ANNUAL REPORT 2016 AND UPCOMING AGM

• 2016 Annual Report is available to shareholders
• AGM to be held on Thursday 24 November 2016

Tellus Holdings Ltd (“Tellus”) would like to remind shareholders who have not received a copy of the 2016 Annual Report that we would be happy to get you a copy. We are also looking forward to welcoming shareholders at the Tellus AGM to be held on Thursday 24 November 2016.

Fig. 1: Tellus 2016 Annual Report

Tellus Holdings’ share register and some key statutory public company matters like the distribution of Annual Reports are handled by Boardroom Pty Ltd (“Boardroom).

If you have not already elected with Boardroom to receive a copy of the report, but would like to receive one, please contact either Boardroom or the Company Secretary Jonathan Fisher.

Boardroom’s contact details:
: 1300 737 760 within Australia
: +61 2 9290 9600 outside Australia
: enquiries@boardroomlimited.com.au
www.boardroomlimited.com.au

Company Secretary Jonathan Fisher’s contact details:
: +61 2 8257 3395
: info@tellusholdings.com Fig. 1: Tellus 2016 Annual Report

The Company also looks forward to welcoming shareholders at the AGM to be held on Thursday 24
November 2016, 11.00 am AEDT at the following address:

Portside Room 5
Level 6
207 Kent Street
Sydney, NSW 2000

• Clough and Kerman appointed as Lead ECI Contractors for the $61.4 million Sandy Ridge Project
• In stage one, Lead Contractors to provide BFS engineering, cost estimation & scheduling services
• Lead Contractors will be supported by Mining Plus and other Consultants
• In stage two, if the EPC contract is accepted, Clough and Kerman will form a JV to become the principal contractor

Tellus Holdings Ltd (“Tellus”) is pleased to announce it has taken a major step towards developing the $61.4 million Sandy Ridge project by appointing Clough Projects Australia Pty Ltd (“Clough”), Kerman Contracting Pty Ltd (“Kerman”) and Mining Plus Pty Ltd (“Mining Plus”) in a two stage Early Contractor Involvement (ECI) basis.

“Clough and Kerman will be providing design engineering, capital cost estimation, construction scheduling and documentation to selected chapters of the bankable feasibility study in accordance with their respective areas of responsibility. An open-book bankable Joint Venture EPC cost proposal will also be delivered. It is the intention of the parties that in stage two, if the EPC contract is accepted, Clough should become the principal contractor of the JV at Sandy Ridge” he said.

“Both Clough and Kerman have demonstrated their ability to successfully maximise the life and profitability of their clients’ assets by optimising design and operations. They both bring multi-discipline experience, a strong safety culture, a track record buying and hiring locally and an active indigenous employment program which aligns with Tellus’ objective of developing our Sandy Ridge Project,” he said.

Mining Plus will provide detailed design, capital and operational cost estimation, along with construction and operational scheduling within the BFS for the mining and cell areas. Mining Plus will help develop and assess EPC proposals by mining contractors, also included within the BFS.

Clough Group
Established in 1919 Clough’s services are underpinned by a dedication to project delivery excellence that has spanned over 95 years. Based in Perth Australia, Clough provides engineering, procurement, construction, commissioning, operations and maintenance services for oil and gas, metals and mining and infrastructure developments. Clough manages a global workforce from operating centres across Australia, Asia, Africa the UK and the USA.

Bigger picture – Sandy Ridge and Chandler development
“As part of a bigger picture, the infrastructure at our Sandy Ridge project is similar to our Chandler project in the Northern Territory,” Mr van der Merwe said. “The main difference at Chandler is that we are looking at developing both vertical and decline shafts. Tellus is looking at bringing the lessons learnt from Sandy Ridge over to Chandler where we are planning a similar ECI model. Subject to commercial terms being agreed at Chandler, if the EPC contract is accepted, Clough should become the principal contractor with the support from RUC Cementation Mining (RUC), who are vertical and decline shaft system contractors based in Perth, and other contractors. Both Clough and RUC are wholly owned subsidiaries of the Murray & Roberts Group”.

About Clough:

About Kerman:

About Mining Plus:

About Tellus Holdings:
Tellus Holdings Ltd is an infrastructure project development company with a proposed dual revenue infrastructure business model. This involves mining the commodities salt and kaolin and backfilling the voids left from mining with equipment, archives or long term storage of waste. Tellus plans to store like-with-like materials, so as to create opportunities for the future long- term, storage, treatment and recovery of valuable materials or the permanent isolation of waste. Tellus’ business model mirrors world’s best practice solutions operating in the UK, Europe, USA and Canada. Tellus is developing the Chandler project in the Northern Territory (NT) and the Sandy Ridge project in Western Australia. Tellus’ flagship ‘Chandler Project’ has been awarded Major Project Status by the Northern Territory Government.

For further information:
Visit: www.tellusholdings.com.au or contact:

Duncan van der Merwe
Managing Director
Tel: +61 (0)2 8257 3395

Corporate and Chandler Project:
Jane Munday
Michels Warren Munday (Media)
Mob: +61 (0)427 880 083

Sandy Ridge Project:
Cameron Morse
FTI Consulting (Media)
Tel: +61 (0)8 9485 8888

• Tellus is one step closer to obtaining regulatory approval through lodgment of Draft EIS
• The first step is an adequacy review by the NT EPA prior to public display

Tellus Holdings Ltd (“Tellus”) is one step closer to getting regulatory approval for its Chandler Proposal through the lodgment of a 3,500-page Draft Environment Impact Statement (EIS). The first step is an adequacy review by the Northern Territory Environmental Protection Authority (NT EPA) prior to public display. Regulatory approvals will be subject to an environmental impact assessment process administered by the NT EPA and agreement by the Northern Territory Government authorities.

About Tellus Holdings:
Tellus Holdings Ltd is an infrastructure project development company with a proposed dual revenue infrastructure business model. This involves mining the commodities salt and kaolin and backfilling the voids left from mining with equipment, archives or long term storage of waste. Tellus plans to store like-with-like materials, so as to create opportunities for the future long- term, storage, treatment and recovery of valuable materials or the permanent isolation of waste. Tellus’ business model mirrors world’s best practice solutions operating in the UK, Europe, USA and Canada. Tellus is developing the Chandler project in the Northern Territory (NT) and the Sandy Ridge project in Western Australia. Tellus’ flagship ‘Chandler Project’ has been awarded Major Project Status by the Northern Territory Government.

For further information:
Visit: www.tellusholdings.com.au or contact:

Duncan van der Merwe
Managing Director
Tel: +61 (0)2 8257 3395

Corporate and Chandler Project:
Jane Munday
Michels Warren Munday (Media)
Mob: +61 (0)427 880 083

Sandy Ridge Project:
Cameron Morse
FTI Consulting (Media)
Tel: +61 (0)8 9485 8888

• Tellus is progressing tenure and related licence approvals for its Sandy Ridge project
• General Purpose Lease application applied for non-process infrastructure
• Three Miscellaneous Licences applied for over access road and water supply areas

Tellus Holdings Ltd (“Tellus”) is pleased to announce that it is one step closer to securing tenure related licences after applying for a General Purpose Lease and three Miscellaneous Licences for its Sandy Ridge project under the Mining Act (1978).

“We are pleased to demonstrate ongoing progress with our mining tenure approvals process. The environmental approvals are also progressing through the Public Environmental Report PER process. We expect to have the Sandy Ridge PER on public exhibition soon,” Tellus’ Managing Director Mr Duncan van der Merwe said.

About Tellus Holdings:
Tellus Holdings Ltd is an infrastructure project development company with a proposed dual revenue infrastructure business model. This involves mining the commodities salt and kaolin and backfilling the voids left from mining with equipment, archives or long term storage of waste. Tellus plans to store like-with-like materials, so as to create opportunities for the future long- term, storage, treatment and recovery of valuable materials or the permanent isolation of waste. Tellus’ business model mirrors world’s best practice solutions operating in the UK, Europe, USA and Canada. Tellus is developing the Chandler project in the Northern Territory (NT) and the Sandy Ridge project in Western Australia. Tellus’ flagship ‘Chandler Project’ has been awarded Major Project Status by the Northern Territory Government.

For further information:
Visit: www.tellusholdings.com.au or contact:

Duncan van der Merwe
Managing Director
Tel: +61 (0)2 8257 3395

Corporate and Chandler Project:
Jane Munday
Michels Warren Munday (Media)
Mob: +61 (0)427 880 083

Sandy Ridge Project:
Cameron Morse
FTI Consulting (Media)
Tel: +61 (0)8 9485 8888

• Tellus receives $555,000 Research and Development refund

Tellus Holdings Ltd (Tellus) is pleased to announce that the Company has received a cash refund under the Australian Federal Government’s Research and Development Tax Incentive Program of approximately $555,000.

The Research and Development (R&D) tax incentive is an Australian Government program under which companies receive refunds for 45% of eligible expenditure on R&D.

The R&D refund relates to Tellus activities conducted in the 2014/15 financial year.

“Tellus continues to progress the important research and development aspect of the company’s activities,” said Tellus Managing Director, Duncan van der Merwe.

About Tellus Holdings:

Tellus Holdings Ltd (“Tellus”) is an infrastructure development company in the business of creating economic, social and environmental value from waste, cla and salt resources. This dual revenue model involves mining the commodities kaolin clay and rock salt in thick dry remote beds which creates world’s best practice geological repositories. The voids created by mining are then used to store equipment, archives or waste using a multi barrier system as part of an overall safety case. Tellusplansto permanently isolate hazardous waste using environmentally soundmanagement(ESM)principlesthat protect the environment and human health. Tellus also supports the circular economy using long term storage by placing like-with-like materials for operational safety reasons and to create opportunities for the future recovery of valuable materials. Tellus’ business model mirrorsinternational solutions operating in the UK, Europe and North America. Tellusis developing the proposed Sandy Ridge facility in Western Australia (WA) and the proposed Chandlerfacility in the Northern Territory (NT) which has been awarded Major Project Status by the NTGovernment.

For further information:  Visit: www.tellusholdings.com.au or contact:

Duncan van der Merwe                                           Managing Director                                                              Tel: +61 (0)2 8257 3395

Corporate and Chandler Project:

Jane Munday                                                            Michels Warren Munday (Media)                                    Mob: +61 (0)427 880 083

Sandy Ridge Project:
Cameron Morse                                                       FTI Consulting (Media)                                                      Tel: +61 (0)8 9485 8888

Tellus Holdings Ltd (“Tellus”) is pleased to advise that its Managing Director, Mr Duncan van der Merwe presented an update on the Chandler Proposal at the 10th Annual Mining the Territory Conference held in Darwin on the 14th September 2016.

Please find attached a copy of the presentation. This presentation is also available on the Company’s web site http://www.tellusholdings.com/investor_presentations.php

About Tellus Holdings:
Tellus Holdings Ltd is an infrastructure project development company with a proposed dual revenue infrastructure business model. This involves mining the commodities salt and kaolin and backfilling the voids left from mining with equipment, archives or long term storage of waste. Tellus plans to store like-with-like materials, so as to create opportunities for the future long- term, storage, treatment and recovery of valuable materials or the permanent isolation of waste. Tellus’ business model mirrors world’s best practice solutions operating in the UK, Europe, USA and Canada. Tellus is developing the Chandler project in the Northern Territory (NT) and the Sandy Ridge project in Western Australia. Tellus’ flagship ‘Chandler Project’ has been awarded Major Project Status by the Northern Territory Government.

For further information:
Visit: www.tellusholdings.com.au or contact:

Duncan van der Merwe
Managing Director
Tel: +61 (0)2 8257 3395

Corporate and Chandler Project:
Jane Munday
Michels Warren Munday (Media)
Mob: +61 (0)427 880 083

Sandy Ridge Project:
Cameron Morse
FTI Consulting (Media)
Tel: +61 (0)8 9485 8888

• Draft PER adequacy review completed by WA Office of Environmental Protection Authority
• Draft PER was peer reviewed by international experts who confirm the design is excellent
• The proposed multi-barrier system offers very good prospects of excellent long-term performance that can protect the environment and human health
• Tellus sends Draft PER to Federal and State Government Decision Making Authorities
• Next step – public review of the PER likely within the next six weeks

Tellus Holdings Ltd (“Tellus”) advanced its regulatory approval for the proposed Sandy Ridge Facility. Tellus has submitted its Draft Public Environmental Review (PER) to a Federal and State Government group of Decision Making Authorities (DMAs). This was a requirement of Tellus outlined in the Proposal’s Environmental Scoping Document (ESD) issued in May 2016 by the Western Australian Office of the Environmental Protection Agency (WA OEPA).

Summary of international independent peer review

Tellus’ Sandy Ridge project is a proposed dual revenue model facility. This involves mining the commodity kaolin clay in a thick dry remote kaolin clay bed, which then creates a safe dry near surface geological repository in an arid environment. The space created by mining will be backfilled with mostly chemical waste using a multi-barrier system to support the safety case and in keeping with environmentally sound management (ESM) principles that protect the environment and human health.

Although the facility will take mostly chemical waste, there will be a small volume of low level radioactive waste such as medical isotopes and smoke detectors (not nuclear waste). Therefore the OEPA required Tellus to commission an independent peer review based on the design of the Facility and specifically the manner in which low level radioactive waste would be permanently isolated.

To meet this requirement, Tellus commissioned the UK-based Eden who are experts in this area, to consider if the design, operation and closure system of the proposed Sandy Ridge Facility is sound and meets best practice design that can protect the environment and human health.

The independent Eden review completed by the international expert Andy Baker concluded that, on the basis of knowledge of other disposal facilities for the disposal of difficult to manage hazardous waste and low level radioactive waste (LLW) worldwide, that:

• the design of the Sandy Ridge Facility is excellent
• the proposed multi-barrier system offers very good prospects of excellent long-term performance that can protect the environment and human health
• the long-term performance outcomes are comparable or better than the performance of many other LLW disposal facilities in other countries
• the sound design is facilitated by the favorable hydrological and hydrogeological environment.

Next steps

Tellus plans on visiting the Goldfields region in early October including the communities of Southern Cross, Coolgardie and Kalgoorlie. The focus of the consultation will be to explain the main outcomes of the detailed Environmental Impact Assessment (EIA) done for the proposal and to obtain feedback on key environmental and social benefits or concerns associated with the proposed project.

About Eden:
Eden Nuclear and Environment Ltd (“Eden”) is a company that supports its clients in the development of safe sustainable and economic achievable solutions for managing waste. They advise on geological repository safety, developing waste strategies, assessing radiological impacts and managing environmental liabilities.

About Andy Baker (Independent international expert):
The international peer review was led by Andy Baker who is Managing Director of Eden Nuclear and Environment. He has 30 years’ experience in dealing with technical issues relating to radioactive waste management and disposal. His key expertise is in the management and technical coordination of safety cases and safety assessments for repositories for the disposal of radioactive waste. He has done extensive work in support of safety cases for the UK deep repository and for the UK’s principal facility for the near-surface disposal of radioactive waste (the Low Level Waste Repository). He has experience in assessing and advising on a range of repository designs in the UK and overseas. Experience includes senior roles working for a regulatory body and in managing repository assessment programs.

About Tellus Holdings:
Tellus Holdings Ltd is an infrastructure project development company with a proposed dual revenue infrastructure business model. This involves mining the commodities salt and kaolin and backfilling the voids left from mining with equipment, archives or long term storage of waste. Tellus plans to store like-with-like materials, so as to create opportunities for the future long- term, storage, treatment and recovery of valuable materials or the permanent isolation of waste. Tellus’ business model mirrors world’s best practice solutions operating in the UK, Europe, USA and Canada. Tellus is developing the Chandler project in the Northern Territory (NT) and the Sandy Ridge project in Western Australia. Tellus’ flagship ‘Chandler Project’ has been awarded Major Project Status by the Northern Territory Government.

For further information:
Visit: www.tellusholdings.com.au or contact:

Duncan van der Merwe
Managing Director
Tel: +61 (0)2 8257 3395

Corporate and Chandler Project:
Jane Munday
Michels Warren Munday (Media)
Mob: +61 (0)427 880 083

Sandy Ridge Project:
Cameron Morse
FTI Consulting (Media)
Tel: +61 (0)8 9485 8888

• Tellus is one step closer to obtaining regulatory approval through lodgment of Draft EIS
• The first step is an adequacy review by the NT EPA prior to public display

Tellus Holdings Ltd (“Tellus”) is one step closer to getting regulatory approval for its Chandler Proposal through the lodgment of a 3,500-page Draft Environment Impact Statement (EIS). The first step is an adequacy review by the Northern Territory Environmental Protection Authority (NT EPA) prior to public display. Regulatory approvals will be subject to an environmental impact assessment process administered by the NT EPA and agreement by the Northern Territory Government authorities.

An adequacy review compares the draft terms of reference issued by the NT EPA to ensure the proponent has adequately addressed the key environmental issues of the Chandler Proposal.

Tellus is expecting the EIS to go on public display within the next two months. Tellus will then provide a more detailed update on what studies were done and key findings of the environmental impact assessment process.

Tellus commenced community engagement over four years ago.  The Company conducted an extensive consultation program during work on the EIS. Over the next few months Tellus will conduct another round of community and stakeholder consultation in the Titjikala, Alice Springs and Darwin region.

The main focus of the consultation is to provide briefings on the project and findings of the environmental studies.

About Tellus Holdings:

Tellus Holdings Ltd (“Tellus”) is an infrastructure development company in the business of creating economic, social and environmental value from waste, cla and salt resources. This dual revenue model involves mining the commodities kaolin clay and rock salt in thick dry remote beds which creates world’s best practice geological repositories. The voids created by mining are then used to store equipment, archives or waste using a multi barrier system as part of an overall safety case. Tellusplansto permanently isolate hazardous waste using environmentally soundmanagement(ESM)principlesthat protect the environment and human health. Tellus also supports the circular economy using long term storage by placing like-with-like materials for operational safety reasons and to create opportunities for the future recovery of valuable materials. Tellus’ business model mirrorsinternational solutions operating in the UK, Europe and North America. Tellusis developing the proposed Sandy Ridge facility in Western Australia (WA) and the proposed Chandlerfacility in the Northern Territory (NT) which has been awarded Major Project Status by the NTGovernment.

For further information:  Visit: www.tellusholdings.com.au or contact:

Duncan van der Merwe                                           Managing Director                                                              Tel: +61 (0)2 8257 3395

Corporate and Chandler Project:

Jane Munday                                                            Michels Warren Munday (Media)                                    Mob: +61 (0)427 880 083

Sandy Ridge Project:
Cameron Morse                                                       FTI Consulting (Media)                                                      Tel: +61 (0)8 9485 8888

• Tellus completes successful independent value engineering and environmental studies
• The net result is the Chandler proposal’s ecological footprint has reduced
• Environment Protection Authority (NT EPA) releases revised Terms of Reference
• Draft Environmental Impact Statement remains on track for October submission

The Northern Territory EPA today reissued an amended Terms of Reference for the Chandler Proposal. These will be reflected in Tellus’ Draft Environmental Impact Statement (“EIS”) that remains on track for an October submission for an adequacy review by the NT EPA before being released for public review.

“The revised Terms of Reference (ToR) released by the NT EPA today reflect changes that Tellus has made to the proposed Chandler Proposal including a materially reduced ecological footprint”, Environment and Approvals Manager Richie Phillips said.

The main changes to the Chandler Proposal include:

• reduced offsite logistics infrastructure (for example, Tellus is no longer planning to build its own dual use salt/ storage facilities at Darwin’s East Arm Business Park or the Brewer Estate)
• replaced wet processing of salt with evaporative ponds with a large footprint and high water use with a dry optical sorting process with a small footprint and no water use
• refined the waste management infrastructure to improve safety and efficiency
• plans for a new access route to the Stuart Highway to avoid use of the existing Old South Road during operations (this road will following existing fence lines to reduce ecological impacts)
• refined the internal haul roads to reduce ecological impacts
• increased salt tonnage (from 500,000 tpa 750,000 tpa) for improved project economics
• transport of salt by rail, mostly to a port in South Australia.

The revised ToR are now available for review and comment on the NT EPA’s website. They will remain available for public review until 16th September, 2016. All public comments need to be directed to the EPA and not Tellus. Visit: Environmental Assessments

Tellus also has posted the ToR on the company’s web site: Public Notices and Advertisements

Tellus aims to lodge its draft EIS to the NT EPA for adequacy review shortly thereafter before going out for public review.

The changes resulted from months of independent value engineering studies by industry experts which confirmed that the Chandler Proposal remains technically viable and has no fatal flaws. Multiple opportunities were identified to reduce the infrastructure footprint, improve the project economics and to offer customers a better service. Tellus accepted most of the recommended changes and did additional engineering and environmental studies.

In accordance with Commonwealth and Northern Territory (NT) environmental legislation and regulations, and consultation with the NT Environment Protection Authority (EPA), Tellus resubmitted a “Notice of Intent” to reflect the changes. In turn the EPA has issued an amended Terms of Reference that will be reflected in Tellus’ Draft Environmental Impact Statement (“EIS”).

Tellus Holdings Ltd (“Tellus”) is an infrastructure development company in the business of creating economic, social and environmental value from waste, salt and clay resources. This dual revenue model involves mining the commodities salt and kaolin and backfilling the voids left from mining with equipment, archives or long term storage of waste. Tellus plans to store like-with-like materials, so as to create opportunities for the future long-term, storage, treatment and recovery of valuable materials or the permanent isolation of waste. Tellus supports releasing valuable materials back into the circular economy. Tellus’ business model mirrors world’s best practice solutions operating in the UK, Europe and North America. Tellus is developing the Chandler proposal in the Northern Territory (NT) and the Sandy Ridge proposal in Western Australia (WA). Tellus’ ‘Chandler Proposal’ has been awarded Major Project Status by the NT Government.

Visit: www.tellusholdings.com.au or contact:

Duncan van der Merwe

Jane Munday | Corporate and Chandler Project

Cameron Morse | Sandy Ridge Project

Managing Director

Michels Warren Munday (Media)

FTI Consulting (Media)

Tel: +61 (0)2 8257 3395

Mobile: +61 (0)427 880 083

Tel: +61 (0)8 9485 8888