Appendix 3B

Name of entity

TNG Limited

ABN

12 000 817 023

1

+Class of +securities issued or to be issued

1. Ordinary Shares

2. Listed Options

3. Unlisted Options

2

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

1)

2)

3) 4,500,000

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)

1. Ordinary Shares

2. Listed Options exercisable at $0.20 on or before 15 December 2018

3. Unlisted Options exercisable at $0.27 on or before 13 December 2019

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

1. Yes Ordinary Shares

2. No new class of securities

3. No Unlisted Options

5

Issue price or consideration

1. $0.135 per share

2. Nil - Attaching Options

3. Nil

6

Purpose of the issue

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

1. Issued pursuant to Share Purchase Plan to fund ongoing development activities at the Mount Peake Vanadium-Iron-Titanium Project in the Northern Territory and for general working capital purposes

2. Attaching Options

3. Unlisted options granted to Employees and Consultants pursuant to approved option plans.

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

N/A

6c

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

25,870,437 Listed Options

6d

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

Nil

6e

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

Nil

6f

Number of +securities issued under an exception in rule 7.2

51,714,501 Ordinary shares

4,500,000 Unlisted Options

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.

N/A

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

N/A

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

See Annexure 1 attached.

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.

30 December 2016

Number

+Class

8

Number and +class of all

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

Note

623,275 Options exercisable at

$0.08 expired on 31 July 2015

803,514,214

25,870,437

Ordinary Shares

Listed Options exercisable at $0.20 expiring on 15

December 2018