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TAWANA RESOURCES NL - Ministerial Approval to Commence Mineral Development Agreement Negotiations

Release Date: 25/09/2014 08:45:00      Code(s): TAW       PDF(s):  
Ministerial Approval to Commence Mineral Development Agreement Negotiations

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


Ministerial Approval to Commence Mineral Development Agreement Negotiations

Tawana Resources NL (“Tawana” or the “Company”) is very pleased to announce that it
has received formal acknowledgment and approval from the Ministry of Lands, Mines and
Energy (“MLME”), to commence the Company’s Mineral Development Agreement
(“MDA”) for the Mofe Creek Project.

The approval to proceed with formal negotiations associated with this agreement coincides
with the successful completion of the Project’s sustainable and robust Scoping Study in July
this year. Detailed meetings with representatives of the Ministry, and members of the Inter-
Ministerial Technical Committee, along with subsequent field visits in July, confirmed the
commitment by both parties (the Government of Liberia and Tawana), to progress this
essential and key agreement.

The MDA is a legally binding agreement, outlining the technical, commercial and
social/environmental commitments to be undertaken to build, operate and sustain a project
within Liberia, and is a legislative document passed as a bill in parliament, for a term of 25

Mr Wayne Richards, Executive Chairman said “We are delighted to receive the
acknowledgement and support of the MLME, for this crucial process, and we are excited to
advance this agreement as a matter of urgency, to ensure the Company receives all
approvals and agreements in an efficient and timely manner. The support from the
Government of Liberia has been unwavering, and complements our collective desire to build
the Mofe Creek Project – for the benefit of all stakeholders”.

“To be granted the opportunity to negotiate this agreement at such an early stage of
Project’s development timeline, is testament to the quality of the Project’s assets, the
technical capability of the Tawana team, and the undivided commitment of the Government
of Liberia.”

The MDA negotiation process is scheduled to proceed for a period of six to nine months, and
is optimally being coordinated to align with the completion of the Project’s Pre-Feasibility

Extensive work on the final design, construction and staging of the Project and the
transitional logistics solutions associated therein, will be negotiated during the MDA process.
The next important step in the advancement of the agreement is the invoking of the Inter-
Ministerial Concessional Committee, with support from the Inter-Ministerial Technical

Tawana presented the results of its Scoping Study on the Mofe Creek project to the MLME
in Monrovia in July 2014 (Figure 1). Tawana also hosted a corresponding MLME delegation
at the Mofe Creek Project site (Figure 2). Both the presentation and the site visits were a
necessary precursor to this latest development of receiving support to proceed with MDA
negotiations from the Ministry.

Tawana will aim to accelerate the MDA process with the imminent selection of MDA legal
representatives. The MDA legal team will represent the Company in the negotiation
processes and assist the Company with the advancement of licenses, applications and
leases for future logistics solutions, including a dedicated haul road and a coastal port

A final technical report from the Inter-Ministerial Technical Committee is forecast to be
issued to Tawana in October, which will complement the current approval to proceed with
negotiations on the MDA, as granted by the Minister of Lands, Mines and Energy.

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 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 471km2 of highly prospective tenements in Grand
Cape Mount County. The Project hosts high-grade friable itabirite mineralisation which can
be easily upgraded to a premium quality iron ore product of +64- 68 % Fe grade, via simple,
low capital intensity beneficiation.

The Company recently concluded its successful and financially robust Scoping Study on the
Project. The Scoping Study considered an early start-up, low capital cost, high profit margin
project with a nominal production rate of up to 2.5 million tonnes per annum (Mtpa).

For further information please contact:

Wayne Richards
Executive Chairman
Tel +61 8 9287 4344

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

Cautionary Statement
Full details of the Scoping Study referred to in this announcement were initially released to
the ASX in an announcement dated 3 July 2014, and should be read in conjunction with this
announcement. All material assumptions underpinning the Scoping Study, production targets
and forecast financial information derived from the production targets as well as any
cautionary statements and disclosures as required under the ASX Listing Rules and 2012
JORC Code are set out in the announcement dated 3 July 2014 and continue to apply and
have not materially changed.

The Scoping Study referred to in this announcement is preliminary in nature as its
conclusions are drawn on inferred (74%) and indicated mineral resources (26%). The
Scoping Study is based on lower-level technical and economic assessments, and are
insufficient to support estimation of Ore Reserves or to provide assurance of an economic
development case at this stage, or to provide certainty that the conclusions of the Scoping
Study will be realised.
There is a low level of geological confidence associated with inferred mineral resources and
there is no certainty that further exploration work will result in the determination of indicated
mineral resources or that the production target itself will be realised. There is also no
certainty that the forecast financial information derived from the production targets will be

Competent Persons Statement

The information in this report that relates to 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 Pty 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.

Forward Looking Statement

This announcement contains certain forward looking statements. These forward-looking
statements are not historical facts but rather are based on the Company’s current
expectations, estimates and projections about the industry in which Tawana Resources NL
operates, and beliefs and assumptions regarding the Company’s future performance. Words
such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates” “potential”
and similar expressions are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject to known and unknown
risks, uncertainties and other factors, some of which are beyond the control of the Company,
are difficult to predict and could cause actual results to differ materially from those expressed
or forecasted in the forward-looking statements. Tawana Resources NL cautions
shareholders and prospective shareholders not to place undue reliance on these forward-
looking statements, which reflect the view of Tawana Resources NL only as of the date of
this presentation. The forward-looking statements made in this release relate only to events
as of the date on which the statements are made. Tawana Resources NL will not undertake
any obligation to release publicly any revisions or updates to these forward-looking
statements to reflect events, circumstances or unanticipated events occurring after the date
of this presentation except as required by law or by any appropriate regulatory authority.

25 September 2014

PricewaterhouseCoopers Corporate Finance (Pty) Ltd

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