi Hills and Bong
Range iron ore mines, respectively 25km and 85km along strike to the east. The
main hills tested to date by RC and HQ3 diamond drilling on a nominal 200 x 60m
grid are the Gofolo Main (Figure 5), Zaway (Figure 6) and Koehnko (Figure 7)
deposits. A total of 97 RC drill holes were drilled for 7,781m during the 2012 and
2012-2013 programmes.

 A total of 17 DD drill holes were drilled for 1,229.7m during the 2012-2013
programme. All drilling was completed using an EDM-2000 multipurpose drill rig. The
diamond drilling was done for metallurgical sampling, geotechnical logging and for
twinning RC drill holes. The majority of RC samples were dry; drill sample moisture
content was recorded at 1m intervals to assess whether sample moisture could bias
sample recovery and assay. No significant bias was noted. Total recovered sample
weight was not recorded for the 2013 drill programme; total recovered RC sample
weight was recorded at 1m intervals for the 2013-2014 drill programme and used to
assess sample recovery. Recoveries in the top 20m of weathered material were less
favourable (30% to 40%) in much of the Phase 2 drilling, averaging 70% for below
this level. Diamond drilling recovery was recorded on site with a weighted average
88% for total hole and 85% for the main mineralized sections.

Summary of Sampling
Consecutive 1m RC drilling samples were riffle split to 1kg to 2.5kg samples and
combined to 2kg to 5kg 2m composites. Diamond holes were drilled at HQ3 core
diameter and sampled to geological contacts with a minimum sampling interval of
0.5m and a maximum of 2.0m. Drillhole logging was recorded in hardcopy format at
the drill site or the core shed as soon as practically possible and subsequently
entered into digital format spreadsheet. All drilling was done under a strict quality
control and assurance programme and the results of the QAQC programme provide
confidence on acceptable error limits. Drillhole collars were surveyed by a registered
surveyor using a differential global positioning system and tied into a UTM
WGS84_29N grid with survey control established within the prospect areas.
Downhole surveys on all drillholes for the 2013-2014 programme were completed
using a Reflex Gyrosmart survey system. The surface topography used in the
resource has been generated from a low accuracy survey derived from aerial
magnetic studies; the locations around the prospects were better defined using collar
positional data.

Summary of Analysis
All RC samples and diamond core halved using a diamond saw was dispatched for
sample preparation and analysis at the SGS Analytical Laboratory in Monrovia,
Liberia. Major elements were analysed through a lithium metaborate/tetraborate
mixture digest with XRF finish while LOI was measured by Thermo Gravimetric
Analysis at 1,000 degrees. The 2013 programme RC samples were sent to ALS
Liberia, for sample preparation and sent for assay at ALS Ireland of major and minor
elements by XRF fusion using method code ME-XRF21n. The 2013-2014
programme 2m RC composite samples and half diamond core were sent to SGS
Laboratory, Monrovia, Liberia, forpreparation and assay. Certified commercial
standards were sourced from Geostats, Perth with sample and particle sizes being
appropriate. Blank barren quartzite was sourced locally in Monrovia. Coffey also
visited the SH+GS laboratory in Monrovia to validate the sample prep and analytical
procedures; no material sample preparation and analytical issues were noted.

Summary of Estimation
Confidence in the geological model is based on a combination of detailed surface
geological mapping, sectional interpretation by Tawana Resources and West African
Geoservices (WAGS) and is adequate. The geology interpretation is supported by
comparison with downhole multi-element geochemistry and magnetic susceptibility.
A detailed review of diamond drillholes was completed utilising high-resolution core
photographs, magnetic susceptibility and down hole assays. The geological
interpretation based on surface geological mapping, sectional geological and
structural interpretation, down-hole multi-element geochemistry and magnetic
susceptibility is taken directly into the resource/volume model by wire-framing of the
relevant geological and stratigraphic units. Estimation is based on Ordinary Kriging
(OK), without grade capping, of the wire-frame domains. RC analytical data only was
used for the estimation, the results from the diamond drilling sampling not being
available at time of estimation. Vulcan and Isatis software were used for
interpretation/estimation and variography. Distance of extrapolation is generally in
the order of 50m or less. Fe is the primary commodity for the resource estimate and
a full suite of elements (SiO2, Al2O3, P, LOI, CaO, K2O, MgO, MnO, Na2O, S, TiO2) is
also estimated by OK with some of those elements considered to be deleterious (P,
SiO2 and Al2O3). The parent block size selected in relation to the nominal drillhole
spacing of 200m by 60m is 100m along strike, 30m down dip and 5m normal to the
plane of mineralisation for all deposits. Sub-celling to 2m x 2m x 1m was adopted to
adequately define the geometry of thinner geological units. Block estimates were
validated through a visual and statistical comparison of input sample versus
estimated block grades, number of samples used, average distance to informing
samples and other geostatistical parameters e.g. block kriging efficiency. Tonnage
estimates are based on in-situ dry bulk density measurements. Selective mining
units were not defined at this stage and the Maiden resource is considered to
represent a Global in situ resource model fit for conceptual mining studies.

Summary of Classification
No previous estimates or mine production estimates are in existence and the
currently published resource constitutes a Maiden Resource. A separate block model
check estimate was completed using a different parent cell discretisation system and
resulted in virtually the same resource. During resource classification, model blocks
extrapolated beyond the range of the variogram structures are not included. There
are therefore no Inferred Resources that are the result of extrapolation instead of
interpolation. The classified portion of the Gofolo Main resource has a strike extent of
approximately 2,000 m. A total strike length of 1,100m is indicated at Koehnko and of
1,400m at Zaway. At all prospects, vertical extents of mineralisation are restricted to
current drillhole depths in most cases. In general, drillholes extend to nominally less
than 100m below surface.

Summary of Cut-offs
Resources are reported above a nominal cut-off grade of 20% Fe; further work via
mining studies is required to define a series of economic mining cut-offs.

Summary of Mining Assumptions
Metallurgical test-work currently underway at ALS Perth utilising drill core will assess
both physical and chemical characteristics of the mineralisation and explore a range
of beneficiation products at various crush sizes. Current in-situ resources with
average grades of approximately 30% to 36% Fe extend to approximately 150m
below surface. Preliminary metallurgical test-work on representative RC samples
indicates that mineralisation is highly amenable to beneficiation through crushing and
gravity process. It is believed there are reasonable prospects of eventual economic
extraction with mining based on direct shipping material produced from standard
shallow open pit operations. The Mineral Resource for the Mofe Creek Project
categorised in accordance with the JORC Code 2012 is reported in Table 1 (for
Gofolo Main), Table 2 (for Zaway) and Table 3 (for Koehnko) deposits.

Scoping Study Update
With the announcement of the Maiden Resource, the Scoping Study is well
advanced and forecast to be released in July 2014. All consultant groups have
advanced their respective disciplines and the principles of the Scoping Study will be
to consider, design and potentially implement a two Stage development program for
the Mofe Creek Project. The proposed first stage will be for the production of 1 to 2
Mtpa of final product with Stage 2 being considered for the production of 5 to 10
Mtpa. Earth Systems in conjunction with EarthCons of Liberia have completed the
baseline scoping site visit in support of the Scoping Study and for the mapping of a
baseline monitoring programme for the Stage 1 development option and the Stage 2
Prefeasibility Study (PFS), scheduled to commence immediately after the release of
the Scoping Study Report. Coffey Mining of Perth are currently reviewing
geotechnical and hydrological mine design criteria, mine and tailing storage facility
design in support of the Scoping Study. PRDW of South Africa have completed a
desk top review of barging and transhipment options in support of the Stage 2 – 5 to
10Mtpa production scenario, and Tenova Bateman are advancing the processing
and engineering design for both production stages.

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 62-68% 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 to 2 Mtpa, as well as a longer-term
project capable of producing 5 to 10 Mtpa of premium 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
Managing Director
Tel: +61 7 3510 2115
Mob: +61 424 942 589
Detailed information on all aspects of Tawana’s projects can be found on the
Company’s website www.tawana.com.au.

31 March 2014
PricewaterhouseCoopers Corporate Finance (Pty) Ltd


Competent Persons Statement
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Len Kolff and Iain Macfarlane, who are members of the Australian Institute of
Geoscientists. Len Kolff 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’. Iain Macfarlane is a full-time employee of Coffey
Mining Ltd 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’ Len
Kolff and Iain Macfarlane consent to the inclusion in the report of the matters based on his information in the form
and context in which it appears. Relevant CP initials are presented under the competent person column in the
attached JORC code 2012 Table 1.

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.

                                                         Mofe Creek Iron Ore Deposit
                                            Summary Table - Gofolo Main In situ Mineral Resource
                                                              March 2014 OK Model
                               Grade tonnage distributions subdivided by JORC Code 2012 Resource Categories
                                                           Using ROUNDED figures
                                                        20% Fe lower cutoff is applied

Classification     Material  Tonnes   Fe      SiO2    Al2O3     P      LOI       CaO    K2O      MgO      MnO    Na2O    S     TiO2
                    Type     (Mt)     (%)      (%)      (%)    (%)     (%)       (%)    (%)      (%)     (%)     (%)    (%)    (%)
                                                      Surface Enriched Mixed Material
   Inferred         Cap       6.3      32.4    27.8     13.6   0.04   10.0       0.0     0.0     0.1     0.1     0.0     0.1    0.5
                                                           Iron Formation (Itabirite)
Indicated         Oxidised    4.7      36.0    36.0     5.4    0.05    4.8       0.5     0.1     1.2     0.1     0.0     0.1    0.2
                  Fresh       5.5      37.0    41.2     1.6    0.05    1.2       0.8     0.1     1.9     0.1     0.0     0.1    0.1

Inferred           Oxidised   4.1      36.4    33.8     6.3    0.05    5.5       0.6     0.1     0.9     0.1     0.0     0.1    0.2
                   Fresh      7.9      34.8    41.9     3.0    0.05    1.7       1.0     0.2     1.8     0.1     0.1     0.1    0.1
Total Indicated + Inferred    22.3     35.9    35.9     3.8    0.05    2.9       0.8     0.1     1.5     0.1     0.0     0.1    0.1
                                                            Metasediments etc
Inferred           Oxidised    5.0      25.8    40.2     12.0    0.04   6.3       1.2     0.4     2.0     0.2     0.1     0.1    0.4
                   
                                                                  Totals
Total Indicated               10.2     36.5    38.8     3.4     0.05    2.9      0.7     0.1     1.6     0.1     0.0     0.1    0.1
Total Inferred                23.4     32.5    36.3     8.4     0.04    5.8      0.7     0.2     1.2     0.1     0.1     0.1    0.3
Total Indicated + Inferred    33.6     33.7    37.1     6.9     0.05    4.9      0.7     0.1     1.3     1.0     0.0     0.1    0.2

Table 2| Summary Table Mineral Resources Gofolo Main


                                                         Mofe Creek Iron Ore Deposit
                                               Summary Table - Zaway In situ Mineral Resource
                                                               March 2014 OK Model
                               Grade tonnage distributions subdivided by JORC Code 2012 Resource Categories)
                                                            Using ROUNDED figures
Classification     Materia   Tonnes    Fe     SiO2     Al2O3     P       LOI       CaO   K2O    MgO      MnO    Na2O         S      TiO2
                   l Type     (Mt)    (%)     (%)      (%)      (%)      (%)       (%)   (%)    (%)     (%)      (%)        (%)     (%)

                                                          Surface Enriched Mixed Material
Inferred           Cap        1.3     33.6    31.7     10.7     0.04      8.5      0.1   0.1    0.1     0.0      0.0        0.0     0.5
                                                            Iron Formation (Itabirite)
Indicated          Oxidised   2.3     33.3    42.4     5.1      0.03      2.8      0.5   0.1    0.8     0.0      0.0        0.0     0.3
                   Fresh      3.6     33.5    44.0     3.8      0.03      0.9      0.9   0.2    1.4     0        0.0        0.0     0.2

Inferred           Oxidised   2.17    32.9    41.9     5.8      0.0       3.3      0.3   0.1    0.6     0.1      0.0        0.0     0.3
                   Fresh      2.91    34.4    44.2     3.4      0.03      1.12     0.5   0.2    0.9     0.0      0.0        0.0     0.2


Total Indicated + Inferred    11.1    33.6    43.3     4.4      0.03      1.8      0.6   0.1    1.0     0.0      0.0        0.0     0.2
                                                                  Totals
Total Indicated               6.0     33.4    43.3     4.4      0.03      1.7      0.7   0.2    1.1     0.0      0.0        0.0     0.2
Total Inferred                6.3     33.7    40.9     5.7      0.03      3.3      0.4   0.1    0.6     0.0      0.0        0.0     0.3
Total Indicated + Inferred    12.3    33.6    42.1     5.1      0.03      2.5      0.5   0.1    0.9     0.0      0.0        0.0     0.2


Table 3| Summary Table Mineral Resources Zaway


                                                          Mofe Creek Iron Ore Deposit
                                             Summary Table - Koehnko In situ Mineral Resource
                                                               March 2014 OK Model
                               Grade tonnage distributions subdivided by JORC Code 2012 Resource Categories)
                                                            Using ROUNDED figures
                                                         20% Fe lower cutoff is applied

Classification     Material     Tonnes    Fe     SiO2     Al2O3      P       LOI     CaO    K2O   MgO     MnO     Na2O     S     TiO2
                      Type       (Mt)     (%)    (%)       (%)      (%)      (%)     (%)    (%)    (%)    (%)     (%)     (%)    (%)
                           
                                                      Surface Enriched Itabiritic Material
 Inferred           Cap         6.9      36.8    33.4      8.4       0.03    4.7     0.0    0.4   0.1     0.0     0.0     0.1     0.2
                                                             Iron Formation (Itabirite)
Inferred            Oxidised    3.1      30.0    45.8      7.2       0.06    2.9     0.2    0.6   0.4     0.1     0.1     0.0     0.1
                                1.9      31.9    47.0      3.2       0.06    0.1     1.1    1.0   2.1     0.0     0.2     0.0     0.1
                    Fresh
Total Indicated + Inferred

                                                             Metasediments etc
Total Indicated    Oxidised     4.1      21.6    53.0      9.7       0.05    3.0     0.4    1.5    1.0    0.0     0.2     0.0     0.2
                   
                                                                   Totals
Total Inferred                 16.0     31.0    42.5       7.9       0.04    3.4     0.3    0.8    0.6    0.0     0.1     0.0     0.2


Table 4 | Summary Table Mineral Resources Koehnko

The following extract from the JORC Code 2012 Table 1 is provided for compliance with the Code
requirements for the reporting of Mineral Resources:
(CPs: LK Len Kolff; IM Iain Macfarlane)

SECTION 1 SAMPLING TECHNIQUES AND DATA (Criteria in this section apply to all succeeding
sections).

Criteria           JORC Code Explanation                               Commentary                                       Competent
                                                                                                                        Person
Sampling     -Nature and quality of sampling (eg cut         -The Mofe Creek deposits were sampled           LK
techniques   channels, random chips, or specific              using Reverse Circulation (RC) and HQ3
             specialised industry standard measurement        diamond drill holes (DD) on a nominal 200 x
             tools appropriate to the                         60m grid spacing. A total of 97 RC drill
             minerals under investigation, such as down       holes were drilled for 7,781m during two
             hole gamma sondes, or                            phases of drilling in 2013 and 2013-2014. A
             handheld XRF instruments, etc). These            total of 22 RC holes for 2,418m was drilled
             examples should not be taken as                  during the 2013 programme and 33 RC
             limiting the broad meaning of sampling.          holes for 5,362m during the 2013-2014
             -Include reference to measures taken to          programme. Sampling techniques and logging
             ensure sample representivity and the             were common to both phases of RC whilst the
             appropriate calibration of any easurement        2013 programme analyses were
             tools or systems used.                           conducted by ALS Liberia/Ireland and the
             - Aspects of the determination of                2013-2014 programme analyses by SGS
             mineralisation that are Material to the          Liberia.
             Public Report.                                   - The DD was used for metallurgical
             - In cases where ‘industry standard’ work        samples, geotechnical logging and to ‘twin’
             has been done this would be                      the RC
             relatively simple (eg ‘reverse circulation       drill holes. A total of 17 DD drill holes were
             drilling was used to obtain 1m samples           drilled for 1,229.73m during the 2012-
             from which 3kg was pulverised to produce         2013 programme.
             a 30g charge for fire assay’). In other cases    - RC samples were taken at consecutive 1m
             more explanation may be required, such as        intervals down hole and riffle split to 1-
             where there is coarse gold that has              2.5kg. 2m intervals were then combined for a
             inherent sampling problems. Unusual              total sample mass of 2-5kg and then
             commodities or mineralisation types (eg          dispatched for sample preparation at ALS
             submarine nodules) may warrant                   Liberia and analysis at ALS Ireland during
             disclosure of detailed information.              the 2013 programme, and SGS Monrovia,
                                                              Liberia, for preparation and analysis during
                                                              the 2013-2014 programme.
                                                              - The majority of RC samples were dry; wet
                                                              or moist RC samples were scooped from the
                                                              1m interval sample bag and then composited
                                                              to form a 2-5kg sample representative of
                                                              the 2m interval.
                                                              -?DD twin holes were drilled at HQ3 core
                                                              diameter and sampled to geological contacts
                                                              at
                                                              a minimum sampling interval of 50cm and
                                                              maximum sampling interval of 2m. Drill
                                                              core was halved normal to the dominant
                                                              fabric using a diamond core saw and
                                                              dispatched for sample preparation and
                                                              analysis at SGS Monrovia, Liberia.
                                                              - ?2013 programme RC samples were dried
                                                              at 105o C and matt rolled in their entirety to
                                                              3.35mm; an 800g sub-sample was riffle split,
                                                              pulverised through an LM2 ‘ring and
                                                              puck’ mill with at least 85% of the material
                                                              passing 75 micron (200 Mesh); a subsample
                                                              sachet was filled by scooping from the LM2
                                                              and sent to ALS Ireland for assay.
                                                              - 2013-2014 programme 2-5kg RC samples
                                                              were crushed in their entirety to 75%
                                                              passing 2mm from which a 1.5kg riffle split
                                                              was pulverised by ring & puck mill to 85%
                                                              passing 75?m and a 200g charge scooped for
                                                              analysis.
                                                              - 1-10kg DD samples were crushed in their
                                                              entirety to 85% passing 2mm from which a
                                                              1kg riffle split was pulverised by ring & puck
                                                              mill to 85% passing 75?m and a 200g
                                                              charge scooped for analysis at SGS Liberia for
                                                              the 2013-2014 programme.
Criteria     JORC Code Explanation                            Commentary                                         Competent
                                                                                                                Person
Drilling     - Drill type (eg core, reverse circulation,      -50-60o angled RC drilling, normal to             LK
techniques     open-hole hammer, rotary air blast,            formation dip, was completed using a 5.5 inch
               auger, Bangka, sonic, etc) and details (eg     face sampling hammer operating off a multi-
               core diameter, triple or standard              purpose EDM-2000 drill rig with a Sullair
               tube, depth of diamond tails, face-            1350cfm compressor at 500psi linked to a
               sampling bit or other type, whether core       Hurricane 1800cfm at 900psi booster. 6 RC
               is oriented and if so, by what method,         holes were drilled vertically for geology and
               etc).                                          piezometer installation.
                                                              -50-60o angled DD holes were completed
                                                              using the same multi-purpose rig with HQ3
                                                              drill rods and HQ3 standard and triple tube
                                                              barrels sample recovery on a wire line
                                                              system. One DD tail was completed but all other
                                                              holes were cored from surface.
                                                              - DD core orientation was completed within
                                                              more competent zones where possible
                                                              using the pencil and spear method. Confidence
                                                              levels between oriented runs were
                                                              assigned on the basis of 1, 2, 3 or more
                                                              consecutive run orientation lines aligned.
                                                              - RC drillhole depths range from 36m to
                                                              162m from surface and DD hole depths range
                                                              from 20m to


Drill sample   -?Method of recording and assessing            - Total recovered sample weight was not             LK
recovery       core and chip sample recoveries and            recorded for the 2013 drill programme. For
               results assessed.                              the 2013-2014 drill programme the total
               -?Measures taken to maximise sample            recovered RC sample weight was recorded at
               recovery and ensure representative             1m intervals and used to assess sample
               nature of the samples.                         recovery during the second phase programme.
               -?Whether a relationship exists between        - For the 2013-2014 drill programme
               sample recovery and grade and                  estimated RC recovery averaged 30-40% for
               whether sample bias may have occurred          the due to preferential loss/gain of    
               fine/coarse material.                          top 20m and averaged 70% for the below 20m
                                                              depth samples. RC sample recovery for
                                                              the 2013 programme was not assessed;
                                                              however given the same drilling contractor,
                                                              drill rig and sampling methodology it is
                                                              considered likely to be comparable to the
                                                              2013-2014 programme.
                                                              - RC drill sample moisture content was
                                                              recorded at 1m intervals to assess whether
                                                              sample moisture could bias sample recovery
                                                              and assay. No significant bias was noted.
                                                              - A twin hole assay review of 3 DD twins was
                                                              completed and no significant bias was
                                                              noted. A twin hole photo review of 9 DD holes
                                                              was completed and confirmed                                                          significant mineralised intervals and contacts.
                                                              - Recovery of diamond drilling was recorded
                                                              on site with a weighted average 88% (total
                                                              hole) and 85% for the main mineralised
                                                              sections.                                                         ?

Crigteria      JORC Code Explanation                       Commentary                                          Competent
                                                                                                               Person
               - Whether core and chip samples have        - All RC drill holes were geologically logged       LM
               been geologically and geotechnically        on paper at 1m intervals for colour,
Logging        logged to a level of detail to support      weathering, grain size, fabric, relative hardness
               appropriate Mineral Resource                (based on rate of drill penetration),
               estimation, mining studies and              dominant mineralogy, lithology, magnetic
               metallurgical studies.                      susceptibility, moisture content and general
               - Whether logging is qualitative or         observations in standard company template
               quantitative in nature. Core (or costean,   using a standard code library.
               channel, etc) photography.                  - All DD drill holes were geologically logged
               - The total length and percentage of the    on geological intervals respectively for
               relevant intersections logged.?             colour, weathering, grain size, fabric,
                                                           mineralogy, lithology and general observations.
                                                           - All DD holes were geotechnically logged on
                                                           core run intervals for recovery, RQD,
                                                           lithology, weathering, strength, defects
                                                           (including number of defects, defect sets,
                                                           defect type, defect character, orientation line
                                                           reliability, defect roughness, infill type,
                                                           infill width and broken zones), structures
                                                           (including types of structures, alpha and
                                                           beta angles) and general comments.
                                                           - All DD holes were logged on 1m intervals for      IM
                                                           magnetic susceptibility.
                                                           - Logging is both qualitative (e.g. colour and
                                                           lithology) and quantitative (e.g. measured
                                                           magnetic susceptibility, RQD, core structural
                                                           orientations).
                                                           - Logging is of sufficient quality and detail for
                                                           use in mineral resource studies.?

Sub-          - If core, whether cut or sawn and           Where dry, RC samples were riffle split during      LM
sampling      whether quarter, half or all core taken.     drilling through a 2-tier riffle splitter at
techniques    -?If non-core, whether riffled, tube         1m intervals, which were subsequently
and           sampled, rotary split, etc and whether       combined in their entirety to form 2m
sample        sampled wet or dry.                          composites. The riffle splitter was cleaned
preparation   - For all sample types, the nature,          between each sample run.
              quality and appropriateness of the           - The majority of RC samples were dry,
              sample                                       however wet/moist samples were scooped
              preparation technique.                       from
              - Quality control procedures adopted         the 1m interval sample bag and composited to
              for all sub-sampling stages to maximise      form a 2-5kg samples on 2m intervals.
              representivity of samples.                   - 2013 programme RC samples were sent to
              - Measures taken to ensure that the          ALS Liberia, dried at <105oC, matt rolled to
              sampling is representative of the in situ    3.35mm in their entirety, an 800g sub-sample
              material collected, including for instance   was riffle split, pulverised through an
              results for field duplicate/secondhalf       LM2 ‘ring and puck’ mill with at least 85% of
              sampling.                                    the material passing 75 micron (200
              - Whether sample sizes are appropriate       Mesh) and a final subsample scooped into a
              to the grain size of the material being      sample sachet and sent for assay at ALS
              sampled.?                                    Ireland of major and minor elements by XRF
                                                           fusion using method code ME-XRF21n.
                                                           - The 2013-2014 programme 2m RC
                                                           composite samples were bagged and sent to
                                                           SGS
                                                           Laboratory, Monrovia, Liberia for preparation
                                                           and assay. 2-5kg RC samples were dried
                                                           and crushed in their entirety to 75% passing
                                                           2mm from which a 1.5kg riffle split was
                                                           pulverised by ring & puck mill to 85% passing
                                                           75 m and a 200g charge scooped into a
                                                           sachet for analysis.
                                                           - DD core was sawn perpendicular to fabric
                                                           using a diamond core saw and the 1-10kg
                                                           DD samples were dried and crushed in their
                                                           entirety to 85% passing 2mm from which
                                                           a 1kg riffle split was pulverised by ring & puck    IM
                                                           mill to 85% passing 75?m and a 200g
                                                           charge scooped into a sachet for analysis.
                                                           - Field standards, blanks and duplicates were
                                                           inserted at a ratio of approximately 1 in
                                                           16. Certified commercial standards (low,
                                                           medium and high-grade) were sourced from
                                                           Geostats Perth with sample and particle sizes
                                                           being appropriate for the target mineral.
                                                           Blank material (barren quartzite) was sourced
                                                           locally in Monrovia, Liberia.
                                                           - The sampling techniques are considered
                                                           appropriate and provide a representative
                                                           sample for assaying.?
Criteria      JORC Code Explanation                        Commentary                                          Competent
                                                                                                               Person

Quality of    - The nature, quality and                    - Assaying of RC samples conducted by ALS           LK
assay         appropriateness of the assaying and          used industry standard techniques. A                IM
data and      laboratory                                   prepared sample (0.66 g) is fused with a 12:22
laboratory    procedures used and whether the              lithium metaborate – lithium tetraborate
tests         technique is considered partial or total.    flux which also includes an oxidizing agent
              -?For geophysical tools, spectrometers,      (Lithium Nitrate), and then poured into a
              handheld XRF instruments, etc, the           platinum mould. The resultant disk is in turn
              parameters used in determining the           analysed by XRF spectrometry. The XRF
              analysis including instrument make           analysis is determined in conjunction with a
              and model, reading times, calibrations       loss-on-ignition at 1000°C. The resulting
              factors applied and their                    data from both determinations are combined to
              derivation, etc.                             produce a “total”. If the analysis is
              - Nature of quality control procedures       accurate, the pre-normalised total should
               adopted (eg standards, blanks,              approximate 100%. Once the data have been
               duplicates, external laboratory checks)     reviewed and considered acceptable, the data
               and whether acceptable levels of            may be normalised (except for the LOI) if
               accuracy (ie lack of bias) and precision    required, before the final results are reported.
               have been established.                      ALS QC protocol requires that each batch
                                                           of 40 samples analysed include a reagent blank,
                                                           2 replicate determinations and 2
                                                           standard materials.
                                                           - Assaying of RC and DD samples conducted
                                                           by SGS used industry standard techniques. All
                                                           assaying conducted by lithium metaborate /
                                                           lithium tetraborate mixture digest and XRF
                                                           finish for major elements and Thermo
                                                           Gravimetric Analysis (TGA) for loss on ignition.
                                                           Certified standards, blanks and field duplicates
                                                           were inserted every 50th sample by
                                                           Tawana geologists in the field. 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 (re-split) in 40
                                                           and 1 Standard Reference Material in 40.
                                                           SGS laboratory conducts internal QA/QC on
                                                           sample preparation with every 50th sample
                                                           screened to confirm % passing 2 mm and 75
                                                           m; crusher and pulverizers are cleaned
                                                           with barren material at the start of every batch
                                                           and % dust loss is determined once per
                                                           week.
                                                           - The Tawana QAQC sample results are
                                                           assessed from the certificated laboratory
                                                           reports
                                                           and show acceptable levels of accuracy and
                                                           precision with respect to known values in
                                                           the case of standards and blanks, and the
                                                           correlated duplicate and prime samples.
                                                           - Coffey has completed an independent
                                                           review of the available QAQC data for both the
                                                           2013 and 2013-2014 drill programs and
                                                           determined that the data quality is fit for
                                                           purpose...

Verification   - The verification of significant           - Alternative company personnel have               LK
of               intersections by either independent or    verified significant intersections by direct
sampling         alternative company personnel.            correlation with available drill core photos and
and            - The use of twinned holes.                 geological logs.
assaying       - Documentation of primary data, data       - A twinhole and metallurgical programme of
                 entry procedures, data verification,      12 DD holes was completed; however only
                 data storage (physical and electronic)    twin assay data for 3 pairs was available. Twin
                 protocols.                                hole DD assays are comparable with the
               - Discuss any adjustment to assay data.     - RC holes. Inspection of mineralised intervals
                                                           and geological contacts within DD hole core
                                                           photographs shows positive correlation with
                                                           RC hole intersections.
                                                           - No adjustments have been made to the
                                                           assay data.
                                                           - Coffey is satisfied that the verification
                                                           programme using twin holes, although limited,
                                                           is
                                                           relevant and does not indicate any possible
                                                           issues.                                                                                                           IM

Location of    -Accuracy and quality of surveys used      - Drillhole collars were surveyed using DGPS     LK
data           to locate drillholes (collar and            by a registered surveyor (Geosurvey
points         down-hole surveys), trenches, mine          Systems) and tied into a UTM WGS84_29N grid.
               workings and other locations used in        - Survey control stations have been
               Mineral Resource estimation.                established within the prospect areas.
               -Specification of the grid system used.    -Downhole surveys for the 2013-2014
               -Quality and adequacy of topographic       programme were completed on all drillholes
               control.                                    using
                                                           a Reflex Gyrosmart survey system installed
                                                           with Gyro Gimmit 5 software that
                                                           automatically carries out and checks QAQC
                                                           after each survey. If the QAQC fails, the
                                                           survey is re-run. No down-hole surveys were
                                                           carried during the 2013 programme.
                                                           - The surface topography used in the resource
                                                           has been generated from a low accuracy
                                                           survey derived from aerial magnetic studies;
                                                           the locations around the prospects were            IM
                                                           better defined using collar positional data.
                                                           Coffey recommends that a DTM of the main
                                                           areas accurate to 1m is prepared in the future.
                                                           The topographic control is adequate for
                                                           the current phase of works.

Data           Data spacing for reporting of               - The drilling was conducted on an                 LK
spacing        Exploration Results.                        approximate 200m x 60m NW-SE orientated
and            - Whether the data spacing and              grid for
distribution   distribution is sufficient to establish the the Gofolo Main and Koehnko deposits and
               degree of geological and grade continuity   200m x 50m E-W orientated grid for the
               appropriate for the Mineral                 Zaway deposit. Some small areas of infill
               Resource and Ore Reserve estimation         drilling to 100x50m spacing were completed at
               procedure(s) and classifications            the Zaway deposit to close off mineralisation.
               applied.                                    -All RC drilling was sampled at 1m intervals.
               -Whether sample compositing has been       These samples were manually composited to
               applied.?                                   2m intervals for assay. The 2m sample interval
                                                           is considered sufficient to define
                                                           geological and grade continuity for the mineral
                                                           resource definition.
                                                           -DD holes were drilled at 1.5m runs through
                                                           the overburden and at 3m runs to end of hole
                                                           in more competent materials. All DD drilling
                                                           was sampled to geological intervals with a
                                                           minimum 50cm and maximum 2m sample
                                                           interval.
               - Whether the orientation of sampling       - Drill orientations were perpendicular to         LK

Orientation    achieves unbiased sampling of               structures at each individual prospect and the
of             possible structures and the extent to       majority of drillholes intersected true or near-
data in        which this is known, considering the        true mineralisation widths.
relation       deposit type.                               -Good outcrop and surface structural
to             - If the relationship between the drilling  mapping provides confidence that drilling was
geological     orientation and the orientation of          completed perpendicular to structures.
structure      key mineralised structures is considered    -RC holes along the south-west flank of
               to have introduced a sampling               Zaway were recognised to have drilled partly
               bias, this should be assessed and           down-dip and accordingly DD holes were
               reported if material.?                      drilled in the opposite orientation to assess
                                                           mineralised structures.
                                                           - Overall, the dominant drilling orientation is
                                                           considered to not have introduced a
                                                           sampling bias.
                                                           - Two geotechnical DD holes were completed
                                                           at each prospect in the opposite orientation
                                                           to all other RC and DD holes to check for any
                                                           possible geotechnical sampling bias. No
                                                           significant bias was recorded.?

Sample         - The measures taken to ensure sample       - All sample batches were bagged, packed and       LK
security       security.                                   transported from the drill site to the
                                                           laboratory by dedicated Tawana personnel.

Audits or      - The results of any audits or reviews of   - Sampling techniques and data were                LK
reviews        sampling techniques and data.?              regularly reviewed by internal company staff.
                                                           -Coffey has reviewed sampling, logging and
                                                           surveying protocols during the site visit and      IM
                                                           has carried out a limited audit of the SGS
                                                           laboratory in Monrovia. Coffey is satisfied that
                                                           all sampling, logging?
SECTION 2 REPORTING OF EXPLORATION RESULTS (Criteria listed in the preceding section also
apply to this section).

Criteria      JORC Code Explanation                      Commentary                                         Competent
                                                                                                            Person
Mineral       Type, reference name/number, location      - MEL12029 is located within the Grand Cape        LK
tenement      and ownership including                    Mount and Bomi counties of
and           agreements or material issues with third   Liberia and is 100% held by Tawana Liberia
land tenure   parties such as joint                      Inc, a wholly owned subsidiary
status        ventures, partnerships, overriding         of Tawana Resources NL.
              royalties, native title interests,         - There are no known impediments or
              historical sites, wilderness or national   material issues related to security of
              park and environmental                     tenure at the time of reporting.
              settings.
              - The security of the tenure held at the
              time of reporting along with
              any known impediments to obtaining a
              licence to operate in the
              area.

Exploration   - Acknowledgment and appraisal of          - The Mofe Creek project is a grassroots           LK
done by       exploration by other parties.              discovery with no previous mineral
other                                                    exploration or other work completed.?
parties

Geology       -Deposit type, geological setting and     - The Mofe Creek project is characterised by a     LK
              style of mineralisation.?                  series of itabirite hosted iron
                                                         ore deposits of likely Archean or
                                                         Palaeproterozoic age as possible strike
                                                         continuations of the historic Bomi Hills and
                                                         Bong Range mines.
                                                         - Mineralisation is hosted within banded iron
                                                         formations (BIFs) that have
                                                         undergone regional metamorphism and
                                                         recrystallization to itabirite and
                                                         likely additional recrystallization to coarse
                                                         grained, coarsely banded
                                                         magnetite-hematite itabirite as seen today. A
                                                         minimum of one and up to
                                                         three major itabirite bands are recognised
                                                         stratigraphically of both silicate
                                                         and oxide iron formation facies and
                                                         interbedded with metasediments
                                                         (variably garnet overprinted), Fe rich mafics
                                                         and quartzites. Collectively the
                                                         iron units and interbedded metasediments can
                                                         be considered a ‘greenstone’
                                                         belt that unconformably overlies granite/gneiss
                                                         basement.
                                                         - The sequence has been folded and faulted
                                                         through at least two major
                                                         phases of deformation causing recrystallization,
                                                         increase in average grain
                                                         size and potential enrichment of the itabirite
                                                         units.
                                                         - The sequence has then been subject to
                                                         intense tropical weathering causing
                                                         oxidation of magnetite to hematite, and
                                                         variable hydration to goethite and
                                                         limonite within the upper 30-60m thick
                                                         weathering profile.
                                                         - Some minor faults are recognised in the
                                                         Gofolo Main prospect but are not
                                                         considered to have a major influence on the
                                                         currently established resource;
                                                         they will be incorporated into resource
                                                         modelling when further infill
                                                         drilling has become available.

Drillhole     - A summary of all information material    - All relevant information material to the         LK
Information     to the understanding of                  understanding of exploration
              the exploration results including a        results has been included within the body of
                 tabulation of the following             the announcement or as rmation for all Material drillholes:      appendices.
                -easting and northing of the             -No information has been excluded.
                 drillhole collar                        -No exploration drilling results are reported
                 -elevation or RL (Reduced Level –       as part of this submission.
                 elevation above sea level in            -Given the style and nature of mineralisation
                 metres) of the drillhole collar         reported, extreme effects due
                                                         to volume variance (“nugget effect”) are
                 -dip and azimuth of the hole            considered low and not significant
                 -down hole length and interception      to the style of mineralisation being reported.
                 depth                                   -No metal equivalent grades have been
                 -hole length                            reported.
                 -If the exclusion of this information is
                 justified on the basis that
                 the information is not Material and this
                 exclusion does not
                 detract from the understanding of the
                 report, the Competent
                 Person should clearly explain why this is
                 the case.

Data               In reporting Exploration Results,      No exploration drilling results are reported as   LK
aggregation        weighting averaging techniques,        part of this submission.
methods            maximum and/or minimum grade           - Given the style and nature of mineralisation
                   truncations (eg cutting of high        reported, extreme effects due
                   grades) and cut-off grades are usually to volume variance (“nugget effect”) are
                   Material and should be                 considered low and not significant
                   stated.                                to the style of mineralisation being reported.
                   - Where aggregate intercepts           - No metal equivalent grades have been
                   incorporate short lengths of high      reported.
                   grade results and longer lengths of low
                   grade results, the
                   procedure used for such aggregation
                   should be stated and some
                   typical examples of such aggregations
                   should be shown in detail.
                   - The assumptions used for any
                   reporting of metal equivalent
                   values should be clearly stated.

Relationship       - These relationships are particularly       - The majority of drilling intercepts are         LK
between            important in the reporting of                broadly perpendicular to strike and
mineralisation     Exploration Results.                         dip of structures and mineralised units;
widths and         - If the geometry of the mineralisation      drilling results are near-true to true
intercept          with respect to the drillhole                widths of mineralisation.
lengths            angle is known, its nature should be
                   reported.
                   - If it is not known and only the down
                   hole lengths are reported,
                   there should be a clear statement to this
                   effect (eg ‘down hole
                   length, true width not known’).

Diagrams           - Appropriate maps and sections (with        - All relevant plan maps and typical cross-       LK
                   scales) and tabulations of                   sections have been included in the
                   intercepts should be included for any        body of the announcement.
                   significant discovery being
                   reported These should include, but not
                   be limited to a plan view
                   of drillhole collar locations and
                   appropriate sectional views.

Balanced           -?Where comprehensive reporting of           - Where exploration drilling results have         LK
reporting          all Exploration Results is not               been reported; all results are
                   practicable, representative reporting of     reported with no exclusions.
                   both low and high grades                     - Where surface rock chip samples or hand
                   and/or widths should be practiced to         auger results are reported, the
                   avoid misleading reporting                   total number of samples collected, the average
                   of Exploration Results.                      and a range of assay results
                                                                have been reported.

Other          - Other exploration data, if meaningful     - All relevant regional and prospect scale        LK
substantive    and material, should be                     geological observations and
exploration    reported including (but not limited to):    geophysical survey results are included in
data           geological observations;                    relevant announcements
               geophysical survey results; geochemical     accordingly.
               survey results; bulk                        - Reconnaissance metallurgical and follow-
               samples – size and method of treatment;     up test-work programmes
               metallurgical test                          completed to date have utilised RC samples
               results; bulk density, groundwater,         completed during the 2013
               geotechnical and rock                       programme. Sample size and method of
               characteristics; potential deleterious or   treatment is considered sufficient
               contaminating                               for the reconnaissance phase test-work.
               substances.                                 - Geotechnical logging has been completed
                                                           by in-house trained staff using
                                                           industry recognised practices. Geotechnical
                                                           logging has been independently reviewed and
                                                           audited by Coffey with no significant issues
                                                           identified.
                                                           - Dry HQ3 whole core bulk density was
                                                           measured by ALS laboratories, Perth,
                                                           under stringent laboratory conditions. Sixty
                                                           (60) measurements of
                                                           representative core for each lithology and
                                                           degree of weathering were taken
                                                           from full HQ3 core metallurgical samples
                                                           utilising the wax immersion
                                                           method.

Further work   - The nature and scale of planned           - Further work has been defined for resource        LK
               further work (eg tests for lateral          strike extensions, resource
               extensions or depth extensions or large-    infill drilling to increase levels of confidence
               scale step-out drilling).                   and exploration drilling on
               - Diagrams clearly highlighting the         additional target footprints.
               areas of possible extensions,               -?Approximately 12,000m of infill and strike
               including the main geological               extension RC and 3,000m of DD
               interpretations and future drilling         is planned for the next drill phase in support of
               areas, provided this information is not     a pre-feasibility study.
               commercially sensitive.                     - Metallurgical test-work will be carried out
                                                           on representative, full diamond
                                                           core samples for subsequent work.
                                                           Approximately 3,000kg of HQ3 drill
                                                           core from Gofolo Main and Zaway is currently
                                                           with ALS Perth for extensive
                                                           test-work in support of the Scoping Study.
                                                           - Additional diamond twinning and infill DD
                                                           holes will be completed to
                                                           increase confidence in geological
                                                           interpretations and RC sample
                                                           representivity to alleviate poor recovery
                                                           within the weathered horizon.
                                                           - Routine addition of density measurements
                                                           of all material types on site will
                                                           be ongoing.

Database       - Measures taken to ensure that data        - All logging was carried out at the drill rig      LK
integrity      has not been corrupted by,                  for RC drilling and at the core shed
               for example, transcription or keying        for DD. except recovery logging which was
               errors, between its initial                 recorded during the DD drilling.
               collection and its use for Mineral          All logging was recorded in hard copy format
               Resource estimation purposes.               and then entered manually
               -?Data validation procedures used.          into spreadsheet format using company
                                                           standardised logging sheets and
                                                           codes. Copies of all hardcopy logs and assay
                                                           certificates are kept on site and
                                                           at the Monrovia office.
                                                           - Routine checks are conducted by a
                                                           dedicated company geologist.                        IM
                                                           - Coffey has conducted its own validation
                                                           process on the data, with checks
                                                           looking for missing/overlapping intervals,
                                                           missing data, extreme values. No
                                                           material issues were noted.

Site visits      - Comment on any site visits               - Iain Macfarlane of Coffey visited the site       IM
                 undertaken by the Competent Person         during December 2013. During the
                 and the outcome of those visits.           visit, diamond drilling only was being carried
                 - If no site visits have been undertaken   out and core logging
                 indicate why this is the                   procedures were observed. Core sampling was
                 case.                                      not being undertaken at the
                                                            time since the diamond core saw was not yet
                                                            in place. Data from the RC
                                                            drilling undertaken at an earlier date was
                                                            reviewed. Operations and
                                                            processes observed were judged as
                                                            undertaken to industry standard.
                                                            Recorded RC recoveries were reviewed and
                                                            were found to be acceptable for
                                                            the deeper parts of the drillholes. Recoveries
                                                            in the top 20m of weathered
                                                            material were less favourable (30% to 40%) in
                                                            much of the Phase 2 drilling
                                                            (Phase 1 RC recoveries were not recorded).
                                                            - Iain Macfarlane of Coffey also visited the
                                                            SGS laboratory in Monrovia to
                                                            validate the sample prep and analytical
                                                            procedures. No material sample

                                                            prep and analytical issues were noted.
Geological       - Confidence in (or conversely, the        - Confidence in the geological model is            LK
interpretation   uncertainty of) the geological             adequate and based on a combination
                 interpretation of the mineral deposit.     of detailed surface geological mapping,
                 -Nature of the data used and of any        sectional interpretation by Tawana
                 assumptions made.                          Resources and West African Geoservices
                 - The effect, if any, of alternative       (WAGS), which is supported by
                 interpretations on Mineral                 comparison with down hole multi-element
                 Resource estimation.                       geochemistry and magnetic
                 - The use of geology in guiding and        susceptibility and a detailed photo geology
                 controlling Mineral Resource               review of DD holes.
                 estimation.                                - Lithology logging of RC drill chips is
                 - The factors affecting continuity both    challenging due to the masking effects
                 of grade and geology.                      of deep weathering in a tropical environment.
                                                            A high degree of dependence
                                                            on multi-element geochemistry and magnetic
                                                            susceptibility was used to
                                                            interpret traceable units in conjunction with
                                                            logging and surface mapping.
                                                            - A detailed review of DD holes and
                                                            correlation between DD holes was
                                                            completed utilising high-resolution core
                                                            photographs, magnetic
                                                            susceptibility and down hole assays. Mappable
                                                            units and a stratigraphic
                                                            model compared favourably with the cross-
                                                            sectional interpretations and
                                                            provide additional confidence in the geological
                                                            interpretation. The
                                                            geological interpretation is taken directly into
                                                            the resource/volume model
                                                            by wireframing of the relevant geological and
                                                            stratigraphic units.

Dimensions       - The extent and variability of the        - The classified portion of the Gofolo Main       IM
                 Mineral Resource expressed as              resource has a strike extent of
                 length (along strike or otherwise), plan   approximately 2,000 m. A total strike length of
                 width, and depth below                     1,100m is indicated at
                 surface to the upper and lower limits of   Koehnko and of 1,400m at Zaway. At all
                 the Mineral Resource.                      prospects, vertical extents of
                                                            mineralisation are restricted to current
                                                            drillhole depths in most cases. In
                                                            general, drillholes extend to nominally less
                                                            than 100m below surface.

Estimation   - The nature and appropriateness of            - Ordinary Kriging (OK) is the estimation          IM
and          the estimation technique(s)                    technique utilised for all estimated
modelling    applied and key assumptions, including         domains. No grade values were cut. Domaining
techniques   treatment of extreme                           was carried out utilising
             grade values, domaining, interpolation         surface geological mapping, sectional
             parameters and                                 geological and structural
             maximum distance of extrapolation from         interpretation by Tawana Resources and West
             data points. If a                              African Geoservices (WAGS),
             computer assisted estimation method            down hole multi-element geochemistry and
             was chosen include a                           magnetic susceptibility and
             description of computer software and           detailed photo geology review of DD holes.
             parameters used.                               Extrapolation distances were
             - The availability of check estimates,         generally in the order of 50m or less for all
             previous estimates and/or                      resource estimates. No diamond
             mine production records and whether            drillhole analytical data was used for the
             the Mineral Resource                           estimate, the results from their
             estimate takes appropriate account of          sampling not being available at time of
             such data.                                     estimation. During resource
             - The assumptions made regarding               classification, extrapolation beyond the range
             recovery of by-products.                       of the variogram structures is
             - Estimation of deleterious elements or        not reported. Vulcan and Isatis software were
             other non-grade variables                      used for
             of economic significance (eg sulphur for       interpretation/estimation and variography
             acid mine drainage                             respectively.
             characterisation).                            -No previous estimates or mine production
             - In the case of block model                   estimates are in existence and the
             interpolation, the block size in               currently published resource constitutes a
             relation to the average sample spacing         Maiden resource. A separate
             and the search employed.                       block model check estimate was completed
             - Any assumptions behind modelling of          sing a different parent cell
             selective mining units.                        discretisation system and resulted in virtually
             - Any assumptions about correlation            the same resource.
             between variables.                             -The primary commodity considered in the
             -?Description of how the geological             Mineral Resource estimate is Fe.
             interpretation was used to                      A full suite of elements was also estimated
             control the resource estimates.                 (SiO2, Al2O3, P, LOI, CaO, K2O,
             - Discussion of basis for using or not          MgO, MnO, Na2O, S, TiO2) by OK with some of
             using grade cutting or                          those elements considered to
             capping.                                        be deleterious (P, SiO2 and Al2O3).
             - The process of validation, the                - A parent block size of 100m along strike,
             checking process used, the                      30m down dip and 5m normal to
             comparison of model data to drillhole           the plane of mineralisation were employed at
             data, and use of                                all three deposits. These were
             reconciliation data if available.               selected to approximate half the drillhole
                                                             spacing which is a nominal 200m
                                                             by 60m.
                                                             -The resources are expected to be mined
                                                             using open pit technology. A
                                                             subcelling of 2m x 2m x 1m was adopted to
                                                             adequately define the geometry
                                                             of the thinner geological units. Selective
                                                             mining units were not defined at
                                                             this stage and the published Maiden resource
                                                             is considered to represent a
                                                             Global in situ resource model fit for conceptual
                                                             mining studies.
                                                             - No grade capping was employed; this was
                                                             not required for the major
                                                             elements and may be considered for some of
                                                             the minor elements in future
                                                             studies.
                                                             - The Mineral Resource estimates were
                                                             validated through comparison of
                                                             input sample and estimated block grades
                                                             visually and statistically. The
                                                             estimate was also validated by looking at
                                                             number of holes, number of
                                                             samples used, average distance to informing
                                                             samples and other
                                                             geostatistical parameters, eg. kriging
                                                             efficiency.

Moisture        - Whether the tonnages are estimated         - Tonnage estimates are based on insitu dry        LK/IM
                on a dry basis or with                       bulk density measurements.
                natural moisture, and the method of
                determination of the
                moisture content.
Cut-off         - The basis of the adopted cut-off          - A nominal reporting cut-off grade of 20%         IM
parameters      grade(s) or quality parameters              Fe has been chosen at this stage,
                applied.                                    based on initial financial considerations.
                                                            Further work via mining studies is
                                                            required to define a series of economic mining
                                                            cutoffs.

Mining          - Assumptions made regarding                Selective mining units were not defined, or        IM
Factors         possible mining methods,                    corrected for using a change-ofsupport
or              minimum mining dimensions and               method, in this resource estimate. No
assumptions     internal (or, if applicable,                assumptions have been made
                external) mining dilution. It is always     regarding recoverable resources other than
                necessary as part of the                    that mining will be based on
                process of determining reasonable           direct shipping material produced not highly
                prospects for eventual                      selectively from an open pit
                economic extraction to consider             operation as metallurgical results show that
                potential mining methods, but               the mineralisation is highly
                the assumptions made regarding mining       amenable to beneficiation through crushing
                methods and                                 and a gravity process.
                parameters when estimating Mineral
                Resources may not always
                be rigorous. Where this is the case, this
                should be reported with
                an explanation of the basis of the mining
                assumptions made.

Metallurgical   - The basis for assumptions or              Preliminary metallurgical test-work results on     LK
factors or      predictions regarding metallurgical         representative RC samples
assumptions     amenability. It is always necessary as      including optical mineralogy studies to
                part of the process of                      determine major iron and waste
                determining reasonable prospects for        mineralogy indicates that mineralisation is
                eventual economic                           highly amenable to
                extraction to consider potential            beneficiation through crushing and gravity
                metallurgical methods, but the              process.
                assumptions regarding metallurgical         - Metallurgical test-work currently
                treatment processes and                     underway at ALS Perth utilising 3,000kg
                parameters made when reporting              of full HQ3 drill core will assess both physical
                Mineral Resources may not                   and chemical characteristics
                always be rigorous. Where this is the       of the mineralisation and explore a range of
                case, this should be                        beneficiation products at
                reported with an explanation of the basis   various crush sizes.
                of the metallurgical
                assumptions made.

Environmental   - Assumptions made regarding                - Baseline environmental and social studies        LK
factors or      possible waste and process                  have been mapped out by an
 assumptions    residue disposal options. It is always      independent consultant on the basis of
                necessary as part of the                    detailed site visit and desk top
                process of determining reasonable           review of neighbouring projects.
                prospects for eventual                      - No assumptions have been made in the
                economic extraction to consider the         announcement of the maiden
                potential environmental                     resource estimate; however, the baseline
                impacts of the mining and processing        environmental and social studies
                operation. While at this                    will assess waste and process residue disposal
                stage the determination of potential        options Detailed baseline
                environmental impacts,                      monitoring in support of a pre-feasibility
                particularly for a greenfields project,     study will be commenced during
                may not always be well                      2014.
                advanced, the status of early               -?Coffey is of the opinion that there are
                consideration of these potential            reasonable prospects for eventual
                environmental impacts should be             economic extraction of the resource based on
                reported. Where these aspects               the following assumptions:
                have not been considered this should be     the majority of the resources is equivalent to
                reported with an                            direct digging and shipping of
                explanation of the environmental            hematite-rich material, at depths of less than
                assumptions made.                           100m to 150m below surface,
                                                            with no apparent water table mining issues
                                                            other than wet conditions as
                                                            expected in a tropical environment, with no
                                                            apparent deleterious elements
                                                            prohibiting future exploitation using a
                                                            reasonable standard metallurgical
                                                            process, and sufficiently close to relevant
                                                            infrastructure and availability of
                                                            sufficiently skilled local staff.

Bulk density     - Whether assumed or determined. If        Dry HQ3 whole core bulk density was                LK / IM
                 assumed, the basis for the                 measured by ALS laboratories, Perth,
                 assumptions. If determined, the method     under stringent laboratory conditions. Sixty
                 used, whether wet or                       (60) measurements of
                 dry, the frequency of the measurements,    representative core for each lithology and
                 the nature, size and                       degree of weathering were taken
                 representativeness of the samples.         from full HQ3 core metallurgical samples
                 - The bulk density for bulk material       utilising the wax immersion
                 must have been measured by                 method. Coffey is of the opinion that the
                 methods that adequately account for        current dry rock density database
                 void spaces (vugs, porosity,               needs to be augmented in future but that the
                 etc), moisture and differences between     current
                 rock and alteration zones
                 within the deposit.
                 -?Discuss assumptions for bulk density
                 estimates used in the
                 evaluation process of the different
                 materials.
Classification   - The basis for the classification of the   - Mineral Resource classification was              IM
                 Mineral Resources into                      developed from the confidence levels of
                 varying confidence categories.              a number of key criteria including topography,
                 - Whether appropriate account has           drilling methods, geological
                 been taken of all relevant                  understanding and surface/sectional
                 factors (ie relative confidence in          interpretation, sampling, data density
                 tonnage/grade estimations,                  and location, grade estimation, quality of the
                 reliability of input data, confidence in    block estimates and
                 continuity of geology and                   uncertainties to mineralogical recoveries.
                 metal values, quality, quantity and         Geological continuity as observed
                 distribution of the data).                  from section to section and sample spacing in
                 - Whether the result appropriately          relation to the selected parent
                 reflects the Competent                      block size were deemed to be the major
                 Person’s view of the deposit.               resource classification indicators.
                                                             - The area of Indicated Mineral Resource and
                                                             Inferred Mineral Resource is
                                                             considered appropriately defined on drillhole
                                                             section and through a
                                                             wireframe volume. The Classification
                                                             wireframes have been used to flag the
                                                             block model for the final classification.
                                                             - In the opinion of the Competent Person the
                                                             resulting Mineral Resource
                                                             estimate provides an appropriate global
                                                             resource representation of the
                                                             deposits amenable to open pit mining methods
                                                             to average depths of 100m
                                                             To150m below the topographic surface.

Audits or        - The results of any audits or reviews      - No independent audit of the 2013 Mineral         LK
reviews          of Mineral Resource                         Resource has been completed at
                 estimates.                                  this time. This will be carried out later in the
                                                             process.
Discussion of    - Where appropriate a statement of the      - The Mineral Resource has been classified as      IM
relative         relative accuracy and                       a combination of Indicated and
accuracy/        confidence level in the Mineral Resource    Inferred Mineral Resource.
confidence       estimate using an                           - The resource estimate of grade and
                 approach or procedure deemed                tonnage is based on the assumption that
                 appropriate by the Competent                standard open cut mining methods will be
                 Person. For example, the application of     applied and that high confidence
                 statistical or                              grade control (e.g. dedicated RC grade control
                 geostatistical procedures to quantify the   drilling) will be available for
                 relative accuracy of the                    final ore-waste delineation.
                 resource within stated confidence limits,   - The Mineral Resource estimate is based on
                 or, if such an approach                     a realistic parent cell size and
                 is not deemed appropriate, a qualitative    should be considered a global resource
                 discussion of the factors                   estimate and is not a recoverable
                 that could affect the relative accuracy     resource estimate based on a final SMU block
                 and confidence of the estimate.             size.
                                                             -The relative accuracy and confidence of the
                 - The statement should specify               Mineral Resource estimate is
                 whether it relates to global or local        inherent in the Mineral Resource Classification
                 estimates, and, if local, state the relevant as coded in the block model;
                 tonnages, which should                       no mine production data is available at this
                 be relevant to technical and economic        stage for reconciliation and/or
                 evaluation.                                  comparative purposes.
                 Documentation should include
                 assumptions made and the
                 procedures used.
                 - These statements of relative accuracy
                 and confidence of the
                 estimate should be compared with
                 production data, where
                 available.

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