Australian Bauxite Ltd: 2nd Milestone Achieved. ALCORE Lab Lock-Up Stage Completed

Sydney, Australia - Australian Bauxite Ltd. (ASX:ABX)(FRA:A7B) (ABx)'s wholly-owned subsidiary, ALCORE Limited has acquired the equipment needed to produce test samples of key products and constructed the Stage 1 Core Laboratory to lock-up stage, thus staying ahead of schedule and within budget.

An Open Day for seed investors was held last Wednesday 28 November. A video of construction made by members of the ALCORE team showing development of of the Lab can be seen at Australianbauxite.com.au/Interviews&News.htm and photos below show some images from the Open Day.

- ALCORE's patent (pending) application technology is designed to refine raw bauxite to produce Aluminium Fluoride (AlF3) and other valuable co-products including the Corethane gas-substitute - see Figures 1 & 2. AlF3 is a key electrolyte ingredient in aluminium production by aluminium smelters.

- Global demand for AlF3 and associated co-products continues to increase as aluminium smelter production increases and the use of AlF3 in lithium ion batteries increases.

- Site construction and design for Stage 1 of the ALCORE project commenced on 1 July as planned at ALCORE's pre-approved Pilot Plant site in Berkeley Vale, Central Coast NSW.

- Stage 1 is designed to produce AlF3 test samples for pre-qualified aluminium smelter customers & then produce Corethane, which is pure hydrocarbon powder refined from low-value coals.

- Corethane has been used to provide thermal and electrical power. It has been used as a gas-substitute to fuel a large gas turbine for 14 months and achieve accreditation as a turbine fuel to generate electricity, with very low CO2 emissions similar to natural gas.

- Corethane has also been used as a diesel substitute for fuel security purposes and is ideally suited for use as a sulphur-free bunker fuel.

- Corethane also has industrial applications and several potential customers have already requested test samples for their industrial plants.

- Graphite refining to a very high purity for use in high-efficiency batteries will also be tested.

- Discussions continue with governments, agencies and major companies in the aluminium industry.

ABx CEO, Ian Levy commented: "ABxs subsidiary ALCORE is sufficiently funded to deliver Stage 1 of the ALCORE project, thanks to strong support from seed capital investors. ALCORE's powerful new bauxite refining technology can lead to Australia's first production of AlF3 products to provide security of supply for Australasian aluminium smelters. ALCORE's production of Corethane hydrocarbon can change the energy supply and fuel security outlook for eastern Australia"

ALCORE Limited is expected to unlock considerable value for shareholders in the short and medium term."
Achieving another milestone ahead of schedule has taken an extreme effort by many ALCORE staff, which has given us the confidence to overcome any unexpected obstacles that may arise."

"ABx is also pressing ahead with its three core bauxite projects; the Tasmanian mine, the large Binjour Project in central QLD and the Penrose refractory bauxite project 90km inland of Port Kembla NSW.

Planning is underway for trial mining and processing testwork at the Binjour Project."

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About Australian Bauxite Ltd:

Australian Bauxite Ltd. (ABx) (ASX:ABX) has its first bauxite mine in Tasmania and holds the core of the Eastern Australian Bauxite Province. ABx's 22 bauxite tenements in Queensland, New South Wales & Tasmania exceed 1,975 km2 and were selected for (1) good quality bauxite; (2) near infrastructure connected to export ports; & (3) free of socio-environmental constraints. All tenements are 100% owned, unencumbered & free of third-party royalties. ABx's discovery rate is increasing as knowledge, technology & expertise grows.

The Company's bauxite is high quality gibbsite trihydrate (THA) bauxite that can be processed into alumina at low temperature.

ABx has declared large Mineral Resources at Inverell & Guyra in northern NSW, Taralga in southern NSW, Binjour in central QLD & in Tasmania, confirming that ABx has discovered significant bauxite deposits including some of outstandingly high quality.

At Bald Hill near Campbell Town, Tasmania, the Company's first bauxite mine commenced operations in December 2014 – the first new Australian bauxite mine for more than 35 years. ABx has created significant bauxite developments in 3 states - Queensland, New South Wales and Tasmania. Its bauxite deposits are favourably located for direct shipping of bauxite to both local and export customers.

ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it. We only operate where welcomed.

Source:

Australian Bauxite Ltd.

Contact:

Ian Levy CEO and MD Australian Bauxite Ltd. Telephone: +61-2-9251-7177 Mobile: +61-407-189-122