Tungsten Mining NL advised that the Company and MCCI have entered into a Memorandum of Understanding (MOU) to establish a programme of collaboration between MCCI and the Company in respect to the completion of feasibility studies at Mt Mulgine. The scope also includes assistance in procuring the project finance required to implement the Project. The non-binding MOU outlines the framework for the negotiation of definitive binding agreements that will facilitate agreement on the scope of work for the completion of metallurgical test work and engineering services as part of an agreed Value Engineering Study ("VES") and Definitive Feasibility Study ("DFS").

In addition, Tungsten Mining and MCCI have agreed to collaborate on improving technical processes to increase concentrate grades and recovery rates for tungsten, molybdenum and copper and lowering the capital and operating costs related to the process flow sheet. MCCI has extensive experience in process design, engineering and EPC contracting and can also partner with other specialist service providers, including those in Australia, to deliver a high level of services for the Project. Pursuant to the terms of the MOU it is proposed that MCCI will be appointed, dependent on the agreed project delivery strategy, as EPC or EPCM contractor.

In fulfilling its role, MCCI will undertake to provide Tungsten Mining with assistance in procuring project finance with suitable financial institutions. In the event MCCI constructs the Project it has expressed interest in participating in the operation and maintenance of the processing plant. Under the MOU the parties have agreed to consider opportunities for MCCI to participate in the Project by way of a minor equity investment.

Such investment would be subject to the approval of MCC Group, relevant Chinese government authorities and any relevant TGN shareholder and/or Australian regulatory approvals.