Ann: High Grade Lithium Results From Bald Hill Mine, page-2

PROMISING RESULTS AT THE BALD HILL MINE WITH HIGH GRADE LITHIUM RESULTS

Tawana Resources NL (“Tawana” or the “Company”) is pleased to announce high-grade lithium and tantalum results from resource drilling at multiple locations at the Bald Hill lithium and tantalum mine in Western Australia.   These results, which will contribute to the upcoming maiden lithium Resource estimate to be completed by the first quarter of 2017, further demonstrate the strong position of the Company to become a spodumene producer in 2017.
Refer to the attached Joint Announcement in relation to exploration results at the Bald Hill Mine.

• Highlights   Stacked lithium and/or tantalum rich pegmatites from surface to 140m;  Three high grade intercepts over 300m strike of the central area;

i. LRC0048 - 10m at 3.82% Li2O and 243ppm Ta2O5 from 159m including 8m at 4.43% Li2O5;​

ii. LRC0049 – 4m at 2.39% Li2O and 246ppm Ta205 from 23m;​

iii. LRC0052 – 7m at 1.93% Li2O and 261ppm Ta2O5 from 32m including 4m at 2.9% Li2O5 and 310ppm Ta205;​

iv. LRC0048 and 49 intercepted other mineralised pegmatites; ​

• Drilling at the current north-western limit of the Western Pegmatite also intercepted very high grade mineralisation in LRC0015 - 6m at 1.61% Li2O and 586ppm Ta205 from 74m including 4m at 2.2% Li2O and 766ppm Ta2O5; 

• Extensions to LRDD0006 – intercepted 6.9m at 1.29% Li20 and 288ppm Ta205 from 141m in addition to 23m at 1.15% Li2O from 107m and 4m at 1.33% Li205 and 485ppm Ta205 from 74m previously reported. 

• Strong patterns of zonation and very coarse-grained spodumene apparent with potential to use visual/analytical processes in grade control to separately stockpile Li, Li/Ta and Ta rich pegmatite during mining.  

• Infill resource drilling is the current focus with the recent completion of initial metallurgical and sterilisation holes.  

• Initial assays from the extensive St John pegmatite swarm returned significant near surface intercepts including 4m at 1.6% Li2O from 22m and 4m at 1.19% Li2O from 38m.   The St John pegmatites located 4km northwest of the Bald Hill plant, occur in an area of at least 1.2km2 and are covered by mining leases.  

• 13,300m has been drilled since 12 October 2016 and Tawana is increasing drill rigs from 2 to 3. 

• Feasibility study is due for completion by the end of March 2017 with the aim of commissioning of the spodumene concentrator to commence in October 2017.

Managing Director Mark Calderwood stated: “Resource infill drilling is focusing on an initial block extending for 1,000m by 300m with multiple pegmatites extending from near-surface to about 140m depth.  This drilling will enable a significant resource upgrade. At recent pricing, the in-ground combined values of the lithium and tantalum mineralisation is significant, and tantalum byproduct credits have the potential to cover a large share of mining costs.”