ASX RELEASE: 23rd Oct 2014

ASX: TAW

CORPORATE DIRECTORY Exec. Chair Wayne Richards

Managing Director Len Kolff Non-Exec. Dir Matthew Bowles Co. Sec Winton Willesee

Mofe Creek Iron Ore Project - Liberia, West Africa

LIBERIA: Proven Iron Ore Country

LOCATION: Project located 20km from coast, adjacent to historic rail alignment, 85km to Port of Monrovia

LITHOLOGY: High grade +33% Fe friable itabirite resource of

61.9Mt with ability to produce a

+64 to 68% Fe product

LOGISTICS: Road transport (and/or Rail optionality) Barging, Transhipment, Direct ship loading

LEADERSHIP: Proven Executive Team with 'In-Country' Iron Ore expertise

Rakana JV (6.7%), South Africa Meletse Iron Ore and Avontuur Manganese JV managed by Baosteel Iron and Steel Group

Project Milestones:

- Scoping Study completion

- Maiden Resource Estimate announced

- Pre-Feasibility study commenced

- Mineral Development

Application commenced 

- PFS Drilling Program and Resource Extension Upgrade commenced

- Environmental and Social Impact Assessment (ESIA) awarded 

CONTACT DETAILS

Suite 25, 145 Stirling Highway

Nedlands WA 6009

Email: [email protected] Website: www.tawana.com.au Phone: +61 8 9287 4333

Facsimile: +61 8 9287 4334

Excellent Infill Drilling Results Received

Tawana Resources NL (ASX: TAW) ('the Company' or 'Tawana') is very pleased to announce infill and extensional drilling results received over the Gofolo and Zaway Main deposits at its 100% owned Mofe Creek Iron Ore Project in Liberia, West Africa.

Selected significant intersections at a 20% Fe cut-off with a maximum of 2m internal dilution include:

"Results are extremely pleasing as they provide confidence in mineralisation continuity across the deposits as well as potential additional resource tonnes due to thicker mineralised widths intersected on expanded sections," Managing Director Len Kolff said.
"Drilling completed to date will have the potential for converting more of the material from the Inferred to Indicated category in certain areas; adding greater confidence in the Resource Model," he added.
"Greater widths intersected in certain holes will allow for potential additional resource tonnes, particularly at the Gofolo Main deposit," he concluded.
The Company is progressing with engineering designs and associated studies for the processing plant, road corridor and port facility. The ESIA baseline studies are being advanced along with the community consultation programs, as a deliverable for the Notice of Intent (refer ASX release 26 August 2014). The Company has engaged port, harbour and transhipment companies to provide design and cost inputs into the Pre-Feasibility Study ('PFS'), as well as potential contract mining groups.
The design and approval of the proposed pilot mining, ore and processing plant to test the ore lithologies, confirm mineability, and materials handling characteristics is being progressed. A Mineral Development Agreement is being correlated with relevant stakeholders to secure the necessary approvals, infrastructure corridors and port leases.

ASX RELEASE | 23rd October 2014

All assays have been received for 1,114.6m of drilling (including re-drills) of a 7,500m planned programme. The complete drilling programme was designed to increase the current resource from 61.9Mt (refer ASX Release 31 March 2014) to a targeted 100Mt to
120Mt for the Pre-Feasibility Study. Drilling was suspended in August 2014 due to the
Ebola virus situation.

Figure 1 | PFS drilling areas circled.

Drilling was completed using two Atlas Copco CS1000 rigs in PQ and HQ Diamond core.

Figure 2 - Diamond drill rig at the Zaway Main deposit.

Drilling results received confirm mineralisation continuity between drill sections and down dip; potentially converting mineralisation on relevant sections from Inferred to Indicated resources. On certain sections, drilling results have increased mineralised width when compared to the current resource model. This is significant as it may result in an increased resource estimate. All intersections reported at Gofolo Main are listed in Table 1 overleaf.

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ASX RELEASE | 23rd October 2014

Table 1 | Reported drill intersections at Gofolo Main at a 20% Fe cut-off and inclusive a maximum 2m of internal waste (BDL= Below Detection Limit).

Six additional holes were completed at Gofolo Main (including re-drills) prior to suspension of activities (see Figure 3). Drilling intersected friable and fresh iron formations (itabirite) which conform to the current resource model.

Figure 3 | Additional holes completed at Gofolo Main (labelled red dots), previous drilling (RC -black dots, Diamond -blue dots) and planned holes (green dots) over satellite imagery and mineralised bodies highlighted.

A total of 5 additional holes (including re-drills) were completed at Zaway Main (see figure 6). All intersections at a 20% Fe cut-off and a maximum 2m of internal dilution are listed in Table 2 overleaf.

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ASX RELEASE | 23rd October 2014

Table 2 | Reported drill intersections at Zaway Main at a 20% Fe cut-off and inclusive a maximum 2m of internal waste (BDL - Below Detection Limit).

Drilling intersected both friable and fresh iron formation (likely itabirite) interlayered with metasediments and quartzites. Drilling results have confirmed the current resource model, and on all sections drilled; extended mineralisation depth, resulting in the potential for a resource upgrade.

Figure 4 | Additional holes completed at Zaway Main (labelled red dots), previous drilling (RC -black dots, Diamond -blue dots) and planned holes (green dots) over DTM and mineralised bodies highlighted.

About Tawana (ASX & JSE: TAW)

Tawana Resources NL is an iron ore focused ASX and JSE-listed Company with its principal project in Liberia, West Africa. Tawana's 100%-owned Mofe Creek Project is a new discovery in the heart of Liberia's historic iron ore district, located 20km from the coast and 80km from the country's capital city and major port, Monrovia.
Tawana is committed to becoming a mid-tier iron ore producer through the development of the Mofe Creek Project, which covers 471km2 of highly prospective tenements in Grand Cape Mount County. The Project hosts high-grade friable itabirite mineralisation, which can be easily upgraded to a premium quality iron ore product of
+64-68% Fe grade, via simple, low capital intensity beneficiation.
The Company has recently concluded its successful and financially robust Scoping Study on the Mofe Creek Project. The Scoping Study considered an early start-up, low capital cost project with a production rate of up to 2.5 million tonnes per annum.

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ASX RELEASE | 23rd October 2014

For further information please contact:

Len Kolff Managing Director Tel +61 8 9287 4344

Detailed information on all aspects of Tawana's projects can be found on the
Company's website http://www.tawana.com.au/www.tawana.com.au.

Cautionary Statement

Full details of the Scoping Study referred to in this announcement were initially released to the ASX in an announcement dated 3 July 2014, and should be read in conjunction with this announcement. All material assumptions underpinning the Scoping Study, production targets and forecast financial information derived from the production targets as well as any cautionary statements and disclosures as required under the ASX Listing Rules and 2012 JORC Code are set out in the announcement dated 3 July 2014 and continue to apply and have not materially changed.

The Scoping Study referred to in this announcement is preliminary in nature as its conclusions are drawn on inferred (74%) and indicated mineral resources (26%). The Scoping Study is based on lower-level technical and economic assessments, and are insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised.

There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised. There is also no certainty that the forecast financial information derived from the production targets will be realised.

Competent Persons Statement

The information in this report that relates to Mineral Resources or Ore Reserves is based on information compiled by Len Kolff and Iain Macfarlane, who are members of the Australian Institute of Geoscientists. Len Kolff is a full-time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Iain Macfarlane is a full-time employee of Coffey Mining Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' Len Kolff and Iain Macfarlane consent to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statement

This announcement contains certain forward looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates and projections about the industry in which Tawana Resources NL operates, and beliefs and assumptions regarding the Company's future performance. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" "potential" and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of the Company, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Tawana Resources NL cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Tawana Resources NL only as of the date of this presentation. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. Tawana Resources NL will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory authority.

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ASX RELEASE | 23rd October 2014

Appendix 1 - Hole Location Data

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ASX RELEASE | 23rd October 2014

The following extract from the JORC Code 2012 Table 1 is provided for compliance with the Code requirements for the reporting of Exploration Results: (CP: LK - Len Kolff)

REPORTING OF EXPLORATION RESULTS.

Criteria JORC Code Explanation Commentary Competent

Person

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ASX RELEASE | 23rd October 2014

Criteria JORC Code Explanation Commentary Competent

Person

Information the exploration results including a tabulation of the following information for all Material drillholes:

results has been included within the body of the announcement or as appendices.

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ASX RELEASE | 23rd October 2014

Criteria JORC Code Explanation Commentary Competent

Person

samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

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