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TAWANA RESOURCES NL - Capital Raising Completed to commence capital works

Release Date: 28/04/2017 09:03:00      Code(s): TAW       PDF(s):  
Capital Raising Completed to commence capital works

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”)

Further to the announcement of 26 April 2017, shareholders are hereby advised that the trading
halt on the securities of Tawana is hereby lifted with immediate effect. Shareholders are also
referred to the details below regarding the capital raising by the company.
Tawana Resources NL (“Tawana” or the “Company”) is pleased to announce that it has received
commitments to raise A$15.0 million (before costs) via the issue of 60 million new fully paid
ordinary shares in the Company at an issue price of A$0.25 per share (“Placement”). The
Placement was strongly supported by domestic and offshore institutional investors.

The placement follows Tawana’s announcement it had signed a binding five-year exclusive lithium
concentrate offtake agreement with Hong Kong-listed Burwill Holdings Ltd. The agreement
included a prepayment of $25 million (Tawana’s share is $12.5 million) (Refer ASX announcement
26 April, 2017).

The Placement will take part in two tranches:

    - Tranche 1 - comprising 35,900,000 shares, raising A$8,975,000 (which is within the
      Company’s 15% placement capacity), will be issued on Monday, 8 May 2017.
    - Tranche 2 – comprising 24,100,000 shares, raising A$6,025,000, will be issued following
       shareholder approval, which is expected to be sought at a General Meeting on or about
       Tuesday, 30 May 2017.

The Placement price of A$0.25 per share represents less than a 7.4% discount to Tawana’s last
traded price of $0.27 on 20 April 2017 and a 3.2% discount to the 10 day trading VWAP of A$0.258.

The funds raised under the Placement will primarily be used to advance the Bald Hill Lithium and
Tantalum Project in order to meet the projected start of commissioning in late 2017. In
particular, the funds will be used to complete resource drilling, ordering long lead capital items,
complete detailed design and commence engineering on the DMS circuit, civil works, earthworks,
mechanical and electrical works, mobilisation of engineers, site establishment and associated
project works.

In addition, the funding also provides certainty to complete Tawana’s obligations under the Bald
Hill Joint Venture Farm-in Agreement.

Tawana’s Managing Director, Mr Mark Calderwood stated, “We are extremely pleased with the
level of support from the Placement, particularly from some existing domestic institutional
shareholders and new Australian and international institutions who have joined the register. These
funds, in conjunction with the offtake prepayment, gives us the funding required for the capital
component of the Dense Media Separation Plant as we rapidly progress towards spodumene

Canaccord Genuity (Australia) Limited acted as the Lead Manager to the placement.

For and on behalf of the Board
Mark Calderwood
Managing Director

Bald Hill Project (AMA 100%, TAW Earning 50%)
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 Tawana’s Cowan Lithium project. The Project,
owned by Alliance Mineral Assets Limited (AMA), includes a permitted tantalum (pegmatite)
mine, processing facility and associated infrastructure.

Through Tawana’s 100% owned subsidiary Lithco No. 2 Pty Ltd (Lithco), Tawana entered
into a Farm-In Agreement on 23 February 2017 with Alliance Mineral Assets Limited with
respect to AMA’s Bald Hill project in Western Australia for the purpose of joint exploration
and exploitation of lithium and other minerals.
The commercial terms require Tawana:

    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
       (“Expenditure Commitment”); and at its election

    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”) by 31 December 2019.

Upon completion of the Expenditure Commitment, Tawana shall be entitled to 50% of all
rights to lithium minerals from the tenements comprising the Project (“Tenements”). AMA
and Lithco had on 10 April 2017 entered into a lithium rights joint venture agreement.
Upon completion of the Expenditure Commitment and Capital Expenditure, Tawana 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). The portfolio of mineral tenements,
comprising mining leases, exploration licences, prospecting licences, miscellaneous
licences, a general-purpose lease, and a retention lease are in good standing. AMA and
Lithco had on 18 April 2017 entered into a Bald Hill Joint Venture Agreement.

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.

Not for release or distribution in the United States
This announcement has been prepared for publication in Australia and may not be released to US wire services
or distributed in the United States. This announcement does not constitute an offer of securities for sale in any
jurisdiction, including the United States, and any securities described in this announcement may not be offered
or sold in the United States except in transactions exempt from, or not subject to, the registration requirements
under the US Securities Act of 1933and applicable US state securities laws.

28 April 2017

PricewaterhouseCoopers Corporate Finance (Pty) Limited

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