ASX RELEASE

14 December 2021

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Vanadium Resource Integration into Lake Maitland

Uranium Resource Successfully Completed

HIGHLIGHTS

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 Vanadium has been successfully integrated into the Lake Maitland uranium resource.

 The new U3O8-V2O5 resource is now with engineers SRK Consulting to re-optimise the

proposed Lake Maitland mine based on the new data and processing flow sheet.

 The re-optimisation will incorporate the costs associated with the most recently designed

processing flowsheet, which includes the results of the beneficiation studies and the

production of a V2O5 by-product.

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 The new Lake Maitland resource now contains 14 Mlbs of V2O5 (Inferred - JORC 2012) along

with the 26.4 Mlbs of U3O8 already estimated at a 200 ppm U3O8 cut-off (refer to ASX

announcement 1 February 2016).

 Test work conducted by Toro has shown that V2O5 can be produced successfully as a by-

product of processing uranium at Lake Maitland for little extra cost (refer to ASX

announcement of 8 February 2021).

 The re-optimisation of Lake Maitland, as a stand-alone operation, will test if an integrated

U3O8-V2O5 resource along with the improved processing flowsheet provides economic

improvements to the proposed mining of the Lake Maitland Deposit.

 V2O5 is currently trading at US$8.40/lb (as flake - European price 10 December 2021) but has

traded as high as US$28.80/lb in December 2018, and demand for vanadium redox batteries

is expected to continue to grow.

 U3O8 is currently trading at US$45/lb (spot price - UxC 6 December 2021), having risen by

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at least 50% since the start of the year.

 Lake Maitland Engineering Study ("Study") for a stand-alone operation and producing V2O5 as a by-product is in its final stages of completion.

 Positive Study results have the potential to be applied across the entire Wiluna Uranium Project and may lower the price of uranium that is required to develop a mine.

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Less costly and less complex mining methods will also be investigated in the Study.

Toro has reputable and well established joint venture partners at Lake Maitland with Japan

Australia Uranium Development Company Ltd (through its subsidiary JAURD International

Lake Maitland Project Pty Ltd) and ITOCHU Corporation (through its subsidiary ITOCHU

Minerals & Energy Australia Pty Ltd) for the right to farm in to a 35% joint venture interest.

Toro Energy Limited (ASX: TOE) (Toro or the Company) is pleased to announce that the integration of vanadium into the Lake Maitland uranium resource has been completed successfully. The resulting U3O8- V2O5 resource is now with SRK Consulting mining engineers for the re-optimisation of the proposed Lake

Maitland mine based on a stand-alone operation producing V O as a by-product. The Lake Maitland

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uranium resource is part of Toro's Wiluna Uranium Project (the Project) in Western Australia (refer to Figure 1).

As a result of the integration, the new U3O8-V2O5 resource at Lake Maitland is now estimated to hold 22.02 Mt grading 545 ppm U3O8 and 288 ppm V2O5 for a total of 26.4 Mlbs of U3O8 and 14 Mlbs of V2O5 contained oxide at a 200ppm U3O8 cut-off.

The estimation for V2O5 is Inferred status according to JORC 2012 criteria and the existing U3O8 resource, personalas stated previously (refer to ASX announcement of 1 February 2016), is Measured and Indicated status (JORC 2012). The difference in status results from the fact that there is one third the available data for

vanadium than there is in respect of uranium. This is due to the ability to use cost effective down-hole gamma probing to obtain uranium concentrations during drilling with limited laboratory assays needed to confirm/calibrate the gamma probe results. All the drill holes containing vanadium concentrations derived by geochemical assay and that were used in this estimation of V2O5 inside the U3O8 estimation panels, are presented in the table in Appendix 1. The JORC Table 1 for the V2O5 estimation is presented in Appendix 2. All information related to the existing U3O8 estimation for the Lake Maitland resource has been presented in the ASX announcement of 1 February 2016.

The integration of vanadium was achieved by formally estimating the grade/amount of V2O5 inside the existing 10m x 10m x 0.5m estimation panels within the current Lake Maitland resource estimation. Ordinary Kriging was used as the geostatistical technique to estimate and all available geochemistry information for vanadium concentration in drilling within the deposit was utilised.

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personal Figure 1: Location of Lake Maitland within the Wiluna Uranium Project

New U3O8-V2O5 Resource now with Engineers for Re-optimisation of Proposed Mine

The new U3O8-V2O5 Lake Maitland resource estimation has been handed over to engineers at SRK Consulting, who will use it to re-optimise the Lake Maitland proposed mine assuming a stand-alone operation and producing V2O5 as a by-product. The current proposed mine and pit at Lake Maitland is based on an overall mining operation developed prior to the successful scoping study work that has significantly beneficiated the proposed Lake Maitland ore and subsequently changed the processing flow sheet for a stand-alone Lake Maitland mine (refer to ASX announcements of 8 February 2021).

The re-optimisation will incorporate the costs associated with the most recently designed processing flowsheet, which includes the results of the beneficiation studies and the production of a V2O5 by-productFor( efer to ASX announcement of 8 February 2021, 11 February 2021, 6 April 2021 and 15 June 2021). Other costs, such as power, staffing and product transport, will be updated to approximate more current

pricing.

During the re-optimisation process the mining engineers will also revisit the planned mining methods to investigate if the increased knowledge gained from research on the Lake Maitland deposit over recent years can translate into a less complex and cheaper mining method at Lake Maitland. If so, this cheaper method will be used in the re-optimisation process.

Why Integrate V2O5 into the U3O8 Resource?

Toro has integrated vanadium into its uranium resource at the proposed Lake Maitland mine because onlyrecently completed test work has established that V2O5 can be produced as a valuable by-product of processing uranium from the proposed Lake Maitland ore at only marginal added cost (refer to ASX announcement of 8 February 2021). Given the expected long-term growth in the price of V2O5 and the potential future demand, including from vanadium redox batteries (VRBs), Toro believes producing vanadium as a by-product is likely to result in a significant improvement to the feasibility and value of the

Project.

V2O5 flake is currently trading at US$8.40/lb (as at 10 December 2021 using Europe Price - as quoted from Vanadiumprice.com), having increased some 50% since the start of the year. This price has come usedown from a spike of US$28.80/lb in early December 2018, however it remains over double the price it was prior to the start of the large upward trend from mid-2016 (using Europe Price - as quoted from

Vanadiumprice.com).

The biggest demand for vanadium metal by far comes from the steel industry where it is used in the production of vanadium steel alloys, as well as in specialised aeronautical alloys, chemicals and batteries. The use of vanadium in steel is expected to continue over the long term, especially since the new national standards imposed on Chinese manufacturers by the Chinese government in September 2018, which

requires significant increases in the amount of vanadium going into vanadium steel alloys in China personal(Mining.com, January 2019).

However, the possibility of market disruption also exists for the future demand for vanadium due to the take-up of VRBs. The VRB is an efficient storage and re-supply solution for renewable energy, being scalable and suitable for large scale applications. China in particular is investing heavily in large scale VRBs.

Why Investigate Lake Maitland as a Stand-alone Operation?

Toro considers a stand-alone Lake Maitland operation provides the Company a substantial amount of optionality with its significant uranium and vanadium resources. Lake Maitland represents a proportionally large amount of the Wiluna Uranium Project's resources of U3O8, some 42% of the total at a 200pmm U3O8 cut-off. Due to a unique geology, the Lake Maitland deposit is also the most amenable of the Wiluna Uranium Project deposits to the proposed new screening and cycloning beneficiation method, where it has the potential to increase the average feed grade to the mill by up to three times the grades of the pre- beneficiation resource (Mets61 Caly80 ore type - refer to ASX announcement of 30 January 2018).

The successful scoping level research and improvements achieved at Lake Maitland to date also highlight Foropportunities within the broader Wiluna Uranium Project given the potential improved economics at Lake

Maitland.

The Lake Maitland studies also act as a testing ground for methods that could be applied to the entire Wiluna Uranium Project.

This announcement was authorised for issue by the board of Toro Energy Limited.

Katherine Garvey

Legal Counsel and Company Secretary, Toro Energy Limited.

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60 Havelock Street, West Perth WA 6005

FURTHER INFORMATION:

Richard Homsany

Toro Energy

08 9214 2100

Greg Shirtliff

Toro Energy

08 9214 2100

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Forward Looking Statements

This announcement may contain certain "forward-looking statements" which may not have been based

solely on historical facts, but rather may be based on the Company's current expectations about future

events and results. Where the Company expresses or implies an expectation of belief as to future

events or results, such expectation or belief is expressed in good faith and believed to have a

reasonable basis. However, forward looking statements are subject to risks, uncertainties, assumptions

and other factors, which could cause actual results to differ materially from future results expressed,

projected or implied by such forward-looking statements. Such risks include, but are not limited to

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Resource risk, metals price volatility, currency fluctuations, increased production costs and variances

in ore grade or recovery rates from those assumed in mining plans, as well as political and operational

risks in the Countries and States in which we operate or sell product to, and governmental regulation

and judicial outcomes. For a more detailed discussion of such risks and other factors, see the

Company's Annual Reports, as well as the Company's other filings. Readers should not place undue

reliance on forward looking information. The Company does not undertake any obligation to release

publically any revisions to any "forward looking statement" to reflect events or circumstances after the

date of this announcement, or to reflect the occurrence of unanticipated events, except as may be

required under applicable securities laws.

Competent Persons' Statement

Wiluna Project Mineral Resources - 2012 JORC Code Compliant Resource Estimates - U3O8

for Centipede-Millipede, Lake Way and Lake Maitland - V2O5 inside the U3O8 estimation panels

for Lake Maitland only.

The information presented here that relates to U3O8 mineral resources of the Centipede-Millipede, Lake

Way and Lake Maitland deposits as well as the V2O5 mineral resources estimated within the U3O8

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mineral resource estimation panels for Lake Maitland, is based on information compiled by Dr Greg

Shirtliff of Toro Energy Limited and Mr Daniel Guibal, currently of Condor Geostats Services Pty Ltd.

Mr Guibal takes overall responsibility for the Resource Estimate, and Dr Shirtliff takes responsibility for

the integrity of the data supplied for the estimation. Dr Shirtliff is a Member of the Australasian Institute

of Mining and Metallurgy (AusIMM) and Mr Guibal is a Fellow of the AusIMM and they have sufficient

experience which is relevant to the style of mineralisation and type of deposit under consideration and

to the activity they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of

the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves

(JORC Code 2012)'. The Competent Persons consent to the inclusion in this release of the matters

based on the information in the form and context in which it appears.

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Disclaimer

Toro Energy Limited published this content on 13 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 December 2021 22:37:08 UTC.