Ann: Shallow High-Grade Vanadium Instersections from Infill Drill, page-3

SHALLOW HIGH-GRADE VANADIUM INTERSECTIONS FROM SOUTHERN INFILL DRILLING Excellent results include the two highest grade and width intersections at shallow depths reported by AVL to date, above 1.25% V2O5 through the consistent massive vanadium titanium horizon

KEY POINTS
• Results received from 30 Reverse Circulation (RC) drill holes for 2,336 metres, conducted on Inferred Resource areas outside the current PFS mining schedule.
• Best drill intersections include:
➢ 22m at 1.25% V2O5 from 32m in 19RRC031, including 15m at 1.44% V2O5 from 37m
➢ 21m at 1.28% V2O5 from 39m in 19RRC015, including 14m at 1.42% V2O5 from 43m
➢ 18m at 1.24% V2O5 from 20m in 19RRC026, including 12m at 1.36% V2O5 from 22m
➢ 13m at 1.33% V2O5 from 36m in 19RRC034, including 10m at 1.40% V2O5 from 38m
➢ 18m at 1.14% V2O5 from 45m in 19RRC014, including 5m at 1.27% V2O5 from 51m
➢ 19m at 1.14% V2O5 from 24m in 19RRC029, including 3m at 1.33% V2O5 from 36m

• Shallow weathering and higher grades encountered will assist in the proposed magnetic recovery of high-quality magnetite concentrate.
• Strike extensive high-grade zones confirmed throughout the targeted areas.
• Programme strongly supporting goal to increase Project life by identifying low-cost, high grade, shallow, high recovery and low risk Resources.

Australian Vanadium Limited (ASX: AVL, “the Company” or “AVL” is pleased to announce results from the drill programme completed in December 2019 on the southern strike extensions at The Australian Vanadium Project (“the Project” which is located south of Meekatharra in Western Australia. The outstanding results will underpin an updated resource model in the southern areas. The shallow intercepts and the relatively higher magnetic response relating to weathering are extremely encouraging. The new drilling has closed the existing drill spacing from 400m to approximately 140m.

The drilling was successful in identifying the target vanadium mineralisation, confirming the impressive continuity of the unique massive-magnetite zones at the Project. ASX: AVL | australianvanadium.com.au 2 As reported in December1 , thirty RC holes were drilled at the Project for 2,336 metres to further define the high-grade zone (HG 10) within the Pre-Feasibility Study (PFS) case area, (see Table 2 and Table 3 for details).

New drilling in this report was focused on the southern blocks of AVL’s 11.5km strike length, all currently outside the definition of Mineral Reserves used in the Company’s PFS.

Managing Director Vincent Algar comments: “The exceptional high-grade results from this drilling programme in areas not currently in our Reserve base further strengthen our confidence in the deposit. The results have also confirmed the presence of additional, shallow, highly magnetic mineralisation in this area. This opens up potential for a second, and possibly third mining pit to be used in the DFS mining schedule which adds confidence to the strategies we are applying to bring the Project into production.”

Can't hurt, probably have enough vanadium to sink a ship now. Imagine the guys who were running the rule book over the internal data like this result though. Bring on the DFS.