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29 January 2021 TAO COMMODITIES LTD ASX RELEASE DECEMBER 2020 QUARTERLY ACTIVITES REPORT Tao Commodities Limited ( “ TAO " or " the Company ” ) ( ASX : TAO ) is pleased to provide its December 2020 quarterly activities report . Highlights during and subsequent to the quarter were : • • • . • • • Completed the acquisition of a 100 % interest in the Titan Project ( " Project " ) comprising titanium and zircon prospective heavy mineral sands ( “ HMS ” ) properties in Tennessee , United States ; Increased the Company's land position at the Titan Project by more than 80 % to approximately 3,900 acres , adding to a large and contiguous package of surface and mineral rights ; Completed a maiden Phase 1 drilling program at the Titan Project which confirmed thick , high grade mineralisation in all 15 drill holes ; Thick zones of high - grade Total Heavy Mineral ( " THM ” ) returned near surface in all holes , including : ○ 47.2m @ 3.69 % THM including 10.7m @ 8.09 % THM and 10.7m @ 5.47 % THM ; ○ 35.1m @ 3.04 % THM including 10.7m @ 8.16 % THM ; and о 32.0m @ 3.12 % THM including 10.7m @ 5.64 % THM ; Preliminary analysis of Valuable Heavy Minerals ( " VHM " ) ( which ranges from 42 % to 76 % of THM across the selected drill holes ) indicates a highly valuable average mineral assemblage of the VHM portion consisting of : 16.9 % Rutile , 14.5 % Zircon , 21.6 % Leucoxene , 46.0 % other high - titanium minerals and 1.8 % Monazite ; The results highlight the potential for a world scale , high - grade HMS deposit in an infrastructure rich region , with the Company focused on rapidly moving towards defining a maiden JORC mineral resource estimate and completing a Scoping Study in Q2 2021 ; Completed a Phase 2 drilling program on the Titan Project comprising 10 drill holes with assay results due to be released during Q1 2021 ; Commenced a Phase 3 drilling program on the Titan Project to include infill drilling and bulk sampling for resource delineation and exploration drilling ; Completed a Phase 2 soil sampling at the Milford Project in Utah , United States , extending geochemical anomalies along interpreted mineralised trends ; • Subsequent to quarter end , appointed experienced mining company executive , Mr. Todd Hannigan , as Non - Executive Chairman of the Company ; and Subsequent to quarter end , announced a placement to raise A $ 3.6 million to accelerate the development of the Titan Project . Mr. Hannigan subscribed for A $ 1.0 million in the placement . Tao Commodities Limited | ABN : 84 618 935 372 | +61 8 9322 6322 Level 9 , 28 The Esplanade , Perth WA 6000 | enquiry@taocommodities.com.au 1