17 December 2018 Research Report, page-2

KFW IPEX-Bank has been mandated to structure the total debt package of up to US$600 million (~A$830 million) to underpin the financing of TNG’s 100% owned Mount Peake Vanadium-Titanium-Iron Project.

The mandate will commence on January 15, 2019, with KfW IPEX-Bank to structure, coordinate, lead and manage the debt finance syndicate; this will also include advising the Company on the best strategy to maximise cover instruments from export credit agencies (“ECA”.

The final capital requirements will be ascertained following lenders’ due diligence and the ongoing Mount Peake Front-End Engineering and Design (“FEED” study: the due diligence will also determine appropriate amounts of contingency, working capital, debt service reserve and owner’s costs which will help determine the debt structure.

In association with SMS Finance and TNG, KfW IPEX-Bank has had input into the capex and opex assumptions used in the ongoing FEED study, with the study being led by SMS Group, TNG’s strategic engineering and construction partner.

KfW IPEX-Bank, as a part of the broader Frankfurt headquartered, German government-owned KfW Group, is one of the leading global providers of export credit and project financing.

In view of the progress made and further de-risking, we have updated our valuation to A$0.60/share