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TAWANA RESOURCES NL - Tawana Completes Earn in to Bald Hill

Release Date: 24/10/2017 08:30:00      Code(s): TAW       PDF(s):  
Tawana Completes Earn in to Bald Hill

Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
JSE ISIN: AU0000TAWDA9
Share code on the Australian Securities Exchange Limited: TAW
ASX ISIN: AU000000TAW7
(“the Company” or “Tawana”)

Tawana Completes Earn in to Bald Hill

PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE REFER TO
TAWANA WEBSITE FOR THE COMPLETE ANNOUNCEMENT.

Tawana Resources NL (TAW:ASX) (Tawana or the Company) and Alliance Mineral Assets Limited
(SGX:AMA) (AMAL) are pleased to announce that Lithco No. 2 Pty Ltd (Lithco), a 100% owned subsidiary
of Tawana Resources NL, has spent the required $12,500,000 to earn a 50% interest in the Bald Hill
Project (being all minerals from the tenements and the processing plant and infrastructure at Bald Hill,
located in the Eastern Goldfields, Western Australia).
As the conditions in the farm-in agreement entered into between Lithco and AMAL on 23 February 2017
have been satisfied, the Bald Hill Joint Venture Agreement has come into effect, as verified by
independent auditor, Ernst & Young on 20 October 2017. Consequentially, the Bald Hill Joint Venture
Agreement supersedes the Lithium Rights Joint Venture Agreement and Tawana (via Lithco) and AMAL
each have an equal 50:50 legal and beneficial interest in the Bald Hill Project.

During the earn-in period, Lithco and AMAL have continued to derive significant value at the Bald Hill
Lithium and Tantalum mine. Highlights include:

    -   A robust prefeasibility study1 for the Bald Hill mine, which is expected to deliver outstanding
        cash flows and returns.
    -   Awarding of the engineering, procurement and construction (EPC) agreement.
    -   Commencement of construction on the lithium plant.
    -   First lithium shipment targeted for Q1 2018.
    -   Appointment of senior operations and development personnel.
    -   Significantly updated Indicated and Inferred Mineral Resource2 of:
    -   High-grade lithium resources of 18.9Mt at 1.18% Li2O and 149ppm Ta205 at a 0.5% Li20 cut-off;
        and
    -   Additional tantalum resources of 6.4Mt at 330ppm Ta205 at a 200ppm Ta205 cut-off.

Tawana Managing Director Mark Calderwood said “Tawana and AMAL have been committed to
delivering value to its shareholders in such a short period of time. Both companies are well funded and
it is exciting that we have the opportunity to work together to deliver lithium production in the first
quarter of 2018.”

About the Bald Hill Project (AMAL:50%, TAW:50%)

A Pre-Feasibility Study (PFS)1 finalised in July 2017 confirmed the technical and financial viability of a
low capital cost 1.2Mtpa lithium Dense Media Separation circuit (DMS) adjacent to the existing
tantalum processing facility (TPF) at Bald Hill. Key findings from the study included initial annual
production of 155,000tpa of spodumene concentrate from the DMS, and 260,000Lbs of tantalum
pentoxide from the TPF. Further feasibility work is being undertaken on a lithium fines circuit (LFC) to
treat stockpiled fines and middlings which has potential to add significantly to production and reduce
costs.

The first shipment of lithium concentrate is targeted for March 2018. EPC Group Primero mobilised to
the Bald Hill Mine in July 2017 and construction work commenced, with bulk earthworks completed
and initial cement foundations being poured.

Each of Tawana and AMAL executed an offtake agreement in April 2017 for the supply of lithium
concentrate from Bald Hill over a five-year term with pricing for 2018 and 2019 of US$880/t (FOB
Esperance) for 6% Li20. The prepayments from the aforesaid offtake agreement will be used towards
the capital costs of the Project.

The Project 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. Refer Figure 1.
The Project comprises four mining leases, one mining lease application, twelve exploration licenses,
eight prospecting licenses and one general purpose lease totalling 790.1km.
A current Indicated and Inferred lithium Mineral Resource of 18.9 million tonnes at 1.18% Li20, and
149ppm Ta205 at a 0.5% Li20 cut-off for the Project was calculated by CSA Global Pty Ltd.2


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 as representation or warranty,
express or implied, of Tawana Resources NL and/or Alliance Mineral Assets Limited. 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 and/or Alliance Mineral Assets Limited.
The forward looking statements/projections are inherently uncertain and may therefore differ materially
from results ultimately achieved.

Tawana Resources NL and/or Alliance Mineral Assets Limited 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 Tawana Resources NL and/or Alliance Mineral Assets Limited or any of their
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 Tawana
Resources NL and/or Alliance Mineral Assets Limited, their 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.

End Notes
    1.   Refer ASX announcement dated 11 July 2017 and SGX on 8 August 2017. All material
         assumptions underpinning the Production Targets detailed in this report (including all
         financial information derived from those production targets) are detailed in the ASX
         announcement dated 11 July 2017 and Tawana confirms those assumptions continue to apply
         and have not materially changed.
    2.   All material assumptions and technical parameters underpinning the Mineral Resource
         estimates in the ASX announcement dated 11 October 2017 and SGX announcement dated 12
         October 2017 continue to apply and have not materially changed since it was last reported.
         The Indicated Resource is 8.0Mt @ 1.18% and the Inferred Resource is 10.9Mt @1.18%. AMAL
         will issue an independent qualified person report in relation to the aforesaid as soon as
         practicable.

24 October 2017

Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd

Date: 24/10/2017 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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