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TAWANA RESOURCES NL - Shareholder Update

Release Date: 04/08/2014 09:03:00      Code(s): TAW       PDF(s):  
Shareholder Update

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”)

4th August 2014

Shareholder Update

Dear fellow Tawana shareholder,

Following the release of our June 2014 quarterly report, and on behalf of the Board, I would
like to provide you with an update on our recent achievements, strategic and current
initiatives, as well as the advancements made at the Mofe Creek Project in Grand Cape
Mount County, in the heart of Liberia’s historic iron ore district.

The Company, over the past year, has transformed its business from an explorer to
developer with the goal of becoming an ASX-200, mid-tier iron ore producer. The executives
and staff have diligently advanced the development of Mofe Creek to fast-track the project
into production.

We recently delivered, on schedule, a robust Scoping Study which demonstrated the
potential for a low-capex, low-cost, high-margin operation with a strong Net Present Value
(NPV) and Internal Rate of Return (IRR). Likewise, a Maiden Resource and extensive
metallurgical testwork program confirmed the simple, efficient processing route required
to produce a superior +65% Fe final product.

Following the Scoping Study, we immediately embarked on a Pre-Feasibility Study (PFS)
which will be complete by April, 2015. PFS drilling is currently underway.
Other key milestones include:

-   A metallurgical testwork program confirming plant design capability to generate a
    premium grade 65% to 68% Fe final product concentrate with a 43% to 48% mass yield
-   An application for a pilot mining and bulk sample extraction licence to the Ministry of
    Land, Mines, and Energy (MLME)
-   Meetings with ministers, ministries, governmental officers, senators and the National
    Investment Committee to commence the approval process for a Mineral Development
    Agreement (MDA) for Mofe Creek
-   Discussions with potential strategic partners, product off-takers, debt providers and
    financiers to develop the project
-   Market capitalisation increase of A$8M to A$48M in less than a year
-   Commencement of the project’s Environmental and Social Impact Assessment (ESIA)
    process, and development of our local camp facility with community assistance
-   Recruitment of essential staff and contractors in Liberia and Australia to advance the
    project’s approval programs along with the design and engineering of the mine,
    processing plant and associated infrastructure components

We have a dedicated Board, executive team, and officers within Liberia to ensure the timely,
and economic development of this exceptional iron ore project. The support and
commitment from the Government of Liberia has been forthright and we hope to utilise
these strong relationships to fast-track development, aiming for commercial production in

In the interim, a pilot-scale bulk mining and pilot-plant operation, for the purpose of
obtaining strategic data for detailed design criteria, materials handleability testing and
mine designs, could be operational by the start of 2015. This provides a great opportunity
for vocational training and skill development, along with employment opportunities.
The final product from the project has the potential to attract a premium sale price to the
current 62% Fe index (CFR into Tainjin), and be sold into Europe, the Middle East, as well as
China. With the recent stabilisation of the iron ore sale price at US $90-US$100/tonne, the
project has the potential for high profit margins and a product grade that will displace
inferior products.

In another exciting development, a new outcropping itabirite iron ore formation was
incidentally discovered during a road cutting development program. The potential deposit
is approximately 750m north of the existing resource at Zaway Main and has a potential
strike of 3.5km. Drilling will commence later this quarter with the new target being named
Zaway North-West. The overall PFS drilling program is aimed at increasing the existing
62Mt Maiden JORC resource as well as upgrading a significant portion of the existing
resource to Indicated.

We’re continuing to advance our community initiatives in Grand Mt Cape County and will
pursue social projects which have a positive and lasting effect for the communities. The
appointment of Mr Boakai A. Kromah as Community Liaison Officer supports our
commitment to our social, community and sustainability requisites.

We have been very fortunate to have a supportive and stable share registry with limited
movement in the top 20-50 shareholders over the past year. This demonstrates our
investors’ longer-term commitment to our vision. The next phase of registry development
will be the introduction of strategic investors and international funds to further strengthen
the credentials of the Mofe Creek project and its viability.

I believe the upcoming year will be both an exciting and fulfilling year, for the Company, its
shareholders and stakeholders.

As shareholders of our Company, your ongoing support and commitment to our Business
Development Strategy is gratefully recognised and appreciated and I look forward to it
continuing in our future development.

Yours sincerely,

Wayne Richards
Executive Chairman

The Company confirms that it is not aware of any new information or data that materially affects
the information included in the ASX announcements referred to in this letter. All material
assumptions and technical parameters underpinning the estimates in those announcements
continue to apply and have not materially changed.

PricewaterhouseCoopers Corporate Finance (Pty) Ltd

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