Bauxite Resources Limited circulates Annual Report 2015 among shareholders

Bauxite Resources Limited published its Annual Report 2015. During the year the company focused on trying to resolve the current impasse on the development of the Felicitas deposit with its joint venture partner Yankuang Resources Pty Ltd. At the same time the company took a staged approach to the evaluation of the 100% Bauxite Resources Ltd Fortuna project.

This approach included the undertaking of scoping and environmental baseline studies on the Fortuna project and evaluation of the development constraints on the logistics of exporting bauxite from the project.

Achievements during the year include:

• Moderate resource growth of 4%;
• Completion of Scoping and Environmental Baseline studies on the Fortuna Deposit;
• Reduction of non-prospective tenement holdings reducing total tenure from 8,301km2 to 5,841km2 thus reducing the expenditure commitments of the company; and
• Successful cash conservation strategy achieved a cash balance at end of year of $22.9 million

Despite the company's efforts to encourage Yankuang to approve the commencement of the Refinery Bankable Feasibility Study (BFS) for the Felicitas project, the Bauxite Alumina Joint Venture ("BAJV") has not commenced this next stage in development and as a result the company issued dispute notices to Yankuang. At this time the parties are in a mediation process as required by the joint venture agreements. No resolution has been achieved at the time of this report however the parties are still in negotiations on a potential resolution of this dispute.