Mokopane Scoping Study - 2014

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3. At 10,370 tonnes per annum utilizing a modest capex of US$262m, the project will be one of the world’s largest, low - cost primary vanadium producers with very attractive economics on a post - tax basis. The post - tax numbers did not assume any tax incentives in South Africa that m ay exist in support of in - country beneficiation. We believe that, given South Africa’s intent to promote in - country beneficiation, there could be tax incentives available to the project, which would improve these economics. We are proud that this project w ill make a significant contribution to South Africa’s stated interests to grow the minerals beneficiation industry in the country and we look forward to taking the project forward with an accelerated Pre - Feasibility Study”

5. Location of the Mokopane Iron Ore Project in relation to the Bushveld Complex and infrastructure G EOLOGY The Project is based on three mineralized layers associated with the main magnetite layer (“MML”), found near the base of the stratigraphy of the Upper Zone of the Bushveld Complex. These are the M ML, the MML Hanging Wall, and the AB Zone, which is found approximately 100 m lower than the MML in the stratigraphy. The layers are north - south trending with a strike in excess of 5.5 km and dipping in a westerly direction at approximately 18° to 22°. They are parallel to and outcrop approximately 2 km east of the P - Q Iron Ore Deposit. The MML is the only mineralised unit being considered for this Scoping Study, and consists of two VTM - rich intervals or layers – the upper VTM - rich interval (MAG3) which is an average 4.09 m thick and the lower interval (MAG4), which averages 3.59 m in thickness. The two intervals are separated by a VTM - poorer leucogabbronorite parting of about 2.16 m thic kness. This internal stratigraphy is consistent along strike and down dip. The total MML package has an average true thickness of 9.84 m, including the 2.16 m thick parting. An initial mineral resource of 52 Mt has been established on the MML (excluding th e parting), which was announced on 6 March 2013, and forms the basis for this Scoping Study The consistency of the mineralisation and significant width of the parting allows for the physical separation of the parting from the MAG3 and MAG4 layers during m ining. Consequently, the average feed grade into the concentrator plant is higher than would be if the parting was included, and ultimately allows for higher plant output of iron and vanadium units.

4. BUSHVELD VANADIUM PROJECT SCOPING STUDY EXECUTIVE SUMMARY I NTRODUCTION On the 27 th November 2013, Bushveld Minerals announced a new vanadium platform based on its vanadiferous titaniferous magnetite (“VTM”) deposit, which is contained in three units associated with the Main Magnetite Layer (“MML”) of the Company’s project, located on the Bushveld Complex . The new platform, named the Bushveld Vanadium Project, was established to focus on accelerated development of a world - class vanadium resource in the MML, with the potential to become one of the world's largest vanadium producing operations. The vanadium resource potential of the MML was known to Bushveld Minerals from the inception of the platform and, subsequent to the completion of the Scoping Study on its adjacent PQ - Zone iron ore and titanium deposit (April 2013), Bushveld initiated the S coping Study on its MML deposit. The Scoping Study work - streams were completed by a group of respected consulting firms including Process Engineering Solutions Company (“PESCO”), Hatch Goba, Hindsight Financial and Commercial Solutions, in addition to Bus hveld Minerals’ technical team. Extractive metallurgical test - work was undertaken by SGS SA, and Resource Estimations were all carried out by the MSA Group. Previously commissioned reports by SRK Consulting, First Tech International Limited and Mott McDona ld were relied upon for the desktop hydrogeological, potential power source and logistics studies respectively. Additionally, 2013 CRU Strategic and Roskill vanadium reports were utilized for the market studies. P ROJECT L OCATION The Bushveld Vanadium Proje ct is located approximately 65 km west of Polokwane and 45 km north - northwest of Mokopane in the Mokopane District, Limpopo Province, South Africa. It is easily accessible via a network of paved regional and national roads. The project mineral resource is situated approximately 2 km east of the Company’s PQ - Zone iron ore and titanium deposit, and is based on a licence area comprising a group of five adjacent farms namely Vogelstruisfontein 765LR, Vliegekraal 783LR, Vriesland 781LR, Schoonoord 786LR and Bell evue 808LR.

8. 3D illustration of proposed open pit mine extracting MML ore M ETALLURGY Initially, the 528 ktpa ROM scenario was forecast to produce exactly 5,000 tpa of V 2 O 5 flakes. Further testwork, however, subsequently improved the recovery metrics. The 1 Mtpa scenario was then investigated to determine the effects of economies of scale and was adopted by Bushv eld as the base case. Davis Tube tests were performed on milled MML material at different grind sizes ( - 212 μ m, - 106 μ m, - 75 μ m, - 53 μ m, and - 38 μ m). Tests revealed that a higher Fe concentrate grade (56% Fe) can be achieved with the MML material than was achieved with the PQ - Zone material (55%Fe). The proposed Salt Roast flowsheet is described below:  Concentration : The ore is passed through three - stage crushing, milled with a conventional rodmill - ballmill combination produce a product 80% passing 53 mic rons and passed through a three - stage low intensity magnetic separation circuit to produce a concentrate product;  Salt Roasting : The concentrate is roasted with sodium carbonate and sodium sulphate in a rotary kiln at temperatures of up to 1,150 ̊C to for m water soluble vanadates. Solids exiting the rotary kiln are discharged directly into a rotary cooler that cools the solids to 350 ̊C;  Leach milling and purification : The cooled calcine is fed to a wet ball mill, which grinds the agglomerated material for improved leaching and also acts as the first stage of leaching. The slurry from the mill is pumped to thickeners where desilication and concentration of the vanadium - bearing leach liquor takes place. Thickened tailings are conveyed to the tailings disposa l facility.  Ammonium metavanadate precipitation : Ammonium sulphate (AMSUL) is added to the vanadium - bearing leach liquor which allows for the precipitation of vanadium in the form of ammonium metavanadate (AMV);

7. P RODUCTION S CENARIOS Two distinct processing flowsheet options were considered for the beneficiation of the MML ore, each proven and used in existing commercial operations: a) Option 1: A Salt Roast flow sheet to produce a primary vanadium product, similar to the process employed by Glencore Rhovan and the Evraz Vametco operations in South Africa; b) Option 2: A Pig Iron flow sheet to produce pig iron and a vanadium bearing slag and FeV product, similar to the process employed at the Evraz Highveld Steel & Vanadium plant in South Africa. The Salt Roast pro cess flowsheet was chosen on account of its significantly lower capex and better overall economics, as well as its relatively short path to production while retaining options for further processing of the iron – rich calcine to produce pig iron at a later st age. Two production scenarios of Option 1 were investigated, namely: a) A 1 Mtpa ROM scenario producing 10,350 tpa of V 2 O 5 flakes (Base Case) b) A 528 ktpa ROM scenario producing 5,470 tpa of V 2 O 5 flakes M INING The MML orebody is approximately 10 m thick, shall ow - dipping, and tabular with over 5.5 km of strike, which makes it ideal for open - cast mining. Conventional drilling, blasting, loading and hauling operations are envisaged. The ore can be readily accessed from surface after minimal overburden (soil) strip ping. It is assumed that mining contractors will be used to undertake mining operations. Stripping ratios increase as depth increases, with a life - of - mine average stripping ratio of 4.39 for the 1 Mtpa ROM scenario, and 3.31 for the 528 ktpa ROM scenario. A significant portion of this strip comprises the MML hanging wall (“MML - HW”), an up - to - 60 metres thick mineralised package that the Company is currently evaluating. This package has been assayed and is expected to have concentrate vanadium - in - magnetite gr ades averaging between 1.5% and 1.7% V 2 O 5 . Mineral resource estimation is now underway and the results will be announced in due course. Accordingly, this hanging wall will be stockpiled for further processing. Although the total MML package is mined, the M AG3 and MAG4 layers are separated from the parting, and the parting diverted to a separate low - grade stockpile.

10.  Power : Power requirements for the 1 Mtpa Rom scenario and 528 ktpa scenario are low (~15 MW and ~8 MW res pectively), and can be met by building transmission infrastructure connecting to the national grid via the Matimba / Witkop dual 400 kV lines from Matimba power station, or the 132 kV Witkop / PPRust line both passing ~25 km from the Project area; Moreover , power supply from the national grid will be supplemented by 9,600 MW with the progressive commissioning of both the Medupi and Kusile power stations over the next 5 years. Power supply is therefore not considered a constraint;  Water : Sufficient resourc es have been identified within the Bakenburg Rural Water Scheme (RWS), where studies have shown available groundwater potential exists in excess of the Project requirements of the required ~2 Megalitres per day. A potential groundwater resource has also be en identified within the Project area with sufficient supply to meet Project requirements;  Coal : The project is ideally located within close proximity of coalfields that produce suitable coal for feed into the rotary kiln. It is envisaged that coal in the required volumes would be available from nearby mines. M ARKET A NALYSIS Vanadium is a grey and soft ductile metal, the main uses of which are in the steel and chemicals industries, with the steel industry accounting for approximately 90% of vanadium consum ption. Vanadium is found primarily within vanadium - bearing magnetite, and is to a smaller extent present in fossil fuel deposits such as crude oil, coal and oil shale. Vanadium production is sourced mainly in the form of co - product slag from steel product ion, accounting for 67% of production, with primary vanadium ore processing accounting for 21% and secondary sources 12%. Supply is geographically concentrated with 90% of a total 76,000 tons of global vanadium production coming from China (53%), South Af rica (26%) and Russia (10%). Vanadium Demand While vanadium has several applications, two are dominant and significant in driving demand for vanadium. i. Steel: a) Approximately 90% of vanadium produced today is consumed in the steel sector, where it is used as a strengthening and anti - corrosive additive, on account of having one of the highest strength to weight ratio of all metals. It is used as an additive in high strength rebar for the construction industry, as well as high - strength, low weight steel alloys used in the automotive and aerospace industries, among others. Approximately 0.2% vanadium content increases steel strength up to 100% and reduces final produc t weight by up to 30%. For example, using vanadium steel in the trailer chassis can reduce trailer chassis weight from 3,200 kg to 2,520 kg, corresponding to an overall weight reduction of 21%. b) Steel growth continues to be supported by ongoing urbanizatio n and associated construction activities in China and emerging markets with large infrastructure build programmes. Vanadium - enhanced rebar provides buildings with the improved structural support necessary to better withstand the higher magnitude earthquake s so frequently seen in China c) Recent policy directives in favor of high strength steels in China are expected to further demand in the future.

2.  Outcropping on surface, with a thickness of over 7 m and gently dipping, presenting a low cost open pit mining proposition  Current JORC resource based on only one of three high - vanadium containing zones, and estimated currently to 120 m vertical depth (there is scope for further resource upgrades at depth and from defining a mineral resource on the MML - Hanging Wall package)  Processing route uses proven beneficiation technologies already in use in commercial operations in South Africa an d globally to produce high value V 2 O 5 flakes  Sufficient, existing paved road and rail infrastructure options to transport expected product volumes  Power requirements which can be met by an existing transmission line 25 km from the Project area, and suffic ient water resources available to meet the Project’s water requirements Bushveld has a number of opportunities to further improve the project economics from those today presented by the Bushveld Vanadium Project Scoping Study. These include:  Potential to extract additional value from the ~650,000 tonnes per annum of iron - rich calcine dumps (~54% Fe, 0.27% V 2 O 5 , 11.4% TiO 2 )  Ability to convert V 2 O 5 flake output to higher value product such as ferro - vanadium  Scope for processing the high - grade o re contained in the Main Magnetite Layer’s hanging wall, which is currently treated as waste in determining the project’s stripping ratio. The presented mineral resource does not yet include a ~60 m zone within the MML hanging wall which is expected to hav e average in - magnetite V 2 O 5 grades of between 1.5% and 1.7%. Bushveld is evaluating this zone with a view to incorporating it into an updated JORC resource for the project.  Additionally, there is scope to access additional tonnages at a greater depth than the 80 m assumed in the Scoping Study The metallurgical test work and the geological work already completed on the Project are sufficient for a Pre - feasibility study. The Company has already commenced with other components of a Pre - Feasibility Study, inc luding Detailed Mine Design and Scheduling, Infrastructure Capital & Cost Estimates, Environmental Impact Assessments and the Social and Labor Plan. The intention is to complete and release the results of the Pre - Feasibility Study during 2015. Bushveld Mi nerals CEO, Fortune Mojapelo, said: “The Scoping Study announced today is a significant milestone that brings us one step closer towards unlocking the value of this world - class vanadium resource. We are pleased that it has been completed just eight months after the Bushveld Vanadium Project was established as a standalone platform. The Project enjoys robust economics with significant upside opportunities, which will be investigated further during the Pre - feasibility Study that has already commenced. The s alt roast processing flowsheet selected is well known in South Africa and considered commercially favourable. There are at least three operations making use of this process – including Glencore’s Rhovan and Evraz’s Vametco operations.

15.  A relatively low capital expenditure requirement, compared, for example, to the pig - iron Highveld process, and in line with similar existing operations;  A relatively low pre - production lead time;  A positive longer term prognosis for th e V 2 O 5 market as demand is forecast to increase significantly;  The low operating cost and high margin nature of the Project (operating margins in excess of 60%); and  The relatively low requirement for bulk services (power and water) and the availability of sufficient supply thereof. Bushveld believes that there is scope to realize economic credit for the iron - rich calcine that is produced as a by - product in the Salt Roast process. Should Bushveld realise a US$15 per tonne credit from its approximate 680 k tpa of titanium - rich calcine, the post - tax NPV at a 10% real discount rate for its 1 Mtpa ROM option, will increase from US$263.6 m to US$304.6 m (with a real post - tax IRR of 26.3%). If it is possible to realise a $25 per tonne credit, the post - tax NPV sub sequently increases to US$332.0 m (with a real post - tax IRR of 27.5%). Based on marketing studies undertaken to date, the Company is optimisitic that the calcine product can be sold into the market, notwithstanding the fact that the current Scoping Study a scribes no value to the calcine residue. The 1 Mtpa ROM scenario, when compared to the 528 ktpa scenario, reflects significant economies of scale benefits from both capital expenditure and operating cost components. It is therefore optimal for Bushveld to maximise market penetration. The results of the Scoping Study therefore support the progression of the Project to Pre - Feasibility Study stage. In concluding the Scoping Study, Bushveld also conducted an exercise on a possible Pig Iron Process requiring pre - reduction, smelting, shaking ladles and casting of pig iron, and the production V 2 O 5 slag or the production of ferro - vanadium. While the Pig Iron process has potential, the Company decided to concentrate on the Salt Roast process for the completion of th e Scoping Study based on the following advantages:  Significantly lower establishment capital expenditure (by a factor of at least three times);  A lower lead time to production;  A significantly smaller and relatively unconstrained logistics requirement;  A less complex beneficiation process using proven technology; and  Lower power consumption. However, when determining an optimal business case during Pre - Feasibility, Bushveld would further study the capital cost, operating cost and market variables of the Pi g Iron process which could potentially be used to process the iron - rich calcine dump into pig iron and a Ti - rich slag. O PPORTUNITIES There are significant opportunities associated with the project, which include optimisation during the Pre - Feasibility Stud y:  A reduction in estimated capital expenditure of up to 15% – a significant portion of the Scoping Study establishment capital expenditure estimates was generated using tender enquiry estimates from suppliers, however capital expenditure contingencies wer e

17.  Pursue the optimal mineral right licensing route to extend legal tenure beyond 20 15, either the extension of the existing prospecting permit or the application of a mining right; and  The preparation of a comprehensive Pre - feasibility study report. Compiled by: Peer Reviewed by: HG (Wally) Waldeck, Pr Eng Independent Mining Consultant Dr Roger Paul Metallurgical Consultant Email: wallywaldeck@gmail.com Contributing Authors:  Wally Waldeck, Pr Eng;  Prof. Morris Viljoen, MSc, PhD (Wits), FSEG, FGSSA,FSAIMM, FRSSA, Pr. Sc. Nat;  Prof. Richard Viljoen, MSc, PhD (Wits), FSEG, FGSSA, FSAIMM, FRSSA, Pr. Sc. Nat;  Dr. Luke Longridge, BSc. Hon. Geol., PhD (Wits);  Resource Estimation and Competent Person’s Report by the MSA Group  Metallurgy and Concentrator Plant report by Mr. Jan Rabe ( PESCO), BSc. Hon. Metallurgy  Pyrometallurgy and Treatment Plant report by Dr Johannes Nel of Hatch GOBA  Metallurgical testwork undertaken by SGS SA and MINTEK  Financial Evaluation by Hindsight Financial and Commercial Solutions About Bushveld Minerals Bushveld Minerals Limited is a mineral development company with a portfolio of vanadium - and titanium bearing iron ore and tin assets in Southern Africa. The Company owns the Bushveld Iron Ore Project, Bushveld Vanadium Project and Mokopane Tin Project, all located on the northern limb of the Bushveld Complex, South Africa. In addition, Bushveld has a controlling 52.22% interest in Lemur Resources (ASX: LMR), that owns the Imaloto coal project in Madagascar. Bushveld was admitted to the AIM of the London Sto ck Exchange in March 2012.

1. 21 July 2014 BUSHVELD MINERALS LI MITED Bushveld Vanadium Project – Scoping Study Results Bushveld Minerals Limited today presented a summary of the Scoping Study for the development of its Bushveld Vanadium Project in Limpopo Province, South Africa. Two different processing routes were considered for the development of the Project – the salt roast and the pig - iron smelting route. The Scoping Study has helped the Company to select the salt roast processing route as t he best fit with the Company’s criteria for the development of its projects, being: first quartile cost curve position, proven path to near - term production, low capital expenditure and scalability. Scoping Study Highlights For a base case production scenar io of 1 Mtpa Run - of - Mine producing 10,370 tonnes of V 2 O 5 flakes, the Scoping Study delivers robust post - tax economics (i.e after a corporate tax of 28%, a withholding tax of 15% and a royalty tax of 5%):  Low capital expenditure of US$261.5 million;  Pre - tax NPV of US$561.9 m and post - tax NPV of US$263.6 m (at 10% discount rate);  Pre - tax IRR of 35.6% and real post - tax IRR of 24.1% with a low project risk profile;  Low operating costs (~US$5.99 / kg or US$ 2.72 / lb of V 2 O 5 flakes);  >60% operating margins;  Long life - of - mine: 30 years, exploiting 58% of a resource with significant growth upside; and  Payback: 4 years and 4 months from start of mining. The Scoping Study was led by independent consultants with extensive experience in titano - magnetite processing, inc luding experience with commercial operations in South Africa and the rest of the world that utilise the same Salt - Roast processing flowsheet as envisaged for the Bushveld Vanadium Project. A 2017 price of US$7.50 / lb (US$16.53 / kg) of V 2 O 5 flakes, >98% p urity, was estimated by the Company and assumed in this Scoping Study, based on information gathered from 2013 Roskill and CRU Strategies’ vanadium reports. About the Bushveld Vanadium Project The project has a large, JORC - compliant 52 Mt vanadium mineral resource on the Main Magnetite Layer (“MML”), consistent along a 5.5 km strike length. Resource and project characteristics include:  World class vanadium grades (~1.48% V 2 O 5 in situ, 2.0% V 2 O 5 in concentrate) for a total contained vanadium resource of ~76 0 000 tonnes of V 2 O 5

9.  De - ammoniation and fusion : The AMV filter ca ke is dried in a diesel - fired flash dryer and calcined in a diesel - fired AMV calciner to produce V 2 O 5 . The calcined V 2 O 5 powder is charged into a fusion furnace to form molten V 2 O 5;  Flaking : The molten V 2 O 5 is continuously tapped and flows onto water - coole d flaking wheels forming a thin layer of V 2 O 5 , which solidifies and is then scraped off as the final product of V 2 O 5 flakes; The V 2 O 5 product can be sold directly into the vanadium market or can be processed further into a 80% FeV (Ferrovanadium) product through a simple process using an aluminothermic reactor. Vanadium plant designs for production of either ~10,350 ktpa V 2 O 5 flakes (under the 1 Mtpa ROM scenario) or ~5,470 ktpa of V 2 O 5 flakes (528 ktpa ROM scenario) were analysed and costed. High - level illustrative block flow diagram of vanadium plant R AIL , P ORT , P OWER , AND W ATER I NFRASTRUCTURE The envisaged production of 10,350 tonnes per annum (or 863 tonnes per month) does not present infrastructure constraints. Moreover, th e project area is well serviced with infrastructure, being located in a well - established mining district with existing world - class mining operations: • Rail & Road : The envisaged V 2 O 5 product volumes (10,350 tonnes) can be transported to market easily either by road or rail. A well - serviced network of paved roads connects the project area to the ports of Richard’s Bay (South Africa) or Matola (Mozambique). A rail line with sufficient c apacity for the envisaged V 2 O 5 production passes 45 km from the Project area. At 650,000 tonnes per annum, the calcine product could also be transported to the market without any significant infrastructure constraints;  Port : Options exist in the form of th e Richard’s Bay Terminal (KwaZulu Natal, South Africa) and the Matola Terminal (Maputo, Mozambique), both of which are undergoing capacity expansions;

16. applied in line with Scoping Study confidence levels, despite the high level of confidence in the estimates;  Additional economic value and market diversification which may be unlocked by adding a ferro - vanadium production stream onto the Salt Roast proce ss;  Increasing the resource base by proving up additional resources down - dip of 120 m below surface. Deeper resources could be exploited by applying room and pillar underground mining methods;  Increasing the resource base by the acquisition of strike exte nsions to the ore body;  Increasing the resource base by including the MML hanging wall zones. While having a lower grade, the exploitation of these hanging - wall horizons would reduce stripping ratios and reduce mining costs;  Increasing V 2 O 5 production, sh ould market demand support increased sales, thereby extracting additional economic benefit;  Incorporating the PQ iron ore project into the project to leverage economies of scale and the scope for some shared processing infrastructure (both resources utiliz e the same processing flow sheet for making concentrate)  Extracting economic benefit from the significant quantities of iron and titanium - rich calcine which will be produced, and for which NO economic benefit has been assumed in the Scoping Study. R ECOMMEN DATIONS It is recommended that the Project move to a Pre - Feasibility Study as soon as possible. During such a Pre - Feasibility Study, the following work will be completed:  Additional exploration and / or the extraction of necessary bulk samples;  Updating of the Project resource base;  The determination of an optimal business case – this will include:  determining the optimal mix between sales volumes and life of Project;  detailed analyses on the development of a Fe - V smelter to convert all or some of the V 2 O 5 to Fe - V;  a further review of pursuing a Pig Iron Process as opposed to the Salt Roast Process OR a combined Pig Iron and Salt Roast Process, which together could produce a full range of products – pig iron, V 2 O 5 flakes and Fe - V; and  a review of additiona l economic benefits of the iron and titanium credits within the MML resource.  Reviewing establishment capital expenditure and operating cost estimates;  Initiating an environmental impact assessment (“EIA”) study and the commencement of environmental and wa ter use licensing;  A comprehensive commodity market review and market placement exercise;  A comprehensive logistics review;  Completing the mining schedule using a sophisticated mine planning package;  A comprehensive review of infrastructure requirements, s pecifically water and electricity requirements;  A social and labour study which will assist in the preparation of the Social and Labour Plan for the Mining Right application;

11. d) India, the world’s second largest steel producer also produces low - quality steel and can be expected, over time, to shift its production towards higher strength steel as the economy develops. ii. Energy Storage: a) Vanadium redox batteries (VRBs) are increasingly recognised for their long lifespan cycles (>20 years), high capacity, long duration energy storage capabilities and ability to integrate with power grids. In the race for the most effective grid energy storage solution, vanadium redox flow battery technology is gaining significant momentum relative to other solutions. Vanadium consumption is forecast to grow at a s ignificant rate of approximately 6.5% per annum to 2017, driven largely by the steel and energy storage sectors (Roskill, Feb 2013). A price of US$7.50 / lb of V 2 O 5 flakes, > 98% purity, was assumed in this Scoping Study, for which the anticipated initial production year is 2017. This is ~9% less than the historical average of US$8.22 / lb (Jan 2005 – Jun 2014), less than Roskill’s forecast 2017 price of US$10.95 / lb V 2 O 5 (Ros kill report, 2013) and more than CRU Strategies’ forecast 2016 price of US$ 6.50 / lb (CRU report, 2013). Historical and forecast price for vanadium flakes, 98% purity (Roskill, 2013; CRU Strategies, 2013) F INANCIAL A NALYSIS The Scoping Study has evaluated two ROM scenarios: 1 Mtpa ROM (10,350 tpa of V 2 O 5 flakes) and 528 ktpa ROM (5,470 tpa of V 2 O 5 flakes). There are sufficient project resources to sustain a 30 - year life - of - mine operation in each scenario. The 1 Mtpa ROM scenario was chosen as the base case with the following parameters: Financial Years Ending February FY201 7 FY201 8 FY201 9 FY202 0 FY202 1 Long Term Top Soil Removal kt 616 616 616 616 312 ROM ore kt 1 000 1 000 1 000 1 000 V 2 O 5 ROM grade (post - dilution) % 1.41 1.41 1.41 1.41 Waste Mined kt 945 1 890 1 890 1 890 4 077

6. * Grades are estimates based on boreholes drilled and do not represent a resource statement Cross - section showing showing grades and tonnages of three vanadium - rich horizons, namely the MM L, MML - Hanging Wall, and AB Zone M INERAL R ESOURCE The following table summarizes the initial JORC compliant mineral resource on the MML Layer Name Thick - ness (m) Million Tonnes SG (t/m3) Fe (%) Fe Metal (Mt) TiO 2 (%) TiO 2 Metal (Mt) V 2 O 5 (%) V 2 O 5 contained (kt) SiO 2 (%) Al 2 O 3 (%) P 2 O 5 (%) S (%) MAG3 4.09 27.50 4.08 45.5 12.51 10 2.75 1.50 412.5 10.6 7.8 0.01 0.12 MAG4 3.59 24.31 4.00 43.9 10.66 9.3 2.26 1.46 354.9 11.8 8.9 0.01 0.24 TOTAL 7.68 51.81 4.04 44.7 23.17 9.7 5.01 1.48 767.4 11.2 8.3 0.01 0.18 Combined MML Indicated Mineral Resources, <120 m vertical depth, as at 6 March 2013 Below is a chart comparing the Bushveld Vanadium deposit to its vanadium - producing or exploring peers globally: Chart showing Bushveld’s vanadium grade and tonnage in comparison to global peers

13. Utilities 2.06 Per tonne Plant feed Labour 1.98 Per tonne Plant feed General & Administration 2.26 316 General 1.96 Per tonne ore mined Rehabilitation 0.30 Per tonne Waste mined Logistics 80.91 Per tonne sales 81 Logistics cost to rail siding 5.91 Per tonne sales Loading, rail and port 45.00 Per tonne sales Shipping 30.00 Per tonne sales Total Operating Cost per tonne of V 2 O 5 flakes 5,994 Operating Costs – 1 Mtpa ROM Scenario The above operating cost is competitive relative to industry cost curve and places the Bushveld Vanadium Project in the first quartile of the vanadium cost curve, competitive with co - product vanadium slag producers. Vanadium Industry Cash Cost Curve (TTP Squared Inc, 2012) Financial Model Results The results of the financial evaluation illustrate that the base case scenario of producing approximately 10,350 tpa vanadium pentoxide flakes has attractive economics, with an estimated post - tax NPV of US$263.6 m and a real post - tax IRR of 24.1%. Key financial metrics are summarised below: Bushveld Vanadium Project – Salt Roast 1 Mtpa ROM Scenario Item Unit Value Resource Mt 52 Life of Mine Yrs 30 V 2 O 5 production kt 10,350 Gross Revenue LOM US$’m real 5 133 Royalty % 5% LOM US$’m real 241 Net Revenue LOM US$’m real 4 892 Operating Costs LOM US$’m real 1 861 US$ / kg V 2 O 5 flakes (US$/ lb V 2 O 5 flakes) 5.99 (2.72)

14. Capital Costs Initial US$’m real 261.5 Sustaining US$’m p.a. 1.90 Cash flow LOM US$’m real 1 612 Pre Tax Post - Tax Economics NPV @ 8% real US$’m 751.6 370.0 NPV @ 10% real US$’m 561.9 263.6 NPV @ 12% real US$’m 425.6 187.4 IRR real % 35.57 24.10 Payback (based on discounted cash flow) from start of mining Yr 4 years and 4 months DCF Valuation Model – 1 Mtpa ROM Scenario Financials Sensitivity Analysis A sensitivity analysis was undertaken to test the robustness of the project and the results thereof are shown in the table below for the parameters with the most impact: 2014 Real V 2 O 5 Flakes Price CIF Processing Opex Plant Capital Discount Rate NPV US$’m NPV US$’m NPV US$’m NPV US$’m 75% 92.5 85% 236.1 80% 234.8 6.5% 478.7 87.5% 177.1 95% 254.4 90% 249.0 8.0% 370.0 B ASE ( US $ 16.53/ KG V 2 O 5 ) 263.6 B ASE ( US $ 46/ T ROM ) 263.6 B ASE ( US $ 261M) 263.6 B ASE (10%) 263.6 112.5% 349.7 105% 272.6 110% 277.6 12.0% 187.4 125% 435.9 115% 290.7 120% 291.7 13.5% 144.0 Sensitivity Analysis C ONCLUSION Bushveld is confident that its Bushveld Vanadium Project is highly prospective. The Scoping Study on the Bushveld Vanadium Project, and specifically for the Salt Roast Process, has calculated NPVs and IRR, which suggest that the Project has robust economic credentials (a post - tax NPV of US$263.6 m and a real post - tax IRR of 24.1%). This is as a result of the following positive features and low risk nature of the Project:  A large quality resource ba se which is consistent along a significant strike length, outcrops on surface, has a relatively low down - dipping angle and has a wide ore package (approximately 8.2 m for the MAG3 and MAG4 horizons excluding the parting);  A high in - situ V 2 O 5 grade within the resource base (approximately 1.48%, 1.41% after dilution) and high vanadium content within the magnetite which results in a 2.0% V 2 O 5 concentrate product;  The ability to apply low risk, low capital expenditure and low cost open - cast mining methods to e xtract ROM material, and to use mining contractors to undertake project operations;  The use of proven beneficiation technology to extract the high value V 2 O 5 flakes for sale to the market;  The limited logistical requirements for the transport of low produc t volumes to market;

12. Financial Years Ending February FY201 7 FY201 8 FY201 9 FY202 0 FY202 1 Long Term Parting Mined kt 190 190 190 190 Stripping ratio 2.70 2.70 2.70 4.39 Beneficiation Feed kt 1 000 1 000 1 000 1 000 Beneficiation Mass Yield % 69 69 69 69 V 2 O 5 recovery - Beneficiation % 98 98 98 98 Feed to Salt Roast Plant kt 690 690 690 690 V 2 O 5 recovery – Salt Roast % 75 75 75 75 V 2 O 5 Production kt 10.35 10.35 10.35 10.35 Salient Metrics – 1 Mtpa ROM Scenario Capital and Operating Expenditure The following tables show the capital expenditure (“capex”) and operating expenditure (“opex”) applied to this Scoping Study. While a significant portion of the Scoping Study establishment capital expenditure estimates was generated using tender enquiry es timates from suppliers, with a high degree of confidence, capital expenditure contingencies were applied in line with Scoping Study confidence levels. Similarly, given the extensive experience with operational salt roast operations of the technical team in volved in this Scoping Study the opex estimates applied during this Scoping Study carry a relatively high degree of confidence. Unit Amount Total 1. Prefeasibility and Feasibility study US$’m 9.7 2. Mining 3.8 Mine site establishment US$’m 0.4 Pre stripping US$’m 3.4 3. Processing 216.6 Crushing and Screening US$’m 4.2 Milling US$’m 22.5 Magnetic Separation US$’m 2.7 Product dewatering US$’m 8.7 Water recovery US$’m 2.5 Salt Roasting US$’m 132.3 Balance of Plant US$’m 43.7 4. Infrastructure 31.4 Bulk power US$’m 4.2 Well field for Water supply US$’m 1.6 Other Infrastructure US$’m 5.4 Calcine dump US$’m 9.3 Corporate Infrastructure US$’m 10.9 Total US$’m 261.5 5. Sustaining Capital US$’m 54.0 Capital Expenditure Costs – 1 Mtpa ROM Scenario US$ / tonne Unit Cost / tonne V 2 O 5 flakes Mining 4.69 Per tonne mined 1,161 Waste Mining Cost 2.18 Per tonne mined Ore Mining Cost 2.51 Per tonne mined Processing – Concentrator Plant 3.21 682 Crushing 1.58 Per tonne Plant feed Milling 1.13 Per tonne Plant feed Magnetic Separation 0.30 Per tonne Plant feed Tailings Disposal 0.20 Per tonne Plant feed Processing - Salt Roast Plant 60.35 Per tonne concentrate 3,754 Roasting & leaching 56.31 Per tonne concentrate

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