Sandy Ridge – Maiden JORC Exploration Target Estimate

Key points:

• Tellus is pleased to announce the receipt of a JORC compliant exploration target1 estimate for its Sandy Ridge Kaolin Project, Western Australia
• Tellus’ 100% owned 59km2 Sandy Ridge tenement adjacent to a known thick kaolin bed
• The initial exploration target estimate is 179 -512 million tonnes kaolinite and covers 16 km2 (27%) of lease
• The exploration target was prepared by Terra Search Pty Ltd
• Kaolin is an industrial mineral used in paints, paper coatings, polymer industries and ceramics

Tellus Holdings Ltd (Tellus) is pleased to announce a JORC compliant exploration target estimate for its Western Australian (WA) Sandy Ridge Kaolin Project.

Tellus’ 100% owned E16/440 in WA covering an area of 59.3km2. The exploration target area covers 16km2 or approximately 27% of total lease area.

Tellus evaluated publically available historic Rotary Air Blast (RAB) drill hole data. Ten drill holes are located within the Tellus tenement boundary. Of these, nine drill holes were used to estimate an exploration target estimate for kaolinite.

Interpretation of lithological logs indicate the kaolinite horizon occurs as a coherent unit with logged thickness of 7m to 36.5m with an average thickness of approximately 20m. Using the minimum and average thickness of kaolinite horizon and a kaolin bulk density of 1.6, the tonnage estimates for kaolinite over the 16km2 grid area range from 179 to 512 million tonnes.

Table 1: Kaolinite Exploration Target1 Estimate for E16/440 Sandy Ridge Project

“Further infill drilling is required to allow confirmation of thickness, coherence and extent of the kaolinite horizon. Tellus is working with Terra Search Pty Ltd to develop an exploration drill program to test the target area, with drilling planned for Q1 2014” Mr Duncan van der Merwe said. Terra Search has extensive experience in resource characterisation and preparation of JORC compliant Technical Reports.

Proximate statement

The Exploration Target is conceptual in nature as there has been insufficient exploration to define a Mineral Resource. It is uncertain if 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.

Competent person statement

The information in this report that relates to exploration results is based on information reviewed by Dr. Simon D. Beams, a full time employee of Terra Search Pty Ltd, geological consultants employed by Tellus Holdings Limited. Exploration results and information have been compiled and interpreted by Terra Search’s team of professional geoscientists, all of which have the relevant experience to carry out their assigned tasks. Dr. Beams has BSc Honours and PhD degrees in geology; he is a Member of the Australasian Institute of Mining and Metallurgy (Member #107121) and a Member of the Australian Institute of Geoscientists (Member # 2689).

Dr Beams has sufficient relevant experience in respect of the style of mineralization, the type of deposit under consideration and the activity being undertaken to qualify as a Competent Person within the definition of the 2012 Edition of the AusIMM’s “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.

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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