AVL signs MOU with gold miner Westgold for delivery of Life-of-Mine water requirements from Westgold’s mining areas

Key Points:

• Memorandum of Understanding (MOU) signed with Westgold Resources Limited (ASX: WGX) to co-operate on supply of

Life-of-Mine (LOM) water requirements for The Australian Vanadium Project.

• AVL’s intention is to enter into a binding access agreement with Westgold within 6 months.

• Potential benefits of this MOU for water access include:

? shortening of the environmental approvals process;

? reduced groundwater and environmental impacts;

? substantial de-risking of the water volume and quality requirements and;

? the opportunity to receive funding assistance from NAIF

(Northern Australian Infrastructure Fund) during construction by meeting their condition to provide community benefits.

Australian Vanadium Limited (ASX: AVL, “the Company” or “AVL”) is pleased to announce that it has signed a Memorandum of Understanding (MOU) with Australian gold miner Westgold Resources Limited (“Westgold”) to access water for AVL’s Australian Vanadium Project south of Meekatharra, in Western Australia. Westgold’s Meekatharra Gold Operations comprises several active and inactive mines south of Meekatharra (see figure 1). Continous inflows into a number of these active and inactive pits and underground mines, lead to the generation of significant amounts of water surplus to its requirements, which is potentially suitable for processing AVL’s

vanadium. The MOU establishes the collaborative environment AVL requires to thoroughly investigate and design the diversion and delivery of water of a minimum standard which is in keeping with The Australian Vanadium Project LOM water requirements, as discussed in AVL’s Pre-Feasibility

Study (PFS), (see ASX announcement dated 19 December 2018 ‘Gabanintha Pre-Feasibility and Maiden

Ore Reserve’ for details of the PFS).

The MOU paves the way for AVL and Westgold to enter into a formal and binding water access agreement within six months, subject to statutory conditions.

Groundwater drilling continues at The Australian Vanadium Project in order to ensure the extent of groundwater resources near the project are fully understood.

AVL’s Managing Director Vincent Algar comments, “Westgold Resources have a known quantity and quality of water flowing into open pits close to The Australian Vanadium Project. Signing the MOU to deliver this water to our project ensures we are de-risking a key project requirement and advancing an

essential aspect of the project’s environmental approvals process. AVL looks forward to developing the relationship with Westgold further as we move to become significant mining neighbours in the region.”

• [Editor:tianyawei]