TNG : Quarterly Activities and Cashflow Report

ASX ANNOUNCEMENT

27 July 2022

only	June 2022 Quarterly Activities Report
Further key funding commitments secured for Mount Peake
	with Clough appointed as preferred EPC contractor

MOUNT PEAKE - CRITICAL MINERALS PROJECT

VANADIUM-TITANIUM-IRON (NT) (TNG: 100%)

•	TNG received a conditional and non-binding Letter of Support from Export Finance Australia ("EFA") that
	considers the provision of up to A$300 million of debt funding for the construction of the Mount Peake
	Project.
•	Additionally, the Company received a Letter of Interest from Federal Republic of Germany Export Credit
	Agency, Euler Hermes, including indicative key terms for German ECA financing of A$300 million, as well as
	seven Letters of Interest from Australian and International Commercial and Investment Banks.
•	Clough Projects Australia Pty Ltd ("Clough") appointed as TNG's Lead Engineer and preferred Engineering,
use	Procurement and Construction ("EPC") Contractor for the delivery of the Mount Peake Project under a Heads
personal	of Agreement ("Agreement") executed between the parties.
Under the Agreement, Clough will prepare a binding fixed-price, lump sum EPC proposal for the Project
•
	subject to completion of any works required and the procurement contracting model.
•	Successful completion of water bore drilling and evaluation program to provide information for groundwater
	modelling for additional process water required for the Processing Facility at the Mine Site.
•	All ground-based activities for the Environmental Impact Assessment were completed by the Company and
	its environmental consultants during the quarter, with technical report now underway.
•	Meetings held with the Central Land Council ("CLC") regarding the Indigenous Land Use Agreement.
• Preparation of a revised equipment cost estimate for the Mount Peake integrated operation is being
	progressed by its lead engineering group Clough.
•	TNG secured $143,000 in co-funding under the Geophysics and Drilling Collaborations program administered
	by the Northern Territory Geological Survey for a brownfields drilling program at Mount Peake.

TNG ALTERNATIVE ENERGY

• TNG and green hydrogen technology partner, Malaysian-based energy group AGV Energy & Technology,

continued to progress commercial and technical parameters for the development of the "HySustain™" project in Darwin.

For

• Agreement executed with Perth-based Australian energy company Ultra Power Systems to jointly explore opportunities for vanadium electrolyte production and vanadium redox flow batteries ("VRFB") in Australia.

CORPORATE

• TNG received $3.7 million as a refundable tax offset under the Federal Government's Research &
  Development ("R&D") tax incentive for eligible R&D activities undertaken during the 2020/2021 financial year.
• Small shareholding sale facility for certain shareholders with holdings valued at less than A$500 closed on 4 April 2022 with proceeds paid to Eligible Shareholders on 27 April 2022.
• The Company's cash position at 30 June 2022 was $14.4 million.

ASX CODE: TNG	REGISTERED OFFICE	T [phone]	W www.tngltd.com.au
ABN 12 000 817 023	Suite 20, 22 Railway Road	F [phone]	E [e-mail]
	Subiaco, Western Australia 6008

MOUNT PEAKE PROJECT - VANADIUM-TITANIUM-IRON (TNG: 100%)

PROJECT SUMMARY

The Mount Peake Project is the Company's flagship
project, comprising a world-scale critical and
battery minerals deposit located 235km north-
only
west of Alice Springs in the Northern Territory (NT).
The Project is well located close to existing key
power and transport infrastructure corridors
i	cluding the Alice Springs-Darwin Railway and the
Stuart Highway.
The Company's strategy for the Mount Peake
Project is to develop a fully-integrated single mining
and processing operation to produce three high-
use
value, high-purity products for export - vanadium
pentoxide (V2O5), titanium dioxide pigment (TiO2)
and iron oxide (Fe2O3) - through the application of a
world-first processing technology, known as the
TIVAN® Process, which is owned exclusively by TNG.
Mount Peake is a shallow, flat-lying orebody with a
JORC Measured, Indicated and Inferred Resource
totalling 160 million tonnes grading 0.28% V2O5,
personal	Large flat-lying, shallow vanadium-titanium deposit in a tier-1
5.3% TiO2 and 23% Fe. The Mount Peake Project is
one of the largest undeveloped vanadium-titanium-
iron projects in the world.
		Figure 1. Mount Peake Project location
PROJECT HIGHLIGHTS
	Major Project Status awarded by the Australian Federal
	Government and the Northern Territory Government
	Vertically integrated mining and processing operation
	TIVAN® technology enabling production of three high-purity
	products at commercial grade
	Life of operations of 37 years bringing significant long-term
	socio-economic benefits to Northern Australia
orF	jurisdiction
Mining licences and most regulatory permits approvals in place
Partnerships with Tier 1 development companies and long-term
off-take agreements in place for all products with global groups
VANADIUM AND TITANIUMHAVE BEEN

IDENTIFIED BY THE AUSTRALIAN GOVERNMENT AS

CRITICAL MINERALS REQUIRED TO UNDERPIN THE

ADVANCED TECHNOLOGIES THAT WILL SUPPORT

THE GLOBAL PUSH FOR DECARBONISATION.

• Economic impact results have been developed by ACIL Allen using the Tasman Global computable general equilibrium model. The ACIL Allen reliance and disclaimer found at www.acilallen.com.au applies to all results and information presented in this brochure.

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PROJECT DELIVERY STRATEGY

TNG has executed a Heads of Agreement ("Agreement") with Clough Projects Australia Pty Ltd ("Clough") for the delivery of the Mount Peake Project. Under the Agreement, Clough has been appointed as TNG's Lead Engineer and preferred Engineering, Procurement and Construction ("EPC") Contractor for the delivery of the Project and will prepare a binding fixed-price, lump sum EPC proposal ("EPC Proposal") for the Project, subject to completion of any works required and the procurement contracting model.

onlyTNG and Clough are currently advancing discussions on any additional work that may be required to be undertaken by Clough to facilitate development of the EPC Proposal, with any such work to be confirmed under a separate services agreement including detailed scope, costs and scheduling.

The Company's long-standing strategic engineering partner and metallurgical consultants SMS group ("SMS") was previously contracted to deliver an EPC proposal but, due to disruptions caused by the COVID-19 pandemic, TNG reached agreement with SMS to engage with Australian-based engineering and construction companies for the delivery of the Mount Peake Project. SMS remains fully involved with confirmatory test and design work and Clough will continue to be supported by SMS.

usePROJECT DEVELOPMENT Engineering and Design Work

Following the completion of an integrated layout by Clough in November 2021, Clough has progressed engineering and design works for the Mount Peake Project and is progressing a revised cost estimate for the integrated operation.

The preparation of a revised cost estimate is still ongoing due to delays in sourcing market-based quotes caused by personalglobal disruption of supply chains due to the COVID-19 pandemic, higher energy costs (including from the impact of the Ukraine-Russia conflict), long lead times, logistical delays, higher labour costs due to workforce shortages

nd escalated costs of steel and concrete, which directly affect both equipment and construction costs. TNG is continuing to work closely with Clough to assess the potential impact of these factors on the cost estimate. Further updates will be given once TNG has more certainty as to the potential financial impact of those factors.

Clough will continue to identify any value engineering opportunities associated with optimising capital and perating expenditure for the streamlined operation while working closely with vendors for the equipment pricing.

As part of the EPC Proposal, Clough will also have to take the above factors into account, including delays in sourcing the market-based quotes as part of their work to determine a fixed EPC price for delivery of the Project.

Non-Process Infrastructure ("NPI")

The Company has advanced NPI items for tendering processes, which will include BOO (build, own, operate) and BOOT (build, own, operate, transfer) items, haul roads, borefields, accommodation, etc.

Water Bore Drilling Program

TNG completed a water bore drilling program at Mount Peake. The water bore drilling and evaluation program was undertaken to provide a sustainable water supply for the entire Mount Peake Project, with additional water Foresource information required for the groundwater modelling work being conducted by the Company's appointed

hydrological consultants, AQ2 Pty Ltd ("AQ2").

Based on information obtained from this drilling, AQ2 will now update and expand the groundwater modelling that has been completed and provide a report to support a second Water Extraction Licence Application ("WELA") from TNG, which will then provide sufficient, sustainable water resources for the entire planned mining and processing operation of the Mount Peake Project.

TNG currently has a WELA submitted to the Water Resources Division of the Northern Territory Government Department of Environment, Parks and Water Security ("DEPWS").

Construction Planning

The Company has secured access to locally sourced calcrete close to Mount Peake which is expected to be used and included in the Company's planned construction and in the upstream processing at Mount Peake, subject to all required permitting and regulations.

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PERMITTING AND APPROVALS

Environmental Approvals

The Company and its environmental consultant, Animal Plant Mineral ("APM"), have completed all ground-based activities for the Environmental Impact Assessment ("EIA") report for the integrated Mount Peake Project. Results are now being reviewed for preparation to be included in the final report for submission.

onlyNative Title Agreement

During the period, the Company held meetings with the Central Land Council ("CLC") representatives regarding updates to the current Indigenous Land Use Agreement ("ILUA").

EXPLORATION

The Company secured $143,000 in co-funding under the Geophysics and Drilling Collaborations program, funded by the Resourcing the Territory initiative and administered by the Northern Territory Geological Survey.

The drilling program aims to obtain samples from the feeder zone and lower sections of the composite Mount usePeake gabbro intrusive, to determine the potential for Ni-Cu, Cr and PGE mineralisation below the Mount Peake V-

Ti Resource, which is scheduled to be undertaken in the second half of 2022.

PROJECT FINANCE

Debt Finance

Governmental Concessional Funding Applications

TNG received a conditional and non-binding Letter of Support from the Australian Government's Export Credit personalAgency ("ECA"), Export Finance Australia ("EFA"), for up to A$300 million of debt funding for the Mount Peake

Project.

The Mount Peake Project is one of only 15 Australian critical minerals projects identified by the Australian Government in its critical minerals priority road map. EFA's non-binding Letter of Support notes the broad alignment of the Project with the Government's Critical Mineral Strategy to diversify production of, and capture more value from, critical minerals supply.

EFA's provision of debt funding of up to A$300 million is subject to customary due diligence process and successful outcome of several conditions. EFA's non-binding Letter of Support does not constitute a commitment to provide finance and there is no certainty that an agreement will be reached between the parties.

The Company is now engaging with the EFA to progress the due diligence process and is advancing discussions with the Northern Australian Infrastructure Facility ("NAIF") for a further funding package.

KfW IPEX-Bank ("KfW") & KPMG Corporate Finance

Following the end of the quarter, the Company received Letters of Interest/Expressions of Interest from Federal Republic of Germany Export Credit Agency, Euler Hermes, and seven lenders active in Mining & Metals and ECA Finance.

ForEuler Hermes' Letter of Interest to TNG includes indicative key terms based on German content from the involvement of the Company's long-standing strategic engineering partner, the major German engineering firm, SMS Group, for German ECA financing of A$300 million.

TNG has mandated KfW as its senior debt advisor and arranger of a syndicate to raise a targeted amount of up to US$600 million to underpin the project financing package. The Euler Hermes amount of A$300 million is part of this with the remainder expected from the other seven financial institutions.

KPMG Corporate Finance and Germany's KfW IPEX-Bank GmbH supported TNG to achieve these landmark financing milestones.

TNG is also working with its advisors and sustainability consultants to assist in ensuring that the full range of Environmental, Social and Governance ("ESG") funding options are assessed, including green loan finance.

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Build-own-operate-transfer funding ("BOOT")

KPMG Corporate Finance has been assisting TNG with advice on potential structuring and commercial requirements for arrangements with potential BOOT/Build-Own-Operate ("BOO") providers across the Project's process and non- process infrastructure.

Equity

onlyTNG and KPMG Corporate Finance continued to progress the strategy for equity financing for the Mount Peake Project, including both institutional investor and strategic equity streams.

PRODUCT PRICING DEVELOPMENT1

Titanium Dioxide Pigment - TiO2

TiO2 prices are expected to remain strong in North America, Europe and APA for the rest of the year due to low inventories as supply continues to remain tight amid a challenging global macroeconomic backdrop.

Operating rates are at maximum levels in North America and Asia Pacific, while Chinese producers are under usepressure and Ukrainian plants are not producing significant volumes.

High energy prices, inflation and the Russia-Ukraine conflict are continuing to impact the pigment sector in Europe.

The TiO2 price increased in all regions compared to last quarter, up 2.6% in APA (APAC - excluding China), 7.6% in Europe and 5.5% in North America.

TNG expects to achieve a 3-5% premium on the market price as its product will be a high-durable pigment (Roskill

• September 2020).

							Ti	Pricing											Ti		vs Feedstock
							ICIS & Fastmarkets												ICIS & Fastmarkets
		,	00											,300													,000
												,000
																										,	00
																		2,000
		,300											3,	00
																								,000
														3,	00
		3,	00												mt)
																									3,	00
	mt													3,	00		, 00
	3,300											mt
											2,	00											3,000
	US														Feedstock (US
	2,	00											2,	00												2,	00
	2,300											2,200		,000										2,000
													,	00												,	00
	,	00											,	00
																00
		,300											,300												,000
			Q 0	Q	Q 2	Q 3 Q	Q	Q	Q	Q	Q	Q20	Q2	Q22														00
				North America, DDP (US	mt)			China, F B (US	mt)						0										0
				Asia, CFR (US	mt)				Europe, DDP (	mt)						Q 2	Q 3	Q	Q	Q	Q	Q	Q	Q20	Q2	Q22
				TNG est. Cost of Produc	on (US	mt)										lmenite China		Ru le Australia	Ru	le China		Ti	North America
Vanadium Pentoxide - V2O5
Prices of vanadium pentoxide were stable during the quarter, with an average price of USD8.98 /lb V2O5 98%.
ersonalp																													AmericaNorthmt)(USTi

The ferrovanadium price increased slightly by 2.6%, with a quarterly average of USD11.00 /mt.

ForChinese vanadium co-producers will restart operations after taking the opportunity to undertake maintenance during the COVID-19 lockdowns.

The Russia-Ukraine conflict continues to cause additional market volatility amid fears of supply shortages from Russian producer Evraz, in the wake of financial sanctions imposed on Russia by Western nations.

TNG expects to achieve a US$2.0/lb V2O5 premium on the market price for its product at 99.6% purity (Roskill - September 2020).

1 Pricing source: ICIS and Fastmarkets

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