Tawana Resources NL : Finalisation of Funding Package and Merger Update

Finalisation of $40 Million Funding Package and Merger Update

ASX RELEASE 31 October 2018

ASX:TAWCORPORATE DIRECTORY

Non-Executive Chairman Robert Benussi

Managing Director Mark Calderwood

Non-Executive Directors Robert Vassie

Mark Turner Wei (Vicki) Xie

Chief Financial Officer Craig Hasson

Joint Company Secretaries Alexei Fedotov

Joanna Kiernan

Media contact: Nathan Ryan NWR Communications +61 (0) 420 582 887

CONTACT DETAILS

Level 3

20 Parkland Rd Osborne Park WA 6017

Email |admin@tawana.com.auWebsite |www.tawana.com.auPhone | +61 8 9489 2600

Tawana Resources NL (ASX: TAW) (Tawana or the Company) is pleased to announce that it has executed the formal documentation relating to the Company's previously announced $40 million secured funding package with a consortium of lenders led by Tribeca Investment Partners (Tribeca).1

Completion of this financing package strengthens the Company's balance sheet and allows the continued ramp up of production and planned expansion of the proposed fines lithium and tantalum circuit additions to the existing Dense Media Separation plant at the Bald Hill Mine and additional working capital.

The funding package, which comprises two tranches of $20 million each is also expected to assist with facilitating the ASX Listing of Alliance Mineral Assets Limited (Alliance) in connection with the merger between Alliance and Tawana announced on 5 April 2018 (Merger).

Part of the proceeds from the draw down on the first tranche of $20 million will be used to repay the $5 million loan from Red Coast Investment Limited2, leaving Tawana with a net secured debt position of $20 million.

The second tranche of $20 million remains conditional upon the completion of the Merger and Alliance receiving conditional ASX listing approval.

Merger Update

Following the execution of the funding package, Tawana is now in a position to finalise the supplementary disclosure required in connection with the Merger. As part of the Merger approval and implementation process, Tawana will seek approval of the proposed supplementary disclosure at a Federal Court hearing set down for 8 November 2018.

The indicative timetable for the Merger is as follows:

• • Scheme meeting of Tawana shareholders - late November 2018

• • Second Court hearing for approval of the Merger - early December 2018

• • Implementation of the Merger - mid December 2018

Subject to the required orders being obtained from the Federal Court, supplementary disclosure will be released to ASX on or around 8 November 2018 and sent to all Tawana shareholders thereafter.

Mark Calderwood Managing Director

• 1. Refer ASX Announcements dated 27 September 2018 and 4 October 2018

• 2. Refer ASX Announcement dated 5 February 2018