Ann: Tawana to spin out Cowan, Yallari and Mofe Creek Assets, page-2

Tawana to spin out Cowan, Yallari and Mofe Creek Assets Spinout to create a new, exploration-focussed company with prospective Lithium and Iron Ore assets Tawana Resources NL (ASX:TAW) (“Tawana” or the “Company”) is pleased to announce its intention to restructure the Company’s assets in order to focus on its flagship Bald Hill Project. The restructuring will involve the transfer of the Cowan, Yallari and Mofe Creek assets to a wholly owned public company (“SpinCo”), before undertaking a capital reduction and distribution by way of in‐specie distribution of 85% of all SpinCo shares to Tawana’s shareholders (the “Proposed Transaction”). The assets to be transferred to SpinCo (collectively the “Assets”) will include:  the 100% owned Cowan Lithium Project in Western Australia comprising tenements that are adjacent to the Bald Hill Mine (“Cowan”);  the 100% owned Yallari Lithium Project in Western Australia comprising tenements that cover portions of the greenstone sequence that hosts the Mt Marion and Londonderry pegmatite fields (“Yallari”); and  the 100% owned Mofe Creek Iron Ore Project in Liberia (“Mofe Creek”). It is not currently intended that an ASX listing of SpinCo will be sought, but this will be considered by the board of SpinCo in due course. Implementation of the Proposed Transaction will be subject to various conditions, including finalisation of transaction due diligence enquiries and approval by Tawana’s shareholders. Commenting on the Proposed Transaction, Tawana Managing Director Mark Calderwood said, “Following the recent commissioning and first spodumene concentrate production at Bald Hill, Tawana’s primary focus is to ensure effective ramp‐up of production and to ensure exploration activities are focused “near mine” to drive growth in mineable reserves and extend associated mine life at Bald Hill of which the Company has explored less than 5% of the known prospective area. Accordingly, the Board of Tawana has acknowledged that the Assets are unlikely to garner the appropriate management focus and budgetary allocation which they warrant and require for short term advancement.” “Furthermore, the Board of Tawana recognises that the value of the Cowan, Yallari and Mofe Creek projects may be better recognised by the market by de‐ merging these assets from Tawana to form a new standalone exploration company. Following the Proposed Transaction, both companies, Tawana and SpinCo, will be better placed to advance their respective asset portfolios, which are at different stages of maturity. Demerging the prospective Assets should unlock better value for SpinCo shareholders.”