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TAWANA RESOURCES NL - Lithium Project Acquired

Release Date: 11/07/2016 09:55:00      Code(s): TAW       PDF(s):  
Lithium Project Acquired

    Tawana Resources NL
    (Incorporated in Australia)
    (Registration number ACN 085 166 721)
    Share code on the JSE Limited: TAW
    Share code on the Australian Securities Exchange Limited: TAW
    ASX ISIN: AU000000TAW7
    (“the Company” or “Tawana”)


    Tawana Resources NL (“Tawana” or the “Company”) is pleased to announce the acquisition of Mount
    Belches Pty Ltd (“Mt Belches”), which has one tenement application and rights (via an option agreement) to
    acquire 100% of three exploration licences and one exploration licence application, all of which are highly
    prospective for lithium and located in the Goldfields region of Western Australia.

    The five tenements (Tenements) are located in two project areas:

-                   Cowan - comprising three granted exploration licences totalling 159 square km and located
                    approximately 55km south-east of Kambalda; and
-                   Yallari - comprising two exploration licence applications totalling 100 square km and located
                    approximately 25km south-east of Coolgardie, adjacent to the Coolgardie-Esperance Hwy.


-               The Cowan Project covers approximately 26km strike of two belts containing a large number of
                rare element pegmatites.
-               Prior shallow exploration and previous small scale mining focused on tantalum and tin only.
-               Anomalous lithium assayed in wide spaced geochemistry and rock chip sampling.
-               A number of spodumene-rich pegmatites mapped and a large number of drill-ready lithium geo-
                chemical anomalies identified in previous exploration data.
-               Recent rock-chip sampling returned grades of up to 1.85% Li (3.99% Li2O) from spodumene-rich
-               Drilling to test the known spodumene pegmatites and lithium geochemical anomalies is planned
                for September 2016.
-               Mark Calderwood appointed as Chief Executive Officer who has significant corporate credentials
                and relevant exploration experience.
-               Tawana has received commitments for a $1,750,000 Placement.
-               Purchase consideration for Mt Belches will be the issue of 40,000,000 Tawana shares to
                shareholders of Mt Belches, none of whom are related parties of the Company.

Chairman Mike Bohm stated, “We are very pleased that Tawana has been successful in acquiring both an
option over 100% of a well located project with demonstrated exploration potential for spodumene-type
lithium and an experienced Chief Executive in Mark Calderwood who has significant corporate experience in
the international resources arena and the technical experience to oversee and advance this highly prospective
                                                                                                          Page 1
It is also worth highlighting that the project area covers the bulk of a large Lithium-Caesium-Tantalum (LCT)
pegmatite field, and that there are a significant number of drill-ready lithium targets available - including
undrilled pegmatites rich in spodumene.”
 Appointment of Chief Executive Officer

 The sole director of Mount Belches Pty Ltd, Mark Calderwood, has been appointed Chief Executive Officer
 (“CEO”) of the Company effective 11 July 2016. He has extensive experience in mineral exploration and
 production management, he is an authority on pegmatites and was a co-author of the ‘Pegmatites of
 Western Australia”. Mr Calderwood was CEO of Perseus Mining Limited for 9 years and is currently non-
 executive director of three junior gold explorers. Mr Calderwood has the requisite 5 years’ experience for
 reporting on the results of rare metal pegmatite exploration.
 Capital Raising

 In order to fund planned exploration programs, the Company has received commitments to raise $1,750,000
 by issue of shares at a price of $0.025 per share. The Company will issue 19,600,000 shares under its 15%
 placement capacity in the coming days and will issue a further 50,400,000 shares following shareholder

 In support of the acquisition, all of the Directors have proposed to participate in the Placement which will
 also require shareholder approval.

 Shareholder approval will also be sought for the purchase of Mt Belches, completion of which is required
 by 31 August 2016. A notice of meeting will be circulated shortly.
 The Project area comprises Archaean quartz-biotite metasediments and amphibolites of the Eastern
 Goldfields Terrane of the Yilgarn Craton. These metasediments trend north-south and have been intruded
 by large numbers of pegmatites.
 Two main belts of rare element Lithium-Caesium-Tantalum type (“LCT”) pegmatites are known in the
 Project area. LCT type pegmatites are derived from highly siliceous, peraluminous (S-Type, ‘fertile’
 granites) as highly fractionated granitic melts. These fractionated melts contain the rare elements (Be,
 Rb, Cs, Sn, Nb, Ta etc) and a high volatile content (H2O, F, B, P and Li). Petr ?erný's pegmatite
 classification (?erný 1991) is the accepted standard. Under this pegmatite classification scheme the
 Project area is prospective for:

     i) LCT Albite-spodumene: These are typically unzoned, homogeneous pegmatites with subhedral
      spodumene in a quartz-albite matrix. The Mt Marion pegmatites (located 75km to the northwest) are
      examples of this subclass.

     ii) LCT Albite: Zoned albite pegmatites have a fine grained albite and quartz border zone with albite,
      often of the cleavelandite variety, as the central pegmatite zone. Small quartz lenses and scattered pods
      of coarsely crystallized quartz, microcline with accessory minerals of beryl and phosphates with mica are
      found irregularly within the albite central zones. Tantalum minerals are found disseminated within the

     iii)   LCT Complex: There are considered to be four subclasses depending upon which Li-bearing mineral
            is dominant in the pegmatite.
              a)   Spodumene: spodumene-dominant lithium-bearing pegmatites that are zoned and
                   mineralogically complex (e.g. the Greenbushes and Mt Cattlin pegmatite deposits).
              b)   Petalite: Zoned pegmatites dominated by petalite and/or its alteration products (e.g. the
                   Londonderry pegmatites, located 105km to the west-northwest).
              c)   Lepidolite: Pegmatites simple or zoned with are rich in lepidolite (e.g. the Mt Deans
                   pegmatites located 105km to the southwest).
              d)   Amblygonite: Amblygonite-rich pegmatites (Ubini pegmatite, located 130km to the west-
                     northwest).                                                             Page 2

The two large LCT pegmatite belts defined within the Project area are:
1)        Mt Belches – Bald Hill (“MBBH Belt”)

          This pegmatite belt striking north to northwest extends for at least 15km, however the pegmatite
          belt likely extends for at least 25km under transported cover. A large number of albite rich and LCT
          type Albite-Spodumene pegmatites occur over a width of about 4km. Previous exploration and
          exploitation has been focused on tantalum and tin. About 10km strike of the pegmatite belt is located
          on the Mount Belches tenements.

2)        Claypan Dam- Madoonia (“CDM Belt”)

          This less explored northeast-southwest oriented LCT pegmatite belt has a strike of at least 22km and
          width of at least 7km. The belt is known to contain LCT Albite pegmatites with tantalite and tin and
          potentially hosts LCT Albite-Spodumene pegmatites. A significant portion of the belt is covered by
          the Mount Belches tenements.
The pegmatites occur as gently dipping sheets and as steeply dipping veins which are all elongate in a northerly
direction, parallel to the regional foliation. They range in thickness from a few metres to as much as 30 metres
and in some instances occur as multiple, parallel dykes or swarms separated by a few metres of sheared
metasediments (Jacobson et al 2007).
The unweathered pegmatites as exposed in the Bald Hill South pit (south of the Project area) are composed of
two zones, a quartz-spodumene-albite zone and a quartz-microcline-muscovite-albite zone. From inspection,
cassiterite, columbite-tantalite are present as accessory minerals in the quartz-spodumene-albite zone. The
zoning is so poorly defined that these pegmatites can be classified as unzoned albite-spodumene pegmatites
(Jacobson et al 2007).
Outcrops of exposed schist and pegmatites are restricted to limited areas; most of the tenement area is
concealed by bluebush floodplain and sandplain and wash zones. Remnants of Eocene sediments also mask
Previous Work
Prior exploration by tantalum explorers on the tenements has essentially been limited to:
 A)        Wide spaced (~200m x 400m) shallow RAB (and minor RC) drilling for bottom of hole
           geochemistry including lithium assays. Within the project area 419 holes averaging 12.9m were
           drilled and sampled within part of the MBBH Belt and 257 holes averaging 16.1m were drilled
           and sampled within part of the CDM Belt. The resulting lithium geochemical database has
           resulted in the identification of a significant number of anomalies worthy of follow-up drilling.
           Based on the entire regional database lithium assays of schist with 40ppm (85ppm Li 2O) are
           considered anomalous, 80ppm (170ppm Li2O) strongly anomalous and 120ppm (260ppm Li2O)
           highly anomalous. Background lithium levels within the schist hosting the two pegmatite belts
           is about 3ppm. A summary of drill hole geochemical results are provided in Table 1 and shown
           on Figures 3 to 6. Selected individual drill hole geochemical results are provided in Table 4. A
           summary of anomalous rock chip results from previous exploration are provided in Table 2.
           These rock chip results are shown on Figures 3 to 6 as pegmatite locations.
B)    Table 1 | Summary of Bottom of HoleRAB and RC Geochemical Sampling
             Pegmatite Belt          Holes         Holes +/=       Holes +/=    Holes +/=
                                    Sampled        40ppm Li        80ppm Li     120ppm Li
             MBBH                     419          206 (49%)       81 (19%)      39 (9%)
             CDM                      257           77 (30%)        11 (4%)       4 (2%)

                                                                                                          Page 3
C)    Rock chip sampling, prior explorers collected more than 226 pegmatite samples from within the
      Project area of which 219 were assayed for Li. A total of 95 (42%) of the rock chip samples
      contained anomalous levels of one or more of Li, Cs, Ta or Sn. Table 2 | Summary of Anomalous Previous Rock
      Chip Geochemical Sampling
                Pegmatite                 Li2O           Cs2O           Ta2O5          SnO2           Na2O
                                        +100ppm        +100ppm         +50ppm         +50ppm          >4%
                # of samples               41             37             47              37           129
                % of total                19%            17%            21%             16%           65%
                Average grade (ppm)      1,041           189            192             118           5.4%

      A)      The extensive shallow auger and soil sampling is considered to be of limited value due to the
              unknown regolith profile and extensive transported Archaean derived regolith or in-situ Eocene
              sediments and the likely leaching of lithium from the weathered sampling medium.
      B)      RC drilling of 24 pegmatites (or pegmatite clusters) was undertaken however lithium was not
              analysed in pegmatite samples. A total of 70 RC and RAB holes intercepted pegmatites within the
              Cowan Project area. RC drill hole BHC1013 intercepted 14.5m of pegmatite with spodumene logged
              throughout. RC drill hole BHR882 contained a 4m intersection of pegmatite which was logged as
              containing spodumene and a bottom of hole (BOH) schist sample contains 2,019ppm Li2O.

     Prior production within the Project Area is limited to a small amount of tin and/or tantalum from eluvials at
     the Mount Belches workings. Soft and hard rock mining for tantalum with associated accessory tin has been
     undertaken at the Bald Hill and the Dawn View mines on adjoining tenements and at Saint John workings on
     excised licences.

     Recent Work
     Recent mapping and rock chip sampling of outcropping spodumene bearing pegmatites located within E15/1446
     in the Mount Belches area, has returned lithium values from 15 samples of pegmatite. Lithium values range
     from 3,762 ppm (0.81% Li2O) in pegmatite containing moderate spodumene content up to 18,545 ppm (3.99%
     Li2O) in pegmatites with high spodumene content. Results of the 15l samples are contained in Table 5, sample
     locations and details of sampling are contained in Appendix 1 Section 2 and the Li2O results are shown on Figure
     Initial Exploration Planned by Tawana
     The Company plans to undertake initial RC drilling of existing drill targets. Concurrently with drilling the
     Company will undertake further mapping and sampling within the pegmatite belts not previously explored.
     Mineralogy will be undertaken on pegmatites to better define their LCT type pegmatite classification.
     Yallari Project
     The Yallari Project is located 25km southeast of Coolgardie and about 10km west of Mt Marion. The project
     areas cover portions of the greenstone sequence that hosts the Mt Marion and Londonderry pegmatite fields.
     Numerous pegmatites have been mapped by nickel and base metal explorers however there are no records on
     the rare element content of the pegmatites. These pegmatites based on their mineralogy are probably derived
     from a peraluminous and possible ‘fertile’ granite. The geological setting of the pegmatites and the proximity
     to the Mt Marion and Londonderry lithium bearing pegmatite fields is encouraging.
                                                                                                               Page 4
Sampling is required to define the pegmatite type(s) and their potential for mineralisation. Based on the
currently known pegmatite mineralogy the most prospective area for lithium enriched pegmatites will be
further from the source granite (Figure 8). Three recent samples of pegmatite scree from near access tracks
returned anomalous lithium result from one sample (Refer Table 6).
 Table 3 | Tenement Summary

  Cowan Project
    Tenement number             Km2               Grant Date
  E15/1205                       5.9             10-03-2011
  E15/1377                      95.7             12-11-2014
  E15/1446                      57.6             18-08-2014
  Yallari Project
  Tenement number               Km2               Grant Date
  E15/1401                      41.2               Pending
  E15/1525                      58.8               Pending

 Table 4 | Cowan Project, Selected Significant BOH (1m) Assays MBBH Pegmatite Belt

                                         From     To         Cs         Li           Rb    Li2O
  HOLE ID       EAST         NORTH
                                          (m)     (m)      ppm        ppm            ppm   ppm

  BHR0878     421,087      6,515,272      21      22         26        491           171   1,057

  BHR0880     421,187      6,515,309      24      25      2,366        938       6,973     2,019

  BHR1941     417,687      6,518,557      16      17         84        241           170   519

  BHR1971     419,637      6,517,457       2       3         36        311           84    670

  BHR2050     416,237      6,522,957       1       2         57        471           78    1,014

  BHR2075     416,637      6,522,557       0       1       121        1,248          193   2,687

  BHR2076     416,437      6,522,557       0       1         35       1,656          118   3,565

  BHR2100     418,537      6,521,757       0       2         7         382           79    823

  BHR2101     418,487      6,521,757       1       2         45        375           56    808

  BHR2105     417,637      6,521,732       2       3         21        388           76    835

  BHR2134     417,237      6,520,957      21      22         6         245           72    527

  BHR2159     417,637      6,519,557       9      10         19        341           134   734

  BHR2165     418,637      6,519,357       2       3         8         283           245   609

  BHR2184     418,137      6,518,107      20      21      2,505       1,606      1,073     3,457

  BHR2186     418,237      6,518,157      18      19         10        366           96    788

  BHR2199     418,687      6,517,557      23      24         5         249           63    536

  BHR2237     419,337      6,517,532       0       1         6         246           70    530

  BHR2244     419,437      6,517,857       1       2         6         260           126   560

                                                                                                      Page 5
 Table 5 | Cowan Project 2016 Pegmatite Rock Chip Sampling (results in ppm unless stated)

   Ref          Description                               Cs         K          Li     Li2O %       Nb       Rb         Sn        Ta
   P10          pegmatite outcrop spodumene rich         59.7       1.11     10,799     2.32        68       487         60        91
   P11          pegmatite outcrop spodumene rich         49.2       0.89      8,706     1.87        79       417         70        86
   P13          pegmatite outcrop spodumene rich         64.9       1.35      9,264     1.99        54       717        135        43
   P16          pegmatite outcrop with spodumene         34.9       0.62      3,762     0.81        94       327         94        97
   P17          pegmatite outcrop spodumene poor         96.2       1.25      3,507     0.75        87       622        135       175
   P18          pegmatite outcrop visible Ta/Sn?         210.2      2.15        75      0.02        92      2,175       637       283
   P22          Cymatolite after spodumene? in           265.7      3.01       146      0.03        17      1,150       274        23
                pegmatite from trench dump
   P23          pegmatite spodumene rich from            101.6      0.73     18,545      3.99       20       251        213       42
   P24          pegmatite spodumene rich from             97.6      1.19     11,913      2.56       61       347        213       60
   P33          pegmatite outcrop spodumene rich          25.7      0.64     10,894      2.35       58       214         43        51
   P36          pegmatite outcrop spodumene rich          35.3      1.18      9,555      2.06       43       406         48        41
   P37          pegmatite outcrop spodumene rich          32.8      0.46     13,136      2.83       63       214         70        42
   P42          pegmatite outcrop spodumene rich          79.5      1.21      8,293      1.79       58       612        140       115
   P45          pegmatite outcrop spodumene rich          52.1      0.43     10,817      2.33       82       188         98       136
   P49          pegmatite outcrop spodumene rich          30.2      0.44     11,366      2.45       79       179         75        73

 Table 6 | Yallari Project 2016 Pegmatite Rock Chip Sampling (results in ppm unless stated)

  Ref.         Location       Description                  Cs        K%        Li       Li2O %      Nb        Rb        Sn       Ta

  P04          E15/1526       pegmatite scree             59.5      3.66       22        0.00       43      913.6       8       14.4

  P06          E15/1401       pegmatite scree              8.7      2.46       37        0.01       58      567.7       10       7.2

  P09          E15/1401       pegmatite scree             12.9      2.62      832        0.18       17      515.6       5        6.6

Terms of the Tenement Option Agreement

The terms of the option agreement for Mt Belches to acquire 100% of the Tenements are as follows:

   o        Option payment of $100,000 which was paid by Tawana on 6 July 2016;
   o        $2,000,000 in cash or Tawana shares (based on the 30 day VWAP) any time up to 4 March 2017.
            The choice of cash or shares or a combination of the two is at the election of the grantor of the
            Option; and
   o        2% gross revenue royalty on any production.

Consideration for the Purchase of Mt Belches Pty Ltd

The consideration for Mt Belches will be the issue of 40,000,000 Tawana shares to the shareholders of Mt
Belches, none of whom are related parties of the Company.

Competent Persons Statement

The information in this news release that relates to Exploration Results is based on and fairly represents information and supporting
documentation compiled by Mr Mark Calderwood, the sole director of Mount Belches Pty Ltd and reviewed by Mr Ralph Porter, a
full time employee of CSA Global Pty Ltd. Mr Calderwood is a member of The Australasian Institute of Mining and Metallurgy. Mr

                                                                                                                              Page 6
Porter is a Member of the Australian Institute of Geoscientists. Mr Calderwood and Mr Porter both have sufficient experience
relevant to the style of mineralisation under consideration and to the activity which they are 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”. Mr Porter and Mr Calderwood both consent to the inclusion in this report of the matters based on their information in
the form and context in which it appears.

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.

Appendix 1
Section 1 Sampling Techniques and Data
  Criteria           JORC Code Explanation                              Commentary

  Sampling           Nature and quality of sampling (e.g. cut           Drilling was the principal form of sampling within
  techniques         channels, random chips, or specific specialised    the Cowan project area, and included the use of
                     industry standard measurement tools                RAB (10,106m) and RC (1,965m) drilling
                     appropriate to the minerals under investigation,   techniques.
                     such as down hole gamma sondes, or handheld
                     XRF instruments, etc.). These examples
                     should not be taken as limiting the broad
                                                                        Rock chip sampling of pegmatites was also
                     meaning of sampling.
                                                                        undertaken as a reconnaissance exploration method

                                                                        915 shallow auger and vacuum holes were drilled,
                                                                        however this data is of limited value due to the
                                                                        unknown sample medium.

                                                                        Relevant sampling with the Yallari Project area is
                                                                        limited to three rock chip samples.

                     Include reference to measures taken to ensure      Based on available data, there is nothing to indicate
                     sample representivity and the appropriate          that drilling practices were not to normal industry
                     calibration of any measurement tools or systems    standards at the time.

                                                                                                                                Page 7
Criteria              JORC Code Explanation                                  Commentary

                      Aspects of the determination of mineralisation         Given the purpose of first pass exploration work,
                      that are Material to the Public Report. In             sampling practices were normal industry standard
                      cases where ‘industry standard’ work has been          and appropriate.
                      done this would be relatively simple (e.g.
                      ‘reverse circulation drilling was used to obtain 1
                      m samples from which 3 kg was pulverised to
                                                                             None of the drilling or rock chip sampling is
                      produce a 30 g charge for fire assay’). In other
                                                                             appropriate or was or is intended to be used for
                      cases more explanation may be required, such
                                                                             Resource estimates.
                      as where there is coarse gold that has inherent
                      sampling problems. Unusual commodities or
                      mineralisation types (e.g. submarine nodules)
                      may warrant disclosure of detailed information.

Drilling techniques   Drill type (e.g. core, reverse circulation, open-      Previous drilling completed on the Cowan Project
                      hole hammer, rotary air blast, auger, Bangka,          comprised 707 RAB holes for 10,106m and 75 RC
                      sonic, etc.) and details (e.g. core diameter, triple   holes for 1,965m. There were no details recorded
                      or standard tube, depth of diamond tails, face-        on hole diameters from the various types of
                      sampling bit or other type, whether core is            previous drilling.
                      oriented and if so, by what method, etc.).

                                                                             No drill holes appear to have been surveyed.

Drill sample          Method of recording and assessing core and chip        There are no records of sample recovery for the
recovery              sample recoveries and results assessed.                various types of previous drilling.

                      Measures taken to maximise sample recovery             There are no records of drill sample quality or
                      and ensure representative nature of the samples.       potential contamination

                      Whether a relationship exists between sample           There are no records for sample recovery for the
                      recovery and grade and whether sample bias             various types of previous drilling conducted. .
                      may have occurred due to preferential loss/gain        Consequently it is not possible to review grade bias
                      of fine/coarse material.                               in relation to sample recovery.

Logging               Whether core and chip samples have been                All historic drill holes were geologically logged,
                      geologically and geotechnically logged to a level      original log sheets have been viewed and vary in
                      of detail to support appropriate Mineral               quality from simple to moderately detailed logs.
                      Resource estimation, mining studies and
                      metallurgical studies.
                                                                             No resources estimates were calculated

                      Whether logging is qualitative or quantitative         Logging descriptions were qualitative for the
                      in nature. Core (or costean, channel, etc.)            previous drilling.

                      The total length and percentage of the relevant        All the previous drill holes have been geologically
                      intersections logged.                                  logged and the basic geological data recorded in the
                                                                             drilling database.

Sub-sampling          If core, whether cut or sawn and whether               No core drilling has been undertaken.
techniques and        quarter, half or all core taken.
sample preparation

                                                                                                                                    Page 8
Criteria           JORC Code Explanation                               Commentary

                   If non-core, whether riffled, tube sampled,         RC samples were retrieved via cyclone by taking
                   rotary split, etc. and whether sampled wet or       large 5kg sub-sample produced by riffle splitting
                   dry.                                                the 1m (or less) samples twice. Only samples of
                                                                       pegmatites and immediate host rock were collected
                                                                       for assay.

                                                                       RAB samples were retrieved via a cyclone with
                                                                       each metre of sample collected and laid on the
                                                                       ground. Generally one assay sample was collected
                                                                       except where pegmatites were intercepted

                   For all sample types, the nature, quality and       RC samples were split into 2 and pulverised and
                   appropriateness of the sample preparation           homogenised prior to splitting out the assay sample.
                   technique.                                          Two samples were assayed with 10% repeat assays.
                                                                       An average of the 2 samples is then taken as the
                                                                       result for the 1m interval.

                                                                       RAB samples were retrieved via a cyclone

                                                                       Bottom of hole samples were taken for bedrock
                                                                       geochemistry. Assay determinations Li, Cs and Rb
                                                                       was by ICP/Ms

                   Quality control procedures adopted for all sub-     There are no records of the QAQC procedures
                   sampling stages to maximise representivity of       adopted for the various types of historic sampling.

                   Measures taken to ensure that the sampling is       No records were located on duplicate sampling.
                   representative of the in situ material collected,
                       including for

                   instance results for field duplicate/second-half

                   Whether sample sizes are appropriate to the         The sampling method was likely appropriate for the
                   grain size of                                       material being sampled given the purpose of
                   the material being sampled.

Quality of assay   The nature, quality and appropriateness of the      Full RC assay samples were split into 2 and
data and               assaying                                        pulverised and homogenised prior to splitting out
laboratory tests                                                       the assay sample. Two samples were assayed with
                   and laboratory procedures used and whether the
                                                                       10% repeat assays. An average of the 2 samples is
                       technique is
                                                                       then taken as he result for the 1m interval. Assay
                   considered partial or total.                        determinations for pegmatite samples (Ta2O5) was
                                                                       via XRF using pressed powders

                                                                       RAB samples retrieved via a cyclone were
                                                                       collected and laid on the ground. Samples were
                                                                       taken for bedrock geochemistry. Assay
                                                                       determinations Li, Cs and Rb was by ICP/Ms

                                                                                                                              Page 9
Criteria           JORC Code Explanation                                Commentary

                                                                        Grab samples from the 2016 pegmatite rock chip
                                                                        sampling were submitted into Intertek Genalysis
                                                                        Perth for analysis:

                                                                        (Cs, Li, Nb, Rb, Se, Sn, Ta) FP6/MS: Sodium
                                                                        peroxide fusion (Nickel crucibles) and
                                                                        Hydrochloric acid to dissolve the melt. Analysed by
                                                                        inductively Coupled Plasma Mass Spectrometry

                                                                        (K) FP6/OE: Sodium peroxide fusion (Nickel
                                                                        crucibles) and Hydrochloric acid to dissolve the
                                                                        melt. Analysed by inductively Coupled Plasma
                                                                        Optical (Atomic) Emission Spectrometry.

                   For geophysical tools, spectrometers, handheld       Not applicable
                   XRF instruments, etc., the parameters used in
                   determining the analysis including instrument
                   make and model, reading times, calibrations
                   factors applied and their derivation, etc.

                   Nature of quality control procedures adopted         There are no records of the QAQC procedures
                   (e.g. standards, blanks, duplicates, external        adopted for the various types of prior drilling
                   laboratory checks) and whether acceptable levels     conducted.
                   of accuracy (i.e. lack of bias) and precision have
                   been established.

Verification of    The verification of significant intersections by     No verification exploration work has been
sampling and       either independent or alternative company            undertaken.
assaying           personnel.

                   The use of twinned holes.                            No twin holes were drilled

                   Documentation of primary data, data entry            The data from the previous drilling are stored in a
                   procedures, data verification, data storage          digital database; original geological drill logs are
                   (physical and electronic) protocols.                 available for verification. No information is
                                                                        available on methods for merging analytical data
                                                                        into the digital database.

                   Discuss any adjustment to assay data.                No data has been adjusted

Location of data   Accuracy and quality of surveys used to locate       Drill hole and rock chip sample locations are
points                drill holes                                       considered approximate though sufficiently
                                                                        accurate given the wide spaced nature of
                   (collar and down-hole surveys), trenches, mine
                        workings and

                   other locations used in Mineral Resource
                       estimation.                                      The 2016 rock chip samples were located using a
                                                                        handheld Garmin GPS using MGA 94/ Zone 51.

                   Specification of the grid system used.               MGA 94 Zone 51

                                                                                                                               Page 10
 Criteria               JORC Code Explanation                                Commentary

                        Quality and adequacy of topographic control.         No survey of drill holes appears to have been

 Data spacing and       Data spacing for reporting of Exploration            RAB drill spacing was nominally 400m by 200m,
 distribution              Results.                                          RC drilling was sporadic and localised. Auger drill
                                                                             spacing was nominally 100m x 500.m

                        Whether the data spacing and distribution is         Not applicable
                        sufficient to establish the degree of geological
                        and grade continuity appropriate for the
                        Mineral Resource and Ore Reserve estimation
                        procedure(s) and classifications applied.

                        Whether sample compositing has been applied.         No samples were composited

 Orientation of         Whether the orientation of sampling achieves         The orientation of pegmatites intercepted in drilling
 data in relation to    unbiased sampling of possible structures and         is unknown and variable.
 geological structure   the extent to which this is known, considering
                        the deposit type.

                        If the relationship between the drilling             There is no apparent bias in any of the drilling
                        orientation and the orientation of key               orientations used.
                        mineralised structures is considered to have
                        introduced a sampling bias, this should be
                        assessed and reported if material.

 Sample security        The measures taken to ensure sample security.        Not applicable.

 Audits or reviews      The results of any audits or reviews of sampling     The historic drill data were not independently
                        techniques and data.                                 audited

Section 2 Reporting of Exploration Results
 Criteria                Explanation                                         Commentary

 Mineral tenement        Type, reference name/number, location and           Cowan Project area is held under E15/1205,
 and land tenure         ownership including agreements or material          E15/1446, and E15/1377 all of which are granted and
 status                  issues with third parties such as joint ventures,   are subject to an option to purchase the details of
                         partnerships, overriding royalties, native title    which are in the body of text.
                         interests, historical sites, wilderness or
                         national park and environmental settings.
                                                                             Yallari Project is held as

                                                                       Exploration Licence applications E15/1401 and
                                                                             E15/1526 both of which have substantial areas the
                                                                             subject to timber reserves.

                                                                             All native title is cleared and there are no other
                                                                             historical or noted environmentally sensitive areas.

                                                                                                                                     Page 11
Criteria           Explanation                                      Commentary

                   The security of the tenure held at the time of   See above, no other known impediments
                   reporting along with any known impediments
                   to obtaining a licence to operate in the area.

Exploration done   Acknowledgment and appraisal of                  Previous exploration of relevance undertaken by
by other parties   exploration by other parties.
                                                                     Company                             WAMEX Ref.

                                                                     Barrier Exploration NL 1973         A05370

                                                                     Selcast Exploration Pty Ltd
                                                                     1974                                A05548

                                                                     Gwalia Minerals NL 1989             A026496

                                                                     E Dechow & Co Pty Ltd 1993          A038469

                                                                     Rising Mining Holdings Pty Ltd
                                                                     2012-13                             A096807

                                                                     Haddington Resources Limited        A067510

                                                                     2002-2008                           A069520












Geology            Deposit type, geological setting and style of    The Project area comprises Archaean quartz-biotite
                   mineralisation.                                  metasediments and amphibolites of the Eastern
                                                                    Goldfields Terrane of the Yilgarn Craton. These
                                                                    metasediments trend north-south and have been
                                                                    intruded by large numbers of pegmatites.
                                                                    Two main belts of Lithium Caesium Tantalum type
                                                                    (“LCT”) pegmatites are known in the Cowan Project
                                                                    area, LCT type rare-element pegmatites are derived
                                                                    from highly siliceous, peraluminous (S-Type, ‘fertile’
                                                                    granites) as highly fractionated granitic melts. These
                                                                    fractionated melts contain the rare elements (Be, Rb,
                                                                    Cs, Sn, Nb, Ta etc) and a high volatile content (H2O,

                                                                                                                             Page 12
Criteria      Explanation                                         Commentary

                                                                  F, B, P and Li). Petr ?erný's pegmatite classification
                                                                  (?erný 1982a, 1991) is the accepted standard.

                                                                  The Yallari Project contains the greenstone sequence that
                                                                  hosts the Mt Marion and Londonderry pegmatite fields,
                                                                  numerous pegmatites have been mapped by nickel and
                                                                  base metal explorers however there are no records on the
                                                                  rare element content of the pegmatites. Most of these
                                                                  pegmatites are located very close to their probable granite
                                                                  source and are described in previous exploration reports
                                                                  as common pegmatites.
Drill hole    A summary of all information material to the        Comprehensive reporting of all RAB, RC, auger drill
Information   understanding of the exploration results            holes and prior rock chip samples is not practicable
              including a tabulation of the following             but all data is available under the WAMEX reports
              information for all Material drill holes:           referred to above.
                   •    easting and northing of the drill hole
                                                                  Location of 2016 Rock Chip Samples (RL
                   •    elevation or RL (Reduced Level –          information has not been recorded)
                        elevation above sea level in metres) of
                        the drill hole collar                       Ref       East       North        Tenement

                   •    dip and azimuth of the hole                 P04     333869     6553570        E15/1526

                   •    down hole length and interception           P06     340472     6557648        E15/1401
                                                                    P09     340480     6558071        E15/1401
                   •    hole length.
                                                                    P10     417236     6521778        E15/1446

                                                                    P11     417232     6521792        E15/1446

                                                                    P13     416680     6522440        E15/1446

                                                                    P16     416589     6522652        E15/1446

                                                                    P17     416671     6522580        E15/1446

                                                                    P18     416217     6522865        E15/1446

                                                                    P22     416676     6521955        E15/1446

                                                                    P23     416722     6521903        E15/1446

                                                                    P24     416733     6521877        E15/1446

                                                                    P33     417322     6521607        E15/1446

                                                                    P36     417372     6521508        E15/1446

                                                                    P37     417377     6521491        E15/1446

                                                                    P42     416559     6522290        E15/1446

                                                                    P45     416506     6522404        E15/1446

                                                                    P49     416413     6522609        E15/1446

              If the exclusion of this information is justified   No material information was excluded.
              on the basis that the information is not
              Material and this exclusion does not detract

                                                                                                                                Page 13
Criteria               Explanation                                         Commentary

                       from the understanding of the report, the
                       Competent Person should clearly explain why
                       this is the case.

Data aggregation       In reporting Exploration Results, weighting         Not applicable
methods                averaging techniques, maximum and/or
                       minimum grade truncations (e.g. cutting of
                       high grades) and cut-off grades are usually
                       Material and should be stated.

                       Where aggregate intercepts incorporate short        Not applicable
                       lengths of high 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           Not applicable
                       metal equivalent values should be clearly

Relationship           These relationships are particularly important      Most drill holes have been drilled vertically which
between                in the reporting of Exploration Results.            significantly reduced the likelihood of intercepting
mineralisation                                                             sub-vertical mineralisation.
widths and intercept
lengths                If the geometry of the mineralisation with
                       respect to the drill hole angle is known, its
                       nature should be reported

                       If it is not known and only the down hole           Not applicable
                       lengths are reported, there should be a clear
                       statement to this effect (e.g. ‘down hole length,
                       true width not known’).

Diagrams               Appropriate maps and sections (with scales)         Figures 3 to 6 show areas of prior exploration and
                       and tabulations of intercepts should be             subsequent areas of anomalous mineralisation and
                       included for any significant discovery being        other target areas.
                       reported These should include, but not be
                       limited to a plan view of drill hole collar
                       locations and appropriate sectional views.

Balanced reporting     Where comprehensive reporting of all                Only selected significant RAB geochemical drill
                       Exploration Results is not practicable,             holes have been tabled however a summary of the
                       representative reporting of both low and high       total population of holes has been included and
                       grades and/or widths should be practiced to         diagrams included show interpretation of results of
                       avoid misleading reporting of Exploration           the entire database.

Other substantive      Other exploration data, if meaningful and           There is no other exploration data which is
exploration data       material, should be reported including (but not     considered material to the results or statements
                       limited to): geological observations; geophysical   reported in this announcement.
                       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.

                                                                                                                                 Page 14
  Criteria          Explanation                                      Commentary

  Further work      The nature and scale of planned further work     Further work will include drilling to test known
                    (e.g. tests for lateral extensions or depth      pegmatites and geochemical anomalies.
                    extensions or large-scale step-out drilling).

                    Diagrams clearly highlighting the areas of       The diagrams show areas untested within the broader
                    possible extensions, including the main          prospective target belts
                    geological interpretations and future drilling
                    areas, provided this information is not
                    commercially sensitive.

11 July 2016


PricewaterhouseCoopers Corporate Finance (Pty) Ltd

                                                                                                                           Page 15

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