Appendix 3B

Name of entity

TNG Limited

ABN

12 000 817 023

1

+Class of +securities issued or to be issued

Options to acquire fully paid ordinary shares.

2

Number of +securities issued or to be issued (if known) or maximum number which may be issued

Up to 25,925,925 options

(the maximum number of options that can be issued under the Option Offer, as set out in the Supplementary Prospectus dated 19 December 2016 and announced on 19 December 2016).

3

Principal terms of the

+securities (e.g. if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if

+convertible securities, the conversion price and dates for conversion)

Options exercisable at $0.20 on or before 15 June 2018.

4

Do the +securities rank equally in all respects from the +issue date with an existing +class of quoted +securities?

If the additional +securities do not rank equally, please state:

• the date from which they do

• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

No

The options will be a new class of security.

Once the options are converted into ordinary shares, the ordinary shares will rank equally in all respects with the existing fully paid ordinary shares.

The options do not give the holder the right to participate in any future dividend.

5

Issue price or consideration

Nil - Free attaching options for SPP subscribers

6

Purpose of the issue

(If issued as consideration for the acquisition of assets, clearly identify those assets)

To satisfy TNG Limited's obligation to issue one (1) free attaching option for every two

(2) shares subscribed for by Eligible Shareholders under the SPP as set out in the Prospectus dated 30 November 2016 and Supplementary Prospectus dated 19 December 2016.

6a

Is the entity an +eligible entity that has obtained security holder approval under rule 7.1A?

If Yes, complete sections 6b - 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i

No

6b

The date the security holder resolution under rule 7.1A was passed

Not applicable

6c

Number of +securities issued without security holder approval under rule 7.1

Not applicable

6d

Number of +securities issued with security holder approval under rule 7.1A

Not applicable

6e

Number of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting)

Not applicable

6f

Number of +securities issued under an exception in rule 7.2

Not applicable

6g

If +securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the

+issue date and both values. Include the source of the VWAP calculation.

Not applicable

6h

If +securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements

Not applicable

6i

Calculate the entity's remaining issue capacity under rule 7.1 and rule 7.1A - complete Annexure 1 and release to ASX Market Announcements

Not applicable

7

+Issue dates

Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A.

Cross reference: item 33 of Appendix 3B.

Anticipated 30 December 2016

Number

+Class

8

Number and +class of all

+securities quoted on ASX (including the +securities in section 2 if applicable)

751,772,713

Up to 25,925,925

(anticipated to be issued on 30 December 2016)

Ordinary Shares

Options - exercise price $0.20, expiry 15 June 2018

Number

+Class

9

Number and +class of all

+securities not quoted on ASX (including the +securities in section 2 if applicable)

4,500,000

1,000,000

1,500,000

Unlisted Options - exercise price $0.15, expiry 6 June 2017

Unlisted Options - exercise price $0.15, expiry 4 January 2017

Unlisted Options - exercise price $0.20, expiry 7 September

2019

10

Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)

No Policy

11

Is security holder approval required?

Part 2 not applicable.

12

Is the issue renounceable or non- renounceable?

13

Ratio in which the +securities will be offered

14

+Class of +securities to which the offer relates

15

+Record date to determine entitlements

16

Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?

17

Policy for deciding entitlements in relation to fractions