The Steelpoortdrift Vanadium Project is one of the world’s largest and highest grade deposits (refer Peer Comparison Figure).

Chart compares resources reported under different codes and companies at different stages of development as detailed in Investor Presentation . Only resources with a quoted in situ grade > 0.45% V₂O₅ are shown in figure.

The global Mineral Resource is 612 million tonnes at an in situ grade of 0.78% V2O5 in the Indicated and Inferred categories (refer Tables 1 and 2, ASX Announcement 16 April 2019). The resource includes a high grade, near surface component of 169 million tonnes at a superior in situ grade of 1.07% V2O5 (Table 3).

Table 1 SPD Vanadium Project Global Mineral Resource by Resource Category.

Table 2 SPD Vanadium Project Mineral Resource by Zone (Indicated & Inferred).

Table 3 SPD Vanadium Project Mineral Resource by Grade

Notes to Tables 1 - 3: The Mineral Resource Estimate was completed using the following parameters:

• The SPD Vanadium Resource extends over a strike length of 4000m and has been drilled up to 150m vertically below surface (1100m down-dip);
• Mineralisation is hosted in a series of magnetite bearing layers near the contact between the Upper and Main Zone of the Bushveld Igneous Complex. These layers have been denoted the Upper, Intermediate and Lower Zones with average thicknesses of 19, 14 and 12m respectively. At the base of the Lower Layer there is a marker horizon of massive magnetite which is 1 – 2m thick.
• 97 drillholes (56 RC and 41 diamond core holes) were used in the resource estimate representing a total of 7608.1m of drilling. Drillhole information is listed in the ASX Announcement of 16 April 2019.
• 36 RC holes and 27 diamond core holes drilled by VR8 were included along with 20 RC holes and 1 diamond core hole drilled previously by Vanadium Resources (Pty) Ltd (Vanres) and 13 DD holes drilled by Vanadium Technology (Pty) Ltd, a subsidiary of Xstrata (Vantech). Drilling was carried out on sections spaced between 150m – 200m apart, with mineralisation intersected at approximately 150m intervals on section.
• RC drilling by VR8 and Vanres was sampled via face sampling hammer, collected by a rig mounted cyclone and split using a riffle. Diamond core drilling by VR8 sampled NQ core by splitting the core in half. Historical drilling also sampled diamond core, predominantly BQ size, by sawing in half.
• Samples were analysed at commercial laboratories (SGS, ALS) using pressed disc XRF.
• Quality control protocols for all drilling included the use of certified reference materials (CRMs), blanks and duplicates as detailed in the ASX Announcement of 16 April 2019.
• All drillholes were surveyed in both South Africa LO29 grid (WGS84 projection) and UTM Zone 35S.
• All except 2 holes were vertical. Downhole surveys have been carried to confirm no excessive deviation.
• Geological domains were constructed using a 0.20% cut-off grade.
• 3 wireframe surfaces were constructed based on the geological interpretation. Samples within the wireframe were composited to 1m intervals.
• Block grades were estimated using interpolation of the 1m composite data by the Ordinary Kriging method. Search ellipses were set based on geostatistics with search distances ranging from 180 to 1,000m along strike.
• A Surpac block model was used for the estimate with a block size of 40m X by 40m Y by 5m Z, with sub-blocking to 10mX by 10m Y by 1.25m Z.
• Bulk density values used for mineralisation are detailed in the tables above. These were sourced from SG data measurements on core.
• The numbers tabulated in Appendix 1 may not sum correctly as a result of rounding
• The deposit has been classified as Indicated and Inferred Mineral Resource based on data quality, sample spacing, geological understanding and geostatistical analysis as discussed in the ASX Announcement of 16 April 2019.

These notes should be read in conjunction with the information detailed in the ASX Announcement of 16 April 2019.