Australian Vanadium PortfolioDirect Rating Update

Australian Vanadium (formerly Yellow Rock Resources) Limited, developing the Gabanintha vanadium deposit in Western Australia, has been classified as a late stage Phase I company and rated ‘3’ on the five point PortfolioDirect rating scale where a ‘5’ is the highest rating on the risk adjusted quality scale. Recent testing has shown fresh, transitional and oxide ore at Gabanintha displaying favourable metallurgical characteristics across a range of grind sizes (ASX 7 December 2015). The company also reported sufficiently high titanium recovery rates to warrant consideration of a titanium revenue stream. The test results and a revised resource estimate are consistent with prior PortfolioDirect expectations about what will drive investment returns. Despite the company being in one of the riskiest phases of its development cycle, it has received a rating which indicates a better than usual chance of proceeding to development. The company offers medium term value appreciation from successful project development. It may also contribute to portfolio commodity diversification and offers otherwise hard to find exposure to technological changes affecting global energy markets through development of vanadium redox storage batteries.