Tellus to Commence Chandler Pilot Program

Key points:

• Following success in raising capital Tellus Board approves Sandy Ridge pilot program
• Pilot to confirm bulk kaolin processing options, design and costings
• Results will complete outstanding conditions to formalise binding kaolin off-take agreements

Tellus Holdings Ltd (Tellus) is pleased to announce Board approval for the Chandler Project pilot program following early success in the company’s capital raising efforts.

This stage of the project involves testing of proof of concept and optimisation of wet and dry processing options for the salt. This is a critical input in the final design and costing in the definitive feasibility study and also enables the company to meet a major outstanding condition precedent prior to executing binding offtake agreements with our interested salt buyers.

Expressions of Interest have already been received from major Asian trading houses and customer test results to date confirm Chandler salt is of a sufficiently high grade to meet international market requirements.

Tellus will now complete detailed examination of both wet and dry processing options for the Chandler salt and optimise plant design to meet mine throughput and customer requirements.

Dry processing will confirm suitability for optical sorting and beneficiation to meet industrial and edible salt grade specification.

Wet processing test work will include dissolution and recrystallisation of salt samples to confirm that both sodium chloride and magnesium chloride customer specification requirements can be met.

“We are in discussion with a number of Asian and Australian salt buyers and have received expressions of interest in excess of our planned production volume,” said Tellus Managing Director Mr Duncan van der Merwe,

“This pilot program will provide the final technical information required in addition to previously completed grade analysis to finalise salt offtake agreements. This is an important step in derisking the project and demonstrating to project finance and other investors the marketability of our salt product in the growing Asian market.”

Tellus Holdings Ltd (“Tellus”) is an Australian exploration company in mine evaluation stage with an attractive portfolio of rock salt and kaolin deposits. Tellus’ flagship projects are a proposed underground rock salt mine in the Northern Territory and a proposed kaolin mine in Western Australia. Tellus is the parent of a group of companies that plans to be involved in mine building, processing and the sale of industrial and edible salts, associated salt minerals and kaolin. Proposed complementary businesses include the safe storage in voids created by mining as is done in countries like the UK, EU, USA and Canada.

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