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TAWANA RESOURCES NL - Significant Lithium Intercepted at Bald Hill Mine

Release Date: 17/11/2016 09:09:00      Code(s): TAW       PDF(s):  
Significant Lithium Intercepted at 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 an update on the Bald Hill Mine in
Western Australia.

As previously announced, Tawana has an option to acquire Lithco No 2 Pty Ltd (“Lithco”) which has entered into a
Farm-In and Joint Venture arrangement with SGX listed Alliance Mineral Assets (“AMAL”) for the purpose of
exploration and joint exploitation of lithium and other minerals.

An early stage step-out exploratory drilling program commenced at Bald Hill and is targeted at adding to the overall
understanding of the resource potential extending from the current permitted pit design. The drilling is part of a
larger program to upgrade resources and reserves to support possible re-commencement of mining in 2017. There
are two rigs working on the Mining Lease and another operating on the Company’s neighbouring Cowan Lithium
Project. The number of rigs is likely to increase in January.

Lithco is ramping up engineering studies focused on adding a spodumene concentrator and infrastructure upgrades.
The current concept study is a precursor to detailed planning commencing in the New Year.

Recent Highlights

-   Initial very wide-spaced drilling at Bald Hill has intercepted multiple mineralised pegmatites up to 30m wide over
    a large area, indicating significant resource potential. Ongoing drilling is continuing to expand the pegmatite
-   Results have been received for five RC holes south of the South Pit, including;
    LRC0005 - 9m at 1.65% Li2O from 140m;
    LRC0006 - 23m at 1.15% Li2O from 107m including 15m at 1.33% Li2O from 108m. The hole also intercepted a Li
    Ta pegmatite returning 8m at 0.95% Li2O and 381ppm Ta2O5 from 73m;
    LRC0007 - 8m at 1.30% Li2O from 109m and 15m at 1.18% Li2O from 127m including 8m at 1.61% Li2O from
-   Lithium grades appear stronger to the south and at depth and tantalum is more abundant in the north. Pegmatites
    are generally wider to the south.
-   Phase one metallurgical test work completed with excellent results.
-   Concept study for spodumene concentrator has commenced, the aim of the study is estimate the cost and time
    required to install a spodumene concentrator.
-   Approaches received from several significant entities within the lithium supply chain with strong demand to obtain
    near-term spodumene concentrate.

Managing Director Mark Calderwood stated: “The first ever program focused on lithium at Bald Hill has resulted in
early success and we expect that over the coming months the resource potential will unfold as we increase the
pegmatite footprint to the south and west. The Company expects to release an exploration update from the
neighbouring Cowan Project next week.”
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, owned by Alliance Mineral
Assets Limited (“AMAL”), includes a permitted tantalum (pegmatite) mine, processing facility and
associated infrastructure.

Lithco No 2 Pty Ltd (“Lithco”) has entered into a Farm-In and Joint Venture arrangement with AMAL for
the purpose of joint exploration and exploitation of lithium and other minerals. Tawana has entered an
option agreement to acquire all the shares in Lithco.

Recent Drilling by Lithco
Deeper extensional drilling has commenced on the Bald Hill mining lease, on a nominal 320m x 160m grid. To
date a total of 13 deeper RC holes have been completed for which results have been received for seven
holes. Core drilling has commenced to obtain additional metallurgical samples and as tails to the RC holes
that have not reached target depth.

The drilling has intercepted significant spodumene mineralisation south of the largest pit (South Pit) within
pegmatites that are interpreted as those previously mined and newly discovered larger pegmatite/s located
in the footwall.

 Table 1| Significant Lithium Intercepts - Extensional Drilling
  Hole ID           From        To        Interval   Li2O        Ta2O5     Nb2O5      SnO2          Li2O
                      m         m            m        %          ppm       ppm        ppm         Eqv.(1) %

  LRC0005              140        149            9      1.65        125        73        180           1.83
            incl       140        142            2      3.06         79        54        174           3.18
            and        145        149            4      2.03         57        40        166           2.11
  LRC0006               73           81          8      0.95        381       173        166           1.50
            incl        74           78          4      1.33        485       217        212           2.04
                       107        130          23       1.15        166       107        107           1.39
            incl       108        123          15       1.33        173       113        107           1.58
            incl       120        123            3      2.10        143       119        112           2.31
  LRC0007              109        117            8      1.30         93       116            58        1.44
                       127        142          15       1.18         74       113            47        1.29
            and        134        142            8      1.61         81       119            58        1.73
   1) Li2O Equivelent grade is estimated based on the formula set out in Appendix 1.
   2) The true width of pegmatites are generally considered 85-95% of the intercept width.
   3) Details of Drill Holes and Pegmatite Intercepts are contained in Table 2.

There are strong indications that the pegmatites in the Bald Hill mine grade from narrow and tantalum rich
in the North to North East to wider and lithium rich in the South to South West. Where there are multiple
sub-horizontal pegmatites, the shallow ones tend to be richer in tantalum and deeper ones richer in

Wider pegmatites show indications of mature pegmatite zoning with lithium rich and lithium poor zones.
Examples of this are;

   -   LRC0005 where a 2m central quartz feldspar zone (core) contains 0.06% Li2O whilst the spodumene
       rich inner zones each side of this averaged 2.20% and 2.03% Li2O over 3m and 4m respectfully.
   -   LRC0007 where four discrete outer zones representing 17m of the 34m pegmatite interval averaged
       1.51% Li2O whilst the central zone averaged 0.22% Li2O.

This zoning on the larger sub-horizontal pegmatites will provide opportunity for selective mining
particularly given the coarse and highly visible spodumene.

RC and core drilling will continue to expand the footprint of the pegmatite and undertaken infill drilling
within the permitted pit design to better delineate spodumene zones for detailed mine planning.

Metallurgical Testwork

Metallurgical test work results announced 24 October 2016, page 4, showed potential to produce high grade
DMS concentrates. Subsequently sighter floatation test-work on combined <1mm Reflux Classifier and low
grade >1mm DMS gravity concentrates (middlings) has been undertaken. The resulting floatation recovery
was favourable with returning a recovery of 74.7% at a grind size of P80 0.18mm, with a combined
concentrate grade of 6.42% Li2O.

The combined DMS and Floatation concentrates accounted for 83% of the calculated contained lithium at
an average grade of 6.1% Li2O with very low mica content. Further work will be undertaken to optimise
recovery and concentrate grade.

Proposed Engineering

A concept study has commenced with the aim of obtaining an indication of capital and operating costs for the
addition of a 1Mtpa spodumene concentrator. The study is being undertaken by Wave International in
conjunction with an owner’s team of consultants. The study proposes the use of contract mining, crushing and
concentrate haulage.

Off-Take Negotiations
Lithco/AMAL (“The JV”) have been approached by several significant entities within the lithium supply chain
with strong demand to obtain near term spodumene concentrate and has received written proposals from two
of the entities. Due to the apparent significant shortage of uncommitted spodumene in 2017-2018 to feed new
convertors, the JV will delay advanced negotiations until a definitive timeline to production can be determined.
However, The JV will continue to provide samples of concentrate product to converters to undertake test work
on lithium extraction.

Cowan Project
The Company plans to release an exploration update next week from the neighbouring Cowan Lithium Project,
where an RC rig is undertaking wide spaced exploratory drilling.

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
announcement or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this announcement.
 Table 2| Drill Summary, Deeper Extensional Holes with Pegmatite Intercepts
  Hole ID     Easting    Northing     RL    Depth    Azm    Dec.    Type     From     To     Width         Pegmatite     Visual
                m           m         m       m                               m       m       m              Type       Spod.(1)
 LDD0001       421755     6512320     284      235    270     -60   RC/DD     22.9      24      1.1   Ta?
                                                                              58.7    59.7      0.9   Li                   5%
                                                                              81.6    81.7      0.1   Barren?              nil
                                                                              82.1    83.2      1.1   Li                   5%
                                                                             100.3   113.3     13.0   Li                 5-10%
                                                                             146.7   153.9      7.2   Li                  15%
 LRC0001       421800     6512800     290      174     90     -60   RC        35.0    38.8      3.8   Ta                N/R
                                                                             154.5   156.0      1.5   Ta
 LRC0002       422040     6512800     297      160     90     -60   RC        44.1    47.0      2.9   Ta, Li            N/R
 LRC0003       422240     6512320     286      174    270     -60   RC         0.0     4.5      4.5   Ta
                                                                              15.9    16.9      1.0   Li, Ta
                                                                              18.9    21.1      2.2   Ta
                                                                              25.0    32.0      7.0   Li, Ta (zoned)
                                                                              64.0    66.5      2.5   Ta, Li
                                                                              89.0    91.0      2.0   Barren
                                                                              94.0    95.1      1.1   Ta, Li
                                                                             100.0   103.9      3.9   Ta
                                                                             154.0   155.0      1.0   barren
 LRC0004       422080     6512320     284      172     90     -60   RC        29.0    30.0      1.0   Ta                N/R
                                                                              90.0   102.6     12.6   Ta, Li (zoned)
                                                                             159.4   161.1      1.7   barren
 LRC0005       421920     6512320     283      163     90     -60   RC        34.0    36.5      2.5   Ta                N/R
                                                                              87.0    91.0      4.0   Ta
                                                                             111.0   113.0      2.0   Ta, Li
                                                                             135.0   154.0     19.0   Li (zoned)
 LRC0006       421760     6512320     284      160     90     -60   RC        55.0    56.1      1.1   barren            N/R
                                                                              73.4    80.0      6.6   Li, Ta
                                                                             107.7   130.0     22.3   Li, Ta
 LRC0007       422260     6512000     277      151     90     -60   RC        57.3    59.0      1.7   Ta                N/R
                                                                              76.0    77.0      1.0   Ta
                                                                             108.8   142.0     33.2   Li (zoned)
                                                                             146.0   149.0      3.0   Ta, Li
 LRC0014       421640     6512800     287      136     90     -60   RC        25.0    26.0      1.0   Ta?
                                                                              65.1    79.0     13.9   Li, Ta (zoned)     3-70%
 LRC0015       421560     6512800     286      122     90     -60   RC         0.0     1.0      1.0   Ta?
                                                                              74.7    80.0      5.3   Li?                2-10%
 LRC0016       422200     6512320     286      126    270     -60   RC        11.8    28.0     16.2   Li, Ta             1-30%
                                                                              77.2    86.1      8.9   Li, Ta             7-15%
 LRC0023       422100     6512000     282      123     90     -60   RC        80.9    96.9     16.0   Li                 5-25%
 LRC0024      421935    6512000     284     112     90    -60 RC          96.0 108.0       12.0       Li, Ta             0-35%

    1) Visual esitmate of the range of spodumene content.
    2) The true width of pegmatites are generally considered 85-95% of the intercept width.
    3) N/R denotes not numerically recorded

 Table 3| Drill Summary, Shallow Infill Northern Holes with Pegmatite Intercepts

  Hole ID     Easting    Northing     RL    Depth   Azm    Dec.   Type    From      To     Width        Pegmatite    Visual
                m           m         m       m                            m        m       m             Type      Spod.(1)
 LRC0008       421840     6512800     291      52     90   -60    RC        21.0    36.1       15.1   Ta, Li        N/R
 LRC0009       421880     6512800     292      52     90   -60    RC        34.0    41.0        7.0   Li, Ta?       N/R
 LRC0010       421920     6512800     293      46     90   -60    RC        28.8    37.1        8.3   Li?           N/R
 LRC0011       421960     6512800     294      40     90   -60    RC        29.1    32.0        2.9   Ta?           N/R
 LRC0012       422000     6512800     296      74     90   -60    RC        60.0    63.1        3.1   Li, Ta?       N/R
 LRC0013       421720     6512800     289     100     90   -60    RC        41.4    45.2        3.8   Ta, Li?       N/R
                                                                            69.0    70.0        1.0   barren?
 LRC0017       421920     6513000     295      71     90   -60    RC      mined
 LRC0018       421840     6513000     294      95     90   -60    RC      mined
 LRC0019       421760     6513000     290      58     90   -60    RC         0.6     1.5        0.9   Ta?           <1%
                                                                             2.6    11.2        8.6   Ta?           <1%

   1)   Visual esitmate of the range of spodumene content.
   2)   The true width of pegmatites are generally considered 85-95% of the intercept width.
   3)   N/R denotes not numerically recorded.
   4)   Assasys are penfing for hiles LRC009 to LRC0019.

Table 4| Significant Intercepts 
                         From       To      Interval    Li2O       Ta2O5      Nb2O5       SnO2       Li2O
 Hole ID                   m        m          m          %         ppm        ppm         ppm      Eqv.(1) %
 LRC0001                No Significant Intercepts
 LRC0002                     44     47          3        0.31       359        103          164       0.83
 LRC0003                      0      5          5        0.04       248        119          114       0.40
                             15     17          2        0.29       181         43          484       0.55
                             18     33         15        0.33        76         70           84       0.44
                             56     57          1        0.49        78         50          622       0.60
                             62     63          1        0.17       537        136          163       0.95
                             64     69          5        0.14       162         80          102       0.38
                             94     96          2        0.11       310        126           65       0.56
                            100    104          4        0.18       326        104          159       0.65
 LRC0004                     28     30          2        0.06       453         72          117       0.72
                             90    103         13         0.1       175         83           86       0.35
               incl          94     96          2        0.17       501         90          151       0.90
 LRC0005                     87     91          4        0.03       335        106          113       0.52
                             95     97          2        0.24       176         57           90       0.50
                            111    113          2        0.32       180         97          104       0.58
                            134    140          6        0.26       104         59          161       0.41
                            140    149          9        1.65       125         73          180       1.83
               incl         140    142          2        3.06        79         54          174       3.18
               and          145    149          4        2.03        57         40          166       2.11
                            149    154          5        0.30       116         83          180       0.47
 LRC0006                     73     81          8        0.95       381        173          166       1.50
               incl          74     78          4        1.33       485        217          212       2.04
                            107    130         23        1.15       166        107          107       1.39
               incl         108    123         15        1.33       173        113          107       1.58
               incl         120    123          3         2.1       143        119          112       2.31
 LRC0007                    109    117          8        1.30        93        116           58       1.44
                            127    127          8        0.22        28         59           38       0.26
                            127    142         15        1.18        74        113           47       1.29
               Incl.        134    142          8        1.61        81        119           58       1.73
                            146    150          4        0.22       349         93          107       0.73
 LRC0008                     21     36          15       0.36       209         66          103       0.66
               incl.         26     29          3        0.23       341         82          174       0.73
               and           29     35          6        0.71       201         83           98       1.00
    1)     Li2O Equivelent grade is estimated based on the formula set out in Appendix 1.
    2)     Only intercepts of 0.3% Li2O or 150ppm Ta2O5 considered significant.
    3)     Assays for holes LDD0001 and LRC0009 to LRC0024 are pending
Appendix 1
Section 1 Sampling Techniques and Data
 Criteria     JORC Code Explanation                                   Commentary
 Sampling     Nature and quality of sampling (e.g. cut channels,           -    Reverse Circulation Drilling
 techniques   random chips, or specific specialised industry               -    1m samples collect
              standard measurement tools appropriate to the
                                                                           -    Samples jaw crushed and riffle split to
              minerals under investigation, such as down hole
              gamma sondes, or handheld XRF instruments,                        2-2.5kg for pulverizing to 80% passing
              etc.). These examples should not be taken as                      75 microns.
              limiting the broad meaning of sampling.                      -    Prepared samples are fused with
                                                                                sodium peroxide and digested in dilute
              Include reference to measures taken to ensure                     hydrochloric acid. The resultant
              sample representivity and the appropriate                         solution is analysed by ICP, by Nagrom.
              calibration of any measurement tools or systems
              used.                                                        -    Certified standards or blanks. Field
                                                                                duplicates submitted at irregular
              Aspects of the determination of mineralisation                    intervals at the rate of approximately
              that are Material to the Public Report. In cases                  1:25.
              where ‘industry standard’ work has been done this            -    Check assays yet to be undertaken.
              would be relatively simple (e.g. ‘reverse
              circulation drilling was used to obtain 1 m samples
              from which 3 kg was pulverised to produce a 30 g
              charge for fire assay’). In other cases more
              explanation may be required, such 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     Drill type (e.g. core, reverse circulation, open-hole   RC and Diamond drilling conducted in line with
 techniques   hammer, rotary air blast, auger, Bangka, sonic,         general industry standards.
              etc.) and details (e.g. core diameter, triple or
              standard tube, depth of diamond tails, face-            All drill holes are angled
              sampling bit or other type, whether core is
              oriented and if so, by what method, etc.).              Core has been oriented where possible

 Drill        Method of recording and assessing core and              Chip recovery or weights for RC and RAB drilling
 sample       chip sample recoveries and results assessed.            were not conducted.
              Measures taken to maximise sample recovery              Each metre of drill sample recovery and moisture
                                                                      content is visually estimated and recorded.
              and ensure representative nature of the
                                                                      Opportunity for sample bias is considered
              Whether a relationship exists between sample            negligible for dry samples.
              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 been                 Geological logs exist for all drill holes with
              geologically and geotechnically logged to a             lithological codes via an established reference
              level of detail to support appropriate Mineral          legend.
              Resource estimation, mining studies and
                                                                      Drillholes have been geologically logged in their
              metallurgical studies.                                  entirety. Where logging was detailed the
              Whether logging is qualitative or quantitative          subjective indications of spodumene content
              in nature. Core (or costean, channel, etc.)
              photography                                             Assays have generally only been submitted
              The total length and percentage of the                  through and adjacent to the pegmatites.
              relevant intersections logged.
Criteria       JORC Code Explanation                                  Commentary
Sub-           If core, whether cut or sawn and whether               RC samples were collected at 1m intervals and
sampling       quarter, half or all core taken.                       riffle split on-site to produce a subsample less
techniques     If non-core, whether riffled, tube sampled,            than 5kg.
and sample     rotary split, etc. and whether sampled wet or
                                                                      The RC drilling samples are considered robust for
preparation    dry.                                                   sampling the spodumene and tantalite
               For all sample types, the nature, quality and          mineralisation.
               appropriateness of the sample preparation
               technique.                                             Most samples were dry.
               Quality control procedures adopted for all
               sub-sampling stages to maximise                        Sampling is in line with general sampling
               representivity of samples.                             practices.
               Measures taken to ensure that the sampling is
               representative of the in situ material                 Field duplicates, laboratory standards and
                                                                      laboratory repeats are used to monitor analyses.
                   collected, including for
               instance results for field duplicate/second-           Sample size for RC drilling is considered
                   half sampling.                                     appropriate.
               Whether sample sizes are appropriate to the
               grain size of
               the material being sampled.
Quality of     The nature, quality and appropriateness of the         The assay technique is considered to be robust as
assay data     assaying and laboratory procedures used and            the method used (see above) offers total
and            whether the technique is considered partial or         dissolution of the sample and is useful for
laboratory     total.                                                 mineral matrices that may resist acid digestions.
tests          For geophysical tools, spectrometers, handheld
               XRF instruments, etc., the parameters used in          Standards, blanks and duplicates were submitted
               determining the analysis including instrument          in varying frequency throughout the exploration
               make and model, reading times, calibrations            campaign and internal laboratory standards,
               factors applied and their derivation, etc.             duplicates and replicates are used for
               Nature of quality control procedures adopted (e.g.     verification
               standards, blanks, duplicates, external laboratory
               checks) and whether acceptable levels of accuracy
               (i.e. lack of bias) and precision have been
Verification   The verification of significant intersections by       No twinning of holes was undertaken
of sampling    either independent or alternative company
and assaying   personnel.                                             The Ta and Li assays show a marked correlation
                                                                      with the pegmatite intersections via elevated
               The use of twinned holes.                              downhole grades.

               Documentation of primary data, data entry              Drill logs exist for all holes as both electronic
               procedures, data verification, data storage            files and hardcopy.
               (physical and electronic) protocols.
                                                                      All drilling data has been loaded to a database
               Discuss any adjustment to assay data.                  and validated prior to use.

Location of    Accuracy and quality of surveys used to locate drill   Collar coordinates are currently only
data points    holes (collar and down-hole surveys), trenches,        approximate and considered accurate to within
               mine workings and other locations used in Mineral      4m measured using hand held GPS. Accurate
               Resource estimation.                                   surveying will be undertaken at a later time.
                                                                      Hole collars have been preserved until
               Specification of the grid system used.                 completion of survey.
               Quality and adequacy of topographic control.
 Criteria        JORC Code Explanation                                  Commentary
 Data spacing    Data spacing for reporting of Exploration Results.     The spacing of holes is considered not currently
 and                                                                    adequate for the Mineral Resource estimation
 distribution    Whether the data spacing and distribution is           and classification.
                 sufficient to establish the degree of geological and
                 grade continuity appropriate for the Mineral           There has been no sample compositing.
                 Resource and Ore Reserve estimation procedure(s)
                 and classifications applied.

                 Whether sample compositing has been applied.

 Orientation     Whether the orientation of sampling achieves           The drilling is angled.
 of data in      unbiased sampling of possible structures and the
 relation to     extent to which this is known, considering the         The lithium tantalite-bearing pegmatites are
 geological      deposit type.                                          generally flat to shallowly dipping in nature. The
 structure       If the relationship between the drilling orientation   true width of pegmatites are generally
                 and the orientation of key mineralised structures      considered 85-95% of the intercept width, with
                 is considered to have introduced a sampling bias,      minimal opportunity for sample bias.
                 this should be assessed and reported if material.
 Sample          The measures taken to ensure sample security.          The RC samples are taken from the rig by
 security                                                               experienced personal and stored securely and
                                                                        transport to the laboratory by a registered
                                                                        courier and handed over by signature.
 Audits or       The results of any audits or reviews of sampling       No audits have been undertaken to date.
 reviews         techniques and data.

Section 2 Reporting of Exploration Results
 Criteria           Explanation                              Commentary
 Mineral            Type, reference name/number,             The portfolio of mineral tenements, comprising mining leases,
 tenement and       location and ownership including         exploration licences, prospecting licences, miscellaneous
 land tenure        agreements or material issues with       licences, a general-purpose lease, and a retention lease are
 status             third parties such as joint ventures,    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.
 parties                                                     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 time.

                                                             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 and
Information   material to the understanding of the      or tantalum pegmatites of 1m or more in width that have
              exploration results including a           been assayed 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 2 and 3 of the
              holes:                                    release.
                   • easting and northing of the
                      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.
              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              Assays are report as pure elements such as Li, Ta, Nb, Sn and
              truncations (e.g. cutting of high         converted to oxides using atomic formulas.
              grades) and cut-off grades are
              usually Material and should be            Reported intervals in Table 1 and 4 represent the aggregation
              stated.                                   of the intercepts containing samples of at least 0.3% Li2O
              Where aggregate intercepts                and/or 150ppm Ta2O5, lower grade zones are included
              incorporate short lengths of high         adjacent to higher grade zones where the grade varies
              grade results and longer lengths of       significantly from the average of the entire width of the
              low grade results, the procedure          mineralised pegmatite. Only lithium, tin and niobium
              used for such aggregation should be       tantalum oxide results are tabled, other potential by-products
              stated and some typical examples of       are currently considered to be insignificant in economic
              such aggregations should be shown in      importance.
              The assumptions used for any              Insitu lithium oxide equivalent grades have been included in
              reporting of metal equivalent values      Tables 1 and 4. This has been calculated based on
              should be clearly stated.                 US$65/pound ($145.6/kg) for contained tantalum pentoxide
                                                        and US$100 per % of contained lithium oxide and assumes
                                                        overall similar recovery of both Li and Ta minerals. These are
  Criteria         Explanation                              Commentary
                                                            broadly consistent with recent market rates for comparable
                                                            products and does not allow premiums paid for Bald Hill
                                                            tantalum concentrates. No value has been applied to
                                                            Niobium or Tin.
  Relationship     These relationships are particularly     All recent drilling is angled.
  between          important in the reporting of
  mineralisation   Exploration Results.                     The lithium tantalite-bearing pegmatites are generally flat to
  widths and                                                shallowly dipping in nature. The true width of pegmatites are
  intercept        If the geometry of the                   generally considered 85-95% of the intercept width, with
  lengths          mineralisation with respect to the       minimal opportunity for sample bias
                   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’).
  Diagrams         Appropriate maps and sections (with      Drilling locations are shown on figure 1 of the release.
                   scales) and tabulations of intercepts
                   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
  substantive      meaningful and material, should be       The metallurgical test work for spodumene referred to in the
  exploration      reported including (but not limited      release was undertaken by Nagrom. Nagrom has extensive
  data             to): geological observations;
                                                            experience with Tantalum and Lithium extraction testwork
                   geophysical survey results;
                   geochemical survey results; bulk         and has ISO9001:2008 accreditation. Results have been
                   samples – size and method of             reported without interpretation.
                   treatment; metallurgical test
                   results; bulk density, groundwater,
                   geotechnical and rock
                   characteristics; potential deleterious
                   or contaminating substances.
  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).

                   Diagrams clearly highlighting the
                   areas of possible extensions,
                   including the main geological
                   interpretations and future drilling
                   areas, provided this information is
                   not commercially sensitive.

17 November 2016

PricewaterhouseCoopers Corporate Finance (Pty) Limited

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