BaldHillOfftakeandProjectUpdateSeptember2017

Tawana Resources NL (TAW:ASX) (Tawana) and Alliance Mineral Assets Limited(SGX:AMA)(AMAL)arepleasedtoprovidethisupdatefortheBaldHillMinelocatedin the Eastern Goldfields region of Western Australia. The Bald Hill project (theProject)isajointprojectbetweenTawanaandAllianceMineralAssetsLimited.Highlights

• Thirdprepaymentof$4,375,000 receivedbyTawanafromBurwillHoldingsLtd(Burwill)undertheofftakeagreement.

• AMAL received A$4,375,000 from Burwill on 30 September 2017 viasubscriptionforequitysharesinAMALinlieuofthethirdprepaymentunderitsownofftakeagreement.

• EPCcontractforLithiumDMScircuitgainingmomentum:

o Designapproximately70%completeo Concreteworkswell-advancedo Structuralsteelpackageslet,firstpackageonsiteo Screensandpumpsordered;startingtoarriveonsiteo Majorityofmechanicalequipmentorderedo Buriedservicesinstallationcommenced

• Bulkearthworksnearcompletion.

• Additionaladministrationbuildingsplaced.

• Communicationstowersinstalledandcommissioned.

• FuelandPowertendersclosedandunderreview.

• Mining tenders closed and three contractors shortlisted. Award expected bymid-October2017.

• Senioroperationsanddevelopmentpersonnelappointed.

Tawana Managing Director Mark Calderwood stated: “The rapid progress beingmadeattheProjectisveryencouragingandgivesusgreatconfidencethattheBaldHillMinewillbeinproductioninthequarterending31March2018.

Our EPC contractors, Primero are progressing the Dense Media Separationprocessing plant on time, with commissioning still expected in the first quarter of2018.

A number of key contracts are expected to be awarded in October 2017 includingmining,crushing,fuelandpower.

Inaddition, therehavebeenanumberofkeyappointmentsto furtherenhance thedevelopment, and operational skills as the joint venture moves forward with thedevelopmentoftheBaldHillLithiumandTantalumMine”

10 October 2017

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EPCUpdate

• Engineeringiswell-advancedwithdesignmorethan70%complete.• Concreteworkswell-advanced.• Buriedservices(electrical/piping)progressingwithconduits&pitsbeingpositioned/installedand

HDPEpipesbeingweldedreadyforinstallation.• Steelwork isprogressivelybeingdetailedandprogressingthroughfabricationandpainting.First

packageofstructuralsteelhasarrivedandisbeingerected.• Procurementofmajorequipmentisprogressingwithcriticalordersontrack.

MajorContracts

• Mining tender closed; unit pricing equal to the Pre-feasibility study (PFS). Three contractorsshortlisted,withthepreferredtobenotifiedbymidOctober2017.

• FuelandPowertendersclosed;unitpricingconsistentwithPFS.• Crushingtendersclosed,currentlyunderreview.• Non-ProcessingInfrastructuretendersclosed;reviewunderway.• Haulroadupgradetenderclosed.

KeyPersonnel

EachoftheBaldHillLithiumandTantalumJointVenturepartnershasrespectivelymadeanumberofkeyrecentappointmentstofurtherenhancethedevelopment,andoperationalskillsasitmovesforwardwiththe development of the Bald Hill Lithium and Tantalum Mine in the eastern goldfields of WesternAustralia.Thesekeyappointmentsareasfollows:

TonyDominkovich-ProjectDirector,EPCSuperintendent(AMAL)

Tony has 37 years’ experience undertakingmining, infrastructure,mineral process and pharmaceuticalresearchprojects inAustralia,Africa,USA,theBalkansandAsia. Recentprojects includeMtWeldRareEarths(Lynas),BarrickGrannySmithupgrades,BarrickBulyanhuluandBuzwagiandFMGChristmasCreek.In addition to these projects, Tony has also been consulting to Pela Global on the restart of severalbrownfieldpolymetallicminingandprocessoperationsintheBalkans.

Other related roles includeDirectorshipof an industry superannuation fund and lecturing contract lawandestimating.

TonyundertakesanoversightandreviewfunctionforAMAL,monitoringallprojectactivities,approvalsandexpenditure.

SteveZaninovich–ProjectDirector(Tawana)

Stevehas 25 years’ experience in thedevelopmentof numerousprojects inAustralia andWestAfrica,with hismost recent role being VP -Major Projects at Teranga Gold Corporation, notably leading thedevelopmentofthecompany’sBanforaGoldProjectinBurkinaFaso.StevepreviouslyworkedasCOOforGryphonMinerals (prior to itsacquisitionbyTerangaGoldCorp.),asaProjectDirector for LycopodiumMinerals,aNon-ExecutiveDirector forCentaurusMineralsandOrwayMineralConsultants,andstartedhiscareerintheconstructionindustrywithUGLLimited.

Steve’sprojectmanagementexperience includesasProjectDirector forNewmont’s$1billion,7millionounce Akyem Gold Project in Ghana; Project Manager for the H2S Plant Project at Kwinana NickelRefinery, Tarkwa Phase IV Project in Ghana, Project Controls Manager at the Ridgeway Gold Project,CommissioningManagerattheBibianiUpgradeinGhana,andvariousstudies.

StevewillleadtheprojectdevelopmentoftheBaldHilllithiumandtantalumoperation.

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RobBroad–ProjectManager

Robert is a highly experienced Project Manager and Principal Engineer having worked with WorleyParsons,Kaiser,BHPB,RioTinto,WorsleyAlumina,Alcoa,Hatch,Karara,NickelWest,Gwalia,Woodside,ChevronandHorizonPower,onmajorresourceandinfrastructureprojects.RoberthasbeenPMCertifiedbyPMI,BHPBandWorleyParsonsandhassetupprojectsystemsforanumberofminingandengineeringcompanies.

As a consultant engineer for over 35 years, Rob has designed and built awide range of refineries andmineralsprocessingplantsincludinglithium(spodumeneandcarbonate)andtantalum.

DarrenBuchholz–OperationsManager

Darrenhasasubstantialcareerinminingoperations.BeforejoiningTawanaResources,Darrenwasmostrecently a site General Manager for Mineral Resources Limited which included managing the miningoperationandassociated infrastructureaswell asmanaging the site. Prior to this,DarrenwasGeneralManager forGlobalAdvancedMetalswherehe ledandmanagedmine-siteoperationsandnotably ledstrategiestoreducecoststhroughinnovativeuseoftechnologyanddrivingefficiencies.InbothoftheserolesDarrenledasuiteofperformanceupliftsintheprocessingplantandtailingsdam.

Other previous roles that Darren has held include Processing Superintendent at Talison Tantalum andSeniorProcessingCoordinatorforSonsofGwalia,bothpositionsheldforanumberofyears.

Inaddition,thefollowingkeypersonnelhavebeenappointedandhavecommenceddutiesonsiteinthelast month to oversee or facilitate construction activities and commence operations readinesspreparationaswellastakeovermonitoringactivitiesfromcontractors:

• Superintendent-Mining• Superintendent-HealthSafety&Environment• Minegeologist• Surveyor• EnvironmentalAdvisorandRadiationSafetyOfficer

AccommodationCamp

Inadditiontothe40-roomexistingcamp,personnelarealsonowbeinghousedattheleased150-personLanfranchicamp.Tawanaiscurrentlyassessingthemeritsofexpandingthecurrent40-roomcampatBaldHill.

AbouttheBaldHillProject

TheBaldHillLithiumandTantalumMine(BaldHillMineortheProject)isownedbySingaporeExchange-listedAllianceMineralAssetsLimited(AMAL),withASX-listedTawanaResourcesNL(Tawana)holding50%ofthelithiumrights.Theprojectissubjecttoa50%earn-intoexistinginfrastructureandtantalumrightsbyTawanathroughtheexpenditureofA$12.5mondevelopmentcosts.Followingthe50%earn-inbyTawana,a new Joint Venture will become effective and the Work Program and Budget for remaining projectexpenditureinexcessoftheA$12.5mwillbesubjecttoJointVentureapproval.

APre-FeasibilityStudy (PFS) finalised in July2017confirmed the technicaland financial viabilityofa lowcapital cost 1.2Mtpa lithium Dense Media Separation circuit (DMS) adjacent to the existing tantalumprocessingfacility(TPF)atBaldHill.

ThefirstshipmentoflithiumconcentrateisscheduledforMarch2018.

EPCGroupPrimeromobilisedtotheBaldHillMineinJuly2017andconstructionworkcommenced,withbulkearthworkscompletedandinitialcementfoundationsbeingpoured.

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Each of Tawana and AMAL executed an offtake agreement in April 2017 for the supply of lithiumconcentrate from Bald Hill over a five-year term with pricing for 2018 and 2019 of US$880/t (FOBEsperance)for6%Li2O.Theprepaymentsfromtheaforesaidofftakeagreementwillbeusedtowardsthecapital costs of the Project. AMAL had entered into a binding term sheet to vary certain terms of theaforesaid offtake agreement and subsequently, a definitive subscription agreement for the issuance ofordinary shares in the capital of AMAL to Burwill; further details of which can be found in AMAL’sannouncementontheSGXnetdated4October2017.

TheProject is located50kmsoutheastofKambalda intheEasternGoldfieldsofWesternAustralia. It islocatedapproximately75kmsoutheastoftheMtMarionLithiumMine.

TheProjectcomprisesfourminingleases,oneminingleaseapplication,twelveexplorationlicenses,eightprospectinglicensesandonegeneralpurposeleasetotalling790.1km.

A Maiden Indicated and Inferred lithium Mineral Resource of 12.8 million tonnes at 1.18% Li2O, and158ppmTa205ata0.5%Li2Ocut-offfortheProjectwasestimatedbyCSAGlobalPtyLtdandannouncedinJune2017.TheProjectremainssignificantlyunderexploredashighlightedbysignificantexplorationdrillresultsposttheJune2017resourcestatement.

Figure1|BaldHillprojectconstructionaerialview(September2017)

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Figure2|FirstscreenbeingdeliveredtoBaldHillsite

Figure3|Cyclone&DistributorsfromSouthAfrica

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Figure4|ConcreteworksforThickener

Figure5|FeedBinWall&ConcreteFootingscompleted

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Figure6|StructuralSteelworkbeingerected

Figure7|Newsiteofficesinposition

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