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1 ASX RELEASE 30 October 2015 ASX CODE: PLS SEPTEMBER 2015 QUARTERLY ACTIVITIES REPORT Pivotal quarter for Pilbara with mining underway and first sales imminent at Tabba Tabba and a major resource upgrade at Pilgangoora paving the way for a Feasibility Study to fast-track development Tabba Tabba Tantalum Project (PLS 100%) Initial mining and crushing activities commenced with major contracts awarded, processing plant installed and construction of tailings dam well advanced. Award of the Operating Permit, which represents the final outstanding regulatory approval, expected shortly, ahead of the commencement of first commercial shipments in December Move to 100% ownership of the Tabba Tabba Project completed following the acquisition of the 50% stake held by joint venture partner. Pilgangoora Spodumene-Tantalum Project (PLS 100%) Updated JORC 2012 Mineral Resource completed, establishing Pilgangoora as the world s second largest hard rock spodumene deposit. The updated Mineral Resource incorporates the results of successful in-fill RC drilling completed from May to August 2015, and comprises: Indicated and Inferred Resources of 52.2Mt grading 1.28% Li 2 O (spodumene) containing 668,000 tonnes of lithium oxide with 32.9Mt grading 0.022% Ta 2 O 5 (Tantalum) containing 15.7 million pounds of Ta 2 O 5 ; Within the total Mineral Resource of 52.2Mt, and at a cut-off of 1% Li 2 O, the Inferred and Indicated Lithium Resource amounts to 1.43% Li 2 O containing 581,000 tonnes of lithium oxide. The recent in-fill drilling has boosted the Inferred lithium resource by 229% and delivers a 56% increase into Indicated. This was achieved from drilling targeting the previously untested Western and Central pegmatite systems, which remain open at depth and along strike. Global sales network initiated for product off-take, with six strategic off-take partnerships now in place with groups based in China, Japan and South Korea, Europe and North America. Drilling completed subsequent to the end of the Quarter intersected high-grade lithium mineralisation at the Monster Prospect an emerging satellite deposit located outside of the current resource inventory. CORPORATE Pilbara s Exploration Manager, John Young, appointed to the Board as an Executive Director. $2.5M institutional share placement completed, with funds used for the Tabba Tabba acquisition and for working capital. $5.1m cash on hand at Quarter-end. 1

2 PROJECT DEVELOPMENT ACTIVITIES Tabba Tabba Tantalum Project (PLS 100%) Pilbara is currently developing the Tabba Tabba Tantalum deposit, located approximately 75km southeast of Port Hedland in WA s Pilbara region. Tabba Tabba is an advanced, high quality tantalum deposit which will underpin a boutique, low-cost mining and processing operation capable of supplying up to 10% of global annual tantalum demand and generating robust cash-flows for Pilbara. The tantalum market is boutique in size with around 1,300t required each year. However, it is growing rapidly due to its use in the manufacture of capacitors used in wireless and hand-held devices. Commencement of initial mining and processing activities Preparations for the start of commercial production at Tabba Tabba were significantly advanced during the Quarter with a number of key operational activities underway on site. Major contracts have been awarded for crushing, drill and blast, equipment hire and earthworks and survey controls and earthworks have been completed for major infrastructure sites including for the processing plant. Tabba Tabba Crusher start-up First haul-pack at the Tabba Tabba Mine Construction of the 120,000tpa processing facility was completed earlier this year in Perth, and the plant is now fully installed and awaiting wet commissioning. This is anticipated to commence in November following receipt the 5C water licence. The Company s consultant hydro-geologists, Rockwater Pty Ltd, have completed test pumping of the existing water bores and installed additional monitoring bores prior to the issue of the 5C water licence, one of the final remaining key licences required for full-scale commercial operations to commence. A number of the administrative and regulatory plans have also now been completed including Project Management, Topsoil and Weed Management, Dust Management Plan and Radiation background monitoring, with all Safe Working Procedures under construction for specific job activities and Employee Visitor and Contractor induction documentation completed. 2

3 Tabba Tabba Processing Facility Tabba Tabba Tailings Dam Construction and installation of the processing plant and initial mining and processing activities can proceed prior to receipt of the final outstanding regulatory approval, the Operating Permit, which will allow commercial production (shipment and sale of product from site) to commence. The Company expects that the Operating Permit will be awarded shortly, clearing the way for first commercial shipments of Tabba Tabba ore in December Grade control and blast drilling underway at Tabba Tabba Acquisition of 100% of the Tabba Tabba Tantalum Project Pilbara Minerals has moved to 100% ownership of the Tabba Tabba Project by acquiring the 50% stake held by its joint venture partner. During the Quarter Pilbara entered into binding agreements with Valdrew Nominees Pty Ltd trading as Nagrom & Co ( Valdrew ), for the purchase of its 50% interest in the Joint Venture. The Tabba Tabba Tantalum project has been developed as an incorporated joint venture, Tabba Tabba Tantalum Pty Ltd ( TTT ) (formerly Nagrom Mining Pty Ltd), held 50% by Pilbara and 50% by Valdrew. TTT has an agreement ( Mining & Processing Agreement ) with Global Advanced Metals Wodgina Pty Ltd ( GAM ), which owns the underlying Tabba Tabba tenements. The Mining & Processing Agreement provides that the Tabba Tabba mine, which is currently being developed, has a fixed price, 5 year offtake agreement for its tantalite concentrate. 3

4 Pilbara and Valdrew entered into a sale and purchase agreement whereby Pilbara would move to 100% ownership of the project by acquiring the 50% interest in TTT held by Valdrew. Pilbara has also entered into a service agreement with Valdrew for ongoing operations of the processing plant and related facilities. Valdrew is a leading and long-established WA-based metallurgical and gravity processing company with extensive expertise in strategic and specialty metals. Settlement of the purchase of the 50% interest occurred on 25 September 2015, resulting in TTT becoming a wholly owned subsidiary of the Company from that date. An outline of the key terms of the agreements is provided below: The purchase consideration for Valdrew s 50% shareholding in TTT is $2,000,000 cash (paid 25 September 2015); All loans and advances as well as any amounts due to Valdrew in respect of past goods and services are to be released in full and shall not be enforceable against TTT; Subject to delivery of tantalite concentrate to GAM in accordance with the Minerals & Processing Agreement, a further $1,300,000 is payable by TTT to Valdrew; Valdrew is to provide services for the management and operation of the Tabba Tabba process plant and ancillary facilities on agreed commercial rates for the term of the Tabba Tabba Project; In addition, Valdrew may receive up to 20,000,000 unlisted incentive options in Pilbara being: 10,000,000 incentive options upon the commissioned processing plant achieving 95% of design throughput at an 82% recovery of Ta 2 O 5 at concentrate specifications for a seven day period; 1,000,000 incentive options after the end of each quarter where the processing plant achieved budgeted performance; and 5,000,000 options where GAM and TTT enter into a binding mining and processing agreement with respect to GAM s Strelley Project. The maximum number of options to be issued is 20,000,000, each with a term of two years, with the exercise price being the 5 trading day VWAP prior to the issue date. Pilgangoora Spodumene-Tantalite Project (Pilbara 100%) The Pilgangoora Spodumene-Tantalite Project is located about 25km north-east of the world-class Wodgina Tantalum mine, owned by Global Advanced Metals Wodgina Ltd (GAMW) and 82km SSE of Port Hedland in WA s Pilbara region. During the Quarter, Pilbara further upgraded the JORC compliant resource for the Pilgangoora spodumene-tantalite deposit, which now represents the second largest hard rock spodumene deposit in the world. Pilbara remains focused on continuing to grow the Company s high-grade, high-value lithium resources at this potentially company-making project. Demand for lithium is growing rapidly and is being driven by its use in lithium batteries as a power source for a wide range of applications including electric bikes, cars, buses, trucks and taxis. Resource Update During the Quarter, Pilbara completed an updated JORC 2012 Mineral Resource for the Pilgangoora Spodumene Tantalite Project, which delivered a nearly threefold increase in the high-value lithium content. 4

5 The updated Mineral Resource includes a 182 per cent increase in contained lithium oxide and a 39 per cent increase in contained tantalite, based on information calculated from 125 holes drilled between May and August Recent drilling has also clearly indicated the potential for the resource to grow further. The overall Pilgangoora Mineral Resource now comprises 15.7 million pounds of contained tantalite and 668,000 tonnes of contained lithium oxide, with the recent successful extensional drilling adding 431,000 tonnes of contained lithium oxide to the Inferred category. The next phase of resource extension drilling at Pilgangoora commenced in late August. Drilling focused on the South End and the Monster prospects, which both lie outside of the currently defined Mineral Resource. Additional drilling in these zones is expected to result in further significant increases in the resource inventory. The recent drilling and interim resource upgrade clearly demonstrates that Pilbara is on track to delineate a globally significant hard-rock lithium-tantalum deposit at Pilgangoora. The Company has already commenced key aspects of a Feasibility Study as part of a strategy to fast-track development of the project due to the increasing demand for quality spodumene concentrate to feed the growing lithium battery market JORC Resource Estimation This updated 2012 JORC compliant mineral resource for the Project incorporated all historical data, Pilbara s 2014 and current drilling programs to August The estimation was carried out by independent resource consultancy, Trepanier Pty Ltd ( Trepanier ), resulting in the estimation of Inferred and Indicated Resources. The reporting of all domains (capturing material above 0.01% Ta2O5) results in an Indicated and Inferred Mineral Resource estimate (Table 1) totalling: 52.2 million 1.28% Li 2 O containing 668,000 tonnes of Li 2 O Associated the lithium resource, there is a corresponding tantalite resource of 32.9 million 0.022% Ta 2 O 5 containing 15.7 million pounds of contained tantalite. Table 1: Pilgangoora Project Mineral Resource Estimate Category Tonnage (million tonnes) Ta 2 O 5 (ppm) Li 2 O (%) Ta 2 O 5 (tonnes) Ta 2 O 5 (Mlbs) Indicated Ta 2 O , Li 2 O ,000 Inferred Ta 2 O , Li 2 O ,000 TOTAL Ta 2 O , Li 2 O ,000 Li 2 O (T) 5

6 The envelope was wire-framed using both geological logging information (in particular logging of zoning within the pegmatite) and assay data for Ta 2 O 5 and Li 2 O. Note that there were insufficient samples analysed to allow Li 2 O mineralisation to be populated into one of the 25 domains. Of the 25 domains, five are significantly lower grade in Li 2 O and are excluded from the Li 2 O resource and six are significantly lower grade in Ta 2 O 5 and are excluded from the Ta 2 O 5 resource hence the different tonnage reported above for the Li 2 O and Ta 2 O 5 resource. If a lower lithium cut-off of >1% is used in reporting, this results in a reduction in tonnage but provides a significantly higher grade resource (see Figure 1: Grade vs. tonnage curves for the total lithium resource): 40.7 million 1.43% Li 2 O containing 581,000 tonnes of lithium oxide. Importantly, the bulk of this is confined to the newly defined south-western pegmatites plus the Central Zone (domains 3, 6 and 12) (see Figure 2). After the current program of RC drilling is complete, the next phase of drilling will concentrate on infilling the resource (on 50m by 50m spacings) to convert Inferred Resources to Indicated Resources and including known extensions to these higher grade portions within the overall resource estimate. Figure 1 Grade vs. Tonnage curves for the total lithium resource. 6

7 Figure 2 Snapshot of resource domains Details of the data used for the estimation, site inspection information and the quality control checks completed on the data are outlined in the Company s ASX Announcement dated 13 October 2015 Pilgangoora Resource Upgrade Reissue. Updated Exploration Target The current phase drilling, which commenced on 12 October, totals 105 drill holes for approximately 11,000m. This program includes exploration drilling and in-fill drilling covering surface mapped pegmatites from the Southern Prospect (7,667,500mN) to the Monster Prospect (7,674,200mN) in the North, covering a strike length of over 6km. The current resource covers only 4km of the overall strike potential outlined by previous rock chip sampling and mapping. Due to the current estimation of the Mineral Resource being in excess of 50 million tonnes based on the RC and Diamond drilling completed to date, Pilbara Minerals has updated its Exploration Target 1 for the Pilgangoora Project to million ppm Ta 2 O 5 and % Li 2 O (Table 2). 7

8 An Exploration Target is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource in compliance with the JORC Code and it is uncertain if further exploration will result in the estimation of a Mineral Resource as defined by the JORC Code. Table 2 Pilgangoora Tantalum-Lithium Exploration Target¹ on E45/2232 and M45/333 Exploration Target¹ Tonnes (Mt) Grade Li 2 O % Grade Ta 2 O 5 ppm Northern Area Central & Southern Area TOTAL Exploration Target¹: The potential quantities and grades are conceptual in nature and there has been insufficient exploration to date to define a Mineral Resource. It is not certain that further exploration will result in the determination of a Mineral Resource under the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, the JORC Code (JORC 2012). The Exploration Target is not being reported as part of any Mineral Resource or Ore Reserve. Reverse Circulation Drilling Subsequent to the end of the reporting period, Pilbara reported further strong results from the resource extension and in-fill drilling program at Pilgangoora, where drilling is continuing to return excellent results both within and outside of the current Mineral Resource inventory. Pilbara currently has three Reverse Circulation (RC) drill rigs on site with the aim of completing 11,000m of drilling by early December Since the resumption of drilling on 12 October, a further 41 holes have already been completed for a total of 4802m. Results have since been received for 15 Reverse Circulation (RC) drill holes and two diamond core holes. Exploration drilling at the Monster Prospect, an emerging satellite area located ~2km north of the Central and Western Pegmatites (where most of the current Mineral Resource inventory is located), has returned thick zones of continuous high-grade mineralisation from the first three drill holes. RC drilling in the Central Pegmatite system at Pilgangoora has also continued to intersect thick zones of high-grade mineralisation to a depth of 150m. This drilling is focused on improving the current resource categorisation from Inferred to Indicated by drilling selected zones of the resource on a 50m by 50m infill pattern. This latest phase of RC drilling has focused on extensions to the known mineralisation within the Central Pegmatite and at the Monster and South End Prospects. As a result of the success of the first three RC holes at the Monster Prospect, a further nine holes for 635m are planned in this area to assist with resource definition. Three significant intersections have been returned so far at Monster, namely: 1.53% Li 2 O and 143ppm Ta 2 O 5 from 4m down-hole (PLS282); 1.54% Li 2 O and 151ppm Ta 2 O 5 from 25m down-hole (PLS283); and 2.58% Li 2 O and 231ppm Ta 2 O 5 from 7m down-hole (PLS286). If the lower cut of the last intersection is changed to >100ppm Ta 2 O 5, the resulting interval is 205ppm Ta 2 O 5 and 1.46% Li 2 O from 4m. At the Southern Prospect, a single hole was completed (PLS145) which returned a significant width of near-surface pegmatite from surface to a depth of 32m down-hole. This intersection is pervasively 8

9 mineralised with intermittent higher grade intervals (for full results see the Company s ASX Announcement dated 23 October 2015). This area has been recommended for follow-up and a further five RC holes have already been completed. In the Central Pegmatite area, RC drilling has been successful in identifying several shallow-dipping pegmatites located in the area between mN and mN which is west of the Western Pegmatite system. Previous drilling along sections mN and mN returned excellent results from two shallow-dipping pegmatites (drill-holes PLS212 to PLS216 and PLS231 to PLS232, the results of which were reported previously). New results received from drill hole PLS338, located a further 50m west of this earlier drilling, returned two thick intersections: 1.75% Li 2 O from 86m; and 1.76% Li 2 O from 136m. This pegmatite system remains open down dip and to the north and west. New drilling is proposed on sections mN, mN, mN and mN (See Figure 4). A total of 59 holes are planned for a further 7900m of drilling in the Western and Central Pegmatite system to bring the drill spacing to 50m by 50m. In-fill drilling (PLS185 to PLS191A, drilled on a 50m by 50m spacing) has also now been completed on section mN with significant intersections received. PLS186 returned a near-surface result of 1.50% Li 2 O from 1m down-hole. Pegmatites were intersected in every hole along a 350m cross-section through to PLS191A, confirming the continuity and shallow-dipping nature of the Central Pegmatites (see Figure 4). Full intersections and assays are provided in the Company s ASX Announcement dated 23 October Drilling and exploration activities underway at Pilgangoora 9

10 Figure 3: 1:5000 scale, RC drill collars at The Monster Pegmatite, EL45/

11 Figure 4: 1:5000 scale, RC drill collars at the Western and Central Pegmatites, EL45/

12 Product Off-take During the Quarter, Pilbara progressed the development of a global sales network for the Pilgangoora Project after signing six separate non-binding agreements with prospective off-take partners and exclusive distributors in North and South America, Europe, China, Japan and South Korea for the future sale of low-iron spodumene concentrate. These are the largest consuming regions for the high-quality, premier grade of spodumene that Pilbara anticipates being able to produce and supply from Pilgangoora. The agreements include an Exclusive Distribution Agreement (EDA) and non-binding Memorandum of Understanding (MOU) for the future sale of approximately 25% of Pilgangoora s output of low-iron spodumene concentrate signed with SFM, a significant Chinese industrial group that has the know-how and capabilities to upgrade lithium concentrates to specification for the glass and ceramic industries in China. SFM is highly regarded and well known in the Chinese glass/ceramics market. Pilbara supplied a one tonne bulk sample of Pilgangoora spodumene, derived from representative drillhole samples, to SFM earlier this year. SFM has recently completed its analysis and metallurgical testing of the bulk sample and confirmed that the spodumene can be readily upgraded to very high grade specifications for their customers. Pilbara intends to complete the upgrading/concentrating process on site at Pilgangoora, and will then supply the upgraded product to end-users through SFM in China. In addition to the above, Pilbara has also signed four MOU s with Chinese lithium chemical producers for Pilgangoora chemical grade spodumene concentrate. These initial strategic agreements demonstrate the high level of early-stage interest from customers and potential off-take partners in the Pilgangoora Project. The strong and diverse portfolio of Tier One customers and end-users puts the Company in a very strong position as it commences financing discussions for Pilgangoora, as several of the prospective off-take partners have expressed interest in participating in the project as equity partners and/or financiers. Pilbara will now work to convert these MOU s into binding agreements over the coming months. Feasibility Study During the Quarter, Pilbara completed initial sighter metallurgical test work on a section of drill core from the Eastern Pegamatites. The test work shows that the ore responds to traditional processing methods, tantalum by gravity, and spodumene recovery by Heavy Media Separation (HMS) and flotation. Pilbara currently has a total of eight diamond holes in the Pilgangoora resource for the metallurgical test work program, a further two holes are planned to be drilled in the Central Zone in the December Quarter which will then provide sufficient sample for testing of the different ore domains in the Pilgangoora resource. 12

13 A comprehensive metallurgical test work program is currently being designed in order to satisfy the requirements for the Feasibility Study in delivering the flow sheet and process plant design. This test work program will be commenced in November. A Concept Study is currently in progress and nearing completion on evaluating development options on the Pilgangoora Project, which will then provide direction for the Feasibility Study. Planning for the Feasibility Study has commenced by scoping the work required, identifying and engaging with consultant groups that can undertake and deliver the relevant disciplines of the Study in a cost effective and expeditious manner. It is envisaged to commission the relevant groups for the Study during November. Lithium Market Global lithium prices saw continued strong growth over the September Quarter, with news of an imminent 15 per cent rise from some of the sector s biggest global participants. North American agricultural, industrial and consumer products giant FMC Corporation announced a 15 per cent increase in prices for its lithium products in all global regions, effective from 1 October. FMC said in its statement: All products including lithium carbonate, lithium chloride, lithium hydroxide and all other products except speciality organics will increase by 15 percent. Continued market growth is outpacing current industry supply capabilities for most of our product lines. Price increases are necessary to reinvest in our global manufacturing facilities and continue reliable supply of high-quality products. In addition, NYSE-listed speciality chemicals and lithium company Albermarle Corporation revealed that it planned to add up to 50,000 metric tonnes of mineral conversion production capacity to significantly boost battery grade lithium production to meet the growing needs of the energy storage market, in particular for customers in the global transportation industry utilising lithium-ion battery technology. Albermarle stated: Albermarle recognises the significant energy storage movement globally and views this plan as the logical next step in our continued support of leading companies in the transportation, consumer devices and renewable energy industries. The new plant announced by Albermarle will source spodumene ore from the company s joint venture at Greenbushes in Australia. Albermarle, through its subsidiary Rookwood, owns 49 per cent of the world-class Greenbushes mine, with the new lithium hydroxide plant in the US requiring around 400,000tpa of spodumene ore. This suggests that all of Greenbushes production capacity will be committed to Albermarle and Tianqui s lithium hydroxide plants, which is expected to create a significant opportunity for new suppliers such as the Pilgangoora Project - coming into the market. Citi Research, a division of Citigroup Global Markets, has recently published a Lithium Commodity Report predicting that global lithium prices will reach US$7,000 per tonne in 2017 (currently US$5,900 per tonne), with the metal s strong demand profile ensuring prices remain at a nominal US$6,000 per tonne for the rest of the decade. 13

14 WEST PILBARA JV (PLS 60%, FXR 40% FARMING-IN) See Fox Resources Limited Quarterly Report (ASX: FXR) for work completed in the Quarter. CORPORATE Capital Raising During the Quarter, Pilbara Minerals completed a placement of securities to raise $2.5 million (before costs). The placement was made to institutional and professional investors via the issue of 22,727,274 Ordinary Shares at 11 cents per share, with 3 attaching options (with a strike price of $0.15 per option with a term of two years from date of issue) for every four shares issued (17,045,456 options). The placement of the Ordinary Shares was made under the Company s existing placement capacity under Listing Rule 7.1. The options are to be considered for approval by shareholders at the Company s forthcoming Annual General Meeting to be held in Perth on 30 November The funds raised from this placement will be used for the expanded exploration program at Pilgangoora, the acquisition of the Joint Venture interest in the Tabba Tabba project, as well as general working capital. Convertible Notes On 2 September 2015, the Company issued the second tranche of secured Convertible Notes, with a face value of $4,000,000. These notes have an expiry date of 2 March Interest of 15% is payable quarterly in arrears. During the quarter, Convertible Notes from the issues made in 2014 were converted by holders giving rise to the issue of 5,210,877 ordinary shares. Convertible Notes with a face value of $13,550 were paid out on their expiry on 25 September Option Issues On 2 September 2015, the Company issued 50,000,000 unlisted options with an expiry date of 2 March 2017 and an exercise price of $0.05 to the convertible note holders as well as an additional 6,400,000 additional options of this class in satisfaction of capital raising fees. On 22 September 2015, the Company issued 29,500,000 unlisted options to directors, consultants and staff. These options have an expiry date of 22 March 2017 at an exercise price of $0.10. Option Exercise During the Quarter option holders in the Company exercised a total of 11,619,800 options with proceeds of $580,950 being received. 14

15 Appointment of Director Mr John Young has been appointed as an Executive Director of the Company. John has been the Company s Exploration Manager since June 2014 and an alternate Director for Neil Biddle since July Mr Young is a highly experienced geologist having been engaged on exploration and production projects encompassing gold, uranium and specialty metals. From 2002 to 2006 John was Exploration Manager for Haddington Resources Limited and was responsible for resource exploration and resource definition for their Bald Hill Tantalum mine. His corporate experience has included appointments as CEO of Marenica Energy Limited and CEO and director of Thor Mining PLC. John has been responsible for exploration and evaluation for both the Tabba Tabba and Pilgangoora projects since their acquisition by the Company and his skills and experience will be invaluable to the board as the Company moves into production at Tabba Tabba and further develops its world class Pilgangoora Lithium/Tantalum project. Cash Balance The Company had a cash balance of $5,107,000 as at 30 September Matters Subsequent to Quarter end The Company continues to receive funds from the exercise of its unlisted options. From 1 October 2015 to the date of this report, the company has received a further $1,184,610 from option holders. 15

16 LISTING RULE INFORMATION Project Location Tenements Beneficial Interest Notes Change in the Quarter Pilgangoora Western Australia E45/ % None Pilgangoora Western Australia E45/ % None Pilgangoora Western Australia M45/ % None PIlgangoora Western Australia M45/78 100% None Pilgangoora Western Australia M45/ % None Pinnacle Hill Western Australia E45/ % None Fox Resources JV Western Australia E47/ % JV None Fox Resources JV Western Australia E47/ % JV None Fox Resources JV Western Australia E47/ % JV None Fox Resources JV Western Australia E47/ % JV None Fox Resources JV Western Australia E47/ % JV None Fox Resources JV Western Australia E47/ % JV None Competent Person s Statement The company confirms it is not aware of any new information or data that materially affects the information included in the January 19 th, 2015 Tabba Tabba Mineral Resource Estimate and that all material assumptions and technical parameters underpinning the estimate continue to apply and have not materially changed when referring to its updated resource announcement made on 19 th January. The company confirms it is not aware of any new information or data that materially affects the information included in the October 13 th, 2015 Pilgangoora Mineral Resource Estimate and that all material assumptions and technical parameters underpinning the estimate continue to apply and have not materially changed when referring to its maiden resource announcement made on 9 th March. The information in this report that relates to Exploration Results and Exploration Targets is based on and fairly represents information and supporting documentation prepared by Mr John Young (Executive Director of Pilbara Minerals Limited). Mr Young is a shareholder of Pilbara Minerals. Mr Young is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience of relevance to the styles of mineralisation and types of deposits under consideration, and to the activities undertaken to qualify as Competent Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Specifically, Mr Young consents to the inclusion in this report of the matters based on his information in the form and context in which they appear. 16

17 Appendix 1 Total Drilling 1 July 2015 to 28 October 2015 HOLE ID NORTHING EASTING RL DIP AZM DEPTH PLS PLS001A PLS PLS PLS PLS PLS PLS006A PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS114M PLS114M-A PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS142A PLS PLS PLS PLS PLS PLS PLS

18 HOLE ID NORTHING EASTING RL DIP AZM DEPTH PLS PLS PLS PLS PLS191A PLS PLS PLS PLS197M PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS216A PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS

19 HOLE ID NORTHING EASTING RL DIP AZM DEPTH PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS269M PLS270M PLS PLS272M PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS303M PLS PLS PLS306M PLS PLS PLS PLS PLS PLS Page 19

20 HOLE ID NORTHING EASTING RL DIP AZM DEPTH PLS PLS PLS PLS PLS PLS337M PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS PLS Page 20

21 Table1: Drilling Intersections 2015 (>1% Li 2 O) Hole Id From (m) To (m) Thickness (m) Li 2 O (%) Ta 2 O 5 (ppm) PLS PLS PLS PLS PLS PLS Table 2: Drilling Intersections (>100ppm Ta 2 O 5 ) Hole Id From (m) To (m) Thickness (m) Ta 2 O 5 Li 2 O (%) PLS PLS PLS PLS PLS PLS Page 21

22 JORC Code, 2012 Edition Table 1 report Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary Sampling techniques Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Pilbara Minerals Limited (PLS) have completed to 23 drill hole RC program totalling 2184m Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where industry standard work has been done this would be relatively simple (e.g. reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay ). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. PLS RC holes were sampled every metre, with samples split on the rig using a cyclone splitter. The sampling system consisted of a rig mounted cyclone with cone splitter and dust suppression system. The cyclone splitter was configured to split the cuttings at 85% to waste (to be captured in 600mm x 900mm green plastic mining bags) and 15% to the sample port in drawstring calico sample bags (10-inch by 14-inch). PLS holes were all RC, with samples split at the rig, samples are then sent to NAGROM Perth laboratory and analysed for a suite of 18 elements. Analysis was completed by XRF and ICP techniques. Drilling techniques Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). Drilling was completed by an track mounted Schramm T450 with an automated rod-handler system and on-board compressor rated to 1,350cfm/800psi. Drilling used a reverse circulation face sampling hammer. The sampling system consisted of a rig mounted cyclone with cone splitter Page 22

23 Criteria JORC Code explanation Commentary Drill sample recovery Method of recording and assessing core and chip sample recoveries and results assessed. and dust suppression system. Sample recovery was recorded as good for RC holes. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Whilst drilling through the pegmatite, rods were flushed with air after each 6 metre interval. Samples were dry and recoveries are noted as good. Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. 1m samples were laid out in lines of 20 or 30 samples with cuttings collected and geologically logged for each interval and stored in 20 compartment plastic rock-chip trays with hole numbers and depth intervals marked (one compartment per 1m). Geological logging information was recorded directly onto hard copy logging sheets and later transferred an Excel spreadsheet. The rock-chip trays are to be stored in PLS Perth office.. Logging has primarily been quantitative. The total length and percentage of the relevant intersections logged. The database contains lithological data for all holes in the database. Subsampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. RC samples were generally dry and split at the rig using a cyclone splitter, which is appropriate and industry standard. PLS samples have field duplicates, field standards and blanks as well as laboratory splits and repeats. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Field duplicates were taken approximately every 20m, and standards and blanks every 50 samples. Page 23

24 Criteria JORC Code explanation Commentary Quality of assay data and laboratory tests Whether sample sizes are appropriate to the grain size of the material being sampled. The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. Drilling sample sizes are considered to be appropriate to correctly represent the tantalum and lithium mineralization at PIlgangoora based on the style of mineralization (pegmatite) and the thickness and consistency of mineralization. PLS samples were assayed at NAGROM Pty Ltd s Laboratory in Perth WA, for a 18 element suite using XRF on fused beads, and total acid digestion with an ICP finish. Verification of sampling and assaying For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. No geophysical tools were used to determine any element concentrations used in this resource estimate. PLS duplicates of the samples were taken at twenty metre intervals with blanks and standards inserted every 50m. Comparison of duplicates by using a scatter chart to compare results show the expected strong linear relationship reflecting the strong repeatability of the sampling and analysis process. The PLS drilling contains QC samples (field duplicates, blanks and standards plus laboratory pulp splits, and NAGROM internal standards), and have produced results deemed acceptable. Infill drilling completed by PLS in this program has confirmed the approximate width and grade of historical drilling. No use of twins Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. An electronic database containing collars, surveys, assays and geology is maintained by Trepanier Pty Ltd, an Independent Geological consultancy. Location of Discuss any adjustment to assay data. Li was converted to Li 2 O for the purpose of reporting. The conversion used was Li 2 O = Li x 1.6 Accuracy and quality of surveys used to locate drill holes (collar and PLS holes were surveyed using DGPS in GDA94, Zone 50. down-hole surveys), trenches, mine workings and other locations Down hole surveying of drill holes was conducted using a Reflex EZ-shot, Page 24

25 Criteria JORC Code explanation Commentary data points used in Mineral Resource estimation. electronic single shot camera to determine the true dip and azimuth of each hole. Measurements were recorded at the bottom of each hole. Drill hole collar locations will be surveyed at the end of the program by a differential GPS (DGPS). Specification of the grid system used. The grid used was MGA (GDA94, Zone 50) Quality and adequacy of topographic control. The topographic surface used was supplied by GAM Data spacing and distribution Data spacing for reporting of Exploration Results. Drilling spacings varied between 50m to 200m apart Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. No compositing The interpretation of the mineralised domains are supported by a moderate drill spacing, plus both geological zones and assay grades can be interpreted with confidence. Orientation of data in relation to geological structure Sample security Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. The measures taken to ensure sample security. The mineralisation dips approximately degrees at a dip direction of 090 degrees The drilling orientation and the intersection angles are deemed appropriate. No orientation-based sampling bias has been identified. Chain of custody for PLS holes were managed by PLS personnel. Page 25

26 Criteria JORC Code explanation Commentary Audits or reviews The results of any audits or reviews of sampling techniques and data. Sampling techniques for historical assays have not been audited. The collar and assay data have been reviewed by checking all of the data in the digital database against hard copy logs. All PLS assays were sourced directly from the NAGROM laboratory Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Commentary Mineral tenement and land tenure status Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites PLS owns 100% of tenement E45/2232 The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. No known impediments. Exploration done by other parties Acknowledgment and appraisal of exploration by other parties. Talison completed RC holes in 2008 GAM completed RC holes between 2010 and Geology Deposit type, geological setting and style of mineralisation. The Pilgangoora pegmatites are part of the later stages of intrusion of Archaean granitic batholiths into Archaean metagabbros and metavolcanics. Tantalum mineralisation occurs in zoned pegmatites that have intruded a sheared metagabbro. Drill hole Information A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes, including easting and northing of the drill hole collar, elevation or RL (Reduced Level elevation above sea level in metres) of the drill hole collar, dip and azimuth of the hole, down hole length and interception depth plus hole length. If the exclusion of this information is justified on the basis that the Refer to Appendix 1 this announcement. Page 26

27 Criteria JORC Code explanation Commentary Data aggregation methods Relationship between mineralisatio n widths and intercept lengths Diagrams Balanced reporting Other substantive exploration data information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg down hole length, true width not known ). Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. Length weighed averages used for exploration results reported in Table 1 and 2. Cutting of high grades was not applied in the reporting of intercepts in Table 1 and 2 No metal equivalent values are used. Downhole lengths are reported in Table 1 and 2 See Figures 1 Comprehensive reporting of drill details has been provided in Appendix 1 of this announcement. Bulk sampling has been completed by PLS personnel with collection of 3482kg of RC drill chips. Preliminary Metallurgical results from Nagrom have been reported and testwork is on-going. Initial work reported involves establishing the recovery of Ta2O5 by simple crushing, grinding and wet tabling and of three size fractions to produce concentrates, various concentrates will be Page 27