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TAWANA RESOURCES NL - Excellent Infill Drilling Results Received

Release Date: 23/10/2014 09:36:00      Code(s): TAW       PDF(s):  
Excellent Infill Drilling Results Received

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


Excellent Infill Drilling Results Received

Tawana Resources NL (ASX: TAW) (‘the Company’ or ‘Tawana’) is very pleased to announce infill and extensional drilling results received over
the Gofolo and Zaway Main deposits at its 100% owned Mofe Creek Iron Ore Project in Liberia, West Africa.

Selected significant intersections at a 20% Fe cut-off with a maximum of 2m internal dilution include:

GMDD013        72.7m           @       39.6% Fe from surface
GMDD015        29.3m           @       39.6% Fe from surface
GMDD012        45.8m           @       34% Fe from 14.3m; and
               37.7m           @       32.4% Fe from 80.3m
ZDD006         20m             @       38.7% Fe from 131.5m
ZDD009         7.6m            @       45.4% Fe from 23m

“Results are extremely pleasing as they provide confidence in mineralisation continuity across the deposits as well as potential additional
resource tonnes due to thicker mineralised widths intersected on expanded sections,” Managing Director Len Kolff said.

“Drilling completed to date will have the potential for converting more of the material from the Inferred to Indicated category in certain areas;
adding greater confidence in the Resource Model,” he added.

“Greater widths intersected in certain holes will allow for potential additional resource tonnes, particularly at the Gofolo Main deposit,” he
The Company is progressing with engineering designs and associated studies for the processing plant, road corridor and port facility. The ESIA
baseline studies are being advanced along with the community consultation programs, as a deliverable for the Notice of Intent (refer ASX
release 26 August 2014). The Company has engaged port, harbour and transhipment companies to provide design and cost inputs into the
Pre-Feasibility Study (‘PFS’), as well as potential contract mining groups.

The design and approval of the proposed pilot mining, ore and processing plant to test the ore lithologies, confirm mineability, and materials
handling characteristics is being progressed. A Mineral Development Agreement is being correlated with relevant stakeholders to secure the
necessary approvals, infrastructure corridors and port leases.

All assays have been received for 1,114.6m of drilling (including re-drills) of a 7,500m planned programme. The complete drilling programme
was designed to increase the current resource from 61.9Mt (refer ASX Release 31 March 2014) to a targeted 100Mt to 120Mt for the Pre-
Feasibility Study. Drilling was suspended in August 2014 due to the Ebola virus situation.

Drilling was completed using two Atlas Copco CS1000 rigs in PQ and HQ diamond core.
Drilling results received confirm mineralisation continuity between drill sections and down dip; potentially converting
mineralisation on relevant sections from Inferred to Indicated resources. On certain sections, drilling results have increased
mineralised width when compared to the current resource model. This is significant as it may result in an increased resource
estimate. All intersections reported at Gofolo Main are listed in Table 1 overleaf.

 Prospect       Hole     From    To     Interval  Fe      SiO2    Al2O3    P     S     Mn   LOI 1000
 Gofolo Main   GMDD012   0.00    3.20     3.20    36.39   27.74    9.93  0.054  0.044  0.05   9.64
 Gofolo Main   GMDD012   14.30   60.10    45.80   34.00   28.80    9.72  0.046  0.070  0.36   9.18
 Gofolo Main   GMDD012   80.34   118.00   37.66   32.36   47.66    1.60  0.073  0.040  0.15   BDL
 Gofolo Main   GMDD013   0.00    72.67    72.67   39.62   27.94    5.41  0.077  0.027  0.10   8.73
 Gofolo Main   GMDD014   0.00    4.00     4.00    32.17   28.05    12.6  0.020  0.088  0.38   12.03
 Gofolo Main   GMDD014   29.00   40.00    11.00   31.22   34.79    6.13  0.015  0.063  0.90   11.82
 Gofolo Main   GMDD014   56.00   59.10    3.10    27.79   49.62    2.50  0.042  0.369  0.72   BDL
 Gofolo Main   GMDD014   93.50   137.90   44.40   31.76   46.02    1.07  0.068  0.018  0.24   BDL
 Gofolo Main   GMDD014   143.90  171.90   28.00   33.23   44.85    0.92  0.045  0.026  0.24   BDL
 Gofolo Main   GMDD015   0.00    29.30    29.30   39.58   32.92    5.67  0.020  0.041  0.01   4.60

Six additional holes were completed at Gofolo Main (including re-drills) prior to suspension of activities (see Figure 3). Drilling
intersected friable and fresh iron formations (itabirite) which conform to the current resource model.
A total of 5 additional holes (including re-drills) were completed at Zaway Main (see figure 6). All intersections at a 20% Fe cut-
off and a maximum 2m of internal dilution are listed in Table 2 overleaf.

 Prospect   Hole     From     To    Interval  Fe      SiO2  Al2O3    P     S       Mn    LOI 1000
 Zaway      ZDD006   131.50 151.50   20.00    38.65  42.61   0.87   0.045  0.007  0.03   BDL
 Zaway      ZDD007   95.30  104.40   9.10     38.39  42.79   0.84   0.059  0.010  0.04   BDL
 Zaway      ZDD007   113.40 127.80   14.40    37.56  43.55   1.54   0.040  0.012  0.02   BDL
 Zaway      ZDD007   130.50 138.50   8.00     38.49  42.88   0.99   0.050  0.013  0.03   BDL
 Zaway      ZDD008   96.70  110.30   13.60    32.98  42.55   4.22   0.067  0.123  0.10   BDL
 Zaway      ZDD009   23.00  30.60    7.60     45.42  30.51   1.97   0.016  0.014  0.05   2.43
 Zaway      ZDD009   41.30  50.60    9.30     31.49  49.88   2.56   0.023  0.004  0.03   BDL

Drilling intersected both friable and fresh iron formation (likely itabirite) interlayered with metasediments and quartzites. Drilling results have
confirmed the current resource model, and on all sections drilled; extended mineralisation depth, resulting in the potential for a resource

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 has recently concluded its successful and financially robust Scoping Study on the Mofe Creek Project. The Scoping Study
considered an early start-up, low capital cost project with a production rate of up to 2.5 million tonnes per annum.

For further information please contact:
Len Kolff
Managing Director
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

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 realised.

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

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.

Appendix 1 – Hole Location Data

                      Hole_                                                   Plan_               Hole_depth   Core
Prospect   HoleID             UtmE_29N   UtmN_29N   Elevation   Reg_grid_id           Plan_Azim
                      type                                                    dip                 (m)          Size

           GMDD012A   DD      253286.0   761218.0   79.0        UTM_WGS84     -55     23          98.30        PQ3/HQ
           GMDD012    DD      253286.0   761218.0   79.0        UTM_WGS84     -55     23          135.00       PQ3/HQ
           GMDD013    DD      253312.0   761278.0   89.0        UTM_WGS84     -55     23          83.50        PQ3/HQ
           GMDD014    DD      253074.9   761287.1   67.9        UTM_WGS84     -55     23          179.5        PQ3/HQ
           GMDD015    DD      253145.0   761449.4   109.8       UTM_WGS84     -55     23          56.00        PQ3/HQ
           GMDD016    DD      253027.0   761452.9   105.4       UTM_WGS84     -55     203         21.5         PQ3/HQ
           ZDD006     DD      262709.0   761639.1   115.3       UTM_WGS84     -50     0           163.1        PQ3/HQ
           ZDD007     DD      262295.0   761575.0   113.9       UTM_WGS84     -50     0           148.7        PQ3/HQ
           ZDD008A    DD      262501.9   761684.0   113.4       UTM_WGS85     -50     0           39.8m        PQ3/HQ
           ZDD008     DD      262501.9   761684.0   113.4       UTM_WGS85     -50     0           123.1        PQ3/HQ
           ZDD009     DD      262815.5   761790.6   107.0       UTM_WGS86     -50     0           66.1         PQ3/HQ

The following extract from the JORC Code 2012 Table 1 is provided for compliance with the Code requirements for the reporting of Exploration
Results: (CP: LK - Len Kolff)

Reporting of Exploration Results.
Criteria      JORC Code Explanation                                  Commentary
Mineral         -   Type, reference name/number, location and          -   MEL12029 is located within the Grand Cape Mount             LK
tenement            ownership including agreements or material             and Bomi counties of Liberia and is 100% held by
and land            issues with third parties such as joint                Tawana Liberia Inc, a wholly owned subsidiary of
tenure              ventures, partnerships, overriding royalties,          Tawana Resources NL.
status              native title interests, historical sites,          -   MEL 1223/14 is located within the Grand Cape
                    wilderness or national park and                        Mount county of Liberia and is 100% held by
                    environmental settings.                                Tawana Liberia Inc, a wholly owned subsidiary of
                -   The security of the tenure held at the time of         Tawana Resources NL.
                    reporting along with any known impediments         -   There are no known impediments or material issues
                    to obtaining a licence to operate in the area.         related to security of tenure at the time of reporting.
Exploration     -   Acknowledgment and appraisal of                    -   The Mofe Creek project is a grassroots discovery             LK
done by             exploration by other parties.                          with no previous mineral exploration or other work
other                                                                      completed.
Geology         -   Deposit type, geological setting and style of      -   The Mofe Creek project is characterised by a series LK
                    mineralisation.                                        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
Criteria      JORC Code Explanation                                     Commentary
                                                                      -    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
                                                                      -    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 to the           All relevant information material to the understanding of         LK
Information         understanding of the exploration results               exploration results has been included within the body of the
                    including a tabulation of the following                announcement or as appendices.
                    information for all Material drillholes:               No information has been excluded.
                         - easting and northing of the drillhole
                         - elevation or RL (Reduced Level –
                            elevation above sea level in metres)
                            of the drillhole collar
                         - dip and azimuth of the hole
                         - down hole length and interception
                         - hole length
                -   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.
Criteria    JORC Code Explanation                                          Commentary
Data         -   In reporting Exploration Results, weighting           -    Down hole weighted average iron, deleterious elements           LK
aggregation      averaging       techniques,    maximum       and/or        and LOI grades were calculated using a 20% Fe cut-off
methods          minimum grade truncations (eg cutting of high              and a maximum 2m of internal dilution.
                 grades) and cut-off grades are usually Material       -    Given the style and nature of mineralisation reported,
                 and should be stated.                                      extreme effects due to volume variance (“nugget effect”)
             -   Where aggregate intercepts incorporate short               are considered low and not significant to the style of
                 lengths of high grade results and longer lengths           mineralisation being reported.
                 of low grade results, the procedure used for          -    No metal equivalent grades have been reported.No
                 such aggregation should be stated and some                 metal equivalent grades have been reported.
                 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 important in    -     The majority of drilling intercepts are broadly                   LK
between          the reporting of Exploration Results.                      perpendicular to strike and dip of structures and
mineralisati -   If the geometry of the mineralisation with respect         mineralised units; drilling results are near-true to true
on widths        to the drillhole angle is known, its nature should         widths of mineralisation.
and              be reported.
intercept    -   If it is not known and only the down hole lengths
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 scales) and      -     All relevant plan maps and typical cross-sections have            LK
                 tabulations of intercepts should be included for           been included in the body of the announcement.
                 any 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 all                 -     Where exploration drilling results have been reported;            LK
reporting        Exploration Results is not practicable,                    all results are reported with no exclusions.
                 representative reporting of both low and high
                 grades and/or widths should be practiced to
Criteria      JORC Code Explanation                                     Commentary
                avoid misleading reporting of Exploration
Other         - Other exploration data, if meaningful and              -    All relevant regional and prospect scale geological               LK
substantive     material, should be reported including (but not             observations and geophysical survey results are
exploration     limited to): geological observations; geophysical           included in relevant announcements accordingly.
data            survey results; geochemical survey results; bulk
                samples – size and method of treatment;
                metallurgical test results; bulk density,
                groundwater, geotechnical and rock
                characteristics; potential deleterious or
                contaminating substances.

Further       - The nature and scale of planned further work (eg        -    Further work has been defined for resource strike                 LK
work            tests for lateral extensions or depth extensions             extensions, resource infill drilling to increase levels of
                or large-scale step-out drilling).                           confidence and exploration drilling on additional target
              - Diagrams clearly highlighting the areas of                   footprints.
                possible extensions, including the main                 -    Approximately 6,500m of infill and strike extension
                geological interpretations and future drilling               planned drilling was not drilled due to the suspension of
                areas, provided this information is not                      drilling and will be drilled at a later date.
                commercially sensitive.                                 -    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.

23 October 2014
PricewaterhouseCoopers Corporate Finance (Pty) Ltd

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