Ann: Mount Peake Feasibility Results, page-4

Highlights- looking good

 Definitive Feasibility Study (DFS) finds that TNG’s 100%-owned Mount Peake Vanadium-TitaniumIron Project in the Northern Territory when developed will deliver robust financial and technical outcomes.

 Key findings of DFS include: o Pre-production capital cost estimate of A$970M (Stage 1 infrastructure, mine site, concentrator and Refinery); o Pre-tax net annual average production cash flow of A$785 million; o Life-of-mine net cashflow of A$11.6 billion; o Pre-tax IRR of 41%; o Two year pre-production period for construction; o Initial 17-year project life; o 3Mtpa (Stage1) mining operation expanding to 6Mtpa (Stage2) after 4 years of production; o

Average annual production of 17,560tpa V2O5, 236,000tpa TiO2 (pigment), 637,000tpa Pig Iron; o Pay back of 4 years.  Maiden Probable Ore Reserve of 41.1Mt (50% of mine life) at V2O5 0.42%, TiO2 7.99%, Fe 28.0% at a cut-off grade of 15% Fe, which has converted 65% of the Measured Resource with a 50% increase in V2O5 grade  DFS includes a new proposed Darwin location for the TIVAN® Refinery.  TIVAN® Refinery assumed to have an operational life of 40 years however revenues from years 18- 40 have not been included in this DFS. 

In addition to the TIVAN® vanadium pentoxide process, the Refinery incorporates associated Titanium and Pig-Iron Plants to produce higher-value products.  TNG expects DFS findings to underpin discussions for converting funding and construction MOU’s to binding implementation agreements.  Binding commodity off-take agreements expected to be negotiated this Quarter.  Subject to all approvals, permitting and financing, construction of Mount Peake is planned to commence in 2016 with first production scheduled for early 2018