Successful Trade Delegation to Japan

Key points:

• Tellus accompanies Northern Territory Government on trade delegation to Japan
• Tellus presented updated project drilling and bulk commodity grade results
• Tellus received expressions of interest for salt and kaolin bulk commodity off-take
• Tellus agrees roadmap with bulk commodity buyers to get to binding agreements

Tellus Holdings Ltd (Tellus) executives have just completed another successful trade and investment trip to Japan with the Northern Territory Government. The trip was led by the Minister for Mines and Energy, Willem Westra van Holthe MLA. For further information please refer to http://newsroom.nt.gov.au/mediaRelease/9408.

The primary purpose of the trip for Tellus was to present updated project drilling and bulk commodity grade results from our recent field programs for our Chandler and Sandy Ridge projects and to visit a Japanese port that receives salt imports.

“Based on our new results, Tellus is delighted that we have received new or continuing expressions of interest for salt and kaolin bulk commodity off-take from major parties,” Tellus Holdings’ Managing Director Mr Duncan van Der Merwe said.

“A roadmap has been agreed with these potential buyers to get to binding agreements and Tellus looks forward to developing long term stable relationships,” Mr van der Merwe added.

Tellus executives also visited a Japanese port that receives salt imports and other bulk commodities.

”It is ports like this that we look forward to delivering Chandler projects edible and industrial salt,” Mr van der Merwe added.

Japanese domestic production of salt meets just 10-15% of domestic demand. Salt consumption in the chemicals sector is high, but there are no indigenous rock salt or salt lake deposits and solar salt production is not viable because of the lack of available coastline and unsuitable climatic conditions. As a result, Japan is the second-largest importer of salt worldwide.

The chemicals industry accounts for 80% of Japanese salt consumption. Table salt and salt for food processing account for 20% of Japanese consumption.

Japanese trading houses also trade extensively with the Chinese buyers. Demand is growing but over the last few years supply is shrinking at approximately one million tonnes per year.

According to statements by senior Northern Territory (NT) Government officials during the trade delegation:

• Japan remains a very important investor in the Territory’s resources industry
• The NT government:
  • is proud of its strong links with Japan, including relationships with key Government organisations and trading houses
  • has a dedicated strategy to proactively seek Japanese investment, including undertaking regular trade delegations to Japan
  • will continue to welcome Japanese investment and do what it can to support Japanese investors
• Securing investment for local projects is a critical element of growing the mining and exploration sector in the Territory.

Tellus would like to thank the Northern Territory Government for their support through the NT Government’s Trade Support Scheme and facilitating discussions with Japanese buyers, potential investors and key stakeholders.

Tellus Holdings Ltd (“Tellus”) is an Australian project development company. Tellus’ flagship projects are a proposed underground rock salt mine with a complementary backfill business supporting the resource sector in the Northern Territory and a proposed kaolin mine with a complementary backfill business supporting the resource sector in the Western Australia. The commodity business involves the sales of edible and industrial salt and kaolin to Asia. The proposed complementary backfill business involves the safe recycle, recovery, storage and disposal in voids created by mining – as is common in the UK and EU, the USA and Canada.

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