Ann: Mount Peake Project FEED Completion Update, page-2

UPDATE ON MOUNT PEAKE FRONT-END ENGINEERING AND
DESIGN STUDY FOR THE BENEFICIATION PLANT AND TIVAN®
PROCESSING FACILITY
Key Points
• SMS Group (“SMS”) has now provided the key deliverables of the Front-End Loading (“FEL”)-3 for the Darwin
TIVAN® Processing Facility (“DPF”), under the FEED agreement.
• SMS has advised that ongoing COVID-19 restrictions and lockdowns in Germany and Austria as well as travel
bans imposed by the Australian Government have impacted certain testwork-based deliverables of FEL-3
for the DPF. These are being addressed with expected delivery and completion during the coming months.
• FEL-3 for the Beneficiation Plant for the Mount Peake mine site has already been completed and delivered
by SMS (as advised on 15 March 2021) and reviewed in detail by TNG’s technical team.
• The Beneficiation Plant has been designed to process up to 2.1 Mtpa of titanomagnetite ore and produce up
to 0.7 Mtpa of magnetite concentrate.
• The magnetite concentrate produced by the Beneficiation Plant is planned to be transported to the DPF for
processing into vanadium pentoxide, titanium pigment and iron oxide fines for global export.
• The indicative FEED capital cost for detailed engineering, procurement and construction of the Beneficiation
Plant has been estimated at $146M (+/-10%), including contingency, subject to finalisation of the delivery
proposal.
• The execution plan for the Beneficiation Plant will now be finalised, allowing TNG and SMS to complete the
commercial process for the delivery of firm contract pricing.
• TNG and SMS will now develop an enhanced, final project execution model to optimise capital expenditure
for the Mount Peake Project.