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TAWANA RESOURCES NL - Bald Hill on track for lithium production in Q1 Calendar Year 2018

Release Date: 28/11/2017 08:40:00      Code(s): TAW       PDF(s):  
Bald Hill on track for lithium production in Q1 Calendar Year 2018

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”)

Bald Hill on track for lithium production in Q1 Calendar Year 2018


Tawana Resources NL (TAW:ASX) (Tawana) and Alliance Mineral Assets Limited (SGX:AMA) (AMAL)
are pleased to provide an update on works at the Bald Hill Mine, in the Eastern Goldfields region of
Western Australia, where lithium concentrate production is on track to commence in Q1 CY18. The
Bald Hill project (the Project) is a joint project between Tawana and AMAL.

-   Engineering, procurement and construction (EPC) contract for Lithium Dense Media Separation
    (DMS) circuit progressing on schedule:
    o    Design is 88% complete
    o    Structural steel installation well-advanced
    o    Bins and hoppers being installed
    o    Screens and pumps on site
    o    Majority of mechanical equipment delivered
    o    Electrical installation commenced
-   Preferred mining contractor selected and mobilised to site.
-   Preferred crushing contractor selected and preparing to mobilise.
-   Fuel and Power contracts awarded.

Tawana’s Managing Director Mark Calderwood stated: “Structural steel work is now well advanced
and placement of mechanical equipment and electrical cabling has commenced. We have selected
mining, crushing, power and fuel contractors, and the mining contractor has mobilised to site.
“The project is coming to life, with significant increases in manning levels, and we remain committed
and focused on delivering lithium concentrate from Bald Hill during the first quarter of 2018.”

EPC Update
    -   Engineering design is 88% complete.
    -   Concrete works are 99% complete.
    -   Buried services (electrical/piping) progressing with conduits & pits being positioned/installed
        and HDPE piping installation commenced.
    -   Steelwork erection is well advanced with majority of hoppers, tanks and chutes installed.
    -   Procurement of major equipment is complete, with deliveries occurring progressively to
        support the sequence of construction.
Major Contracts
    -   Preferred Crushing contractor selected, with mobilisation expected in early December.
    -   Fuel and Power contracts awarded.
    -   Non-Processing Infrastructure engineering well-advanced and procurement commenced.

About the Bald Hill Project

The Bald Hill Project comprises four mining leases, one mining lease application, 12 exploration
licences, eight prospecting licences and one general purpose lease totalling 774km2. The project is
owned 50:50 by Tawana and AMAL.

The first lithium concentrate production is targeted for the first quarter of 2018. The Project is fully
funded to first shipment.

Each of Tawana and AMAL executed an offtake agreement in April 2017 (and subsequent variations
thereto) 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 are being used towards the capital costs of the Project.
The Project is located 50km southeast of Kambalda in the Eastern Goldfields of Western Australia, and
approximately 75km southeast of the Mt Marion Lithium project. Refer Figure 1.
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.1
The Project remains significantly underexplored and significant drilling is planned for 2018.

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

End Notes
1.     All material assumptions and technical parameters underpinning the Mineral Resource
       estimates in the ASX announcement dated 11 October 2017 / SGX announcement dated 12
       October 2017 continue to apply and have not materially changed since it was last reported.

28 November 2017

PricewaterhouseCoopers Corporate Finance (Pty) Ltd

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