Tawana Resources N L : Significant Lithium Intercepted at Bald Hill Mine November 17, 2016

ASX RELEASE 17 November 2016 ASX:TAW CORPORATE DIRECTORY Non-Executive Chairman Robert Benussi Managing Director Mark Calderwood Executive Director, CFO & Co. Sec. Michael Naylor CONTACT DETAILS

288 Churchill Avenue Subiaco Perth WA 6008

Email | [e-mail] Website | www.tawana.com.au Phone | [phone]

SIGNIFICANT LITHIUM INTERCEPTED AT BALD HILL MINE Tawana Resources NL ("Tawana" or the "Company") is pleased to announce an update on the Bald Hill Mine in Western Australia.

As previously announced, Tawana has an option to acquire Lithco No 2 Pty Ltd ("Lithco") which has entered into a Farm-In and Joint Venture arrangement with SGX listed Alliance Mineral Assets ("AMAL") for the purpose of exploration and joint exploitation of lithium and other minerals.

An early stage step-out exploratory drilling program commenced at Bald Hill and is targeted at adding to the overall understanding of the resource potential extending from the current permitted pit design. The drilling is part of a larger program to upgrade resources and reserves to support possible re- commencement of mining in 2017. There are two rigs working on the Mining Lease and another operating on the Company's neighbouring Cowan Lithium Project. The number of rigs is likely to increase in January.

Lithco is ramping up engineering studies focused on adding a spodumene concentrator and infrastructure upgrades. The current concept study is a precursor to detailed planning commencing in the New Year.

Recent Highlights

• Initial very wide-spaced drilling at Bald Hill has intercepted multiple mineralised pegmatites up to 30m wide over a large area, indicating significant resource potential. Ongoing drilling is continuing to expand the pegmatite footprint.

• Results have been received for five RC holes south of the South Pit, including; LRC0005- 9m at 1.65% Li2Ofrom 140m;

  LRC0006- 23m at 1.15% Li2Ofrom 107m including 15m at 1.33% Li2Ofrom 108m. The hole also intercepted a Li Ta pegmatite returning 8m at 0.95% Li2O and 381ppm Ta2O5 from 73m;

  LRC0007- 8m at 1.30% Li2Ofrom 109m and 15m at 1.18% Li2Ofrom 127m including 8m at 1.61% Li2O from 134m.

• Lithium grades appear stronger to the south and at depth and tantalum is more abundant in the north. Pegmatites are generally wider to the south.

• Phase one metallurgical test work completed with excellent results.

• Concept study for spodumene concentrator has commenced, the aim of the study is estimate the cost and time required to install a spodumene concentrator.

• Approaches received from several significant entities within the lithium supply chain with strong demand to obtain near-term spodumene concentrate.

Managing Director Mark Calderwood stated: "The first ever program focused on lithium at Bald Hill has resulted in early success and we expect that over the coming months the resource potential will unfold as we increase the pegmatite footprint to the south and west. The Company expects to release an exploration update from the neighbouring Cowan Project next week."

Bald Hill Project

The Bald Hill Project ("Project") area is located 50km south east of Kambalda in the Eastern Goldfields of Western Australia. It is located approximately 75km south east of the Mt Marion Lithium project and is adjacent to and surrounds the Company's Cowan Lithium Project. The Project, owned by Alliance Mineral Assets Limited ("AMAL"), includes a permitted tantalum (pegmatite) mine, processing facility and associated infrastructure.

Lithco No 2 Pty Ltd ("Lithco") has entered into a Farm-In and Joint Venture arrangement with AMAL for the purpose of joint exploration and exploitation of lithium and other minerals. Tawana has entered an option agreement to acquire all the shares in Lithco.

Recent Drilling by Lithco

Deeper extensional drilling has commenced on the Bald Hill mining lease, on a nominal 320m x 160m grid. To date a total of 13 deeper RC holes have been completed for which results have been received for seven holes. Core drilling has commenced to obtain additional metallurgical samples and as tails to the RC holes that have not reached target depth.

The drilling has intercepted significant spodumene mineralisation south of the largest pit (South Pit) within pegmatites that are interpreted as those previously mined and newly discovered larger pegmatite/s located in the footwall.

Table 1| Significant Lithium Intercepts - Extensional Drilling

Hole ID		From m	To m	Interval m	Li2O %	Ta2O5 ppm	Nb2O5 ppm	SnO2 ppm	Li2OEqv.(1) %
LRC0005		140	149	9	1.65	125	73	180	1.83
incl	140	142	2	3.06	79	54	174	3.18
and	145	149	4	2.03	57	40	166	2.11
LRC0006		73	81	8	0.95	381	173	166	1.50
incl	74	78	4	1.33	485	217	212	2.04
107	130	23	1.15	166	107	107	1.39
incl	108	123	15	1.33	173	113	107	1.58
incl	120	123	3	2.10	143	119	112	2.31
LRC0007		109	117	8	1.30	93	116	58	1.44
127	142	15	1.18	74	113	47	1.29
and	134	142	8	1.61	81	119	58	1.73

Notes

1. Li2O Equivelent grade is estimated based on the formula set out in Appendix 1.

2. The true width of pegmatites are generally considered 85-95% of the intercept width.

3. Details of Drill Holes and Pegmatite Intercepts are contained in Table 2.

   There are strong indications that the pegmatites in the Bald Hill mine grade from narrow and tantalum rich in the North to North East to wider and lithium rich in the South to South West. Where there are multiple sub-horizontal pegmatites, the shallow ones tend to be richer in tantalum and deeper ones richer in lithium.

   Wider pegmatites show indications of mature pegmatite zoning with lithium rich and lithium poor zones. Examples of this are;

   • LRC0005 where a 2m central quartz feldspar zone (core) contains 0.06% Li2O whilst the spodumene rich inner zones each side of this averaged 2.20% and 2.03% Li2O over 3m and 4mrespectfully.

   • LRC0007 where four discrete outer zones representing 17m of the 34m pegmatite interval averaged 1.51% Li2O whilstthe central zone averaged 0.22% Li2O.

This zoning on the larger sub-horizontal pegmatites will provide opportunity for selective mining particularly given the coarse and highly visible spodumene.

RC and core drilling will continue to expand the footprint of the pegmatite and undertaken infill drilling within the permitted pit design to better delineate spodumene zones for detailed mine planning.

Metallurgical Testwork Metallurgical test work results announced 24 October 2016, page 4, showed potential to produce high grade DMS concentrates. Subsequently sighter floatation test-work on combined 1mm DMS gravity concentrates (middlings) has been undertaken. The resulting floatation recovery was favourable with returning a recovery of 74.7% at a grind size of P80 0.18mm, with a combined concentrate grade of 6.42%Li2O.

The combined DMS and Floatation concentrates accounted for 83% of the calculated contained lithium at anaverage grade of 6.1% Li2Owith very low mica content. Further work will be undertaken to optimise recovery and concentrate grade.

Proposed Engineering

A concept study has commenced with the aim of obtaining an indication of capital and operating costs for the addition of a 1Mtpa spodumene concentrator. The study is being undertaken by Wave International in conjunction with an owner's team of consultants. The study proposes the use of contract mining, crushing and concentrate haulage.

Off-Take Negotiations

Lithco/AMAL ("The JV") have been approached by several significant entities within the lithium supply chain with strong demand to obtain near term spodumene concentrate and has received written proposals from two of the entities. Due to the apparent significant shortage of uncommitted spodumene in 2017-2018 to feed new convertors, the JV will delay advanced negotiations until a definitive timeline to production can be determined. However, The JV will continue to provide samples of concentrate product to converters to undertake test work on lithium extraction.

Cowan Project

The Company plans to release an exploration update next week from the neighbouring Cowan Lithium Project, where an RC rig is undertaking wide spaced exploratory drilling.

Competent Persons Statement

The information in this news release that relates to Exploration Results is based on and fairly represents information and supporting documentation compiled by Mr Mark Calderwood, an employee of the Company. Mr Calderwood is a member of The Australasian Institute of Mining and Metallurgy. Mr Calderwood has sufficient experience relevant to the style of mineralisation under consideration and to the activity which they are 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 Calderwood consents to the inclusion in this report of the matters based on their information in the form and context in which it appears.

Forward Looking Statement

This report may contain certain forward looking statements and projections regarding estimated, resources and reserves; planned production and operating costs profiles; planned capital requirements; and planned strategies and corporate objectives. Such forward looking statements/projections are estimates for discussion purposes only and should not be relied upon. They are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors many of which are beyond the control of Tawana Resources NL. The forward looking statements/projections are inherently uncertain and may therefore differ materially from results ultimately achieved.

Tawana Resources NL does not make any representations and provides no warranties concerning the accuracy of the projections, and disclaims any obligation to update or revise any forward looking statements/projects based on new information, future events or otherwise except to the extent required by applicable laws. While the information contained in this report has been prepared in good faith, neither TAW or any of its directors, officers, agents, employees or advisors give any representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. Accordingly, to the maximum extent permitted by law, none of TAW, its directors, employees or agents, advisers, nor any other person accepts any liability whether direct or indirect, express or limited, contractual, tortuous, statutory or otherwise, in respect of, the accuracy or completeness of the information or for any of the opinions contained in this announcement or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this announcement.