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TAWANA RESOURCES NL - Commissioning Commences at Bald Hill Lithium Plant

Release Date: 15/02/2018 08:28:00      Code(s): TAW       PDF(s):  
Commissioning Commences at Bald Hill Lithium Plant

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”)

Commissioning Commences at Bald Hill Lithium Plant

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) and Alliance Mineral Assets Limited (SGX:40F) (AMAL)
are pleased to advise they have commenced commissioning the Dense Media Separation (DMS)
circuit at the Bald Hill Lithium and Tantalum Mine in the Eastern Goldfields region of Western
Australia.

The plant commissioning is a significant step towards becoming Australia’s next hard rock lithium
producer. The Bald Hill Project (the Project) is a joint venture project between Tawana and AMAL.

Highlights

DMS Plant construction activities have reached commissioning stage.
-   The power plant is operational.
-   The Motor Control Centre/ Low Voltage (MCC/LV) switch room has been commissioned.
-   Dry commissioning has commenced and is planned to continue until late February.
-   Crushing and stockpiling of ore has commenced.
-   Wet commissioning is scheduled to commence on 21 February.
-   Ore feed to the DMS is expected in early March, subject to successful wet commissioning.
-   Mining daily movements averaging circa 20,000m3 per day.

Tawana’s Managing Director Mark Calderwood said “We have reached the commissioning stage
where construction transforms into operations. The plant will be ramped up to full production run
rate over several months however we will be producing spodumene concentrates from the day ore is
fed to the DMS circuit.
This is a pivotal time for the Project, as we make the transition from a developer to producer.”

Commissioning

The commissioning phase of construction of the DMS lithium circuit has commenced.
Commissioning activities include:
-   New power station commissioned and operational.
-   MCC/LV switch room commissioning checks completed.
-   Crusher commissioned and building crushed ore stockpile.
-   Dry commissioning of DMS circuit has commenced and is scheduled to be completed by the
    end of February, excluding non-essential items.
-   Commissioning of the water services systems scheduled to commence 16 February.
-   Wet commissioning of the DMS scheduled to start 21 February.
-   Ore commissioning scheduled to commence in early March, subject to successful wet
    commissioning.

Primero Group, the company responsible for the design and construction of the DMS and fines
tantalum circuit, will be operating the plant under an operations and maintenance contract for an
extended period. This will allow for a relatively seamless transition from construction through to
operations.

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 has been targeted for the first quarter of 2018 and first
delivery anticipated in April 2018.

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 Goldfie
lds 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

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. 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.

15 February 2018

Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd

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