Liontown Resources : Exploration and Corporate Strategy Update

20th January 2020

Exploration and Corporate Strategy Update

Drilling re-commences at the Kathleen Valley Lithium-Tantalum Project with the number

of drill rigs increased to six.

Toolebuc Vanadium Project to be divested.

KEY POINTS

• 2020 drilling program underway at Kathleen Valley with a further 15,000 - 18,000m drilling planned to be completed by the end of February 2020.
• Data from this drilling program will be used to prepare an updated Mineral Resource Estimate that will be incorporated into a Definitive Feasibility Study for Kathleen Valley.
• Drilling follows the positive Pre-Feasibility Study released late last year (see ASX release dated 2nd December 2019) which, based on a maiden Ore Reserve of 50.4Mt @ 1.2% Li2O and a mining rate of 2Mtpa, indicates an NPV of A$507M, a 26-year mine life and free cash flow of A$1.9B (excluding tantalum credits) over the life of the mine.
• At the Company's Toolebuc Vanadium Project in Queensland, good results have been received from drilling completed late last year to test potential extensions to the north of the existing Inferred Mineral Resource at the Cambridge deposit (~84Mt @ 0.30% V2O5). However, given Liontown's focus on advancing the Kathleen Valley Project towards development, it has commenced a process to either divest the Toolebuc Vanadium Project or bring in a partner to advance it to the next stage.

Kathleen Valley Lithium Tantalum Project

Liontown Resources Limited (ASX: LTR, "Liontown" or "Company") is pleased to advise that drilling has re-commenced at its flagship Kathleen Valley Lithium-Tantalum Project in Western Australia following the Christmas/New Year break.

Six drill rigs comprising four Reverse Circulation and two diamond core rigs are operating on site with 15,000 - 18,000m of drilling planned to be completed by the end of February 2020.

The current drilling program is designed to test for a resource extension Exploration Target of 25 - 50Mt

• 1.2 - 1.5% Li2O, which was defined based on testing for extensions of the current Mineral Resource Estimate (MRE) from the limits of previous drill data to a vertical depth of ~500m below surface. This Exploration Target is in addition the current 74.9Mt MRE.

(The potential grade and tonnage of the Exploration Target is conceptual in nature and there has been insufficient exploration to estimate an expanded Mineral Resource. It is uncertain if further exploration will result in the estimation of an expanded Mineral Resource. See Table 1 for full explanation of assumptions used to estimate ranges.)

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Results from the current drill program, once completed, will be used to prepare an updated MRE which will ultimately form the basis for a Definitive Feasibility Study (DFS). The updated MRE will include both open pit and underground resources, which are anticipated to provide the best outcome for the DFS.

The drill program will also provide geotechnical data and further sample material for metallurgical test work required as part of the DFS.

Due to the Christmas/New Year break assays are still pending for the drill holes completed late last year.

Liontown Managing Director David Richards said the decision to further increase drilling capacity at Kathleen Valley reflected the outstanding results generated towards the end of last year and the Company's strong focus on delivering a further upgrade in the Mineral Resource as the foundation for its DFS.

"Kathleen Valley's credentials as a high-qualitylithium-tantalum asset with grade, scale and other significant competitive advantages in terms of location and infrastructure continue to shine through as we progress development studies and resource drilling," he said.

"We are looking forward to what should be another defining year for the Company as we deliver a further increase to what is already Australia's fifth largest lithium resource and progress a DFS aimed at transforming Liontown into a next-generation lithium producer."

Toolebuc Vanadium Project

The Company has received significant assay results from drilling completed prior to the Christmas break at its 100%-owned Toolebuc Vanadium Project in NW Queensland.

Liontown acquired the Toolebuc Project in 2017 when it applied for five EPMs totalling approximately 1,000km2. The tenements covered large areas of prospective, outcropping Toolebuc Formation and adjoin existing vanadium resources (Figure 1) defined by Intermin Resources Limited (now known as Horizon Minerals Limited).

Compilation of historical data identified a number of drill ready targets including:

• The Cambridge prospect, where there was sufficient data from previous drill programs to prepare an Inferred Mineral Resource Estimate (MRE); and
• The Runnymede prospect where reconnaissance drilling intersected widespread, near-surface vanadium mineralisation.

Independent resource consultants, Optiro Pty Ltd, were engaged by Liontown to prepare a Mineral Resource Estimate (MRE) for the Cambridge vanadium deposit using historical drill data. The Cambridge MRE is summarised in Table 1:

Table 1: Cambridge Mineral Resource as at July 2018

	Resource			Million tonnes			V2O5 %			MoO3 ppm
	category
	Inferred	83.7		0.30		188
	Total	83.7		0.30		188

Notes: • Reported above a V2O5 cut-off grade of 0.25%

• Tonnages and grades have been rounded to reflect the relative uncertainty of the estimate

The Cambridge deposit is adjacent to and immediately east of the Lilyvale vanadium deposit, owned by Intermin Resources Ltd. In March 2018, Intermin Resources Ltd reported an updated Inferred Mineral Resources at the Lilyvale deposit of 671 Mt at an average grade of 0.35% V2O5 above a cut-off grade of 0.29% V2O5.

LIONTOWN RESOURCES LIMITED | PAGE 2

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Liontown completed a 30-hole/745m aircore drilling program at the Cambridge prospect in late 2019 which was designed to validate the historical drill results, test for a northern extension of the deposit and provide material for metallurgical test work.

Better intersections from the drilling include:

1. MAC013 6m @ 0.45% V2O5 from 2m

1. MAC015 10m @ 0.45% V2O5 from 10m

1. MAC022 9m @ 0.36% V2O5 from 7m

1. MAC029 6m @ 0.39% V2O5 from 3m

The drilling intersected similar grades and widths as the historic drilling and defined additional vanadium mineralisation immediately to the north of the Cambridge MRE (Figure 2). The newly-defined mineralisation covers an area of 3.7km2 and averages 7m thick and 0.38% V2O5. Drill statistics for historic and recent drilling are listed in Appendix 1.

Preliminary metallurgical test work commissioned by Liontown indicates good potential to beneficiate the mineralisation to a higher grade concentrate that can then be processed to extract the vanadium. The recent drilling program at Cambridge has provided ample material for future test work.

At Runnymede, located 25-30kmnorth-west of Cambridge, historical drilling has intersected shallow, ore grade vanadium (Appendix 1) over a 3.5 x 3.5km area (Figure 3) with the mineralised zone open to the north and north-east where extensive, prospective unexplored Toolebuc Formation has been mapped.

In addition to the known prospects, large areas of the Toolebuc Formation within Liontown's tenure have yet to be explored for vanadium and there is good potential for further discoveries.

While the Toolebuc Project represents a quality development and growth opportunity in the battery metals space, following a strategic review of its corporate priorities and in light of the ongoing drilling success at its lithium projects, Liontown has decided to focus its resources on the continued development of the Kathleen Valley Project.

Consequently, the Company has commenced a process to either divest the Toolebuc Project or bring in a joint venture partner to advance it to the next stage. The Company will report any material developments in this process as and when they occur.

This announcement has been authorised for release by the Board.

DAVID RICHARDS

Managing Director

LIONTOWN RESOURCES LIMITED | PAGE 3

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For More Information:	Investor Relations:
David Richards	Nicholas Read
Managing Director	Read Corporate
T: [phone]	T: [phone]
[e-mail]	[e-mail]

The Information in this report that relates to Mineral Resources for the Kathleen Valley Project is extracted from the ASX announcement "Kathleen Valley Lithium Resource jumps 353% to 74.9Mt @ 1.3% Li2O" released on the 9th July 2019 which is available on www.ltresources.com.au.

The Information in this report that relates to Ore Reserves for the Kathleen Valley Project is extracted from the ASX announcements "Kathleen Valley Pre- Feasibility Study confirms potential for robust new long-life open pit lithium mine in WA" released on 2nd December 2019 which is available on www.ltresources.com.au.

The Information in this report that relates to Mineral Resources for the Cambridge Deposit is extracted from the ASX announcement "Liontown Announces Maiden 84Mt Vanadium Resource for Toolebuc Project, NW Queensland" released on the 30th July 2018 which is available on www.ltresources.com.au.

The Information in this report that relates to Exploration Results for the Toolebuc Project is based on and fairly represents information and supporting documentation prepared by Mr David Richards, who is a Competent Person and a member of the Australasian Institute of Geoscientists (AIG). Mr Richards is a full-time employee of the company. Mr Richards has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activities being undertaken 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 Richards consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

This announcement contains forward-looking statements which involve a number of risks and uncertainties. These forward-looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

Table 1: Kathleen Valley Project - Exploration Target Parameters and Assumptions

	Parameter			KV Feeder Zone			KV North West			Rationale
	Combined strike			1100m	400			Based on previous drilling
	length of pegmatites					and extrapolation of block
	Average cumulative			>18m		>20m		model used in preparation
	true width					of Mineral Resource
										Estimate (released 4th
	Down Dip extent			230 - 500m		600 - 1,100m
					September 2018)
	Specific gravity		2.75		2.75			Measured from diamond
					core drilling
	Total tonnage			12.5 - 27Mt		13 - 24Mt		Strike x width x dip x S.G
	Average grade			1.2 - 1.5%		1.2 - 1.5%		Based on latest Mineral
					Resource Estimate

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Figure 1: Toolebuc Vanadium Project - Location and regional geology plan showing existing resources and

prospects.

Figure 2: Toolebuc Vanadium Project - Cambridge prospect showing MRE and newly defined

mineralisation with better drill results

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Figure 3: Toolebuc Vanadium Project - Runnymede prospect showing historic drilling and mineralised

intersections

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Appendix 1 - Toolebuc Project - Liontown (2019) drill hole statistics

Hole_ID	Prospect	East	North	RL	Depth	Azimuth	Dip	Significant V2O5 (>0.25%)
From (m)	To (m)	Interval		V2O5%
MAC001	Cambridge	693498	7732987	135	28	0	-90	8	16	8		0.36
inc. 2m @ 0.6% V2O5 from 10m
MAC002	Cambridge	693540	7733376	135	24	0	-90	20	24	4		0.43
inc. 1m @ 0.55% V2O5 from 22m
								17	24	7		0.39
	Kathleen	Valley	Lithium-	Tantalum		Projectinc. 1mUpdate@ 0.66%	V2O5 from	21m
MAC003	Cambridge	693554	7733751	135	24	0	-90
MAC004	Cambridge	693647	7734176	135	27	0	-90	5	11	6		0.35
inc. 1m @ 0.70% V2O5 from 6m
MAC005	Cambridge	693689	7734594	135	24	0	-90	6	13	7		0.37
inc. 1m @ 0.62% V2O5 from 8m
MAC006	Cambridge	693739	7734927	135	30	0	-90	20	28	8		0.33
inc. 2m @ 0.50% V2O5 from 23m
MAC007	Cambridge	693781	7735288	135	24	0	-90	7	12	5		0.20
MAC008	Cambridge	693902	7735650	135	27	0	-90	5	12	7		0.39
inc. 1m @ 0.66% V2O5 from 8m
MAC009	Cambridge	694378	7735699	135	24	0	-90	7	15	8		0.40
inc. 2m @ 0.63% V2O5 from 9m
MAC010	Cambridge	694808	7735614	135	24	0	-90		No significant assays
MAC011	Cambridge	694302	7735291	135	27	0	-90	6	9	3		0.34
MAC012	Cambridge	694773	7735225	135	24	0	-90	7	17	10		0.38
inc. 1m @ 0.93% V2O5 from 12m
MAC013	Cambridge	695266	7735056	135	24	0	-90	2	8	6		0.45
inc. 2m @ 0.68% V2O5 from 3m
MAC014	Cambridge	694744	7734842	135	24	0	-90	18	24	6		0.38
inc. 2m @ 0.54% V2O5 from 20m
MAC015	Cambridge	694695	7734488	135	21	0	-90	10	20	10		0.45
inc. 2m @ 0.99% V2O5 from 15m
MAC016	Cambridge	694674	7734091	135	27	0	-90	17	26	9		0.34
inc. 2m @ 0.53% V2O5 from 20m
MAC017	Cambridge	694638	7733709	135	30	0	-90	27	30	3		0.32
MAC018	Cambridge	693260	7734995	135	27	0	-90	4	10	6		0.37
inc. 1m @ 0.50% V2O5 from 6m
MAC019	Cambridge	693299	7735460	135	24	0	-90	4	10	6		0.36
inc. 1m @ 0.55% V2O5 from 6m
MAC020	Cambridge	692271	7735270	135	30	0	-90	18	29	11		0.34
MAC021	Cambridge	691784	7735218	135	33	0	-90	18	26	8		0.37
MAC022	Cambridge	691847	7735678	135	27	0	-90	7	16	9		0.36
MAC023	Cambridge	691911	7736138	135	30	0	-90
MAC024	Cambridge	691962	7736554	135	12	0	-90
MAC025	Cambridge	692395	7736118	135	9	0	-90		No significant assays
MAC026	Cambridge	692804	7735784	135	27	0	-90
MAC027	Cambridge	692869	7736292	135	15	0	-90
MAC028	Cambridge	693372	7735928	135	27	0	-90
MAC029	Cambridge	693944	7736061	135	27	0	-90	3	9	6		0.39
inc. 1m @ 0.57% V2O5 from 4m
MAC030	Cambridge	694836	7736046	135	24	0	-90		No significant assays

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Appendix 1 (cont.) - Toolebuc Project - Historic (2008) drill hole statistics

Hole_ID	Prospect	East	North	RL	Depth	Azimuth	Dip	Significant V2O5 (>0.25%)
From (m)																				To (m)				Interval		V2O5%
JRC07275	Runnymede	672824	7752187	135	12	0	-90
JRC07276	Runnymede	673190	7751686	135	15	0	-90
JRC07277	Runnymede	673294	7751225	135	24	0	-90		No significant assays
JRC07278	Runnymede	673367	7750695	135	20	0	-90
JRC07279	Runnymede	673422	7750175	135	24	0	-90
JRC07280	Runnymede	673912	7750105	135	24	0	-90
JRC07281	Runnymede	672848	7750405	135	24	0	-90	3	4	1		0.31
JRC07282	Runnymede	672364	7750302	135	20	0	-90	6	15	9		0.37
JRC07283	Runnymede	671867	7750335	135	20	0	-90	6	14	8		0.35
incl. 1m @ 0.64% V2O5 from 6m
JRC07284	Runnymede	671357	7750386	135	24	0	-90	1	7	6		0.3
JRC07285	Runnymede	670635	7751291	135	24	0	-90	3	11	8		0.33
JRC07286	Runnymede	670457	7751707	135	20	0	-90	5	12	7		0.36
incl. 1m @ 0.59% V2O5 from 6m
JRC07287	Runnymede	670382	7752205	135	24	0	-90	3	6	3		0.26
JRC07288	Runnymede	670810	7750825	135	24	0	-90	11	18	7		0.36
incl. 1m @ 0.57% V2O5 from 12m
JRC07289	Runnymede	670237	7750251	135	24	0	-90	13	20	7		0.39
incl. 1m @ 0.65% V2O5 from 14m
JRC07290	Runnymede	669789	7749950	135	24	0	-90	7		11	4		0.42
incl. 1m @ 0.54% V2O5 from 8m
JRC07291	Runnymede	669337	7749645	135	20	0	-90	8		16	8		0.36
incl. 2m @ 0.54% V2O5 from 9m
JRC07292	Runnymede	668879	7749355	135	24	0	-90	14		22	8		0.41
incl. 3m @ 0.57% V2O5 from 15m
JRC07293	Runnymede	671292	7750203	0	21	0	-90	2		11	9		0.36
			incl. 3m @ 0.54% V2O5 from 3m
JRC07294	Runnymede	671343	7749175	135	27	0	-90	6		10	4		0.42
	incl. 1m @ 0.56% V2O5 from 7m
JRC08016	Cambridge	695813	7735519	135	30	0	-90		No significant assays
JRC08017	Cambridge	695776	7735124	135	24	0	-90
JRC08018	Cambridge	695745	7734704	135	24	0	-90	6		12	6		0.34
incl. 1m @ 0.52% V2O5 from 8m
JRC08019	Cambridge	695712	7734299	135	24	0	-90		No significant assays
JRC08020	Cambridge	695680	7733911	135	21	0	-90	3		6	3		0.36
JRC08021	Cambridge	695640	7733474	135	21	0	-90	6		11	5		0.32
incl. 1m @ 0.51% V2O5 from 7m
JRC08022	Cambridge	695607	7733082	135	21	0	-90	15		19	4		0.48
incl. 2m @ 0.63% V2O5 from 16m
JRC08023	Cambridge	695575	7732676	135	23	0	-90		No significant assays
JRC08032	Cambridge	696540	7732628	135	21	0	-90	5		11	6		0.33
incl. 1m @ 0.55% V2O5 from 7m
JRC08033	Cambridge	696596	7733066	135	18	0	-90	4		7	3		0.35
JRC08034	Cambridge	694590	7732894	135	27	0	-90		No significant assays
JRC08035	Cambridge	694601	7733314	135	21	0	-90
JRC08036	Cambridge	693582	7732961	135	27	0	-90	16		23	7		0.35
incl. 1m @ 0.71% V2O5 from 18m
JRC08037	Cambridge	693606	7733377	135	21	0	-90		No significant assays
JRC08038	Cambridge	693626	7733744	135	20	0	-90
JRC08039	Cambridge	693727	7734181	135	24	0	-90	6		11	5		0.36
incl. 1m @ 0.59% V2O5 from 7m
JRC08040	Cambridge	693770	7734602	135	24	0	-90	8		12	4		0.37
incl. 1m @ 0.57% V2O5 from 10m
JRC08041	Cambridge	693820	7734912	135	12	0	-90	6		11	5		0.33
incl. 1m @ 0.67% V2O5 from 8m
JRC08042	Cambridge	693860	7735279	135	24	0	-90	12		19	7		0.33
incl. 1m @ 0.57% V2O5 from 14m
JRC08043	Cambridge	692540	7733081	135	24	0	-90	13		19	6		0.35
incl. 1m @ 0.62% V2O5 from 14m
JRC08044	Cambridge	692590	7733454	135	26	0	-90	24		26	2		0.32
JRC08045	Cambridge	692640	7733847	135	24	0	-90		No significant assays
JRC08046	Cambridge	692685	7734234	135	27	0	-90	16		22		6		0.37
incl. 1m @ 0.65% V2O5 from 18m
JRC08047	Cambridge	692714	7734588	135	24	0	-90	18		24		6		0.37
JRC08048	Cambridge	692735	7734978	135	27	0	-90	3		6		3		0.36
JRC08049	Cambridge	692728	7735368	135	27	0	-90	9		14		5		0.34
JRC08050	Cambridge	691540	7733177	135	24	0	-90	6		12		6		0.33
JRC08051	Cambridge	691580	7733568	135	27	0	-90	13		20		7		0.33
JRC08052	Cambridge	691615	7733964	135	27	0	-90	9		16		7		0.31
JRC08053	Cambridge	691665	7734351	135	19	0	-90	13		19		6		0.36
JRC08054	Cambridge	691687	7734514	135	24	0	-90	23		24		1		0.41
JRC08055	Cambridge	691712	7734749	135	27	0	-90	11		18		7		0.32
JRC08067	Cambridge	692457	7732674	135	30	0	-90	14		22		8		0.36
incl. 1m @ 0.74% V2O5 from 16m
JRC08068	Cambridge	693533	7732554	135	24	0	-90		No significant assays
JRC08071	Cambridge	694524	7732441	135	24	0	-90	21		24		3		0.43
incl. 1m @ 0.56% V2O5 from 23m

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Appendix 2 - Toolebuc Project - JORC Code 2012 Table 1 Criteria (January 15 2020)

The table below summaries the assessment and reporting criteria used for the Cambridge deposit Mineral Resource estimate and reflects the guidelines in Table 1 of The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012).

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation			Commentary
Sampling	Nature and quality of sampling (eg cut channels,	•	All historic drilling for which results are reported
techniques	random chips, or specific specialised industry		was completed by Intermin Resources and
standard measurement tools appropriate to the
		documented in Statutory Surrender Report
	minerals under investigation, such as down hole
		CR92591 submitted to the Queensland DNRM.
	gamma sondes, or handheld XRF instruments, etc).
	•	Drill samples were collected by aircore (AC) drilling
	These examples should not be taken as limiting the
	broad meaning of sampling.		techniques (see below).
		• Drill holes are oriented perpendicular to the
			interpreted strike of the mineralised trend.
	Include reference to measures taken to ensure	•	Regular cleaning of cyclone to remove hung-up
	sample representivity and the appropriate calibration		clays and avoid cross-sample contamination.
	of any measurement tools or systems used.		Samples were typically dry.
	Aspects of the determination of mineralisation that	• AC samples were collected by the metre from the
		drill rig cyclone.
	are Material to the Public Report.
		•	Intermin samples bagged and speared before
	In cases where 'industry standard' work has been		being dispatched to the laboratory.
	done this would be relatively simple (eg 'reverse	•	Liontown samples bagged and riffle split (75/25)
	circulation drilling was used to obtain 1 m samples		before being dispatched to the laboratory.
	from which 3 kg was pulverised to produce a 30 g	•	Intermin samples assayed at ALS Chemex,
	charge for fire assay'). In other cases more
		Queensland:
	explanation may be required, such as where there is
		o	Entire sample pulverised
	coarse gold that has inherent sampling problems.
	Unusual commodities or mineralisation types (eg		o Sample digest - 4 acid
	submarine nodules) may warrant disclosure of		o	Analytical procedure -ICP-AES
	detailed information.	•	Liontown assayed at SGS, Perth (after prep in
			Townsville):
			o	Entire sample pulverised
			o Analytical procedure -XRF 78s (40 elements)
Drilling	Drill type (eg core, reverse circulation, open-hole	•	Standard aircore drill bit.
techniques	hammer, rotary air blast, auger, Bangka, sonic, etc)	•	Intermin drilling by Belldale Drilling utilising a truck
and details (eg core diameter, triple or standard tube,
		mounted drilling rig.
	depth of diamond tails, face-sampling bit or other
	•	Liontown drilling by Eagle Drilling utilising a truck
	type, whether core is oriented and if so, by what
		mounted drilling rig.
	method, etc).
Drill sample	Method of recording and assessing core and chip	•	Sample recoveries are visually estimated and
recovery	sample recoveries and results assessed.		recorded for each metre.
	Measures taken to maximise sample recovery and	•	Dry drilling and regular cleaning of sampling
	ensure representative nature of the samples.		material.
	Whether a relationship exists between sample	•	None noted.
	recovery and grade and whether sample bias may
	have occurred due to preferential loss/gain of
	fine/coarse material.
Logging	Whether core and chip samples have been	•	Drill holes were geologically logged.
	geologically and geotechnically logged to a level of	•	Intermin only recorded main lithologies which
	detail to support appropriate Mineral Resource		were extracted from the Statutory Surrender
	estimation, mining studies and metallurgical studies.
		Report
		• Liontown recorded recovery, colour, grainsize,
			weathering and general comments
	Whether logging is qualitative or quantitative in	•	Logging was quantitative.
	nature. Core (or costean, channel, etc) photography.	•	No core drilling completed
	The total length and percentage of the relevant	•	Holes logged on 1m intervals.
	intersections logged.	•	The entire hole was logged.
	If core, whether cut or sawn and whether quarter,	•	No core drilling completed.
	half or all core taken.

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Criteria	JORC Code explanation		Commentary
Sub-sampling	If non-core, whether riffled, tube sampled, rotary	•	Intermin samples cone split - typically dry.
techniques	split, etc and whether sampled wet or dry.	•	Liontown samples riffle split (75/25)
and sample	For all sample types, the nature, quality and	•	Sample preparation follows industry best practice
preparation	appropriateness of the sample preparation		standards and is conducted by internationally
technique.
		recognised laboratories.
	Quality control procedures adopted for all sub-	•	Intermin Resources use laboratory QAQC data was
	sampling stages to maximise representivity of		provided by ALS.
	samples.	•	Liontown submitted blanks and certified standards
			every 20 samples.
	Measures taken to ensure that the sampling is	•	Bulk samples were dry and homogenised.
	representative of the in situ material collected,
	•	Regular cleaning of cyclones and sampling
	including for instance results for field
		equipment to prevent contamination.
	duplicate/second-half sampling.
	Whether sample sizes are appropriate to the grain	•	The sample size submitted to laboratory was
	size of the material being sampled.		consistent with industry standards.
Quality of	The nature, quality and appropriateness of the	•	Assaying of Intermin samples was completed by
assay data	assaying and laboratory procedures used and		ALS Townsville and ALS Perth using industry
whether the technique is considered partial or total.
and		standard procedures for a multi-element suite
laboratory			including vanadium.
	•	Liontown samples were prepared by SGS
tests
		Townsville and assayed by SGS Perth using
			industry standard procedures for a multi-element
			suite including vanadium.
		• Analytical techniques are total.
	For geophysical tools, spectrometers, handheld XRF	•	None used.
	instruments, etc, the parameters used in determining
	the analysis including instrument make and model,
	reading times, calibrations factors applied and their
	derivation, etc.
	Nature of quality control procedures adopted (eg	•	See above
	standards, blanks, duplicates, external laboratory
	checks) and whether acceptable levels of accuracy (ie
	lack of bias) and precision have been established.
Verification of	The verification of significant intersections by either	•	Internal review was carried out by alternate
sampling and	independent or alternative company personnel.		company personnel.
assaying	The use of twinned holes.	•	Liontown twinned 7 previous Intermin holes -
			results returned similar thicknesses and grades of
			mineralisation.
	Documentation of primary data, data entry	•	Data was extracted from statutory reports,
	procedures, data verification, data storage (physical		entered into Excel spreadsheets, validated and
	and electronic) protocols.		loaded into a Microsoft Access database.
		• Data was exported from Microsoft Access for
			processing by a number of different software
			packages.
		• All electronic data is routinely backed up.
	Discuss any adjustment to assay data.	•	V% was converted to V2O5% by multiplying by 1.78
Location of	Accuracy and quality of surveys used to locate drill	•	All drill holes were located using a hand-held GPS.
data points	holes (collar and down-hole surveys), trenches, mine
workings and other locations used in Mineral
	Resource estimation.
	Specification of the grid system used.	•	GDA 94 Zone 54
	Quality and adequacy of topographic control.	•	Digital elevation data (1 second data) was
			downloaded from the Geoscience Australia
			dataset. This was used to construct a
			topographical surface and the drill hole collar data
			was projected to this surface to determine the
			collar elevations.
	Data spacing for reporting of Exploration Results.	•	Holes were drilled at an approximate 1,000 mE by

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Criteria	JORC Code explanation	Commentary
Data spacing		400 to 500 mN spacing
and	Whether the data spacing and distribution is	• The data spacing is considered appropriate for
distribution	sufficient to establish the degree of geological and	Mineral Resource estimation and a classification
grade continuity appropriate for the Mineral
	has been applied.
	Resource and Ore Reserve estimation procedure(s)
	and classifications applied.
	Whether sample compositing has been applied.	• No compositing was completed.
Orientation of	Whether the orientation of sampling achieves	• Samples were oriented perpendicular to the
data in	unbiased sampling of possible structures and the	mineralised horizon, suggesting that bias is
extent to which this is known, considering the deposit
relation to	unlikely.
type.
geological
If the relationship between the drilling orientation	• Given the style and homogeneity of
structure	and the orientation of key mineralised structures is	mineralisation, no sampling bias is likely.
	considered to have introduced a sampling bias, this
	should be assessed and reported if material.
Sample	The measures taken to ensure sample security.	• Company geologists supervised all sampling and
security		subsequent storage in field. No unauthorised
		access was permitted.
Audits or	The results of any audits or reviews of sampling	• None have been completed.
reviews	techniques and data.
Section 2 Reporting of Exploration Results
Criteria	JORC Code explanation	Commentary
Mineral	Type, reference name/number, location and	• The Toolebuc Vanadium Project comprises five
tenement and	ownership including agreements or material issues	granted exploration permits (EPMs 26490-26492
with third parties such as joint ventures, partnerships,
land tenure	and 26494-26495) held by Liontown Resources
overriding royalties, native title interests, historical
status	sites, wilderness or national park and environmental	Limited.
• The combined tenement package covers a total
	settings.
		area of ~1,040 km2 and is located 440 km west of
		Townsville in north Queensland.
		• There are no material encumbrances affecting the
		tenements.
	The security of the tenure held at the time of	• All tenements are in good standing.
	reporting along with any known impediments to
	obtaining a licence to operate in the area.
Exploration	Acknowledgment and appraisal of exploration by	• There have been multiple phases of exploration in
done by other	other parties.	the region since the early 1970s, with the main
parties		focus being on hydrocarbons and/or vanadium
		hosted by the Toolebuc Formation.
		• Liontown's tenure abuts significant vanadium
		resources originally reported by Intermin
		Resources in 2007 and 2010, and subsequently
		updated in March 2018.
		• Following assistance from the Queensland DNRM,
		detailed data has been recovered for the Intermin
		Resources' drill holes located on Liontown's
		tenure.
		• The only other significant exploration completed
		was by Pacminex in 1973 and Jacaranda Minerals
		in 2007, both of which conducted wide-spaced
		aircore drilling over EPMs 26492 and 26494. This
		work intersected strongly anomalous vanadium
		values hosted by the Toolebuc Formation.

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Criteria	JORC Code explanation		Commentary
Geology	Deposit type, geological setting and style of	•	The Project area is largely underlain by sediments
	mineralisation.		belonging to the Lower Cretaceous Rolling Downs
			Group which includes the Toolebuc Formation, the
			main host to the vanadium mineralisation.
		• The Toolebuc Formation is a flat-lying sediment
			about 100 million years old and consists of black
			carbonaceous and bituminous shale, minor
			siltstone with limestone lenses and coquinites. In
			the Project area, the Formation is draped over an
			interpreted basement high and has been
			structurally uplifted to the surface.
		• The resources estimated by Intermin Resources
			relate to near surface mineralisation derived from
			the oxidation of the oil shale horizon.
		• At Cambridge, the mineralisation is hosted by a
			flat-lying,3-8 m thick horizon <30 m from the
			surface. The mineralisation is soft and would most
			likely be suitable for free digging.
Drillhole	A summary of all information material to the	•	All relevant drill statistics including significant
Information	understanding of the exploration results including a		intersections are tabled in the Appendix attached
tabulation of the following information for all
		to the ASX announcement..
	Material drillholes:
	• easting and northing of the drillhole collar
	• elevation or RL (elevation above sea level in
	metres) of the drillhole collar
	• dip and azimuth of the hole
	• down hole length and interception depth
	• hole length.
Data	In reporting Exploration Results, weighting averaging	•	V2O5 intercepts calculated using 0.25% cut off
aggregation	techniques, maximum and/or minimum grade		with a maximum 1m internal dilution typically
truncations (e.g. cutting of high grades) and cut-off
methods		applied.
grades are usually Material and should be stated.	•
		Higher grade intervals calculated using 0.5% V2O5
			cut off. No upper cuts applied.
Relationship	If the geometry of the mineralisation with respect to	•	Down hole widths are equivalent to true widths.
between	the drillhole angle is known, its nature should be
reported.
mineralisation
If it is not known and only the down hole lengths are
widths and	reported, there should be a clear statement to this
intercept	effect (e.g. 'down hole length, true width not known').
lengths
Diagrams	Appropriate maps and sections (with scales) and	•	Diagrams have been included in the attached
	tabulations of intercepts should be included for any		report.
	significant discovery being reported These should
	include, but not be limited to a plan view of drill hole
	collar locations and appropriate sectional views.
Balanced	Where comprehensive reporting of all Exploration	•	All relevant exploration results have been
reporting	Results is not practicable, representative reporting of		reported.
both low and high grades and/or widths should be
	practiced to avoid misleading reporting of Exploration
	Results.
Other	Other exploration data, if meaningful and material,	•	Where relevant this information has been included
substantive	should be reported including (but not limited to):		or referred to in the report or elsewhere in this
geological observations; geophysical survey results;
exploration		Table.
geochemical survey results; bulk samples - size and
data	method of treatment; metallurgical test results; bulk
	density, groundwater, geotechnical and rock
	characteristics; potential deleterious or
	contaminating substances.

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Criteria	JORC Code explanation		Commentary
Further work	The nature and scale of planned further work (e.g.	•	Seek JV partner
	tests for lateral extensions or depth extensions or
	large-scalestep-out drilling).
Section 3 Estimation and Reporting of Mineral Resources
Criteria	JORC Code explanation		Commentary
Database	Measures taken to ensure that data has not been	•	Drillhole data was extracted directly from the
integrity	corrupted by, for example, transcription or keying		Company's drillhole database, which includes
errors, between its initial collection and its use for
		internal data validation protocols.
	Mineral Resource estimation purposes.
	•	Data was further validated by Optiro upon receipt,
			and prior to use in the estimation.
	Data validation procedures used.	•	Validation of the data was confirmed using mining
			software (Datamine) validation protocols, and
			visually in plan and section views.
Site visits	Comment on any site visits undertaken by the	•	Mr Richards visited the site during 2018 to inspect
	Competent Persons and the outcome of those visits.		the areas where rock chip sampling and the
			collection of a bulk sample (20 kg) for
			metallurgical test work had been undertaken.
		• Representatives of Optiro have not visited the site.
Geological	Confidence in (or conversely, the uncertainty of ) the	•	The confidence in the geological interpretation is
interpretation	geological interpretation of the mineral deposit.		high as the sedimentary package is reasonably
			predictable over large areas.
	Nature of the data used and of any assumptions	•	Both assay and geological data were used for the
	made.		mineralisation interpretation.
		• The vanadium mineralisation is defined by a
			nominal 0.12% V2O5 cut-off grade and within the
			Toolebuc Formation. Continuity between
			drillholes and sections is good.
	The effect, if any, of alternative interpretations on	•	No alternative interpretations were considered.
	Mineral Resource estimation.	•	The interpreted geology and mineralisation is
			simple and therefore any alternative
			interpretations are unlikely to significantly affect
			the Mineral Resource estimate.
	The use of geology in guiding and controlling Mineral	•	The vanadium mineralisation is constrained within
	Resource estimation.		the Toolebuc Formation - a flat-lying sequence of
			marine sediments.
	The factors affecting continuity both of grade and	•	Grade and geological continuity is good. The
	geology.		mineralisation is contained within the flat-lying
			sedimentary sequence of the Toolebuc Formation.
			At Cambridge, the Toolebuc Formation is draped
			over an interpreted basement high and has been
			structurally uplifted to the surface. The sectional
			interpretation confirms this regional
			interpretation.
Dimensions	The extent and variability of the Mineral Resource	•	The Cambridge deposit is 5 km long and up to
	expressed as length (along strike or otherwise), plan		3 km wide.
	width, and depth below surface to the upper and	•	The mineralisation extends from 1 m to 22 m
	lower limits of the Mineral Resource.
		below surface (average 10 m) and ranges in
			thickness from 2 m to 17 m with an average
			thickness of 9.7 m.
Estimation	The nature and appropriateness of the estimation	•	Vanadium pentoxide (V2O5) % and molybdic
and modelling	technique(s) applied and key assumptions, including		trioxide (MoO3) ppm grades were estimated using
treatment of extreme grade values, domaining,
techniques		ordinary kriging (OK). Optiro considers OK to be
interpolation parameters and maximum distance of
	extrapolation from data points. If a computer assisted		an appropriate estimation technique for this type
		of mineralisation.
	estimation method was chosen include a description
	•	The nominal spacing of the drillholes is 1,000 mE by
	of computer software and parameters used.
			400 to 500 mN.

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Criteria	JORC Code explanation	Commentary
		• A maximum extrapolation distance of 200 m was
		applied.
		• Data analysis and estimation was undertaken
		using Snowden Supervisor and Datamine software.
		• Drill samples were all taken over 1 m intervals and
		compositing was not required for estimation.
		• All variables were estimated separately and
		independently.
		• Variogram analysis was undertaken to determine
		the kriging estimation parameters used for OK
		estimation of V2O5 and MoO3.
		• V2O5 mineralisation continuity was interpreted
		from variogram analyses to have an along strike
		range of 2,050 m and an across strike range of
		480 m
		• Kriging neighbourhood analysis was performed in
		order to determine the block size, sample
		numbers and discretisation levels.
		• Three estimation passes were used for V2O5 and
		MoO3; the first search was based upon the
		variogram ranges; the second search was two
		times the initial search and the third search was
		up to three times the initial search and third
		searches had reduced sample numbers required
		for estimation. The majority of V2O5 block
		grades (almost 88%) were estimated in the first
		pass, 12% in the second pass and the remaining
		0.5% in the third pass.
		• The V2O5 and MoO3 estimated block model grades
		were visually validated against the input drillhole
		data and comparisons were carried out against the
		declustered drillhole data and by northing, easting
		and elevation slice.
	Description of how the geological interpretation was	• Geological interpretations were completed on
	used to control the resource estimates.	sections which were wireframed to create a 3D
		interpretation of the mineralised horizon.
		• The interpretation of mineralisation was made by
		Optiro based on geological logging and V2O5
		content. A nominal grade of 0.12% V2O5 was used
		to define the mineralised horizon, which was
		constrained below a surface for the interpreted
		top of Toolebuc Formation and above a base of
		drilling surface.
		• The mineralised domain is considered geologically
		robust in the context of the resource classification
		applied to the estimate.
	Discussion of basis for using or not using grade	• V2O5 has a low coefficient of variation (CV) and no
	cutting or capping.	outliers were noted. Grade capping was not
		applied for estimation of V2O5.
		• MoO3 has a low CV. One outlier grade was capped
		(top-cut). The top-cut level was determined using
		a combination of top cut analysis tools, including
		grade histograms, log probability plots and the CV.
	The availability of check estimates, previous	• Mineral Resources have not previously been
	estimates and/or mine production records and	reported for this deposit area and no production
	whether the Mineral Resource estimate takes	has occurred.
	appropriate account of such data.

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Criteria	JORC Code explanation		Commentary
	The assumptions made regarding recovery of by-	•	No assumptions have been applied for the
	products.		recovery of by-products.
		• The MoO3 concentrations were estimated but it is
			unclear if this product can be economically
			recovered through beneficiation.
	Estimation of deleterious elements or other non-	•	Deleterious elements were not considered.
	grade variables of economic significance (e.g. sulphur
	for acid mine drainage characterisation).
	In the case of block model interpolation, the block size	•	Grade estimation was into parent blocks of
	in relation to the average sample spacing and the		500 mE by 200 mN by 1.0 mRL.
	search employed.	•	Block dimensions were selected from kriging
			neighbourhood analysis and reflect the variability
			of the deposit as defined by the current drill
			spacing.
		• Sub-cells to a minimum dimension of 100 mE by
			40 mN by 0.5 mRL were used to represent volume.
	Any assumptions behind modelling of selective mining		Selective mining units were not modelled.
	units.
	Any assumptions about correlation between	•	Moderate correlation exists between V2O5 and
	variables.		MoO3. Both V2O5 and MoO3 were estimated
			independently.
	The process of validation, the checking process used,	•	No production has taken place and thus no
	the comparison of model data to drill hole data, and		reconciliation data is available.
	use of reconciliation data if available.
Moisture	Whether the tonnages are estimated on a dry basis or	•	Tonnages have been estimated on a dry basis.
	with natural moisture, and the method of
	determination of the moisture content.
Cut-off	The basis of the adopted cut-off grade(s) or quality	•	The Mineral Resource estimate for the Cambridge
parameters	parameters applied.		deposit has been reported above a cut-off grade
			of 0.25 % V2O5 to represent the portion of the
			resource that may be considered for eventual
			economic extraction.
		• This cut-off grade has been selected by Liontown
			Resources in consultation with Optiro based on
			current experience and in-line with cut-off grades
			applied for reporting of vanadium Mineral
			Resources elsewhere in Australia.
Mining factors	Assumptions made regarding possible mining	•	The mineralisation at Cambridge is soft and would
or	methods, minimum mining dimensions and internal		most likely be suitable for free digging.
(or, if applicable, external) mining dilution. It is
assumptions	•	The thickness, areal extent, and continuous nature
always necessary as part of the process of
	determining reasonable prospects for eventual		of the mineralisation at Cambridge are such that
		non-selective bulk mining methods can be
	economic extraction to consider potential mining
	methods, but the assumptions made regarding		appropriately considered.
	mining methods and parameters when estimating	•	The Toolebuc Vanadium Project is located close to
	Mineral Resources may not always be rigorous.		existing infrastructure, including a gas pipeline, a
			major highway and railway linked to Townsville
			Port
		• On the basis of these assumptions, it is considered
			that there are no mining factors which are likely to
			affect the assumption that the deposit has
			reasonable prospects for eventual economic
			extraction.
Metallurgical	The basis for assumptions or predictions regarding	•	A 20 kg sample from the Toolebuc Vanadium
factors or	metallurgical amenability. It is always necessary as		Project area was submitted to ANSTO Minerals in
part of the process of determining reasonable
assumptions		Sydney for preliminary metallurgical testwork.
prospects for eventual economic extraction to	•
	consider potential metallurgical methods, but the	Preliminary results from the testwork indicate that
	assumptions regarding metallurgical treatment		the mineralised material is oxidised, soft, friable
			and probably free-digging; the vanadium is largely

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Criteria	JORC Code explanation		Commentary
	processes and parameters made when reporting		contained within the finer fraction (<38um)
	Mineral Resources may not always be rigorous.		meaning it may be suitable for pre-concentration;
			and the mineralisation is amenable to acid
		•	leaching.
		Liontown reported that these testwork results
			indicate that the vanadium mineralisation on
			Liontown's tenure is similar to the upper
			mineralised zone within Intermin Resources'
			Lilyvale deposit (Liontown, 2018).
Environmental	Assumptions made regarding possible waste and	•	No environmental impact assessments have been
factors or	process residue disposal options. It is always		conducted. It is assumed that any remedial action
necessary as part of the process of determining
assumptions		to limit the environmental impacts of mining and
reasonable prospects for eventual economic
	extraction to consider the potential environmental		processing will not significantly affect the
		economic viability of the project.
	impacts of the mining and processing operation.
Bulk density	Whether assumed or determined. If assumed, the	•	No direct measurements of bulk density have
	basis for the assumptions. If determined, the method		been taken.
	used, whether wet or dry, the frequency of the	•	A dry bulk density of 1.8 t/m3 has been assumed.
	measurements, the nature, size and
		This density factor was applied by Interim
	representativeness of the samples.
		Resources for Mineral Resource estimation at the
	Discuss assumptions for bulk density estimates used
	in the evaluation process of the different materials.		adjacent Lilyvale deposit announced in March
			2018.
		• This value is consistent with industry standards for
			similar rock types.
		•	A recommendation for future work is that
			confirmatory bulk density information is acquired.
Classification	The basis for the classification of the Mineral	•	Inferred Mineral Resources have been defined
	Resources into varying confidence categories.		where the drill spacing is up to 1,000 mE by
			500 mN.
	Whether appropriate account has been taken of all	•	The estimate has been classified according to the
	relevant factors (ie relative confidence in		guidelines of the JORC Code (2012) as an Inferred
	tonnage/grade estimations, reliability of input data,		Resource taking into account data quality, data
	confidence in continuity of geology and metal values,
		density, geological continuity, grade continuity
	quality, quantity and distribution of the data).
		and confidence in estimation.
		•	In plan, a polygon was used to define the area of
			Inferred Resources.
	Whether the result appropriately reflects the	•	The assigned classification of Inferred reflects the
	Competent Person's view of the deposit		Competent Persons' assessment of the accuracy
			and confidence levels in the Mineral Resource
			estimate.
Audits or	The results of any audits or reviews of Mineral	•	The Mineral Resource has been reviewed
reviews	Resource estimates.		internally as part of normal validation processes
			by Optiro.
		•	No external audit or review of the current Mineral
			Resource has been conducted.
Discussion of	Where appropriate a statement of the relative	•	The assigned classification of Inferred reflects the
relative	accuracy and confidence level in the Mineral Resource		Competent Persons' assessment of the accuracy
estimate using an approach or procedure deemed
accuracy/		and confidence levels in the Mineral Resource
appropriate by the Competent Person.
confidence			estimate.
The statement should specify whether it relates to	•	The classification relates to the global estimate of
	global or local estimates, and, if local, state the		tonnes and grade.
	relevant tonnages, which should be relevant to
	technical and economic evaluation. Documentation
	should include assumptions made and the procedures
	used.
	These statements of relative accuracy and confidence	•	No production has occurred from the deposit.
	of the estimate should be compared with production
	data, where available.

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