TIANSHAN GOLDFIELDS LIMITED

Tianshan Goldfields and Corvette Resources have agreed in principle to merge via a Scheme of Arrangement. The parties will work towards the preparation and execution of a formalised merger implementation agreement to fully document the terms of the Scheme. It is proposed that, under the Scheme, Tianshan will acquire all of the issued shares in Corvette in exchange for the issue of shares in Tianshan. The consideration for the Scheme will be two (2) Tianshan shares for every one (1) Corvette share held on the implementation date of the Scheme. The boards of Tianshan and Corvette have unanimously agreed on the consideration for the Scheme and believe the merger represents an opportunity to create a new entity better positioned for growth than either company on a standalone basis. Upon implementation of the Scheme the merged entity will have a market capitalisation of approximately A$60M.