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TAWANA RESOURCES NL - Lithium Ore Reserve Increase of 105% at Bald Hill

Release Date: 06/06/2018 09:12:00      Code(s): TAW       PDF(s):  
Lithium Ore Reserve Increase of 105% at Bald Hill

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”)

Lithium Ore Reserve Increase of 105% at Bald Hill


Joint venture partners Tawana Resources NL (TAW:ASX) (Tawana) and Alliance Mineral Assets Limited
(SGX:40F) (AMAL) (together the JV partners) are pleased to announce a 105% Reserve upgrade for the
Bald Hill Lithium-Tantalum Mine (Bald Hill or Mine or Project), located in the eastern goldfields of
Western Australia. The Reserve upgrade reflects pit design changes resulting from increases to Indicated
Resources following infill drilling completed in the second half of 2017. Infill drilling at Bald Hill is

Bald Hill Resource/Reserve Upgrade Highlights
-   Total lithium Resources of 26.5Mt at 1.0% Li2O (using 0.3% Li2O cut off).
-   Project lithium Indicated Resources of 14.4Mt at 1.02% Li2O an increase of 55% in contained lithium
    from October 20171.
-   Lithium Ore Reserve of 11.3Mt at 1.0% Li2O and 160 ppm Ta2O5 – representing an increase of 105% in
    contained lithium from the July 2017 reserve estimate2.
-   Tantalum Ore Reserve of 2.0Mt at 313ppm Ta2O5 – an increase of 43% from the July 2017 reserve

Upgraded Reserves now support a mine life of 9 years at the current processing rate of 1.2Mtpa. However,
given the large quantity of Inferred Resources awaiting infill drilling, strong market demand and superior
economics of increased throughput rates, the JV partners are actively reviewing options for significant
expansion in processing capacity and concentrate production.

Bald Hill Production Update
-   Lithium and tantalum concentrate production commenced at Bald Hill as announced on 14 March
-   Stage 1 DMS circuit achieved 50% of nameplate throughput for month 1 and 75% for month 2 of ramp-
    up, producing a premium high-quality lithium concentrate.
-   Tantalum pre-concentrate recoveries from lithium circuit are exceeding initial expectations.
-   Mining is averaging approximately 30,000Bm3 per day.
-   Logistics, including power, fuel management, concentrate haulage and ship loading are functioning as
-   Two shipments were completed in May and the next shipment is anticipated in late June/early July
    2018 with the exact shipment date and quantity still to be determined.

Opportunities for Growth
-   Approximately 8.8Mt of additional Inferred Resources reported to the preferred Indicated + Inferred
    Whittle (optimization) shell providing focus areas infill drilling. Exploration drilling in recent months has
    intersected significant mineralisation outside the current resource. Refer to Appendix A.
-   There are numerous untested, drill-ready targets which the JV partners expect to start testing within the
    next six months.
-   A further Resource/Reserve update is planned for later in 2018.\

Tawana Managing Director Mark Calderwood said: “The increased Reserves along with the potential for
additional Reserves resulting from infill drilling of Inferred material, provide strong support for
significantly increasing processing throughput rates. We are actively reviewing the options to best
increase throughput in the existing plant and/or add an additional DMS circuit and fines circuit. There has
been strong interest from a number of parties to obtain concentrate supply from Bald Hill.”

About the Bald Hill Project
The Bald Hill Mine is in the southeast of the Goldfields-Esperance Region of Western Australia, approximately 105km
south-southeast of Kalgoorlie. Kalgoorlie is the main hub in the region providing access to the Project which can be
accessed from Perth by air, rail and road.
The principal road access to the Project is via the (sealed) Coolgardie-Esperance Highway (National Highway 94), and
then the Binneringie Road from Widgiemooltha, a distance of 65km of unsealed shire road. The Project is
approximately 350km by road from the Port of Esperance.
The Mine currently consists of an open pit, a Dense Media Separation and Spiral Circuits, waste rock dumps, stores, a
camp (including administrative and living quarters) and associated infrastructure. Lithium concentrate is hauled via
Binneringie Road to the Port of Esperance. Tantalum concentrates will be packed into 205L drums and/or bulka-bags and
exported via Fremantle in standard shipping containers.
Each of Tawana and AMAL executed separate offtake agreements 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
(A$1,173) (FOB Esperance) for 6% Li2O concentrates. The offtake agreement provides for an attractive fixed price in
US dollars per dry metric tonne for the first 2 years of production, and shipping costs are borne by the offtake party.
Refer to ASX announcement of 26 April 2017 and SGX announcement of 4 May 2017.

Geology / Resources
The JV partners commissioned CSA Global Pty Ltd (CSA Global) to update the Mineral Resource estimate for the Bald
Hill Project.
The Bald Hill Pegmatite Mineral Resource comprises one large, main, sub horizontal pegmatite body, striking north-
south, with a strike length of 1,070 metres, and a width at its widest point of 775 metres. This main body is surrounded
by several smaller discrete pegmatite bodies, sub-parallel to the main, which result in a total strike length for the
whole resource of 1,245 metres, and a total width of 990 metres. The Mineral Resource has a total vertical depth of
195 metres, beginning 20 metres below the natural surface and plunging gently to the south along its entire strike
The Mineral Resource was classified as Indicated and Inferred in accordance with the JORC Code (2012 Edition) on a
qualitative basis; taking into consideration numerous factors including drillholes spacing, estimation quality statistics
(kriging slope of regression), number of informing samples, average distance to informing samples in comparison to
the semivariogram model ranges, and overall coherence and continuity of the modelled mineralisation wireframes.
The resource has been cut to the current mine survey as at 30 April 2018; ore and concentrate stockpiles have been
excluded from totals.

Table 1 | Bald Hill Project, Resources above 0.3% Li2O cut-off
                                        Grade            Contained             Grade           Contained
    Resource           Tonnes
                                         Li2O               Li2O               Ta2O5              Ta205
    Category            (Mt)
                                          %               Tonnes                ppm            (,000) Lbs
    Indicated            14.4            1.02             147,200               168               5,300
     Inferred            12.1            0.90             108,000               123               3,300
      Total              26.5            0.96             255,200               149               8,600

Table 2 |Bald Hill Project, Tantalum Resources below 0.3% Li2O and above 200ppm Ta2O5 cut-offs
    Resource           Tonnes            Grade           Contained           Grade           Contained
    Category            (Mt)              Li2O              Li2O             Ta2O5              Ta205
                                           %              Tonnes              ppm            (,000) Lbs
    Indicated             3.0             0.16             4,700              333               2,200
     Inferred             1.4             0.15             2,200              339               1,100
      Total               4.4             0.16             6,900              336               3,300
Note: The tantalum resources reported in Table 2 are additional to those reported in Table 1.

Compared to the prior estimate (refer ASX announcement 11 October 2017 and SGX announcement of 12 October
2017), the revised Mineral Resource estimate above 0.5% Li2O is essentially the same total size but Indicated
resources have increased by 67% as a result of infill drilling and lowering the cut-off due to plant performance. The
latest Mineral Resource estimate includes a low-grade component grading between 0.3 and 0.5% Li2O due to the
metallurgical performance of low-grade or feed ore to the Stage 1 DMS.
Mining / Reserves
SMS Innovative Mining Solutions Pty Ltd is undertaking contract open-pit mining of the lithium and tantalite ore. The
mining of staged open pits uses a conventional truck/excavator mining method.
Current key mining equipment on site includes 1 x 360t Excavator, 1 X 200t excavator, 1 x 120t Excavator, a fleet of
Cat785/777 trucks and ancillary equipment including dozers, graders, loaders and water carts. Drill and blast is being
undertaken under sub-contract by JSW Australia using a combination of top hammer and down hole hammer drill rigs.
To minimise ore loss and dilution, ore is being mined in blocks of shallow bench height of 2.5m with drill and blast
limited to 5m depth is areas containing ore. Bulk waste is mined utilising 5m to 10m benches, with bulk waste drill
and blast targeting 10m benches.
The mining sequence provides advance dewatering, grade control drilling and modelling, followed by drill and blast,
survey control and load and haul operations, with strong visual controls during ore mining.
To establish revised mineable quantities and grades, a number of optimisations were completed on the Resource
model completed by CSA Global using Whittle Four-X pit optimisation software (Whittle). These results were then
analysed with a set of current price and costs to determine their respective value and an optimal shell was selected
for the study based on both value and risk.
An ultimate pit was designed using a conservative optimal pit shell derived from JORC Mineral Resource Indicated
material only. All Inferred Mineral Resources within the pit design are reported as waste during the Reserve
Pit shells created from Whittle optimisations inclusive of Inferred Mineral Resources were about 60% larger than those
used for the pit design, these shells are only used as a guide to infill drilling.
Pit shells were used as stage designs and from these a mine production schedule was completed for the life of the
mine. The mine schedule was completed using Minesched scheduling software using a cut-off grade of 0.30% Li2O for
Indicated material only and iterations of the mining schedule were run based on the capabilities of the mining
equipment on site and to meet a minimum ore mining rate of 110,000t/month.
Table 3: Bald Hill Mine - Reserves above 0.3% Li2O
 Reserve                 Tonnes           Grade           Contained             Grade         Contained
 Category                  (Mt)            Li2O                Li2O             Ta2O5              Ta205
                                              %             Tonnes               ppm          (,000) Lbs
 Proven                         -              -                   -                -                  -
 Probable                    11.3           1.01            114,100               160              4,000
 Total                       11.3           1.01            114,100               160              4,000
Notes: 1) Allows for mining ore loss of 7.5% and dilution of 7.5% at 0% Li2O and 0ppm Ta2O5
       2) Reserves have been cut to the April 2018 end of month mine survey

Table 4: Bald Hill Project - Reserves below 0.3% Li2O and above 200ppm Ta2O5 cut-offs, April 2018
 Reserve                 Tonnes             Grade        Contained
 Category                  (Mt)             Ta2O5            Ta205
                                             ppm       (,000) Lbs
 Proven                         -               -                 -
 Probable                     2.0             313            1,400
 Total                        2.0             313            1,400
Notes: 1) Allows for mining ore loss of 7.5% and dilution of 7.5%
       2) Reserves contained in Table 4 are additional to those reported in Table 3.
       3) Reserves have been cut to the April 2018 end of month mine survey; ore stockpiles and concentrates are

The Bald Hill Mine commenced lithium concentrate production effective 14 March 2018. The Mine is
currently in ramp-up with the Stage 1 DMS plant performing at about nameplate capacity with utilisation
rates exceeding expectations. The Stage 1 DMS includes a spirals circuit for -1mm lithium fines which is
producing tantalum pre-concentrates.
Table 5: Staged DMS throughput rates
 Period                          Budget (t)            Actual (t)           Average tph             Operating
                                Throughput            Throughput                                     hours
 14 March – 13 April               22,509               50,042                  148.2                 337.6
 14 April – 13 May                 45,015                75,612                 157.0                 481.7
 14-May – 3 June (21              58,740(1)             63,077                  174.4                362.7(2)

   1) Based on full month target of 85033t
   2) Operating hours affected by crusher circuit modifications and downtime

The successful Stage 1 DMS plant was constructed on time and on budget by Primero Group (Primero). The
JV partners and Primero are undertaking a review of the Stage 1 DMS circuit performance and proposed -
1mm fines circuit design, with the aim of identifying minor design improvements for a possible Stage 2 DMS
circuit which will advance the Stage 1 DMS design. The proposed fines circuit and existing slimes thickening
facility would be common to both modules.
More immediate process improvements currently under consideration are to increase mass yield and plant
throughput by crushing to a coarser size. Plant performance to date on the -10mm +1mm size range has been
exceptional and plans are in place to increase the crush size and possibly reduce the bottom size.
Crushing services are provided by Cape Crushing and Earthmoving Contractors Pty Ltd on a fixed and
variable fee structure. The current arrangement provides for 1.55Mtpa crushing rate and the modular circuit
can be modified or expanded with relative ease.
The Bald Hill Mine produces high lithium, low iron and low mica, concentrates. The first
shipment of spodumene concentrate in early May 2018 averaged 6.37% Li 2O and 0.5% Fe2O3
and contained less than 0.4% mica, and the second shipment of spodumene concentrate in
late May 2018 also averaged +6% Li2O and less than 0.6% Fe2O3. To date, the quality of concentrate
and overall recovery is not highly sensitive to feed grade and this has allowed a reduction in the reserve cut
off from 0.39% Li2O to 0.3% Li2O.
Tantalum will be recovered from three streams:
Primary tantalum ore which will be processed through the existing 320,000tpa Tantalum Processing Facility
(TPF or T1) once it has been refurbished. The TPF comprises a screening and crushing circuit feeding a three-
stage spiral circuit. The TPF is expected to come on line in early 2019.
Tantalum in -1mm fines from the lithium plant is currently being recovered in a separate spiral plant (T2)
which was commissioned just after the main lithium plant. Concentrates containing 2-6 % Ta2O5 are being
stored for later processing over tables which will be installed by July 2018. This table concentrate will be
further upgraded by toll treatment at Nagrom in the interim.
Gravity pre-concentrates produced from the TPF will be combined with tantalum pre-concentrates from T2
and sent to a concentrate upgrade shed for further upgrading by tabling and magnetic separation.
The final spodumene concentrate can also contain significant quantities of tantalite, depending on the type
of ore being processed. The first shipment contained around 0.8kg/t. Plans are currently being finalised to
install a relatively low cost stand-alone jigging circuit (T3) to recover the majority of this tantalite before
concentrates are shipped.

Metallurgical Performance
The DMS circuit was commissioned on low grade semi-oxidised ore which had a head grade of 0.3% to 0.9%
Li2O. The -1mm fines content was higher than design but this was anticipated. Despite this and the low grade,
concentrate yields of 4-8% have been achieved at grades in excess of 6% Li2O.
Pit development has advanced to a stage where this semi-oxidised ore is almost depleted and the yield of
concentrate is expected to improve significantly once fresh ore with a grade of 1% Li 2O or better, is processed
from late May onwards.
Overall, operational metallurgical performance of the DMS circuit during ramp-up has been consistent with
the original test work with high grade concentrates being produced and high recoveries to primary
concentrates and middlings being achieved. The plant has already achieved feed rates of up to 210tph
compared to the design feed rate of 161 tph and opportunities for increasing the throughput by increasing
the crush size to 14mm and lowering the bottom cut-off size to 0.8mm are currently being planned.
Tantalum pentoxide recovery into pre-concentrate from the T2 spirals has exceeded expectation and is
estimated to have averaged about 0.36kg/t of fines feed for the month of April.
For further details of metallurgical test work, please refer to the following:
ASX and SGX announcements 6 September 2017
ASX announcement 11 July 2017, SGX announcement 8 August 2018
ASX announcement 16 March 2017, SGX announcement 15 March 2017
ASX announcement 13 February 2017, SGX announcement 12 February 2017

Sales/Marketing/ Pricing

The Company has a binding offtake agreement for the supply of lithium concentrate from the Bald Hill Project in
Western Australia over an approximate initial five-year term.

The key terms of the offtake agreement are as follows:
-         A fixed price for all production for 2018 and 2019 of US$880/t (FOB Esperance) for 6% Li2O with price
          adjustment increment/decrement of US$15/t based on grade variation of 0.1%.
-         From 2020 to 2023, the sales price and volumes are to be negotiated and agreed based upon prevailing
          market conditions at the time.
For the purpose of cash flow modelling US$800/t (6% Li2O FOB Esperance) has been assumed for calendar year 2020
and calendar year 2021 and US$750 (6% Li 2O FOB Esperance) from calendar year 2022 to calendar year 2025. These
prices assume Bald Hill quality concentrates which are relatively high in Li, low in Fe and low in mica.Tantalum
Historic Bald Hill tantalum concentrates have a reputation for low levels of deleterious elements and a non-binding
term sheet has been signed with HC Starck for the supply of a minimum 600,000 pounds of contained tantalum
pentoxide to December 2020 (refer ASX and SGX announcements of 25 January 2018 and 29 January 2018). Tawana,
AMAL are still in the process of negotiating the terms of a binding definitive agreement.
Excess production may be sold to HC Starck or other companies that have expressed interest for Bald Hill tantalum
The pricing assumption used for tantalum pentoxide is based on a price of US$70/lb (FOB Fremantle) for +25% Ta 2O5
from 2018-2020 and US$60 thereafter.

Tenure & Approvals
All current mining and processing activities are contained on granted Mining Lease M15/400 owned by the JV partners
and part of a larger tenement package. M15/400 was granted in 1988 and its second extension of term will expire 7
September 2030. It pre-dates Native Title and has been the subject of prior mining and production. Apart from state
government royalties, M15/400 is not subject to royalties.
Two additional mining leases are expected to be required within three to five years: an application is currently
underway for one of these licences; and an application for the second licence will be made in the coming months.
Both areas are currently under tenure owned by the JV partners.
The Bald Hill site is an operating mine site with all required permits. Ongoing variations and additional permitting will
be required from the Department of Water and Environmental Regulation (DWER) and Department of Mines, Industry
Regulation and Safety (DMIRS), for additional clearing, mining pits or pit extensions, waste dumps, tailing facilities,
and water. There are no known impediments to extending the currently permitted active mining area and associated

Opportunities for Resource Growth
There are several opportunities for increasing production rates and the mine life.
  -    Approximately 8.8Mt to 12.2Mt of additional Inferred Resources reported to the Indicated + Inferred Whittle
       shells, highlighting potential for Reserve growth with the completion of the current infill drilling program.
  -    Limited exploration drilling in recent months has been successful in intersecting significant mineralisation
       outside the current Resource. Intercepts include:
       Northern Extension
        -      21m at 1.50% Li2O from 169m from a 22m wide pegmatite in an isolated water exploration drill hole
               (LRC0707), 600m north of the current pit. A second water exploration drill hole, LRC0708 drilled 400m to
               the west, also intercepted a 6m wide pegmatite from 41m and a 17m wide pegmatite from 128m which
               included 9m at 0.33% Li2O. A third water exploration drill hole (LRC0706) located 1.2km south of LRC0708
               intercepted a 13m wide pegmatite from 23m and an 8m wide pegmatite from 43m and included 6m at
               0.68% Li2O from 24m and 4m at 1.0% Li2O from 45m, (Appendix A).

       Eastern Extension
           -    33m at 1.33% Li2O from 228m incl. 20m at 1.78% Li2O;
           -    24m at 1.51% Li2O from 200m;
           -    29m at 1.31% Li2O from 174m;
           -    28m at 1.28% Li2O from 179m incl. 11m at 1.73% Li2O;
       Details of the intercepts are set out in Appendix A
  -    Initial mine development has slowed exploration at Bald Hill, with about 12 months of lithium
       exploration drilling completed in the past 18 months. There are numerous untested, drill-ready targets
       which the JV partners expect to start testing within the next six months. Please refer to ASX and SGX
       announcements of 6 December 2017.

Competent Persons Statement
The information in this announcement that relates to Exploration Results is based on and fairly represents
information and supporting documentation compiled by Mr Gareth Reynolds, who is an employee of Tawana. Mr
Reynolds is a member of The Australasian Institute of Geoscientists. Mr Reynolds has sufficient experience
relevant to the style of mineralisation under consideration and to the activity which he is 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 Reynolds consents to the inclusion in this report of the matters based
on his information in the form and context in which it appears. Mr Reynolds meets the requirements to act as a
Qualified Person (as defined in the SGX Catalist rules).
Mr Reynolds is an employee of Tawana. Mr Reynolds is not aware of any other relationship with Tawana which
could constitute a potential for a conflict of interest.
The information in this announcement that relates to Mineral Resources is based on and fairly represents information and
supporting documentation compiled by Dr Matthew Morgan Cobb, a Competent Person who is a is a member of both The
Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Dr Cobb is a full-time employee
of CSA Global Pty Ltd. Dr Cobb has sufficient experience that is relevant to the type of deposit under consideration and to
the activity which he is 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”. Dr Cobb consents to the inclusion in this
report of the matters based on his information in the form and context in which it appears. Dr Cobb meets the
requirements to act as a Qualified Person (as defined in the SGX Catalist rules).
Dr Cobb is not an employee of Tawana or AMAL. Dr Cobb is not aware of any other relationship with Tawana which could
constitute a potential for a conflict of interest.
The information in this announcement that relates to Ore Reserves is based on and fairly represents information and
supporting documentation compiled by Mr Karl van Olden a Competent Person who is a is a Fellow of the Australasian
Institute of Mining and Metallurgy. Mr van Olden is a full-time employee of CSA Global Pty Ltd.
Mr van Olden has sufficient experience that is relevant to the type of deposit under consideration and to the activity which
he is 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 van Olden consents to the inclusion in this report of the
matters based on his information in the form and context in which it appears.
Mr van Olden not is an employee of Tawana or AMAL. Mr van Olden is not aware of any other relationship with Tawana
which could constitute a potential for a conflict of interest.
The information in this release that relates to metallurgy and metallurgical test work has been reviewed by Mr Noel O’Brien,
FAusIMM, MBA, B. Met Eng. Mr O’Brien is a part time employee of the company. Mr O’Brien is a Fellow of the Australasian
Institute of Mining and Metallurgy, and he has sufficient experience with the style of processing response and type of deposit
under consideration, and to the activities undertaken, to qualify as a competent person as defined in the 2012 edition of the
“Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr O’Brien consents to the
inclusion in this report of the contained technical information in the form and context as it appears.
Forward Looking Statements
This announcement may contain certain forward looking statements and projections including regarding estimated
resources and reserves, production and operating costs profiles, capital requirements and 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 and/or AMAL. 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 and/or AMAL. The forward looking statements/projections are inherently uncertain and may therefore differ
materially from results ultimately achieved.
While the information contained in this announcement has been prepared in good faith, neither Tawana nor AMAL, nor any
of their respective directors, officers, agents, employees or advisors make any representation or give any warranty, express
or implied, as to the fairness, accuracy, completeness or correctness of the information, forward looking statement, opinions
and conclusions contained in this announcement. Accordingly, to the maximum extent permitted by law, none of Tawana
and AMAL, nor any of their respective directors, officers, employees, agents or advisers, nor any other person accepts any
liability whether direct or indirect, express or limited, contractual, tortious, statutory or otherwise, in respect of the accuracy
or completeness of the information or for any of the opinions contained in this presentation or for any errors, omissions or
misstatements or for any loss, howsoever arising, from the use of this presentation. Tawana and AMAL disclaim any
obligation to update or revise any forward looking statements based on new information, future events or otherwise except
to the extent required by applicable laws.
Neither Tawana nor AMAL provide any financial or investment 'advice' as that term is defined in the South African Financial
Advisory and Intermediary Services Act, 37 of 2002.
Investors should exercise caution when dealing in the securities of Tawana and AMAL. In the case of any doubt, they should
seek their own professional advice and consult with their own bank manager, stockbroker, solicitor, accountant, tax adviser
or other professional adviser.
End Notes
All figures throughout this presentation regarding the Project are, unless expressly stated otherwise, presented on a 100%
of Project basis. Tawana and AMAL each have a 50% interest in the Project comprising the Bald Hill tenements, the
processing plant and infrastructure at Bald Hill, and all minerals from the Bald Hill tenements under the terms of the Bald
Hill Joint Venture Agreement. Refer to SGX and ASX announcements of 24 October 2017.
Figures are in AUD unless otherwise indicated.
Appendix A
Table A-1 | Drill Summary, Exploration Drill Holes with Pegmatite Intercepts

             Eastin                                                                               Widt   Pegmatit
                       Northing         RL     Depth                                 From   To
 Hole ID       g                                              Azm     Dec.    Type                 h     e
               m          m             m           m                                 m     m      m     Type
 LRC070      42255
                       6511520         272.2       102                                             23
 5             8                                                0      -90     RC      79   102          Li, Ta
 LRC070      42087
                                                   210                                             13
 6             7       6512199         279.2                    0      -90     RC      23    36          Li, Ta
                                                                                       43    51    8     Li, Ta
 LRC070      42130
                                                   210                                             7
 7             5       6513402         285.4                    0      -90     RC      46    53          Li
                                                                                      169   191    22    Li
 LRC070      42089
                                                   198                                             6
 8             7       6513401         286.8                    0      -90     RC      41    47          Ta
                                                                                      128   145    17    Li
 LRC075      42203
                                                   90         90       -60                         3
 1             8       6512721         300.3                                   RC      72    75          Ta
 LRC075      42207
                                                   150                 -90                         3
 2             9       6512640         301.6                    0              RC      57    60          Ta
                                                                                       63    65    2     Ta
                                                                                      105   109    4     Ta
                                                                                      121   133    12    Li, Ta
 LRC071      42042
                       6514599         300.9       222                                             18
 2             0                                                0      -90     RC      87   105          barren
                                                                                      112   118    6     barren
                                                                                      156   184    28    barren
                                                                                      209   215    6     barren
 LRC071      42029
                       6517198         323.1       198                                             12
 3             7                                                0      -90     RC     162   174          Li
 LRC071      41916
                                                   192                                             2
 4             4       6517198         315.1                    0      -90     RC      70    72          barren
                                                                                      150   154    4     barren
 LRC072      42249
                                                   320          0      -90                         47
 9             7       6512198         279.3                                   RC     225   272          Li
 LRC073      42248
                                                   266          0      -90                         2
 0             1       6512158         279.0                                   RC     165   167          Ta
                                                                                      200   236    36    Li, Ta
 LRC073      42251
                       6512121         278.1       303          0                                  12
 1             7                                                       -90     RC     274   286          Li, Ta
 LRC073      42251
                                                   356          0                                  22
 4             1       6512081         277.7                           -90     RC     286   308          Li, Ta
                                                                                      316   356    40    Li
 LRC073      42247
                       6512039         278.5       248          0                                  1
 5             6                                                       -90     RC     181   182          Li
                                                                                      192   210    18    Li, Ta
 LRC075      42247
                       6512122         278.7       234          0                                  1
 4             9                                                       -90     RC       0     1          Ta
                                                                                      178   210    32    Li, Ta
 LRC075      42248
                       6512081         278.3       242          0                                  3
 5             0                                                       -90     RC      95    98          Ta
                                                                                      174   206    32    Li
   1)     The true width of pegmatites are generally considered 80-95% of the intercept width.
   2)     Only pegmatite intercepts of 1m or more in width are included.
   3)     Resource infill drill holes excluded

Table A-2 | Significant Infill Drill Intercepts from Water Exploration Drill Holes

 Hole ID              From    To         Interval        Li2O       Ta2O5    Nb2O5   SnO2
                      (m)     (m)            (m)          %         ppm      ppm     ppm
 LRC0705                 80       94               14    1.20         80        87     74
               incl      83       89               6     1.62          48       90     55
 Hole ID            From      To     Interval         Li2O     Ta2O5       Nb2O5    SnO2
                     (m)     (m)       (m)             %       ppm         ppm      ppm
                       90      91                1    0.21       211         129      52
                      101     102                1     0.71       43          57      33
 LRC0706               23      24                1    0.07       372          79     112
                       24     30                 6    0.68        99          49      79
             incl      27     30                 3    1.04        74          50      85
                       45      49                4    1.00       175         140      95
 LRC0707               47      49                2    0.98        52          58     145
                      169     190            21        1.50       41          76     114
             incl     170     172                2     2.17       40          93     163
             and      178     188            10        1.96       39          84     115
 LRC0708               42      44                2    0.05       216          54     127
                      132     141                9    0.33        56          91     263
                      144     145                1    0.31            2       14      19
 LRC0713              165     169                4     1.70       56          84      99

Note: Only intercepts of greater than 0.3% Li2O or 200 ppm Ta2O5 included.

Table A-3| Significant Infill Drill Intercepts Extensional Exploration Drilling

                    From    To      Interval         Li2O     Ta2O5       Nb2O5    SnO2
  Hole ID
                    (m)     (m)       (m)            %        ppm         ppm      ppm
 LRC0751              73      75             2       0.19       255          40     132
 LRC0752              57      59             2       0.12       331          79     167
                      63      65             2       0.13       459          93     246
                     105     106             1       0.14       171         100      70
                     123     126             3       0.08       416          95     240
                     126     128             2       0.71       105          90      91
 LRC0729             226     227             1       0.18       190         165      42
                     228     261            33       1.33        59          85      49
            incl     230     250            20       1.78        55          84      48
                     261     262             1       0.08       210         129      55
                     270     271             1       0.38        50          64     166
 LRC0730             165     166             1       0.17       215          43     250
                     200     224            24       1.51        81          94      46
 LRC0731             274     285            11       0.63        67          89      63
            incl     280     281             1       2.12        29          50      44
 LRC0734             286     302            16       0.65        92         114      52
                     302     304             2       0.18       481         151     124
                     318     344            26       0.72        51         109      52
            incl     324     329             5       1.46        42         156      51
                     346     347             1       0.61        42         107      51
                     351     356             5       1.08        43          97      48
 LRC0735             181     182             1       0.40        61          36     144
                     200     210            10       0.77       117         101      60
            incl     200     206             6       1.15        63          98      50
            and      208     209             1       0.04       595         250     151
 LRC0754             179     207            28       1.28        69          98      49
            incl     180     191            11       1.73        72         105      46
 LRC0755              96      97             1       0.05       190          43     239
                     174     203            29       1.31        63          93      50
                     203     204             1       0.26       184          86      95
Note: Only intercepts of greater than 0.3% Li2O or 200 ppm Ta2O5 included.
Appendix B

Section 1 – Sampling Techniques and Data

 Criteria                         JORC Code explanation                         Commentary
 Sampling techniques              Nature and quality of sampling (e.g. cut      Drilling consists of ~99% reverse
                                  channels, random chips, or specific           circulation (RC), RC with diamond
                                  specialised industry standard                 core tails (RCD) and diamond
                                  measurement tools appropriate to the          drilling (DD) for a total 1,128
                                  minerals under investigation, such as         holes for 104,465.89 m of drilling
                                  downhole gamma sondes, or handheld            in the Bald Hill project database.
                                  XRF instruments, etc.). These examples        The Bald Hill Mineral Resource is
                                  should not be taken as limiting the           based on assay data from 699 RC
                                  broad meaning of sampling.                    holes, 17 RCD holes and 12 DD
                                                                                RC cuttings were continuously
                                                                                sampled at 1 m intervals through
                                                                                all pegmatite intercepts including
                                                                                2 m of waste above and below
                                                                                each intercept.
                                                                                DD core is typically continuously
                                                                                sampled at 2 m intervals through
                                                                                pegmatite intercepts. Where
                                                                                required by changes in lithology,
                                                                                mineralisation, or alteration, core
                                                                                samples may be shorter or longer
                                                                                than the typical 2 m.
                                  Include reference to measures taken to        The majority of drillhole collars
                                  ensure sample representivity and the          are accurately surveyed using
                                  appropriate calibration of any                RTK DGPS equipment.
                                  measurement tools or systems used.            Drill samples are logged for
                                                                                lithology, weathering, structure
                                                                                (diamond core), mineralogy,
                                                                                mineralisation, colour and other
                                                                                Half diamond core was collected
                                                                                and placed in marked plastic
                                                                                sacks, and shipped to the assay
                                                                                RC samples were collected and
                                                                                placed in marked plastic bags
                                                                                which were placed in sacks and
                                                                                then shipped to the assay
                                  Aspects of the determination of               Drill samples were jaw crushed
                                  mineralisation that are Material to the       and riffle split to 2–2.5 kg for
                                  Public Report. In cases where ‘industry       pulverizing to 80% passing 75
                                  standard’ work has been done this             microns. Prepared samples are
                                  would be relatively simple (e.g. ‘reverse     fused with sodium peroxide and
                                  circulation drilling was used to obtain 1     digested in dilute hydrochloric
                                  m samples from which 3 kg was                 acid. The resultant solution is
                                  pulverised to produce a 30 g charge for       analysed by ICP by Nagrom
                                  fire assay’). In other cases, more            Laboratory in Perth.
                                  explanation may be required, such as          The assay technique is considered
                                  where there is coarse gold that has           to be robust as the method used
                                  inherent sampling problems. Unusual           offers total dissolution of the
                                  commodities or mineralisation types           sample and is useful for mineral
                                  (e.g. submarine nodules) may warrant          matrices that may resist acid
                                  disclosure of detailed information.           digestions.
 Drilling techniques              Drill type (e.g. core, reverse circulation,   RC was drilled using 4.5-inch
                                  open-hole hammer, rotary air blast,           (140 mm) rods with a nominal
                                  auger, Bangka, sonic, etc.) and details       5.9-inch (150 mm) diameter hole.
                                  (e.g. core diameter, triple or standard       Diamond core used either PQ,
                                  tube, depth of diamond tails, face-           NQ2 or HQ3 diameter core. Core
                                  sampling bit or other type, whether core      was oriented where possible.
                                  is oriented and if so, by what method,
Criteria                     JORC Code explanation                       Commentary
                                                                         All DD holes and ~98% of RC
                                                                         drillholes are angled; the
                                                                         remainder were drilled vertically.
Drill sample recovery        Method of recording and assessing core      Chip recovery or weights for RC
                             and chip sample recoveries and results      drilling were not recorded. Core
                             assessed.                                   recovery is very good through the
                                                                         mineralised zones and estimated
                                                                         to be greater than 90%.
                             Measures taken to maximise sample           RC drilling generally utilised an
                             recovery and ensure representative          external booster to keep samples
                             nature of the samples.                      dry and maximising recoveries.
                                                                         The majority of RC holes are
                                                                         shallow (<150 m) with very few
                                                                         wet samples encountered.
                             Whether a relationship exists between       No relationship between grade
                             sample recovery and grade and whether       and recovery has been identified.
                             sample bias may have occurred due to
                             preferential loss/gain of fine/coarse
Logging                      Whether core and chip samples have          Geological logs exist for all
                             been geologically and geotechnically        drillholes with lithological codes
                             logged to a level of detail to support      via an established reference
                             appropriate Mineral Resource                legend.
                             estimation, mining studies and              Drill samples were logged for
                             metallurgical studies.                      lithology, weathering, structure
                                                                         (diamond core), mineralogy,
                                                                         mineralisation, colour and other
                                                                         features. Logging and sampling
                                                                         has been carried out to “industry
                                                                         standards” to a level sufficient to
                                                                         support the Mineral Resource
                             Whether logging is qualitative or           Drillholes have been geologically
                             quantitative in nature. Core (or costean,   logged in their entirety. Where
                             channel, etc.) photography.                 logging was detailed, the
                                                                         subjective indications of
                                                                         spodumene content were
                                                                         estimated and recorded.
                             The total length and percentage of the      All drillholes are logged in full,
                             relevant intersections logged.              from start to finish of the hole.
Subsampling techniques and   If core, whether cut or sawn and            Where sampled, core is cut in half
sample preparation           whether quarter, half or all core taken.    onsite using a core saw, to
                                                                         produce two identical halves.
                             If non-core, whether riffled, tube          Dry RC samples were collected at
                             sampled, rotary split, etc. and whether     1 m intervals and riffle or cone
                             sampled wet or dry.                         split on-site to produce a
                                                                         subsample less than 5 kg.
                             For all sample types, the nature, quality   Sample preparation is according
                             and appropriateness of the sample           to industry standard, including
                             preparation technique.                      oven drying, coarse crush, and
                                                                         pulverisation to 80% passing 75
                             Quality control procedures adopted for      Subsampling is performed during
                             all sub-sampling stages to maximise         the preparation stage according
                             representivity of samples.                  to the assay laboratories’ internal
                             Measures taken to ensure that the           Field duplicates, laboratory
                             sampling is representative of the in-situ   standards and laboratory repeats
                             material collected, including for           are used to monitor analyses.
                             instance results for field
                             duplicate/second-half sampling.
                             Whether sample sizes are appropriate        Sample sizes are considered to be
                             to the grain size of the material being     appropriate and correctly
Criteria                       JORC Code explanation                        Commentary
                                                                            represent the style and type of
Quality of assay data and      The nature, quality and appropriateness      The assay technique is considered
laboratory tests               of the assaying and laboratory               to be robust as the method used
                               procedures used and whether the              offers total dissolution of the
                               technique is considered partial or total.    sample and is useful for mineral
                                                                            matrices that may resist acid
                               For geophysical tools, spectrometers,        None were used.
                               handheld XRF instruments, etc., the
                               parameters used in determining the
                               analysis including instrument make and
                               model, reading times, calibrations
                               factors applied and their derivation, etc.
                               Nature of quality control procedures         Standards and duplicates were
                               adopted (e.g. standards, blanks,             submitted in varying frequency
                               duplicates, external laboratory checks)      throughout the exploration
                               and whether acceptable levels of             campaign and internal laboratory
                               accuracy (i.e. lack of bias) and precision   standards, duplicates and
                               have been established.                       replicates are used for
Verification of sampling and   The verification of significant              Significant intersections have
assaying                       intersections by either independent or       been verified by alternative
                               alternative company personnel.               Tawana Resources NL personnel
                                                                            and by CSA Global Pty Ltd
                                                                            Competent Person Matthew Cobb.
                                                                            The Ta and Li assays show a
                                                                            marked correlation with the
                                                                            pegmatite intersections via
                                                                            elevated downhole grades.
                               The use of twinned holes.                    Twinning of holes undertaken to
                                                                            date show reasonable continuity
                                                                            and representivity of the
                                                                            mineralised intervals.
                               Documentation of primary data, data          Drill logs exist for all holes as
                               entry procedures, data verification, data    electronic files and/or hardcopy
                               storage (physical and electronic)            (all 2017 logging has been input
                               protocols.                                   directly to field logging
                                                                            Digital log sheets have been
                                                                            created with inbuilt validations to
                                                                            reduce potential for data entry
                                                                            All drilling data has been loaded
                                                                            to a database and validated prior
                                                                            to use.
                               Discuss any adjustment to assay data.        For the Mineral Resource
                                                                            estimate, adjustments were made
                                                                            to a number of downhole surveys.
                                                                            These adjustments were made
                                                                            where angled holes were blocked
                                                                            well before the end of hole, or
                                                                            where downhole surveys had not
                                                                            yet been undertaken but surveys
                                                                            had been completed for nearby
                                                                            Where the drillhole was blocked,
                                                                            the last survey was copied to the
                                                                            end of hole depth. Where no
                                                                            down hole survey was completed
                                                                            or the hole was blocked at
                                                                            surface, the downhole surveys
                                                                            from a nearby hole, drilled by the
                                                                            same rig (and preferably same
                                                                            driller), was copied and applied to
Criteria                  JORC Code explanation                         Commentary
                                                                        the hole. Some of these holes may
                                                                        need to be re-entered, cleaned
                                                                        and surveyed in the future. All
                                                                        changes were marked as
                                                                        “nominal” in the database.
                                                                        In all cases, corrections to
                                                                        downhole surveys were reviewed
                                                                        against surrounding drillholes
                                                                        and pegmatite intervals to ensure
                                                                        error was minimised.
Location of data points   Accuracy and quality of surveys used to       Prior to drilling, collar
                          locate drill holes (collar and downhole       coordinates are situated using
                          surveys), trenches, mine workings and         handheld GPS (considered
                          other locations used in Mineral Resource      accurate to within 4 m). Following
                          estimation.                                   drilling, accurate surveying using
                                                                        RTK DGPS is undertaken by
                                                                        trained site personnel.
                                                                        Hole collars are preserved until
                                                                        completion of downhole
                                                                        surveying. A significant portion of
                                                                        holes are surveyed using
                                                                        downhole digital instruments
                                                                        dominated by gyroscopic tools.
                          Specification of the grid system used.        Grid used is MGA 94 Zone 51.
                          Quality and adequacy of topographic           Topographical survey is
                          control.                                      generated from detailed airborne
                                                                        survey with points generated on a
                                                                        1 m x 1 m grid. Areas mined have
                                                                        been defined by final mine
Data spacing and          Data spacing for reporting of                 Drilling has been conducted on a
distribution              Exploration Results.                          40 m x 40 m grid extending to
                                                                        80 m x 80 m on the peripheries of
                                                                        the deposit, with a 140 m x 80 m
                                                                        area in the northern portion of
                                                                        the deposit drilled out at 20 m x
                                                                        20 m.
                          Whether the data spacing and                  The spacing of holes is considered
                          distribution is sufficient to establish the   of sufficient density to classify the
                          degree of geological and grade                Mineral Resource as “Indicated”
                          continuity appropriate for the Mineral        or “Inferred” in accordance with
                          Resource and Ore Reserve estimation           the JORC Code.
                          procedure(s) and classifications applied.
                          Whether sample compositing has been           There has been no sample
                          applied.                                      compositing.
Orientation of data in    Whether the orientation of sampling           Drilling has been angled to
relation to geological    achieves unbiased sampling of possible        achieve the most representative
structure                 structures and the extent to which this is    intersections through
                          known, considering the deposit type.          mineralisation.
                                                                        The majority of drilling is angled.
                                                                        Some vertical holes have been
                                                                        drilled in areas where access is
                                                                        limited or the pegmatites are
                                                                        interpreted to be flat lying.
                          If the relationship between the drilling      The lithium tantalite-bearing
                          orientation and the orientation of key        pegmatites are generally flat to
                          mineralised structures is considered to       shallowly dipping in nature. The
                          have introduced a sampling bias, this         true width of pegmatites is
                          should be assessed and reported if            generally considered 80–95% of
                          material.                                     the intercept width, with minimal
                                                                        opportunity for sample bias.
Sample security           The measures taken to ensure sample           The drill samples are taken from
                          security.                                     the rig by experienced personnel,
                                                                        stored securely and transported
                                                                        to the laboratory by a registered
 Criteria                            JORC Code explanation                        Commentary
                                                                                  courier and handed over by
 Audits or reviews                   The results of any audits or reviews of      No audits have been undertaken
                                     sampling techniques and data.                to date.

Section 2 – Reporting of Exploration results

 Criteria         Explanation                                           Commentary
 Mineral          Type, reference name/number, location and             The Bald Hill Resource is situated on
 tenement         ownership including agreements or material            Mining Lease M15/400 comprising 501
 and land         issues with third parties such as joint ventures,     hectares. M15/400 is beneficially owned
 tenure           partnerships, overriding royalties, native title      50% by AMAL and 50% by Lithco No.2 Pty
 status           interests, historical sites, wilderness or national   Ltd (Lithco), a wholly owned subsidiary of
                  park and environmental settings.                      Tawana. AMAL holds legal title to 100%
                                                                        pending transfer of 50% of legal title to
                                                                        Lithco pursuant to the joint venture
                                                                        agreement between AMAL and Lithco.
                                                                        There are no other third-party interests or
                                                                        royalties. Government royalties are 5% for
                                                                        lithium or tantalum mineral concentrates.
                  The security of the tenure held at the time of        The portfolio of mineral tenements,
                  reporting along with any known impediments to         comprising mining leases, exploration
                  obtaining a licence to operate in the area.           licences, prospecting licences,
                                                                        miscellaneous licences, a general-purpose
                                                                        lease, and a retention lease are in good
 Exploration      Acknowledgment and appraisal of exploration           Alluvial tantalite has been mined
 done by          by other parties.                                     periodically from the early 1970s.
 other parties                                                          Gwalia Consolidated Limited undertook
                                                                        exploration for tantalite-bearing
                                                                        pegmatites from 1983–1998. Work
                                                                        included mapping, costeaning, and several
                                                                        phases of drilling using rotary air blast
                                                                        (RAB), RC, and DD methods. The work
                                                                        identified Mineral Resources that were
                                                                        considered uneconomic at the time.
                                                                        Haddington Resources Limited
                                                                        (Haddington) entered an agreement to
                                                                        develop the resource and mining
                                                                        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.
 Geology          Deposit type, geological setting and style of         The Bald Hill area is underlain by generally
                  mineralisation.                                       north-striking, steeply dipping Archaean
                                                                        metasediments (schists and greywackes)
                                                                        and granitoids.
                                                                        Felsic porphyries and pegmatite sheets and
                                                                        veins have intruded the Archaean rocks.
                                                                        Generally, the pegmatites crosscut the
                                                                        regional foliation, occurring as gently
                                                                        dipping sheets and as steeply dipping
                                                                        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
Criteria       Explanation                                            Commentary
                                                                      intrusives. Tantalite generally occurs as
                                                                      fine disseminated crystals commonly
                                                                      associated with fine-grained albite zones,
                                                                      or as coarse crystals associated with
                                                                      Weathering of the pegmatites yields
                                                                      secondary mineralised accumulations in
                                                                      alluvial/eluvial deposits.
Drillhole      A summary of all information material to the           Not applicable – not reporting exploration
information    understanding of the exploration results               results.
               including a tabulation of the following
               information for all Material drillholes:
               • easting and northing of the drillhole collar
               • elevation or RL (Reduced Level – elevation
                  above sea level in metres) of the drillhole
               • dip and azimuth of the hole
               • downhole length and interception depth
               • hole length.
               If the exclusion of this information is justified on   Not applicable – not reporting exploration
               the basis that the information is not Material         results.
               and this exclusion does not detract from the
               understanding of the report, the Competent
               Person should clearly explain why this is the
Data           In reporting Exploration Results, weighting            Not applicable – not reporting exploration
aggregation    averaging techniques, maximum and/or                   results.
methods        minimum grade truncations (e.g. cutting of high
               grades) and cut-off grades are usually Material
               and should be stated.
               Where aggregate intercepts incorporate short           Not applicable – not reporting exploration
               lengths of high grade results and longer lengths       results.
               of low grade results, the procedure used for such
               aggregation should be stated and some typical
               examples of such aggregations should be shown
               in detail.
               The assumptions used for any reporting of metal        Not applicable – not reporting exploration
               equivalent values should be clearly stated.            results.
Relationship   These relationships are particularly important         Not applicable – not reporting exploration
between        in the reporting of Exploration Results.               results.
mineralisati   If the geometry of the mineralisation with             The majority of drilling is angled. Some
on widths      respect to the drill hole angle is known, its          vertical holes have been drilled in areas
and            nature should be reported.                             where access is limited or the pegmatites
intercept                                                             are interpreted to be flat lying.
                                                                      The lithium tantalite-bearing pegmatites
                                                                      are generally flat to shallowly dipping in
                                                                      nature. The true width of pegmatites is
                                                                      generally 85–95% of the intercept width,
                                                                      with minimal opportunity for sample bias.
               If it is not known and only the downhole lengths       Not applicable – not reporting exploration
               are reported, there should be a clear statement        results.
               to this effect (e.g. ‘downhole length, true width
               not known’).
Diagrams       Appropriate maps and sections (with scales) and        Not applicable – not reporting exploration
               tabulations of intercepts should be included for       results.
               any significant discovery being reported These
               should include, but not be limited to a plan view
               of drillhole collar locations and appropriate
               sectional views.
Balanced       Where comprehensive reporting of all                   Not applicable – not reporting exploration
reporting      Exploration Results is not practicable,                results.
               representative reporting of both low and high
               grades and/or widths should be practiced to
 Criteria           Explanation                                             Commentary
                    avoid misleading reporting of Exploration
 Other              Other exploration data, if meaningful and               Metallurgical testwork has been conducted
 substantive        material, should be reported including (but not         by the analytical laboratory Nagrom.
 exploration        limited to): geological observations; geophysical       Nagrom has extensive experience with
 data               survey results; geochemical survey results; bulk        tantalum and lithium extraction testwork
                    samples – size and method of treatment;                 and has ISO9001:2008 accreditation.
                    metallurgical test results; bulk density,               Results have demonstrated that the Bald
                    groundwater, geotechnical and rock                      Hill pegmatite is amenable to the
                    characteristics; potential deleterious or               production of Li and Ta concentrates.
                    contaminating substances.
 Further            The nature and scale of planned further work            Further RC and diamond drilling is
 work               (e.g. tests for lateral extensions or depth             warranted at the deposit to explore for
                    extensions or large-scale step-out drilling).           additional resources and improve the
                                                                            understanding of the current resources
                                                                            prior to mining.
                    Diagrams clearly highlighting the areas of              Diagrams have been included in the body of
                    possible extensions, including the main                 this report.
                    geological interpretations and future drilling
                    areas, provided this information is not
                    commercially sensitive.

Section 3 - Estimation and Reporting of Mineral Resources
(Criteria listed in the preceding section also apply to this section)
 Criteria           Explanation                                             Commentary
                                                                            Logging is completed onto templates using
                                                                            standard logging codes into Toughbook
                                                                            laptops. Analytical results are imported
                                                                            directly into the database by a database
                    Measures taken to ensure that data has not been
                    corrupted by, for example, transcription or
                                                                            The central database, from which the
                    keying errors, between its initial collection and its
                                                                            extract used for Mineral Resource
                    use for Mineral Resource estimation purposes.
                                                                            estimation was taken, is managed by
                                                                            Tawana. Upon receipt of the extract, CSA
                                                                            Global validated the database for internal
                                                                            integrity as part of the import process for
 Database                                                                   modelling in Surpac.
 integrity                                                                  Data were validated for internal database
                                                                            integrity as part of the import process for
                                                                            use in Surpac. This includes logical
                                                                            integrity checks for data beyond the hole
                                                                            depth maximum and overlapping from-to
                                                                            errors within interval data. Visual
                    Data validation procedures used.
                                                                            validation checks were also made for
                                                                            obviously spurious collar or downhole
                                                                            survey values, collars which were not
                                                                            assigned a proper RL value, and collars
                                                                            which may lack substantial downhole
                                                                            survey data.
                                                                            CSA Global Competent Person; Matthew
                                                                            Cobb, has visited site and reviewed the
                                                                            drilling, sample collection, and logging data
                                                                            collection procedures, along with
                    Comment on any site visits undertaken by the
                                                                            conducting a review of the site geology.
                    Competent Person and the outcome of those
                                                                            The outcome of the site visit was that data
 Site visits                                                                has been collected in a manner that
                                                                            supports reporting a Mineral Resource
                                                                            estimate in accordance with the JORC Code,
                                                                            and controls to the mineralisation are well-
                    If no site visits have been undertaken indicate
                                                                            Not Applicable.
                    why this is the case.
                    Confidence in (or conversely, the uncertainty of)       The geological model developed is based
                    the geological interpretation of the mineral            on lithological logging of pegmatites within
                    deposit.                                                a metasedimentary host, with occasional
                                                                            hypabyssal intrusions of dioritic
                                                                     composition. The deposit geology is very
                                                                     well understood based on previous mining
                                                                     history and open pit exposures, and this is
                                                                     reflected in the generally high confidence
                                                                     in both the mineralisation and geological
                                                                     The input data used for geological
                                                                     modelling has been derived from the
             Nature of the data used and of any assumptions
                                                                     qualitative and quantitative logging of
                                                                     lithology, alteration, geochemical
                                                                     composition of samples returned from RC
                                                                     and DD drilling.
                                                                     The geological model developed has a solid
                                                                     lithological basis, and is controlled by the
                                                                     presence of visually distinct pegmatite
                                                                     within drillholes. Pegmatite structures
                                                                     have been modelled as predominantly low
                                                                     angle / sub-horizontal structures on the
             The effect, if any, of alternative interpretations on
                                                                     basis of a high density of input drillhole
             Mineral Resource estimation.
                                                                     data and confirmation of the interpretation
                                                                     on the basis of mapping. The data do not
                                                                     readily lend themselves to alternative
                                                                     interpretations, and it is unlikely that such
                                                                     alternatives would yield a more
                                                                     geologically reasonable result.
             The use of geology in guiding and controlling           The model developed for mineralisation is
             Mineral Resource estimation.                            geologically driven; controlled by the
                                                                     presence or absence of pegmatite.
                                                                     Geological continuity is controlled by the
                                                                     preference for fractionated pegmatitic
                                                                     fluids to follow preferential structural
                                                                     pathways through the host rocks (an
             The factors affecting continuity both of grade and
                                                                     intercalated pile of metasediments and
                                                                     metavolcanics. Grade within this pegmatite
                                                                     is controlled by numerous factors such as
                                                                     fluid residence time, degree of fluid
                                                                     fractionation and pegmatite thickness.
                                                                     The Bald Hill Mineral Resource comprises
                                                                     one large, main, sub horizontal pegmatite
                                                                     body, striking north-south, with a strike
                                                                     length of 1,070m, and a width at its widest
                                                                     point of 775m. This main body is
             The extent and variability of the Mineral
                                                                     surrounded by several smaller discrete
             Resource expressed as length (along strike or
                                                                     pegmatite bodies, sub-parallel to the main,
Dimensions   otherwise), plan width, and depth below surface
                                                                     which result in a total strike length for the
             to the upper and lower limits of the Mineral
                                                                     whole resource of 1,245m, and a total width
                                                                     of 990m. The Mineral Resource has a total
                                                                     vertical depth of 195m, beginning 20m
                                                                     below the natural surface and plunging
                                                                     gently to the south along its entire strike
             The nature and appropriateness of the
                                                                     The Bald Hill Mineral Resource has been
             estimation technique(s) applied and key
                                                                     estimated using ordinary kriging in a
             assumptions, including treatment of extreme
                                                                     Surpac block model. The variables Li2O
             grade     values,   domaining,    interpolation
                                                                     ppm and Ta2O5ppm were estimated
             parameters and maximum distance of
                                                                     independently in a univariate sense. The
             extrapolation from data points. If a computer
                                                                     pegmatites on which this Mineral Resource
             assisted estimation method was chosen include a
Estimation                                                           was defined was domained internally on
             description of computer software and
and                                                                  the basis of a 7,500ppm Li2O cut-off, which
             parameters used.
modelling                                                            itself was determined from exploratory
techniques                                                           data analysis as a point of inflection within
                                                                     the Li2O grade distribution. This resulted in
                                                                     a high-grade core of Li2O mineralisation
                                                                     surrounded by lower grade pegmatite, and
                                                                     is an interpretation supported by the
                                                                     petrogenetic model for the formation of
                                                                     Li2O bearing pegmatites.
                                                      Samples were composited to 1m intervals
                                                      based on assessment of the raw drill hole
                                                      sample intervals. Various high-grade cuts
                                                      were used for both Li2O (ranging from
                                                      10,000ppm to 50,000ppm) and Ta2O5
                                                      (ranging from 300mm to 4,000ppm) based
                                                      on statistical review of each object.
                                                      Composites for some objects remained
                                                      uncut depending on the statistical review.
                                                      High- and low-grade domains were
                                                      estimated independently with hard
                                                      boundaries assumed between domains.
                                                      Parameters for estimation and search
                                                      ellipsoids were determined from
                                                      quantitative kriging analysis performed
                                                      within the SupervisorTM software package,
                                                      which was also used to define
                                                      semivariogram models for each variable.
                                                      The parameters defined for the largest,
                                                      most populated domains (main
                                                      mineralised body and its high-grade core)
                                                      were used to inform all smaller subsidiary
                                                      domains during estimation.
                                                      A two-search pass strategy was employed,
                                                      with successive searches using more
                                                      relaxed parameters for selection of input
                                                      composite data, and a greater search
                                                      radius. Blocks not informed for any given
                                                      variable after two passes were assigned
                                                      the Sichel Mean of the input data from that
                                                      particular domain.
                                                      All geological modelling and grade
                                                      estimation was completed using Surpac
                                                      This Mineral Resource estimate is an
                                                      incremental update from previous recent
                                                      estimates, and compares well, with only
The availability of check estimates, previous
                                                      the expected minor incremental changes to
estimates and/or mine production records and
                                                      grades and tonnages. Historic estimates for
whether the Mineral Resource estimate takes
                                                      the Bald Hill deposit focussed on Ta2O5
appropriate account of such data.
                                                      only, and as such are not directly
                                                      comparable to the current estimate for
                                                      which Li2O is the primary target variable.
                                                      The only significant by-product to be
The assumptions made regarding recovery of by-        considered is Ta2O5 which has been
products.                                             estimated within the domains defined by
Estimation of deleterious elements or other non-
                                                      No deleterious elements have been
grade variables of economic significance (eg.
                                                      identified or estimated.
sulphur for acid mine drainage characterisation).
                                                      Block model dimensions used for the Bald
                                                      Hill Mineral Resource estimate were 10 by
                                                      10 by 5m (XYZ) sub-celled to 2.5 by 2.5 by
                                                      1.25m for resolution of volumes at
                                                      lithological boundaries. This compares to
                                                      an average drillhole spacing of 20m within
                                                      the more densely informed areas of the
                                                      deposit. This 20m spacing increases to up
In the case of block model interpolation, the block
                                                      to 80m between drillholes in less well-
size in relation to the average sample spacing
                                                      informed portions of the deposit.
and the search employed.
                                                      Kriging Neighbourhood Analysis (KNA)
                                                      was conducted within the SupervisorTM
                                                      software package to test a variety of block
                                                      sizes in both well and poorly informed
                                                      areas of the deposit. The chosen block size
                                                      represents the smallest block size that
                                                      yields a robust set of estimation statistics,
                                                      which are comparable to the results also
                                                      yielded from larger blocks sizes.
               Any assumptions behind modelling of selective        No assumptions were made regarding
               mining units.                                        selective mining units.
                                                                    The two variables under consideration;
                                                                    Li2O and Ta2O5 are uncorrelated within
                                                                    both the pegmatite as a whole, and within
               Any assumptions about correlation between            the high-grade domain (correlation
               variables.                                           coefficient of -0.04). Consequently, no
                                                                    correlation between variables was
                                                                    considered. Both variables were treated in
                                                                    a univariate sense.
                                                                    The nature of the mineralised body is such
                                                                    that the definition of the pegmatite host
               Description of how the geological interpretation     also defines the mineralisation. Within
               was used to control the resource estimates.          that, and based on a combination of
                                                                    petrogenetic process and statistical
                                                                    appraisal, an internal high-grade Li2O
                                                                    domain was defined.
                                                                    Domained data for both variables were
                                                                    assessed using histogram and log
                                                                    probability plots to define potential top
               Discussion of basis for using or not using grade     cuts to data. Where the Competent Person
               cutting or capping.                                  observed likely breaks in the continuity of
                                                                    the grade distributions, a top cut was
                                                                    chosen and applied. This was conducted on
                                                                    a per-domain basis.
                                                                    The results of estimation into the block
                                                                    model for the Bald Hill Mineral resource
                                                                    were validated visually and statistically.
                                                                    Estimated block grades were compared
               The process of validation, the checking process      visually in section against the
               used, the comparison of model data to drill hole     corresponding input data values.
               data, and use of reconciliation data if available.   Additionally, trend plots of input data and
                                                                    block estimates were compared for swaths
                                                                    generated in each of the three principal
                                                                    geometric orientations (northing, easting
                                                                    and elevation).
               Whether the tonnages are estimated on a dry
Moisture       basis or with natural moisture, and the method of    Tonnages are reported on a dry basis.
               determination of the moisture content.
                                                                    Modelling of mineralisation for the
                                                                    resource was based on a combination of
                                                                    pegmatite lithological logging. Within this
                                                                    mineralisation shape, a higher-grade core
                                                                    was defined on the basis of a 7,500 ppm
Cut-off        The basis of the adopted cut-off grade(s) or
                                                                    Li2O cut-off.
parameters     quality parameters applied.
                                                                    The Mineral Resource is reported using a
                                                                    0.5% Li2O cut-off which approximates a
                                                                    conservative cut-off grade used for
                                                                    potential open pit mining as determined
                                                                    from preliminary pit optimisations.
               Assumptions made regarding possible mining
               methods, minimum mining dimensions and
               internal (or, if applicable, external) mining
               dilution. It is always necessary as part of the
                                                                    The methods used to design and populate
               process of determining reasonable prospects for
Mining                                                              the Bald Hill Mineral Resource block model
               eventual economic extraction to consider
factors   or                                                        were defined under the assumption that
               potential mining methods, but the assumptions
assumptions                                                         the deposit will be mined via open pit
               made regarding mining methods and parameters
               when estimating Mineral Resources may not
               always be rigorous. Where this is the case, this
               should be reported with an explanation of the
               basis of the mining assumptions made.
                                                                      The material targeted for extraction
                 The basis for assumptions or predictions
                                                                      predominantly comprises the mineral
                 regarding metallurgical amenability. It is always
                                                                      spodumene, for which metallurgical
                 necessary as part of the process of determining
                                                                      processing methods are well established.
                 reasonable prospects for eventual economic
                                                                      No specific detail regarding metallurgical
                 extraction to consider potential metallurgical
Metallurgical                                                         assumptions have been applied in the
                 methods, but the assumptions regarding
factors    or                                                         estimation the current Mineral Resource,
                 metallurgical      treatment     processes    and
assumptions                                                           however at the current level of detail
                 parameters made when reporting Mineral
                                                                      available, the Competent Person believes
                 Resources may not always be rigorous. Where
                                                                      with sufficient confidence that
                 this is the case, this should be reported with an
                                                                      metallurgical concerns will not pose any
                 explanation of the basis of the metallurgical
                                                                      significant impediment to eventual
                 assumptions made.
                                                                      economic extraction.
                 Assumptions made regarding possible waste and
                 process residue disposal options. It is always
                 necessary as part of the process of determining
                                                                      No assumptions have been made regarding
                 reasonable prospects for eventual economic
                                                                      waste products, however the Mineral
                 extraction     to    consider    the    potential
                                                                      Resource has previously been mined by
                 environmental impacts of the mining and
                                                                      open pit methods with a processing
Environment      processing operation. While at this stage the
                                                                      facility, stacked waste dumps and tailings
al factors or    determination of potential environmental
                                                                      storage facilities on site. It is reasonable to
assumptions      impacts, particularly for a greenfields project,
                                                                      assume that in the presence of this
                 may not always be well advanced, the status of
                                                                      infrastructure, the creation and storage of
                 early consideration of these potential
                                                                      waste products on site will not be of
                 environmental impacts should be reported.
                                                                      concern for future mining activities.
                 Where these aspects have not been considered
                 this should be reported with an explanation of the
                 environmental assumptions made.
                                                                      In situ bulk densities for the Bald Hill
                                                                      Mineral Resource have been assigned on a
                 Whether assumed or determined. If assumed, the       lithological basis for both mineralisation
                 basis for the assumptions. If determined, the        and waste, based on historical values
                 method used, whether wet or dry, the frequency       derived from mining and values taken from
                 of the measurements, the nature, size and            those used in similar deposits and
                 representativeness of the samples.                   lithologies.
                                                                      The Competent Person considers the
                                                                      values chosen to be suitably
                                                                      Densities have been assigned on a
                 The bulk density for bulk material must have
                                                                      lithological basis based on a total of 44
                 been measured by methods that adequately
                                                                      metasediment and 25 pegmatite core
                 account for void spaces (vugs, porosity, etc),
                                                                      samples measured at the Nagrom
                 moisture and differences between rock and
                                                                      laboratory and values derived from
                 alteration zones within the deposit.
Bulk density                                                          surrounding deposits and rock types.
                                                                      Bulk densities have been applied on a
                                                                      lithological unit basis. Values assigned
                                                                      were as follows:
                                                                      Fresh pegmatite mineralisation 2.65 t/m3
                                                                      Transitional pegmatite 2.5t/m3
                                                                      Fresh diorite 2.8t/m3
                 Discuss assumptions for bulk density estimates       Transitional diorite 2.6t/m3
                 used in the evaluation process of the different      Fresh metasediments 2.74t/m3
                 materials.                                           Transitional metasediments 2.6t/m3
                                                                      Oxide metasediments 2.2t/m3
                                                                      Waste fill 1.8t/m3
                                                                      Additional bulk density testwork utilising
                                                                      drill core across the mineralised zones and
                                                                      less common waste units is recommended
                                                                      for future estimates.
                                                                      The Mineral Resource has been classified
                                                                      as Indicated and Inferred on a qualitative
                                                                      basis; taking into consideration numerous
                                                                      factors such as drillhole spacing,
                 The basis for the classification of the Mineral
                                                                      estimation quality statistics (kriging slope
Classification   Resources into varying confidence categories.
                                                                      of regression), number of informing
                                                                      samples used in the estimate, average
                                                                      distance to informing samples in
                                                                      comparison to the semivariogram model
                                                                      ranges, and overall coherence and
                                                                       continuity of the modelled mineralisation

                                                                       The classification reflects areas of lower
                Whether appropriate account has been taken of          and higher geological confidence in
                all relevant factors (ie relative confidence in        mineralised lithological domain continuity
                tonnage/grade estimations, reliability of input        based on the intersecting drill sample data
                data, confidence in continuity of geology and          numbers, spacing and orientation. Overall
                metal values, quality, quantity and distribution of    mineralisation trends are reasonably
                the data).                                             consistent within the various lithology
                                                                       types over numerous drill sections.
                                                                       The Mineral Resource estimate
                Whether the result appropriately reflects the
                                                                       appropriately reflects the Competent
                Competent Person’s view of the deposit.
                                                                       Person’s views of the deposit.
                                                                       Internal audits were completed by CSA
                                                                       Global which verified the technical inputs,
Audits    or    The results of any audits or reviews of Mineral        methodology, parameters and results of
reviews         Resource estimates.                                    the estimate.
                                                                       The current model has not been audited by
                                                                       an independent third party.
                Where appropriate a statement of the relative
                                                                       The Mineral Resource accuracy is
                accuracy and confidence level in the Mineral
                                                                       communicated through the classification
                Resource estimate using an approach or
                                                                       assigned to the deposit. The Mineral
                procedure deemed appropriate by the Competent
                                                                       Resource estimate has been classified in
                Person. For example, the application of statistical
                                                                       accordance with the JORC Code, 2012
                or geostatistical procedures to quantify the
                                                                       Edition using a qualitative approach. All
                relative accuracy of the resource within stated
                                                                       factors that have been considered have
                confidence limits, or, if such an approach is not
                                                                       been adequately communicated in Section
                deemed appropriate, a qualitative discussion of
                                                                       1 and Section 3 of this Table.
                the factors that could affect the relative accuracy
Discussion of   and confidence of the estimate.
                The statement should specify whether it relates to
                global or local estimates, and, if local, state the    The Mineral Resource statement relates to
                relevant tonnages, which should be relevant to         a global estimate of in-situ tonnes and
                technical      and       economic        evaluation.   grade.
                Documentation should include assumptions
                made and the procedures used.
                                                                       The deposit has been historically mined for
                                                                       tantalum (Ta2O5), however no accounting
                These statements of relative accuracy and
                                                                       for Li2O had been undertaken, and
                confidence of the estimate should be compared
                                                                       therefore no production records are
                with production data, where available.
                                                                       available for comparison to the current
Section 4 -    Ore Reserve Modifying Factors, JORC 2012 Modifying Factors

 Criteria             JORC Code explanation                                                  Commentary
 Mineral Resource         - Description of the Mineral Resource estimate used as a              - The Mineral Resource estimate was compiled by Dr Matthew Cobb of CSA
 estimate for                 basis for the conversion to an Ore Reserve.                          Global Pty Ltd in R148.2018 Bald Hill Mineral Resource Update February
 conversion to            - Clear statement as to whether the Mineral Resources are                2018.The Mineral Resource estimate was depleted by Dr Matthew Cobb
 Ore Reserves                 reported additional to, or inclusive of, the Ore Reserves.           in R276.2018 Bald Hill Mineral Resource Estimate – April 2018 Depletion.
                                                                                                - The Mineral Resource estimate is reported inclusive of the Ore Reserve
 Site visits              -    Comment on any site visits undertaken by the Competent           - Mr Karl van Olden of CSA Global Pty Ltd (CSA Global) visited the Bald Hill
                               Person and the outcome of those visits.                             Project in May 2018 and inspected the locations of the open pit, waste
                          -    If no site visits have been undertaken indicate why this is         dumps, transport corridors, and processing plants.
                               the case.
 Study status             -    The type and level of study undertaken to enable Mineral          -   A Prefeasibility Study (PFS) has been prepared and released in July 2017
                               Resources to be converted to Ore Reserves.                            by Tawana Resources NL (Tawana Resources) for a 1.2 Mtpa lithium
                          -    The Code requires that a study to at least Prefeasibility             Dense Media Separation (DMS) circuit adjacent to the existing tantalum
                               Study level has been undertaken to convert Mineral                    processing facility. The FS addressed mining and processing costs,
                               Resources to Ore Reserves. Such studies will have been                geotechnical parameters and placement of waste material. Additional
                               carried out and will have determined a mine plan that is              studies, and project construction and commissioning have produced
                               technically achievable and economically viable, and that              more recent mining and processing costs and first indication of plant
                               material Modifying Factors have been considered.                      performance. An optimization study and pit design was completed in
                                                                                                     December 2017 by CSA Global. Tawana Resources completed a detailed
                                                                                                     mining schedule and cost model in May 2018. An updated geotechnical
                                                                                                     analysis was completed by Dempers and Seymour Pty Ltd (Dempers and
                                                                                                     Seymour) in April 2018.
                                                                                                 -   The work undertaken to date has addressed all material Modifying
                                                                                                     Factors required for the conversion of a Mineral Resources estimate into
                                                                                                     an Ore Reserve estimate and has shown that the mine plan is technically
                                                                                                     feasible and economically viable.
 Cut-off                  -    The basis of the cut-off grade(s) or quality parameters           -   The economic cut-off grade has been estimated as 3,000 ppm for Li2O
 parameters                    applied.                                                              and 200 ppm for Ta2O5 based on relevant processing costs and
                                                                                                     metallurgical recoveries, a fixed 6% Li2O concentrate price of AUD$1,170
                                                                                                     and Ta2O5 price of AUD$87/lb.
Mining factors or   -   The method and assumptions used as reported in the Pre-       -   Input parameters for pit optimisations were; mining costs based on
assumptions             Feasibility or Feasibility Study to convert the Mineral           mining contract rates; mineral processing costs and recoveries both from
                        Resource to an Ore Reserve (i.e. either by application of         site and the Primero Group Limited (Primero) Prefeasibility Study (PFS);
                        appropriate factors by optimisation or by preliminary or          commodity prices of AUD$1,170 for a 6% Li2O concentrate price and a
                        detailed design).                                                 AUD$87/lb Ta2O5 price. These input parameters were reviewed by CSA
                    -   The choice, nature and appropriateness of the selected            Global. They are considered appropriate for the current lithium and
                        mining method(s) and other mining parameters including            tantalum world markets. An updated Resource Block Model for the Bald
                        associated design issues such as pre-strip, access, etc.          Hill deposit was optimised using WhittleTM software. The current pit
                    -   The assumptions made regarding geotechnical                       design is considered suitable for Ore Reserve estimation.
                        parameters (eg pit slopes, stope sizes, etc), grade control   -   Geotechnical analysis has been undertaken by Dempers and Seymour
                        and pre-production drilling.                                      after the initial design was completed. Some areas of the design require
                    -   The major assumptions made and Mineral Resource                   minor adjustment to align with the latest geotechnical recommendations.
                        model used for pit and stope optimisation (if appropriate).       These changes will not impact on the value of the pit or the Ore Reserve
                    -   The mining dilution factors used.                                 estimate. The proposed pit slopes are considered likely to be stable for
                    -   The mining recovery factors used.                                 the current pit designs.
                    -   Any minimum mining widths used.                               -   The Mineral Resource model was estimated by CSA Global. The Resource
                    -   The manner in which Inferred Mineral Resources are                Block Model was used for optimization and mine planning after inclusion
                        utilised in mining studies and the sensitivity of the             of additional attributes. The Block Model has block sizes of 10 m x 10 m x
                        outcome to their inclusion.                                       5 m for the pit designs which is considered suitable for the proposed
                    -   The infrastructure requirements of the selected mining            mining method and equipment. All pit designs have catch berms every 20
                        methods.                                                          vertical meters and are appropriate for a 5 m bench height.
                                                                                      -   Fixed values for mining dilution and recovery of 7.5% and 92.5% were
                                                                                          adopted for both the optimisation and determination of Ore Reserves. A
                                                                                          grade of 0% Li2O and 0% Ta2O5 was assumed for dilution material. These
                                                                                          levels are considered suitable for the deposit geometry, mining method,
                                                                                          and size of mining equipment.
                                                                                      -   A minimum mining width of 30m was used in the pit design.
                                                                                      -   Inferred Mineral Resources have not been included in the pit design or
                                                                                          Ore Reserves. Inferred material has been included in the mining schedule
                                                                                          and treated as waste, Inferred mined material does not make a material
                                                                                          impact on the Bald Hill Project’s overall financial viability.
                                                                                      -   Mine infrastructure is mostly in place and the project is in operation.
Metallurgical       -   The metallurgical process proposed and the                    -   For lithium ore the economic analysis has only considered Phase one
factors or              appropriateness of that process to the style of                   processing, comprising dense media gravity separation (DMS) of the 1
assumptions             mineralisation.                                                   mm to 10 mm fraction after P100 crushing to 10 mm. This process is
                                                                                          considered the lowest risk methodology for the coarse grained,
-   Whether the metallurgical process is well-tested                spodumene pegmatite of the Bald Hill Project. To further reduce
    technology or novel in nature.                                  processing risk the DMS circuit will treat 1-5.6 mm and 5.6-10 mm
-   The nature, amount and representativeness of                    separately, with partial mica removal from the 1-5.6 mm fraction using a
    metallurgical test work undertaken, the nature of the           reflux classifier (RFC). -1 mm material (lithium fines) along with low grade
    metallurgical domaining applied and the corresponding           DMS concentrates (middlings) will be treated at a later date through a
    metallurgical recovery factors applied.                         lithium fines circuit (LFS). For tantalum ore the PFS has only considered
-   Any assumptions or allowances made for deleterious              tantalum recovery from direct ore feed to the existing tantalum spiral
    elements.                                                       plant and from additional spirals to remove a portion of the tantalum
-   The existence of any bulk sample or pilot scale test work       from the lithium fines prior to stockpiling for future treatment through
    and the degree to which such samples are considered             the LFS. Test work has shown additional tantalum concentrate recovery
    representative of the orebody as a whole.                       can be obtained from treatment of DMS concentrate through jigs,
-   For minerals that are defined by a specification, has the       however this has not been considered by the PFS.
    ore reserve estimation been based on the appropriate        -   All technologies proposed are proven and well tested with easily sourced
    mineralogy to meet the specifications?                          components. The Lithium processing plant is commissioned and
                                                                    producing within design specifications.
                                                                -   Samples used for metallurgical test work were sourced from existing
                                                                    open pits and 10 diamond core holes distributed across the Indicated
                                                                    Resource area. Variability test work and mineralogy was undertaken, and
                                                                    a composite drill core sample was used for design purposes. A bulk
                                                                    sample collected from open pit material was processed to obtain
                                                                    approximately 1.5 tonnes of spodumene concentrates averaging 6.23%
                                                                    Li2O for down-stream test work by lithium converters. The variability,
                                                                    composite and bulk samples all show the same metallurgical
                                                                    characteristics with no apparent variation or domaining across the
                                                                    deposit. About 99% of the Resources are fresh rock and the remaining 1%
                                                                    is transitional to fresh rock.
                                                                -   For lithium concentrates, potential deleterious elements have been
                                                                    observed at low concentrations in concentrates or are non-existent. Key
                                                                    deleterious minerals and elements are; lepidolite and petalite, not
                                                                    present in test work; iron, concentrates to date contain less than the
                                                                    0.8% total Fe and 8% moisture content, being the key contractual
                                                                    requirements; mica, concentrates to date contain less than 3% mica and
                                                                    The Port of Esperance allows a limit of 5% mica. Detailed mineral product
                                                                    quality and safety chemical and micro mineral analysis undertaken on
                                                                    concentrates for the Port of Esperance returned favourable results.
                                                                -   A bulk sample was processed through a DMS250 at Nagrom. A total 3,887
                                                                    kg of material was treated through the DMS after removal of fines and
                                                                                        partial mica for recovery of 1,490 kg of combined concentrates averaging
                                                                                        6.23% Li2O at a recovery of 95.9% of contained lithium in the DMS feed
                                                                                        or net recover of 84.9% after taking into account lithium contained in
                                                                                        fines and RFC rejects. The iron content of the combined concentrate was
                                                                                        0.21%. This is a significantly better result than the Composite test work
                                                                                        used for engineering mass balance and PFS recoveries. The exceptionally
                                                                                        high recoveries were due in part to the higher than expected head grade
                                                                                        of the bulk sample feed resulting in middlings being able to be blended
                                                                                        with primary concentrates and grades in excess of 6% being maintained.
                                                                                    -   The Ore Reserve has been based on being able to produce concentrates
                                                                                        of at between 5.5% and 7.0% Li2O.
Environmental    -   The status of studies of potential environmental impacts       -   The site is a ‘Brown Fields’ site with existing workings and infrastructure.
                     of the mining and processing operation. Details of waste           The mine has Environmental approvals for the pre-existing open pit,
                     rock characterisation and the consideration of potential           waste rock dumps, and tailings facility. The Bald Hill Project has formal
                     sites, status of design options considered and, where              Department of Mines, Industry Regulation and Safety (DMIRS) approval
                     applicable, the status of approvals for process residue            for the addition of spodumene production. The Department of Water and
                     storage and waste dumps should be reported.                        Environmental Regulation (DWER) has approved a license to take water,
                                                                                        the 1.5 Mt/a production capacity, power station, fuel storage, and in pit
                                                                                        tailings disposal. Additional approvals for the larger open pit, waste rock
                                                                                        dumps, and the long-term tailings facility are still under assessment.
                                                                                        Studies have shown that there are no significant additional
                                                                                        environmental impacts for the lithium circuit or extensions to the existing
                                                                                        permitted pits.
Infrastructure   -   The existence of appropriate infrastructure: availability of   -   The Bald Hill Project is located in the Goldfields region of Western
                     land for plant development, power, water, transportation           Australia where suitable infrastructure is available for mining projects. A
                     (particularly for bulk commodities), labour,                       sealed highway and unsealed public road with RAV-7 approval provides
                     accommodation; or the ease with which the infrastructure           access from the port of Esperance to within 1.8 km of the plant site
                     can be provided, or accessed.                                      where an existing private access road has been upgraded for the
                                                                                        increased traffic load. Process water requirements are available from
                                                                                        water resources within the mine area, as per the existing water Permits.
                                                                                        Potable water is transported to site until the new mine camp is
                                                                                        constructed. Power is produced on site using diesel generators. Product
                                                                                        will be shipped via the port of Esperance located approximately 360 km
                                                                                        south of Bald Hill via road. The site will operate on a fly-in fly-out basis to
                                                                                        Kalgoorlie with a village constructed to house operations personnel whilst
                                                                                       on site. During construction and operations, a combination of the existing
                                                                                       village and a leased neighboring village will be used.
Costs             -   The derivation of, or assumptions made, regarding            -   Remaining project capital expenditure was derived using actual site data
                      projected capital costs in the study.                            where available or from the Primero PFS. The Primero PFS was based on
                  -   The methodology used to estimate operating costs.                budget pricing and Primero’s database of recent project costs. Tawana
                  -   Allowances made for the content of deleterious elements.         provided the Owner’s costs and has been reviewed by CSA Global.
                  -   The derivation of assumptions made of metal or               -   Updated mine operating costs have been based on actual site data.
                      commodity price(s), for the principal minerals and co-           Processing costs are a combination of site data where available and the
                      products.                                                        PFS.
                  -   The source of exchange rates used in the study.              -   Due to the low concentration of Fe and mica in the concentrates, no
                  -   Derivation of transportation charges.                            allowance has been made for deleterious elements.
                  -   The basis for forecasting or source of treatment and         -   Exchange rates were applied based on external sources and at current
                      refining charges, penalties for failure to meet                  levels.
                      specification, etc.                                          -   Transport and port charges were derived from quotations by reputable
                  -   The allowances made for royalties payable, both                  contractors and includes storage and re-handling costs.
                      Government and private.                                      -   Based on the off-take agreement, concentrates must contain 5.5% Li2O.
                                                                                   -   Allowances were made for State Government royalties. No other
                                                                                       royalties are payable for production from M15/400.
Revenue factors   -   The derivation of, or assumptions made regarding             -   Exchange rate of 0.75 AUD:USD. Transportation and port loading charges
                      revenue factors including head grade, metal or                   have been allowed for. Spodumene revenue factors were: variable head
                      commodity price(s) exchange rates, transportation and            grade averaging 1.04% Li2O; processing recoveries applied at 65% for the
                      treatment charges, penalties, net smelter returns, etc.          first year and then 80%. Tantalum revenue factors were: direct tantalum
                  -   The derivation of assumptions made of metal or                   feed averaging 327 ppm Ta2O5 with a recovery of 65% to saleable
                      commodity price(s), for the principal metals, minerals and       concentrates. Secondary production of 39,000 kg of Ta2O5 from the
                      co-products.                                                     lithium circuit fines.
                                                                                   -   Tawana has a binding offtake agreement for the supply of lithium
                                                                                       concentrate from the Bald Hill Project in Western Australia over an
                                                                                       approximate initial five-year term. The commodity pricing for spodumene
                                                                                       concentrates is based on a price of US$880/t (FOB Esperance) for 6%
                                                                                       Li2O. The key terms of the agreement are: a fixed price for all production
                                                                                       for 2018 and 2019 of US$880/t (FOB Esperance) for 6% Li2O with price
                                                                                       adjustment increment/decrement of US$/15t based on grade variation of
                                                                                       0.1%; from 2020 to 2023 the sales price and volumes are to be negotiated
                                                                                       and agreed based on prevailing market conditions at the time. For the
                                                                                       purposes of the estimate, reference prices of US$800/t for 2020,
                                                                                   US$800/t for 2021 and US$750/t for 2022 and beyond at 6% Li2O
                                                                               -   The commodity price for tantalum is based on a price of US$60/lb (FOB
                                                                                   Esperance) for +25% Ta2O5. The assumed spot price is US$70/lb for 2018
                                                                                   to 2020, then US$60/lb from 2021 to 2023 and a premium (based on
                                                                                   historic sales from Bald Hill) of US$5/lb has been assumed due to the low
                                                                                   radiation and past sales history from the Bald Hill Mine.
Market       -   The demand, supply and stock situation for the particular     -   Medium and long-term supply and demand modeling for spodumene
assessment       commodity, consumption trends and factors likely to               concentrates is difficult to predict due to the rapid growth in demand and
                 affect supply and demand into the future.                         promise of supply. Tawana has signed a binding offtake agreement for
             -   A customer and competitor analysis along with the                 100% production for the first two years which includes substantial
                 identification of likely market windows for the product.          prepayments.
             -   Price and volume forecasts and the basis for these            -   Lithium demand growth will likely be driven by demand for electric cars
                 forecasts.                                                        and energy storage systems. There are several large Lithium projects that
             -   For industrial minerals the customer specification, testing       are expected to come into production in late 2018 and 2019. These may
                 and acceptance requirements prior to a supply contract.           result in a period of oversupply from 2020. However, based on history,
                                                                                   supply has significantly lagged in analysts’ predictions.
                                                                               -   The commodity pricing for spodumene concentrates is based on a price
                                                                                   of US$880/t (FOB Esperance) for 6% Li2O
                                                                               -   Concentrates produced during bulk metallurgical test work are within the
                                                                                   contractually acceptable limits of grade and impurities.
Economic     -   The inputs to the economic analysis to produce the net        -   The economic analysis is based on cash flows driven by the production
                 present value (NPV) in the study, the source and                  schedule. The cash flow projections include: initial and sustaining capital
                 confidence of these economic inputs including estimated           estimates; mining, processing and concentrate logistics costs to the
                 inflation, discount rate, etc.                                    customer based on FOB pricing; revenue estimates based on concentrate
             -   NPV ranges and sensitivity to variations in the significant       pricing adjusted for fees, charges and royalties; and a 10% discount
                 assumptions and inputs.                                           factor.
                                                                               -   Sensitivity analyses were generated by varying the salient economic
                                                                                   variables. The project is most sensitive to grade, recovery of lithium and
                                                                                   exchange rate. The Bald Hill Project is robust against a 20% negative
                                                                                   change to recovery, grade, metal pricing, foreign exchange rates, capital
                                                                                   or operating costs.
Social       -   The status of agreements with key stakeholders and            -   The site is a Brown Fields operation however over time the larger project
                 matters leading to social licence to operate.                     footprint will have a marginal impact on pastoral leases. Tawana is
                                                                                   working with the lessee to mitigate impacts. The License pre-dates Native
                                                                                          Title however Tawana has been in dialog with the Ngadju Native Title
                                                                                          Group on neighbouring tenements.
Other               -   To the extent relevant, the impact of the following on the    -   No material naturally occurring risks have been identified.
                        project and/or on the estimation and classification of the    -   Tawana has a binding offtake agreement for the supply of lithium
                        Ore Reserves:                                                     concentrate from the Bald Hill Project Apart from the Bald Hill JV
                    -   Any identified material naturally occurring risks.                agreements that govern the Bald Hill Project there are no other relevant
                    -   The status of material legal agreements and marketing             material legal agreements.
                        arrangements.                                                 -   There are no apparent impediments to obtaining all government
                    -   The status of governmental agreements and approvals               approvals required for the Bald Hill Project.
                        critical to the viability of the project, such as mineral
                        tenement status, and government and statutory
                        approvals. There must be reasonable grounds to expect
                        that all necessary Government approvals will be received
                        within the timeframes anticipated in the Pre-Feasibility or
                        Feasibility study. Highlight and discuss the materiality of
                        any unresolved matter that is dependent on a third party
                        on which extraction of the reserve is contingent.
Classification      -  The basis for the classification of the Ore Reserves into     -   Probable Ore Reserves were determined from Indicated Resources as per
                        varying confidence categories.                                    the JORC (2012) guidelines. The Bald Hill Project has no Measured
                    -   Whether the result appropriately reflects the Competent           Resource, therefore there are no Proved Ore Reserves.
                        Person’s view of the deposit.                                 -   Mr Karl van Olden, the Competent Person for this Ore Reserve estimation
                    -   The proportion of Probable Ore Reserves that have been            has reviewed the work undertaken to date and considers that it is
                        derived from Measured Mineral Resources (if any).                 sufficiently detailed and relevant to the deposit to allow those Ore
                                                                                          Reserves derived from Indicated Mineral Resources to be classified as
                                                                                      -   Zero (0) % of Probably Ore Reserves have been based on Measured
                                                                                          Mineral Resources.
Audits or reviews   -   The results of any audits or reviews of Ore Reserve           -   The Primero capital costs and operating estimate, and scope of work was
                        estimates.                                                        externally reviewed. Ore Reserve estimates have been reviewed
                                                                                          internally. Mine design, scheduling, and financial model has been
                                                                                          reviewed by CSA Global. No material flaws have been identified and the
                                                                                          Ore Reserve is considered appropriate for a PFS level of study.
Discussion of       -   Where appropriate a statement of the relative accuracy        -   This Ore Reserve estimation is supported by the PFS and the current
relative                and confidence level in the Ore Reserve estimate using an         operational plans, that have taken into account geological, metallurgical,
accuracy/               approach or procedure deemed appropriate by the                   geotechnical, process engineering and mining engineering considerations.
confidence              Competent Person. For example, the application of                 It has a nominal accuracy of within 25%.
    statistical or geostatistical procedures to quantify the     -   The Bald Hill Project has an IRR and NPV which makes it robust in terms
    relative accuracy of the reserve within stated confidence        of cost variations. The Project is most sensitive to price variations for
    limits, or, if such an approach is not deemed appropriate,       spodumene concentrates.
    a qualitative discussion of the factors which could affect   -   All estimates are based on local costs in Australia dollars. Standard
    the relative accuracy and confidence of the estimate.            industry practices have been used in the estimation process. The Bald Hill
-   The statement should specify whether it relates to global        Project is currently in the commissioning and early operations phase and
    or local estimates, and, if local, state the relevant            therefore recent and relevant costs have been utilized where available.
    tonnages, which should be relevant to technical and          -   Capital expenditure estimates are considered to be within -5/+10%
    economic evaluation. Documentation should include                accuracy and a substantial amount of the original project capital
    assumptions made and the procedures used.                        expenditure has been completed. Operating expenditure estimates are
-   Accuracy and confidence discussions should extend to             considered to be within 25% accuracy.
    specific discussions of any applied Modifying Factors that   -    There has been limited lithium production via DMS to date so no
    may have a material impact on Ore Reserve viability, or          comprehensive comparison or reconciliation of data has been made.
    for which there are remaining areas of uncertainty at the        Current initial performance of the process aligns with expectations. There
    current study stage.                                             are significant historic tantalum recovery records and these have been
-   It is recognised that this may not be possible or                used as a basis for estimating future recovery.
    appropriate in all circumstances. These statements of
    relative accuracy and confidence of the estimate should
    be compared with production data, where available.

06 June 2018
PricewaterhouseCoopers Corporate Finance (Pty) Ltd

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