Mr. Mark Saxon of Tasman Metals reports

TASMAN AND FLINDERS SIGN DEFINITIVE ARRANGEMENT AGREEMENT

Tasman Metals Ltd. and Flinders Resources Ltd., further to the news release dated May 11, 2016, have signed a definitive arrangement agreement whereby Flinders will acquire through a statutory plan of arrangement all of the outstanding shares of Tasman. Under the terms of the arrangement, Tasman shareholders will receive 0.5 of a Flinders common share for each Tasman share.

Holders of outstanding stock options, warrants and compensation options exercisable to acquire Tasman shares will be entitled to receive, upon exercise of such securities, for the same aggregate consideration, 0.5 of a Flinders share in lieu of each Tasman share otherwise issuable.

Upon completion of the arrangement, the current management team of Flinders will manage the affairs of the resulting issuer.

The agreement, which will be available shortly on SEDAR under each of Flinders's and Tasman's profiles, contains customary representations, warranties and covenants by each party.

The arrangement is subject to a number of customary closing conditions, including, but not limited to, receipt of all court and regulatory approvals, as well as approval by the shareholders of Tasman.

It is anticipated that Tasman will hold a special meeting of shareholders on Aug. 10, 2016, to consider the arrangement. An information circular containing detailed disclosure on the arrangement will be mailed to Tasman shareholders shortly, and will be available on Tasman's website and under Tasman's profile on SEDAR.

The arrangement will require the approval of 66-2/3rds per cent of the votes cast on the arrangement resolution by Tasman shareholders present in person or by proxy at the Tasman meeting voting as a single class, together with minority approval in accordance with Multilateral Instrument 61-101, protection of minority security holders in special transactions.

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