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TAWANA RESOURCES NL - Option agreement to earn into the Bald Hill Mine

Release Date: 24/10/2016 09:45:00      Code(s): TAW       PDF(s):  
Option agreement to earn into the Bald Hill Mine

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
(“the Company” or “Tawana”)



Tawana Resources NL (“Tawana” or the “Company”) is pleased to announce that it has entered into
an option agreement to acquire Lithco No.2 Pty Ltd (“Lithco”). Lithco has the rights to earn into the
Bald Hill Mine (“Bald Hill” or “The Project”), located adjacent to and surrounds Tawana’s Cowan
Lithium Project.


-       Lithco has the right to earn a 50% interest in the lithium rights at Bald Hill and, by additional
        expenditure, the right to earn 50% interest in all minerals and the processing plant and
        infrastructure at Bald Hill.

-       The Project covering 791.3 km2 is owned by Australian incorporated, Singapore Exchange
        listed Alliance Mineral Assets Limited (“AMAL”). It is adjacent to the Company’s Cowan

-       A number of spodumene-rich pegmatites have been discovered and partially mined for
        tantalum. Spodumene was not recovered during prior mining however recently AMAL
        produced spodumene rich by-product concentrates up to 6.73% Li2O during
        recommissioning of the original tantalum plant.

-       Metallurgical testwork has commenced on extracting spodumene from tantalum ore. Initial
        results indicate high recoveries of spodumene through simple gravity process. Engineering
        studies for the addition of a 1mtpa spodumene circuit are about to commence, the focus will
        be on the speed and cost of such installation.

-       Resource and exploration drilling has commenced on the main mining lease at Bald Hill.

-       The Company is also currently drilling on the adjoining Cowan Project and has intercepted a
        number spodumene bearing pegmatites.

-       Tawana has until 31 December 2016 to exercise the option to acquire Lithco.

-       Subject to shareholder approval (which will include an independent experts report on the
        acquisition) and successful due diligence results the purchase consideration for Lithco will be
        the issue of 50,000,000 Tawana shares.
-       Board changes include Mark Calderwood being appointed Managing Director, Rob Benussi
        being appointed Non-executive Chairman and Michael Bohm stepping down as a Director
        due to increased work commitments.

Mark Calderwood stated, “The completion of the Lithco acquisition, could see Tawana rapidly
advance towards spodumene production in joint venture with AMAL, subject to completion Reserve
and plant upgrades. In addition to the active Mining Lease the combined 950km2 of the Cowan and
Bald Hill tenement packages covering two very large pegmatites belts provide significant potential
for further resources.

Bald Hill is one of few West Australian mines ever to have produced high grade spodumene
concentrate. Stored concentrates will provide material for detailed product assessment by
interested off-take parties.”

Bald Hill Project

The Bald Hill Project (“Project”) area is located 50km south east of Kambalda in the Eastern
Goldfields of Western Australia. It is located approximately 75km south east of the Mt Marion
Lithium project and is adjacent to and surrounds the Company’s Cowan Lithium Project. The Project
comprises 4 mining leases, 8 exploration licences, 8 Prospecting licences and 5 tenement
applications totalling 791.3 km2

Production History Bald Hill

Pre 2000, production within the Project Area was limited to a small amount of tin and/or tantalum
from eluvials at Bald Hill and soft rock mining at St John.

Between July 2001 and December 2005 Haddington Resources Limited (“Haddington”) undertook
shallow open pit mining of pegmatites, a total of 1.35Mt of ore was processed through a gravity
plant with a throughput rate of 340,000tpa. A total 4,000t of concentrate containing 364t of
tantalum pentoxide was sold and the mine was closed after the buyer Greenbushes Tin stopped
taking third party concentrates. During mining it was noted, that the pegmatite ore contained
varying amounts of spodumene (up to 30-50%) though lithium was not assayed for nor recovered
until AMAL noted high levels of spodumene in tantalum concentrates during re-commissioning of
the Haddington plant in 2015.

Tantalum Processing Facility

The existing processing plant previously operated by Haddington has been re-furbished and
upgraded by AMAL and successfully commissioned during late 2015 and early 2016. The plant
comprises conveying, screening, crushing to -1mm and then, using a bank of spirals, separates out
the heavy minerals; including tantalite, cassiterite and some of the contained spodumene into a
primary concentrate. This primary concentrate is then sent to a secondary beneficiation plant to be
further processed to produce a saleable 25-30% Ta2O5 final concentrate. During the secondary
beneficiation the non-magnetic -1mm concentrates were shown to contain high levels of lithium in
the form of spodumene. The +500µm Lithium concentrate totalling 5.9 tonnes averaged 6.73% Li2O
and the 250-500µm Lithium concentrate totalling 3.5 tonnes averaged 5.75% Li2O.
Recent Work by Lithco

Initial work has essentially been focused on extensive data review of all available exploration data
for Bald Hill and metallurgical testwork.

The first round of bulk metallurgical testwork focused on spodumene recovery has commenced with
very encouraging results.

Analysis of material crushed to 6.3mm resulted in 93.3% of contained lithium and 86.3% of tantalum
reporting to +250µm fractions.

Initial results from first pass +1mm Density Media Separation (“DMS”) at both 6.3mm and 3.35mm
crush sizes were very encouraging with excellent spodumene recovery and concentrate grades at a
crush size of 6.3mm:

       -     93.7% of the lithium reported to DMS concentrates representing 37% of the mass at a
             relatively high grade of 5.08% Li2O and less that 0.2% mica;

       -     82.0% of the lithium reported to the high grade concentrates at an average grade of 6.08%
             Li2O; and

       -     Only 6.3% of the lithium reported to the >SG2.7 ‘lights’ representing 63% of the original

At a crush size of 3.35mm;

•            Only 5.7% of the lithium reported to the ‘lights’ representing 62% of the original +1mm
             mass; and

•            The 94.3% of the lithium reported to the concentrates grading an average 5.57% Li2O.

Initial results from first pass -1mm Reflux Classifier (“ReC”) gravity concentration testwork on 0.25-
1mm and -0.25mm fractions was successful in removing most of the fine mica and producing an
interim concentrate representing 66% of the -1mm mass and containing 92% of the lithium finer
than 1mm, after de-sliming. Ongoing metallurgical testwork will include further beneficiation of
“ReC” concentrates and the intermediate DMS concentrate after regrinding.

    Table 1 | Sizing after Crushing P100 6.3mm

    Sizing              Mass    Li2O    Ta2O5     SnO2    Nb2O5     Fe2O3        Li2O         Ta2O5

                                                                                              % of
                                                                               % of total
                         %       %       ppm      ppm      ppm        %          cont.        cont.

    Feed               100.0    1.70     517      543      169       0.60         100          100

    +1mm                72.0    1.84     500      545      155       0.54        77.8         69.6
 -1mm +0.25mm           17.7    1.49     486      502      189       0.68        15.5         16.7

 -0.25mm                10.3    1.11     691      602      238       0.90         6.7         13.7

 Table 2 | DMS Concentrate Grades, P100 6.3mm

                                    Li2O     Ta2O5       SnO2    Nb2O5      Fe2O3   Lithium    Cum.

 DMS                   Mass                                                         Recovery   Grade

                           %            %    ppm         ppm     ppm          %     Cum. %     %Li2O

 SG 3.1 Underflow        5.2       6.93       1,000     1,610     260       1.17     18.1     6.93

 SG 3.1 Overflow        22.1       5.79         380       690      90       1.05     82.0     6.01

 SG 2.95 Overflow

 (intermediate)          9.6      2.43          460       390     130       0.88     93.7     5.08

 SG 2.7 Overflow        63.0        0.20          290     160          90    0.66

Proposed Engineering

The existing process plant is not suitable for recovering the bulk of the spodumene in the ore that is
processed, engineering studies are about to commence, to assess installing a front end spodumene
recovery circuit to the existing facility and to increase significantly overall production rates. The
agreed approached is to minimize the construction timeline and capital cost and envisions the use of
contract crushing as originally undertaken by Haddington. Initial indications are that this additional
circuit could be operating within 10-14 months and have a modest capital requirement subject to
final configuration.

Discussions with potential off-take partners has commenced and will be advanced over the coming


The Project area covers most of the known remaining extent of two belts of rare element Lithium-
Caesium-Tantalum type (“LCT”) pegmatites previously described by the Company in its
announcement dated 15 September 2016.

The Pegmatites at Bald hill fall into five categories:

    1) Tantalum – Generally narrow, high in tantalum, low in spodumene, main focus of prior

    2) Zoned Lithium-Tantalum - generally wider pegmatites with simple zoning, spodumene
       richest in central zone, tantalum typically richer on the margins;

    3) Lithium-Tantalum – pegmatites with no apparent zonation;
    4) Lithium – unzoned and simply zoned pegmatites containing abundant spodumene but low
       tantalum; and

    5) Barren – the least common and often narrow pegmatites, contain <0.1% Li2O and <100ppm

Overall zoning is so poorly defined that these pegmatites can be generally classified as unzoned
albite-spodumene pegmatites.

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.

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 bedrock.

Previous Exploration

Prior exploration by tantalum explorers on the tenement comprising the Bald Hill Project has
essentially been limited to:

    A) Wide spaced shallow RAB drilling for bottom of hole geochemistry including lithium assays.
       Less than 10% of the project area has been covered resulting in strong lithium anomalism
       around the Bald Hill mine.

    B) Wide spaced 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.
       Trenching has exposed large pegmatites at the Madoonia prospect but no assay data is
       available and drilling was apparently never undertaken.

    C) Between 1983 and 2014 RC drilling was mainly focused on shallow resource drilling on
       M15/400. A total of 972 RC holes were completed totalling 24,050m of which only 33% of
       holes were deeper than 30m and only 6% deeper than 50m with the deepest 73m. A total
       of 61 early holes (1983-85) and 112 AMAL RC holes (2014) were assayed for lithium however
       these were generally focused on narrower tantalum pegmatites or those peripheral to the
       main deposit. Occasionally logs of RC holes drilled (2001-2005) in the larger central part of
       the main pegmatite (‘Central’) provided sufficient detail to indicate subjective levels of
       spodumene mineralisation. The larger Central pegmatite represents the largest portion of
       current tantalum mineral resources declared by AMAL totalling 3.44Mt at 305ppm Ta2O5
       (see table 3).

A total of 228 RC holes for 5,532m were completed outside M15/400 of which only 18% were
deeper than 30m. No samples from these holes were assayed for lithium, most were drilled at the
Creekside, Fenceline and St John prospects, spodumene has been logged in RC cuttings from all
three prospects. The pegmatite swarm extending over 1.6km by 3km from St John southward into
the Cowan project area has the potential to host large tonnages based on the wide distribution and
width of drill and trench pegmatite intercepts. However, the tantalum grade is generally modest
and the lithium content is expected to be variable based on visual assessment of old drill samples.

Despite the high pegmatite hit rate in RC drilling at Bald Hill and surrounding prospects and the
relatively high success rate of the pegmatites to contain economic tantalum resources the area
remains significantly underexplored for lithium. An example of this is the Lake Side prospect where
several outcrops of vertical pegmatites contain significant levels of spodumene, however no drill
holes were ever drilled there.

Table 3 | Bald Hill Mine Resources and Reserves

         Classification1                      Tonnes        Ta2O5         Contained Ta2O5

                                              (million)     ppm           kg

         Probable – Reserve2                  1.69          303           510,000

         Indicated – Resource2                0.65          306           200,000

         Inferred Resource2                   1.10          339           370,000


         1   Resources and Reserves reported to JORC 2012.

         2   Refer to AMAL announcement released to the Singapore Exchange Securities Trading
             Limited on 12 August 2016 “Independent Qualified Person’s Report on the Bald Hill
             Tantalum Project” including relevant JORC Code Explanations Table 1 sections 1,2,3 and
             4 contained therein.

         3   The Company is not in possession of any new information nor has there been any
             material changes to supporting information for the estimates. The JORC 2012
             estimations are considered adequate for tantalum based on current knowledge,
             however the Company will undertake further verification of Resources including
             additional drilling to confirm prior results and determine lithium grades.

Initial Exploration Planned

Drilling is currently focused on the existing Mining Leases with initial wide spaced holes planned to
be drilled deeper than 100m to gain an understanding of the potential for stacked pegmatites. This
understanding will guide the depth of drilling for infill RC drilling within and close to current pit
designs, where lithium results are lacking and core drilling will be undertaken to obtain additional
metallurgical samples.
Exploration drilling will also be undertaken on spodumene bearing pegmatites on the St John Mining
Leases and the western Retention Licence.

Terms of the Lithco No.2 Pty Ltd Option Agreement

Tawana has entered an option agreement to acquire all the shares in Lithco for an option fee of
$25,000 payable immediately. The Company can exercise the option to acquire Lithco any time
before 31 December 2016 for 50,000,000 Tawana shares.

Tawana will be seeking shareholder approval for the acquisition of Lithco and the issue of the
50,000,000 shares. A Notice of Meeting to Shareholders will be sent in the next couple of weeks
which will include an independent experts report. Although none of the Lithco shareholders are
substantial holders for the purposes of ASX Listing Rule 10.1, Tawana will include sufficiently detailed
information in its notice of meeting to allow for an informed voting decision. In addition to an
independent expert’s report on the Lithco acquisition, Tawana would include detailed disclosure on
the Bald Hill project and the effect of the acquisition on its capital structure and corporate intentions

Terms of the Farm In Agreement and Joint Venture Arrangement Lithco has with Alliance Mineral
Assets Limited

Lithco has entered into a Farm-In and Joint Venture arrangement with Alliance Mineral Assets
Limited (“AMAL”) with respect to AMAL’s Bald Hill project in Western Australia for the purpose of
joint exploration and exploitation of lithium and other minerals.

The commercial terms require Lithco:

    1. to spend, by 31 December 2017 (or such later date as may be agreed between the parties), a
       minimum of $7.5 million on exploration, evaluation and feasibility (including administrative
       and other overhead costs in relation thereto) (“Expenditure Commitment”); and

    2. to spend, $12.5 million in capital expenditure required for upgrading and converting the
       plant for processing ore derived from the Project, infrastructure costs, pre-stripping
       activities and other expenditures including operating costs (“Capital Expenditure”).

Upon completion of the Expenditure Commitment, Lithco shall be entitled to 50% of all rights to
lithium minerals from the tenements comprising the Project (“Tenements”).

Upon completion of the Expenditure Commitment and Capital Expenditure, Lithco will be entitled to
a 50% interest in the Project (being all minerals from the Tenements and the processing plant and
infrastructure at Bald Hill).
Upon completion of the Expenditure Commitment and Capital Expenditure and subject to entering
into binding definitive farm-in and joint venture agreements, a joint venture between Lithco and
AMAL will be formed and funded 50:50 by Lithco and AMAL.

Board Changes

The Company also wishes to announce at this time that Mr Michael Bohm has stepped down
effective 21 October 2016 as a Director due to increased other work commitments. Mr Bohm has
been replaced in the role of Chairman by Mr Rob Benussi who is an existing non-executive Director
of the Company. Mr Benussi commented on taking on the role of Chairman “Over the last 12
months Mike has had a hands-on role and played an integral part in transitioning Tawana from a
Company with a single West African iron ore project to one that now has advanced lithium projects
in Australia and Namibia. With that the Company has acquired an experienced management team
along with a strong shareholder support base. The board and I wish to thank Mike for the significant
time he dedicated to the Company and to wish him all the very best. We look forward to building on
what the team has achieved over the last 12 months as we look to progress Tawana toward the
project development phase”.

Lastly, Mark Calderwood, the Company’s Chief Executive Officer has been appointed Managing
Director also effective 21 October 2016.

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, an
employee of the Company. Mr Calderwood is a member of The Australasian Institute of Mining and
Metallurgy. Mr Calderwood has 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 Calderwood consents 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.

 Table 4a | Drill Intercepts from Holes with Lithium Pegmatite Intercepts, Assay for

        location        HOLE ID      From   To       m       Li2O    Ta205    Li2O             Pegmatite
                                                              %      ppm                        Type

 North             12                   3   10.8     7.8      0.59     491     1.31    zoned Li Ta

                             Incl.      6        9       3    1.36     580     2.20

                   13                   3    7.3     4.3      1.49     367     2.02    zoned Li Ta

                             Incl.      4        7       3    2.11     277     2.51

                   BH85-08              3    10          7    1.39     456     2.05    zoned Li Ta

                             Incl.      4        8       4    2.30     278     2.70

 East              AMBC120             31    36          5    0.78     308     1.23    Li Ta

                             Incl.     32    35          3    1.13     303     1.57

                   AMBC123             35    41          6    0.37     190     0.65    Li Ta

                   AMBC124             31    35          4    0.32     271     0.71    Li Ta

                   AMBC130             36    39          3    0.57   1,505     2.76    Li Ta

                   AMBC132             14    21          7    0.55     371     1.09    Li Ta

 South             37                   5        8       3    0.40     532     1.18    zoned Li Ta

                   38                   0        6       6    0.24     638     1.17    zoned Li Ta

                   28                   0    3.5     3.5      0.34     557     1.15    zoned Li Ta

                             Incl.      2        3       1    0.73     530     1.50
               29                       6        9       3    0.38     597     1.25      Li Ta

               30                       4      7.5     3.5    0.28     560     1.10      zoned Li Ta

                         Incl.          5        7       2    0.46     504     1.19

               35                      16       20       4    0.21     440   0.85      zoned Li Ta    
                BH85-19                 3        9       6    0.62     307   1.06      zoned Li Ta

                         Incl.      4        7       3    1.13     420   1.74

               BH85-20              4        7       3    0.14     250   0.51      Li Ta

               BH85-27             17    25          8    0.73     244   1.08      zoned Li Ta

                         Incl.     19    21          2    2.54     220   2.86

               BH85-28              6        9       3    0.38     333   0.87      zoned Li Ta

                         Incl.      7        8       1    0.90     190   1.18

               BH85-29             18    21          3    0.12     340   0.61      zoned Li Ta

South East     AMBC073             19    31      12       0.23     218   0.55      zoned Li Ta

                         Incl.     22    24          2    0.92     158   1.15

               AMBC076             28    37          9    0.23     401   0.82      zoned Li Ta

                         Incl.     29    31          2    0.70     184   0.97

               AMBC082              4    11          7    0.43     185   0.70      zoned Li Ta

                         Incl.      8    10          2    0.94     103   1.09

                                   14    21          7    0.49      87   0.62      zoned Li Ta

               AMBC095             21    30          9    0.55     130   0.74      zoned Li Ta

                         Incl.     22    25          3    1.12     171   1.36

               AMBC096             30    37          7    0.61     180   0.88      zoned Li Ta

                         Incl.     31    35          4    0.94     140   1.14

               AMBC101             20    25          5    0.37     175   0.62      zoned Li Ta

                         Incl.     21    22          1    1.17     379   1.72

Table 4a Cont. | Drill Intercepts from Holes with Lithium Pegmatite Intercepts, Assay for
    location        HOLE ID      From   To       m       Li2O    Ta205    Li2O             Pegmatite
                                                          %      ppm                        Type
South East   AMBC105           16   19     3    1.10   485   1.81   zoned Li Ta

                               41   46     5    0.28   330   0.76   Ta

             AMBC107           26   31     5    0.31   214   0.62   Li Ta

                               40   49     9    0.26   344   0.76   zoned Li Ta

             AMBC108           22   37    15    0.14   213   0.45   zoned Li Ta

                       Incl.   26   28     2    0.58   122   0.76

             AMBC111           10   15     5    0.20   177   0.45   zoned Li Ta

             AMBC114           21   26     5    1.56   118   1.73   Li Ta

West         1                  0   4.5   4.5   0.26   262   0.64   zoned Li Ta

                       Incl.    1    2     1    0.98   230   1.31

             2                  0   5.5   5.5   0.33   213   0.64   zoned Li Ta

                       Incl.    0    2     2    0.54   185   0.81

             4                  7   16     9    0.45   315   0.91   Li Ta

             21                15   23     8    0.14   214   0.45   zoned Li Ta

                       Incl.   18   19     1    0.80   190   1.08

             22                 9   17    8.5   0.58   186   0.85   zoned Li Ta

                       Incl.   10   15     5    0.90   194   1.18

             31                 4   15    11    0.53   571   1.36   zoned Li Ta

                       Incl.    5    8     3    1.08   383   1.64

Bore line    AMBC011           13   23    10    0.32   143   0.53   zoned Li Ta

                       Incl.   15   21     6    0.43   103   0.58

             AMBC019           15   26    11    0.23   162   0.46   zoned Li Ta

                       Incl.   20   24     4    0.50   121   0.68

             AMBC028           13   21     8    0.21   153   0.43   zoned Li Ta

                       Incl.   14   16     2    0.58   76    0.69

             AMBC030           24   30     6    0.46   201   0.76   zoned Li Ta

             AMBC036           24   29     5    0.26   305   0.70   zoned Li Ta

             AMBC037           24   31     7    0.75   78    0.87   zoned Li Ta

                       Incl.   25   29     4    1.19   76    1.30

             AMBC038           25   32     7    0.30   191   0.57   zoned Li Ta
                       Incl.   25      28       3     0.61         104           0.76

              AMBC046          22      31       9     0.28         132           0.47     zoned Li Ta

                       Incl.   25      28       3     0.62         86            0.74

              AMBC047          23      34      11     0.11         208           0.42     zoned Li Ta

              AMBC048          25      32       7     0.82         178           1.08     zoned Li Ta

                       Incl.   26      30       4     1.35         210           1.66
              AMBC049          28      35       7     0.50         218           0.82     zoned Li Ta

                       Incl.   29      32       3     0.99         176           1.25

               AMBC050         28      34       6     0.47         209           0.78     Li Ta
               AMBC051         19      31      12     0.51         346           1.01     zoned Li Ta

                                Incl.     23      29       6     0.88         264           1.26

 Bore line South      68                     6   10.8     4.8    0.95         128           1.13     zoned Li Ta

                                Incl.        6        8    2     2.18         52            2.26


    1)   Li2O equivelent grade assuming $65/Lb for Ta2O5 and $100/% for contained Li2O.
    2)   Pegmatite type including Li Ta (Lithium Tanalum) and zoned Li Ta (zoned Lithium Tantalum).
    3)   Most intercepts at Bald Hill are 80-100% of true width.

Table 4b | Drill Hole Details to Holes in Table 4a
  HOLE             GDA94         GDA94           RL        Azm   Declination        Depth            Drill

    ID             East           North          (m)       (°)          (°)          (m)           Method

          1      421855        6512985       295.0      0               -90           7             RC
          2      421802        6512996       293.0      0               -90          20             RC

          4      421875        6512942       295.0      58              -60          18             RC
         12      422056        6512895       299.0     259              -60          15             RC

         13      422115        6512902       298.0     258              -60          24             RC
         15      422069        6512846       300.0     261              -60          25             RC

         21      421854        6512915       293.0      0               -90          27             RC

         22      421838        6512895       293.0      0               -90          25             RC

         28      422004        6512624       295.0      0               -90           6             RC

         29      422018        6512630       295.0     255              -60          11             RC

         30      422061        6512638       297.0      0               -90          34             RC
         31      421794        6512936       292.0      0               -90          15             RC
         34      422044        6512528       291.0      0               -90          20             RC
       35        422067        6512538       292.0    256               -60          33             RC

         37      422110        6512548       293.0      0               -90          30             RC
         38      422167        6512557       295.0      0               -90           8             RC

         49      422097      6512237         282.0    253               -60           6             RC

         53      422267      6511712         273.0      0               -90          20             RC

         68      422353      6511322         284.0      0               -90          14             RC

 AMBC011         422454      6511740         274.2      0               -90          39             RC

 AMBC019         422421      6511743         274.1      0               -90          37             RC
 AMBC028         422376      6511749         274.1      0               -90          31             RC

 AMBC030         422345      6511728         274.0      0               -90          37             RC

 AMBC036         422285      6511659         272.3      0               -90          37             RC

 AMBC037         422300      6511672          272.7     0               -90          43             RC

 AMBC038         422311      6511686          273.0     0               -90          36             RC

 AMBC046         422333      6511712          273.6     0               -90          37             RC

 AMBC047         422332      6511694          273.3     0               -90          43             RC

 AMBC048         422325      6511678          272.9     0               -90          37             RC

 AMBC049         422314      6511663          272.5     0               -90          37             RC

 AMBC050         422302      6511651          272.1     0               -90          37             RC

 AMBC051         422284      6511638          271.8     0               -90          37             RC

 AMBC073         422192      6512346          286.8     0               -90          37             RC

 AMBC074         422170      6512342          286.4     0               -90          43             RC

 AMBC076         422120      6512334          285.3     0               -90          43             RC

 AMBC078         422125      6512310          284.9     0               -90          49             RC

 AMBC082         422217      6512326           287.0    0               -90          31             RC

 AMBC083         422248      6512332           287.3    0               -90          37             RC

 AMBC095         422134      6512257           283.1    0               -90          37             RC

Table 4b Cont. | Drill Hole Details to Holes in Table 4a
  HOLE        GDA94    GDA94     RL   Azm  Declination  Depth            Drill

    ID        East         North       (m)      (°)        (°)       (m)         Method
AMBC096      422164   6512260   283.3   0   -90   49   RC

AMBC100      422257   6512286   285.5   0   -90   31   RC

AMBC101      422271   6512289   285.6   0   -90   31   RC

AMBC105      422197   6512245   282.7   0   -90   49   RC

AMBC107      422178   6512372   287.2   0   -90   61   RC

AMBC108      422219   6512377   288.0   0   -90   61   RC

AMBC109      422235   6512379   287.8   0   -90   37   RC

AMBC111      422274   6512383   287.2   0   -90   31   RC

AMBC114      422252   6512398   287.9   0   -90   43   RC

AMBC115      422232   6512398   288.4   0   -90   43   RC

AMBC117      422118   6512738   300.1   0   -90   61   RC

AMBC118      422146   6512742   298.9   0   -90   55   RC

AMBC119      422172   6512747   298.5   0   -90   61   RC

AMBC120      422197   6512752   297.6   0   -90   61   RC

AMBC121      422221   6512756   297.3   0   -90   61   RC

AMBC123      422193   6512778   297.8   0   -90   55   RC

AMBC124      422166   6512771   298.7   0   -90   55   RC

AMBC130      422182   6512828   298.0   0   -90   49   RC

AMBC132      422136   6512818   298.7   0   -90   31   RC

BH85-08      422036   6512940   298.0   0   -90   12   RC

BH85-19      422066   6512640   297.0   0   -90    9   RC

BH85-20      422007   6512576   293.0   0   -90   22   RC

BH85-27      422029   6512530   291.0   0   -90   26   RC

BH85-28      422098   6512545   292.0   0   -90   24   RC

BH85-29      422074   6512489   290.0   0   -90   25   RC

BH85-30      422096   6512497   290.0   0   -90   25   RC

BH85-31      422131   6512501   291.0   0   -90   18   RC

Appendix 1

Section 1 Sampling Techniques and Data
Criteria     JORC Code Explanation                         Commentary

Sampling     Nature and quality of sampling (e.g. cut      1983-1988
techniques   channels, random chips, or specific
             specialised industry standard                        ? Surveying, mapping & analysis RC, RAB drillholes.
             measurement tools appropriate to the                 ? Costeans sampled along walls..
             minerals under investigation, such as                ? 2-3kg drill samples collected at 1m intervals or
             down hole gamma sondes, or handheld                    less.
             XRF instruments, etc.). These examples             ?   Samples jaw crushed and riffle split to 100-150g
             should not be taken as limiting the broad              for pulverizing by roll milling and ring grinding.
             meaning of sampling.                               ?   XRF determination of Ta2O5, Nb2O5 & Sn by SGS
                                                                    Australia Pty. Only limited anaylsis for Li
                                                                ?   No evidence of certified standards or blanks. Field
             Include reference to measures taken to
                                                                    duplicates submitted at 1 in 25 in drilling & 1 in 10
             ensure sample representivity and the
             appropriate calibration of any
                                                                ?   Assays greater than 800ppm Ta2O5 repeated by
             measurement tools or systems used.
                                                                ?   Check assays completed at Greenbushes Analytical
                                                                    Laboratories 1996-1999.
             Aspects of the determination of               2000-2009
             mineralisation that are Material to the
             Public Report. In cases where ‘industry           ?      RC & RAB samples collected at 1m intervals or part
             standard’ work has been done this would                  thereof, in intersected pegmatites.
             be relatively simple (e.g. ‘reverse               ?      Samples riffle split to two 2.5kg samples pulverized
             circulation drilling was used to obtain 1 m              and analysis at laboratory as duplicates. Average of
             samples from which 3 kg was pulverised                   assays in database.
             to produce a 30 g charge for fire assay’).        ?      Field duplicates added to end of 2004 drilling.
             In other cases more explanation may be            ?      Certified blanks and standards of appropriate
             required, such as where there is coarse                  Ta2O5 grade reported in laboratory results. No
             gold that has inherent sampling problems.                Lithium analysis undertaken.
             Unusual commodities or mineralisation             ?      Repeat analyses on approximately 10% of samples
             types (e.g. submarine nodules) may                       2001-2013.
             warrant disclosure of detailed

                                                               ?   RC samples at 1m intervals.
                                                               ?   Samples split to 3-4kg pulverized and analysis at
                                                                   laboratory. Ta, Nb, Sn and Li analysis was
                                                               ?   Standards of appropriate grade & lab repeats
                                                                   reported in laboratory results.
                                                               ?   Field duplicates taken & submitted for analysis at 1
                                                                   in 10 in drilling.
Drilling     Drill type (e.g. core, reverse circulation,   RC and RAB drilling conducted in line with general industry
techniques   open-hole hammer, rotary air blast,           standards.
             auger, Bangka, sonic, etc.) and details
             (e.g. core diameter, triple or standard
             tube, depth of diamond tails, face-
             sampling bit or other type, whether core      Most drilling was vertical.
             is oriented and if so, by what method,
Criteria      JORC Code Explanation                     Commentary

Drill          Method of recording and assessing        Chip recovery or weights for RC and RAB drilling were not
sample         core and chip sample recoveries and      conducted.
recovery       results assessed.

                                                        It is not possible to establish if relationship between
                                                        sample recovery and sample grades exists
               Measures taken to maximise sample
               recovery and ensure representative
               nature of the samples.
                                                        Opportunity for sample bias is considered negligible.

               Whether a relationship exists
               between sample recovery and grade
               and whether sample bias may have
               occurred due to preferential
               loss/gain of fine/coarse material.

Logging        Whether core and chip samples have       Geological logs exist for most drill holes with lithological
               been geologically and geotechnically     codes via an established reference legend.
               logged to a level of detail to support
               appropriate Mineral Resource
               estimation, mining studies and           Drillholes have been geologically logged in their entirety
               metallurgical studies.                   but the detail in the logging varied significantly. Where
                                                        logging was detailed the subjective indications of
               Whether logging is qualitative or        spodumene content have been added to cross sections
               quantitative in nature. Core (or         contained in Figure 3.
               costean, channel, etc.) photography

               The total length and percentage of
                                                        Assays have generally only been submitted through and
               the relevant intersections logged.
                                                        adjacent to the pegmatites.

Sub-           If core, whether cut or sawn and         RC samples were collected at 1m intervals and riffle split
sampling       whether quarter, half or all core        on-site to produce a subsample less than 5kg.
techniques     taken.
and sample
preparation    If non-core, whether riffled, tube
                                                        The RC drilling samples are considered robust for sampling
               sampled, rotary split, etc. and          the tantalite mineralisation.
               whether sampled wet or dry.

               For all sample types, the nature,
               quality and appropriateness of the       It appears most samples were dry.
               sample preparation technique.

               Quality control procedures adopted
                                                        Sampling is in line with general sampling practices of that
               for all sub-sampling stages to           time.
               maximise representivity of samples.

               Measures taken to ensure that the
                 sampling is                            Field duplicates, laboratory standards and laboratory
                                                        repeats were used to monitor analyses.
Criteria       JORC Code Explanation                         Commentary

                representative of the in situ material
                   collected, including for
                                                             Sample size for RC drilling is considered appropriate for
                instance results for field                   the tantalite mineralization.
                   duplicate/second-half sampling.

                Whether sample sizes are
                appropriate to the grain size of

                the material being sampled.

Quality of      The nature, quality and appropriateness      The XRF assay technique is considered to be robust.
assay data      of the assaying and laboratory               Standards, blanks and duplicates were submitted in varying
and             procedures used and whether the              frequency throughout the exploration campaigns.
laboratory      technique is considered partial or total.
                For geophysical tools, spectrometers,
                handheld XRF instruments, etc., the          Bald Hill operated as a producing mine until 2006, during
                parameters used in determining the           which verification of assay results from drilling was
                analysis including instrument make and       conducted.
                model, reading times, calibrations
                factors applied and their derivation, etc.

                Nature of quality control procedures         No geophysical methods were used to determine assay
                adopted (e.g. standards, blanks,             results.
                duplicates, external laboratory checks)
                and whether acceptable levels of
                accuracy (i.e. lack of bias) and precision
                have been established.

Verification    The verification of significant              The correlations made between closely spaced holes is
of sampling     intersections by either independent or       considered reasonable. No twinning of holes was
and assaying    alternative company personnel.               undertaken

                The use of twinned holes.                    The Ta and Li assays show a marked correlation with the
                                                             pegmatite intersections via elevated downhole grades.

                Documentation of primary data, data
                entry procedures, data verification, data    Drill logs exist for all holes either as electronic files or
                storage (physical and electronic)            hardcopy.

                                                             All drilling data has been loaded to a database and
                Discuss any adjustment to assay data.        rigorously validated prior to use.
Criteria       JORC Code Explanation                          Commentary

                                                              Graphical verification was made to see that elevated
                                                              tantalum and lithium assays correlated with the assigned
                                                              downhole lithology.

Location of     Accuracy and quality of surveys used to       Collar coordinates were derived from a 1983 50m by 50m
data points     locate drill holes (collar and down-hole      local grid. This was resurveyed in 1996.
                surveys), trenches, mine workings and
                other locations used in Mineral Resource
                                                              The drilling coordinates prior to 2014 have been
                                                              transformed to produce GDA94 coordinates.

                Specification of the grid system used.        2014 drilling was surveyed via a Differential GPS to
                                                              produce GDA94 coordinates.
                Quality and adequacy of topographic

                                                              The area is of low relief and topographic control is of
                                                              reasonable accuracy.

Data spacing    Data spacing for reporting of Exploration     The majority of the drill holes ranged from 20m by 20m to
and                Results.                                   25m by 25m on rotated grids.

                Whether the data spacing and                  The spacing of holes is considered adequate for the
                distribution is sufficient to establish the   Mineral Resource estimation and classification.
                degree of geological and grade continuity
                appropriate for the Mineral Resource and
                Ore Reserve estimation procedure(s) and
                classifications applied.                      There is no evidence of sample compositing.

                Whether sample compositing has been

Orientation     Whether the orientation of sampling           The majority of drilling was vertical.
of data in      achieves unbiased sampling of possible
relation to     structures and the extent to which this is
geological      known, considering the deposit type.
structure                                                     The lithium tantalite-bearing pegmatites are generally flat
                If the relationship between the drilling      to shallowly dipping in nature. Therefore, the majority of
                orientation and the orientation of key        drilling intercepts are assumed to be only marginally
                mineralised structures is considered to       greater than true width, with minimal opportunity for
                have introduced a sampling bias, this         sample bias.
                should be assessed and reported if
 Criteria       JORC Code Explanation                       Commentary

 Sample          The measures taken to ensure sample         The procedures applied were aligned to the industry
 security           security.                                practices prevailing at the time of sample collection,
                                                             despatch, and analysis. Given the relative grade and value
                                                             of the commodity, the procedures are considered to be

 Audits or       The results of any audits or reviews of     Prior to 1989 Fugro Spatial Solutions Pty Ltd were
 reviews         sampling techniques and data.               commissioned to confirm collar locations of a selected
                                                             number of drillholes.

Section 2 Reporting of Exploration Results
 Criteria           Explanation                             Commentary

 Mineral            Type, reference name/number,            The portfolio of mineral tenements, comprising mining
 tenement and       location and ownership including        leases, exploration licences, prospecting licences,
 land tenure        agreements or material issues with      miscellaneous licences, a general-purpose lease, and a
 status             third parties such as joint ventures,   retention lease are in good standing.
                    partnerships, overriding royalties,
                    native title interests, historical
                    sites, wilderness or national park
                    and environmental settings.

                    The security of the tenure held at
                    the time of reporting along with any
                    known impediments to obtaining a
                    licence to operate in the area.

 Exploration        Acknowledgment and appraisal of         Alluvial tantalite has been mined periodically from the early
 done by other      exploration by other parties.           1970s.
                                                            Gwalia Consolidated Limited undertook exploration for
                                                            tantalite-bearing pegmatites from 1983-1998. Work included
                                                            mapping, costeaning, and several phases of drilling using
                                                            RAB, RC, and diamond methods. The work identified
                                                            mineral resources that were considered uneconomic at the

                                                            Haddington entered agreement to develop the resource and

                                                                ?   commenced in 2001 and continued until 2005.
                                                                ?   Haddington continued with exploration until 2009.

                                                            Living Waters acquired the project in 2009 and continued
                                                            with limited exploration to the north of the main pit area.
Criteria      Explanation                             Commentary

Geology       Deposit type, geological setting and    The Bald Hill area is underlain by generally north-striking,
              style of mineralisation.                steeply dipping Archaean metasediments (schists and
                                                      greywackes) and granitoids.

                                                      Felsic porphyries and pegmatite sheets and veins have
                                                      intruded the Archaean rocks. Generally, the pegmatites
                                                      parallel the regional foliation, occurring as gently dipping
                                                      sheets and as steeply dipping veins.

                                                      The pegmatites vary in width and are generally comprised
                                                      quartz-albite- muscovite-spodumene in varying amounts.
                                                      Late-stage albitisation in the central part of the main
                                                      outcrop area has resulted in fine- grained, banded, sugary
                                                      pegmatites with visible fine-grained, disseminated
                                                      tantalite. A thin hornfels characterised by needle
                                                      hornblende crystals is often observed in adjacent country
                                                      rocks to the pegmatite.

                                                      Intrusives. Tantalite generally occurs as fine disseminated
                                                      crystals commonly associated with fine-grained albite
                                                      zones, or as coarse crystals associated with cleavelandite.

                                                      Weathering of the pegmatites yields secondary mineralised
                                                      accumulations in alluvial/eluvial deposits.

Drill hole    A summary of all information            Only results for drill holes that have intercepted lithium
Information   material to the understanding of the    pegmatites of 2m or more in width that have been assayed
              exploration results including a         for lithium have been included in the release.
              tabulation of the following
              information for all Material drill
                                                      All drill hole details are contained in Table 4b of the
                  •   easting and northing of the     release.
                      drill hole collar

                  •   elevation or RL (Reduced
                      Level – elevation above sea
                      level in metres) of the drill
                      hole collar

                  •   dip and azimuth of the hole

                  •   down hole length and
                      interception depth

                  •   hole length.
Criteria         Explanation                               Commentary

                 If the exclusion of this information is
                 justified on the basis that the
                 information is not Material and this
                 exclusion does not detract from the
                 understanding of the report, the
                 Competent Person should clearly
                 explain why this is the case.

Data             In reporting Exploration Results,         No cutting to intercept grades has been undertaken.
aggregation      weighting averaging techniques,
methods          maximum and/or minimum grade
                 truncations (e.g. cutting of high
                 grades) and cut-off grades are            Reported intervals in Table 4a represent the aggregation of
                 usually Material and should be            the entire intercept of the mineralised body, higher grade
                 stated.                                   zones are included where the grade varies significantly from
                                                           the average of the entire width of the mineralised
                 Where aggregate intercepts                pegmatite. Only lithium and tantalum oxide results are
                 incorporate short lengths of high         tabled, other potential by-products are currently considered
                 grade results and longer lengths of       to be insignificant in economic importance.
                 low grade results, the procedure
                 used for such aggregation should be
                 stated and some typical examples of
                                                           Insitu lithium oxide equivalent grades have been included in
                 such aggregations should be shown in
                                                           Table 4a This has been calculated on the basis of
                                                           US$65/pound ($145.6/kg) for contained tantalum pentoxide
                 The assumptions used for any              and US$100 per % of contained lithium oxide. These a
                 reporting of metal equivalent values      broadly consistent with recent market rates for comparable
                 should be clearly stated.                 products and do not take into account premiums paid for
                                                           Bald Hill tantalum concentrates.

Relationship     These relationships are particularly      The majority of drilling completed at Bald Hill was vertical
between          important in the reporting of             holes. The tantalite-bearing pegmatites are generally flat to
mineralisation   Exploration Results.                      shallowly dipping in nature. Therefore, the majority of
widths and                                                 drilling intercepts are assumed to be only marginally greater
intercept                                                  than true width.
                 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 lengths are reported, there
                 should be a clear statement to this
                 effect (e.g. ‘down hole length, true
                 width not known’).
  Criteria        Explanation                              Commentary

  Diagrams        Appropriate maps and sections (with      Drilling locations of RC and Diamond holes deeper than 30m
                  scales) and tabulations of intercepts    are shown on figure 3 of the release.
                  should be included for any
                  significant discovery being reported
                  These should include, but not be
                  limited to a plan view of drill hole
                  collar locations and appropriate
                  sectional views.

  Balanced        Where comprehensive reporting of         Results for all drill holes that have intercepted lithium
  reporting       all Exploration Results is not           pegmatites that have been assayed for lithium have been
                  practicable, representative              included in the release.
                  reporting of both low and high
                  grades and/or widths should be
                  practiced to avoid misleading
                  reporting of Exploration Results.

  Other           Other exploration data, if               Bottom of hole (non pegmatite) lithium geochemistry data
  substantive     meaningful and material, should be       has been successful in highlighting areas close to
  exploration     reported including (but not limited      pegmatites.
  data            to): geological observations;
                  geophysical survey results;
                  geochemical survey results; bulk
                  samples – size and method of             The incomplete metallurgical test work for spodumene
                  treatment; metallurgical test            referred to in the release is currently being undertaken by
                  results; bulk density, groundwater,      Nagrom. Nagrom has extensive experience with Tantalum
                  geotechnical and rock                    and Lithium extraction testwork and has ISO9001:2008
                  characteristics; potential deleterious   accreditation. Results have been reported without
                  or contaminating substances.             interpretation.

  Further work    The nature and scale of planned          Further RC and diamond drilling is warranted at the various
                  further work (e.g. tests for lateral     deposits to explore for additional resources and improve the
                  extensions or depth extensions or        understanding of the current resources prior to mining.
                  large-scale step-out drilling).

                                                           Most of the pegmatites shown on figures are open ended
                                                           and are a function of shallow drilling. This is highlighted in
                  Diagrams clearly highlighting the        figure 3 Where only holes deeper than 30 have been shown.
                  areas of possible extensions,            Holes shallower that 30m are considered to not have
                  including the main geological            adequately tested the potential for generally flat lying
                  interpretations and future drilling      unmined pegmatites.
                  areas, provided this information is
                  not commercially sensitive.

24 October 2016


PricewaterhouseCoopers Corporate Finance (Pty ) Ltd

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