ASX ANNOUNCEMENT

16 February 2015

ASX CODE: TNG

REGISTERED OFFICE

TNG Limited

Level 1, 282 Rokeby Road

Subiaco, W estern Australia 6008

T +61 8 9327 0900

F +61 8 9327 0901

W www.tngltd.com.au
E [email protected]

ABN 12 000 817 023

DIRECTORS Michael Evans Jianrong Xu Paul Burton Stuart Crow Rex Turkington Wang Zhigang

COMPANY SECRETARY

Simon Robertson

PROJECTS

Mount Peake: Fe-V-Ti Black Range Iron Manbarrum: Zn-Pb-Ag East Rover: Cu-Au McArthur: Cu-Zn-Pb-Ag

Mount Hardy: Cu-Au-Zn-Pb

Sandover: Cu-Au

Walabanba: Fe-V-Ti-Cu-Au

Tomkinson : Cu-Zn-Pb-Ag

CONTACT DETAILS

Paul Burton | +61 8 9327 0900

Nicholas Read | +61 419 929 046

Simon Robertson | +61 8 9327 0900

SIGNIFICANT HIGH-GRADE COPPER DISCOVERY EXPANDS POTENTIAL OF McARTHUR RIVER ZINC PROJECT

Outstanding copper grades of 47% and 48% Cu and 68gpt silver from reconnaissance rock chip sampling

HIGHLIGHTS

 Rock chip sampling results of 48% Cu, 47% Cu and 68gpt Ag have been returned to the west of previously reported drill-hole

14MCDDH002 at the McArthur River Zinc-Copper Project, in the NT.

 Outcrop shows a mixed supergene sulphide and carbonate/oxide copper-bearing formation.

 This new zone extends over an area of 300m x 600m within a large

700m x 1400m area of soil anomalism.

 These results further enhance the prospectivity of the McArthur

River Project, which is proposed for inclusion in the spin-off of

TNG's non-core base metal assets via Todd River Resources.

TNG Limited (ASX: TNG) is pleased to advise that it has significantly expanded the exploration potential of its 100%-owned McArthur River Project in the Northern Territory (Figure 1), following the discovery of a significant zone of high-grade copper mineralisation at surface.

The Company has received analytical results from a recent reconnaissance program of surface rock chip sampling at McArthur River including exceptional high copper grades of 47% Cu and 48% Cu. The results define an immediate priority zone for follow-up drilling.

Figure 1. Specimen sample MC15001, showing the breccia texture and copper minerals (green malachite and sooty black chalcocite and tenorite)

The McArthur River Project is located 60km south-west of the world-class McArthur River Zinc Mine (Figure 2) operated by Glencore, and within the Batten Fault Zone, which hosts several other base metal resources, including the recently outlined Teena deposit (Rox/Teck).

The Project is part of a portfolio of non-core base metal assets held by TNG in the Northern Territory which are intended to be included in the demerger of Todd River Resources, planned for later this year. This is consistent with TNG's focus on advancing its world-class Mount Peake Vanadium-Titanium-Iron Project to development.

Figure 2. TNG's 100%-owned McArthur River Project location

Previous exploration has focused mainly on the zinc prospectivity of the area but this recent work by

TNG indicates a new area of potentially significant copper prospectivity.

Recent work by TNG at McArthur River highlighted the zinc and copper potential of the tenements (see ASX Announcements - 16 September 2013, 20 August 2014, and 14 October 2014), with reconnaissance drilling to test the geological model completed at two target zones based on anomalous surface soil geochemistry and coincident geophysical (IP) conductors.

Sampling of this drill core proved an intersection of the prospective lithology, the Wollogorang Formation with numerous sulphides and returned results of over 0.2% for both zinc and copper (see ASX Announcement- 18 December 2014).

{? Zinc >250ppm c;::> Lud >100ppm C Copper >250ppm

Copper Anocmlous Zon(>250ppm) d pi L tion

2014 Orilling

Figure 3. Location of rock chip sample MC15001, in relation to regional geochemical anomalism and drilling, McArthur River Project, NT.

As part of a follow-up exercise, rock samples were collected during routine cross-section traversing related to the drilling that was undertaken in September/October 2014.

During this process, a significant area of surface outcropping rocks containing malachite and chalcocite (copper-bearing minerals) were noted and collected in a large zone of brecciated shale near the base of the prospective Wollogorang Formation to the west of previously reported hole 14MCDDH002 (see Figure 4 below showing an enlarged view of the location of the copper rock chip sample and extent of the copper soil anomaly area, McArthur River Project).

Figure 4. Location of rock chip sample MC15001, stratigraphic units, other visual copper minerals noted and soil geochemistry. Copper soil anomalies cover an 1100 by 1400 metre area within an overall anomalous zone extending for 9km with distinct structural and stratigraphic control.

Analytical results for the sample are shown in Table 1 below, while sampling details are outlined in Appendix 1. Copper returned >40% (above the upper detection limit of the technique) in the four acid digest analysis (ME-ICP61a/Cu-OG62), and so two new samples taken from the original pulp powder were analysed by XRF method (ME-XRF15c) resulting in grades of 48.3% and 47.9% copper.

Table 1: Rock sample analytical results by ICP, conducted at ALS laboratories, Perth.

Table 2: Rock sample analytical results by XRF, conducted at ALS laboratories, Perth

The sample also contains highly anomalous silver, grading 68ppm Ag, with background zinc and lead. The sample has tenorite (high grade and dark/black "earthy" copper oxide mineral) present and chalcocite, indicative of hydrothermal alteration.

During 2013/2014, TNG focused on the zinc potential within the central Wollogorang Formation - which is similar in many ways to the mineralization seen at the world-class McArthur River Zinc Mine, located

60km to the north (see ASX Announcement - 20 August 2014).

This high-grade copper sample provides significant encouragement that economic grade copper mineralization may also be found within the tenement package. A program of rock sampling, geological mapping, and geophysics covering this significantly anomalous area has been designed and may be conducted early in the coming dry season.

TNG's Managing Director, Mr Paul Burton, said the discovery of an extensive zone of high-grade surface copper mineralisation was a significant development for the McArthur River Project.

"This further demonstrates the substantial untapped exploration potential within our portfolio. We have so far been focusing on the potential for McArthur River to host a world-scale zinc system, which we believe remains a very credible and realistic exploration opportunity. This latest discovery shows the potential for high-grade copper in the near-surface environment, which is an exciting development which adds substantial value to the project."

Paul E Burton

Managing Director

16 February 2015

Inquiries:

Paul E Burton,

Managing Director + 61 (0) 8 9327 0900

Nicholas Read

Read Corporate + 61 (0) 8 9388 1474

Competent Person Statement

The information in this report that relates to Exploration Results and Exploration Targets is based on, and fairly represents , information and supporting documentation compiled by Exploration Manager Mr Kim Grey B.Sc. and M. Econ. Geol. Mr Grey is a member of the Australian Institute of Geoscientists, and a full time employee of TNG Limited. Mr Grey has sufficient experience 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'. Mr Grey consents to the inclusion in the report of the matters based on his information in the form and context in which it appear.

Forward-Looking Statements

This announcement has been prepared by TNG Ltd. This announcement is in summary form and does not pu rport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained.
This is for information purposes only. Neither this nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of TNG Ltd shares in any jurisdiction.
This does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.
To the fullest extent permitted by law, TNG Ltd, its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this announcement. No responsibility for any errors or omissions f rom this arising out of negligence or otherwise is accepted. This may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of TNG Ltd. Actual values, results or events may be materially different to those expressed or implied.

Appendix One

Analytical results: Rock sample by ICP method ME-ICP61a/Cu-OG62 and by XRF method ME-XRF15c

APPENDIX TWO - MCARTHUR RIVER PROJECT Section 1 Sampling Techniques and Data

Data spacing and distribution
Orientation of data in relation to geological structure
Data spacing for reporting of Exploration Results.
Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
Whether sample compositing has been applied.
Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
Sampling was of an exploratory and reconnaissance nature and spacings are insufficient to establish continuity or define Resources.
No compositing has been applied to the exploration results.
The sample comes from the lowermost subunit in the Wollogorang Formation - and so there is good control on its geological position.
Sample security The measures taken to ensure sample security. All core and samples were under company supervision at all times prior to freighting to ALS laboratories in Alice Springs
Audits or reviews The results of any audits or reviews of sampling techniques and data. No sampling audits have been completed to date at the McArthur River Project

Criteria JORC Code explanation Commentary

Mineral tenement and land tenure status
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
The McArthur River Project comprises two tenements EL 27711 and EL 30085, held by Enigma Mining Ltd, a wholly owned subsidiary of TNG Limited.
The sample comes from EL 30085.
The tenements are in good standing with no know impediments
Exploration done by other parties
Acknowledgment and appraisal of exploration by other parties. The most significant previous work looking for base metals in the area was completed in the late 1960's by AGPL and is available on NTGS open file
Geology Deposit type, geological setting and style of mineralisation. The main target for this project is Zn-Pb-Cu- Ag mineralisation of a similar style to that found at the McArthur River Mine, some 60km NNE of the project location. This sample displays stratabound copper mineralisation with a suggestion of structural control
Drill hole Information A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o Easting and northing of the drill collar

o Elevation of RL (Reduced Level - elevation above sea

level in metres) of the drill collar

o Dip and azimuth of the hole

o Down hole length and interception depth

o Hole length

Not relevant
Data aggregation methods
Relationship between mineralisation widths and intercept lengths
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent values should be clearly stated.
These relationships are particularly important in the reporting of
Exploration Results.
If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').
No data aggregation has been applied.
The sample is from a known unit but there is no information about the thickness nor extent of this mineralisation

Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
Refer to Figures 1 and 2 in the body of the report