Tawana Resources - Producing and Already Planning Expansion

17 Mar 2018

Bald Hill Project production has commenced
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Production of 155,000t p.a. of concentrate from Stage 1
Top quality +1mm spodumene concentrate (low mica, low iron)
Significant tantalum by-product production
Lowest Capex (of stand-alone lithium mines) in Australia
Reserve upgrade expected April 2018
Stage 2 – Fines and Stage 3 – second DMS plant under consideration.
Significant Resource potential from the successful step out drilling, and
new areas identified.

Bald Hill Project Production Upside Potential
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Fines circuit to treat otherwise stockpiled <1mm fines and 1mm-5.6mm middlings at the rate of 300,000-400,000tpa.
Increase production by up to 25% at incremental cost. Metallurgy points to fines DMS, low capital and operating cost, lower risk.
One stage of tantalum concentration commences in March 2018, other two stages of tantalum production expected to commence later in 2018.
A second DMS circuit under consideration, subject to Reserve upgrade:

o Strong demand for spodumene concentrate with strong likelihood of additional offtake prepayments
o DMS circuit would have a low capital cost and fast payback
o Would be very similar to recently completed Stage 1 DMS, with design improvements
o Construction time expected to be faster than the 7 months taken for the Stage 1 DMS
o Significant benefits to costs due to high ratio of fixed costs as a result of low consumable consumption

Major Shareholders (as at 12 March 2018) %
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JP Morgan Nominees* 15.79%
Citicorp Nominees 9.90%
Merriwee Pty Ltd 5.94%
Chalmsbury Nominees 5.24%
UBS Nominees 4.37%
Top 20 60.69%

Lowest Capex Lithium Project in Australia
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Contract mining
Contract crushing
Staged development
Exceptional metallurgical characteristics
New 1,200ktpa spodumene DMS circuit’s annual forecast production of 155,000t of concentrate
Separate (existing) 350ktpa tantalum plant
Limited additional infrastructure required
Fast build - 7 months
Low debt
Starter pit life of 3.6 years
Only one year of Resource drilling completed, many years of exploration ahead

Lithium Offtake
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Offtake with Burwill Commodity Ltd who are in JV with lithium industry specialist Jiangte Special Electric Motor Co. Ltd.
Offtake agreement 100% (>5.5% Li2O) of lithium concentrate production at US8880/T (6% Li2O) for 2018 and 2019 FOB from Esperance Port.
Pricing for 2020 to 2022 to be negotiated based on market indicators.
A12.5m pre-payment received by Tawana. 25M funding package (20M equity/ 5M debt) finalised in October 2017
with German company Weier Antriebe und Energietechnik GmbH - a 100% owned subsidiary of Jiangte Special Electric Motor Co. Ltd.

Tantalum Offtake
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Bald Hill Tantalum offtake non-binding term sheet executed with HC Starck Group, a leading premium supplier of technology metals.
Key terms: 600,000 pounds minimum of tantalum concentrate from April 2018 to 31 December 2020 or all of the standard grade tantalum concentrate produced within the period if delivery less than 600,000 pounds.
Pricing above PFS expectation.