Australian Bauxite Ltd: 3rd Milestone Achieved ALCORE and Testwork Commenced

Sydney, Australia - Australian Bauxite Ltd.'s (ASX:ABX)(FRA:A7B) wholly-owned subsidiary, ALCORE Limited has commenced the chemical refining of ABx bauxite into aluminium fluoride (AlF3), commencing with removal of silicon and iron oxides to create a clear solution containing the aluminium fluoride that will be produced by a crystalliser-still stage in coming days.

This milestone was achieved successfully last week at the ALCORE Research Centre in Berkeley Vale, Central Coast NSW - next focus on designing the optimum blend of bauxite and reagents for the ALCORE mini-production plant

- Construction of the sophisticated mini-production plant was completed over the last 4 months

- ALCORE's patent (pending) application technology is designed to refine raw bauxite to produce Aluminium Fluoride (AlF3) and valuable co-products. AlF3 is an essential electrolyte ingredient in aluminium smelters

- Global demand for AlF3 is increasing strongly as aluminium smelter production increases and the use of AlF3 in lithium ion batteries increases

- Co-products include Corethane, which is pure hydrocarbon powder refined from low-value coals that can be a gas or diesel substitute and has many industrial applications

- Corethane has been used as a diesel substitute for fuel security purposes and is ideally suited for use as a sulphur-free bunker fuel for shipping under new strict emissions laws

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

ABx CEO, Ian Levy commented: "The ALCORE Research Centre has created a laboratory with the highest standards of safety, equipment and technology. At the same time, the ALCORE team designed and constructed the ALCORE mini-production plant which will be our 4th milestone over the next few weeks. The mini-production plant will supply test samples to our three prospective customers.

"I have never seen a more powerful reagent for dissolving rocks - our 4mm sized bauxite was reduced to iron-dust and a clear liquor within a few minutes. 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.

"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. Bulk sampling and processing testwork at the Binjour Project was completed last week and assays are pending."

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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