January 29, 2018 Lake Victoria Gold

TEMBO GOLD Provides Update

TORONTO, ONTARIO — January 29 ,2018 — Tembo Gold Corp. (“Tembo” or the “Company”) (TSX

VENTURE:TEM) (FRANKFURT:T23) (OTCQX:TBGPF) – David Scott, President & CEO, provides this update on the progress and developments of Tembo Gold Corp. and provides information on the Company’s strategy for 2018 and going forward.

During 2014 Tembo completed a second phase of target drilling along three significant targets on the Tembo Project. Unfortunately, market conditions and the loss of a significant and proposed long term support investor, the New Africa Mining Fund, compelled management to place the Company into a holding pattern to ensure that licence tenure was maintained and the Company’s operational base on the Tembo Project and key personnel were retained and preserved for the future. In the near term the Company will be seeking to secure the funding required to sustain this, while actively pursuing a significant further investment to bring one of the targets into production, thereby generating funds internally and de-risking the project and ensuring that exploration continues.


  • Tembo has retained its licence holding in the Lake Victoria goldfield of Tanzania.
  • The immediately adjoining mining property is host to Acacia’s 20M ounce Au Bulyanhulu Mine.
  • Early phases of exploration drilling have returned promising results.
  • The project has a large untested exploration potential.
  • The Company has retained key personnel and is able to mobilize technical crews at short notice.
  • It is believed that the drilling done to date is sufficient to delineate a resource that could sustain asmall-medium mine development and this modeling is to be done in the near future.

Production generating free cash flow would de-risk the project and provide the necessary funds tocontinue exploration.

Project Licence Tenure

The Tembo Project consists of 38 licences and pending licence applications held solely by wholly owned subsidiaries (72%) or third parties with whom Tembo has agreements that ensure Tembo’s long-term ownership at no cost, holding the balance. The area is 110km2 and is located in the Lake Victoria goldfield in northern Tanzania.

The Lake Victoria Goldfield

The Lake Victoria goldfield is an established gold mining region that in the past 25 years has witnessed the discovery of more than 50 million ounces of gold, and the development of a number of world class open pit and underground gold mining operations, notably Buzwagi Gold Mine, Bulyanhulu Gold Mine and North Mara Gold Mine all of Acacia Mining (a Barrick Gold Corp owned London listed company), and Geita Gold Mine (owned by AngloGold Ashanti Limited). The discoveries include multi-million ounce deposits at Bulyanhulu and Geita, which highlight the potential and significant gold endowment of the region. The discovery and exploitation of these deposits has led to significant improvement and development of supporting infrastructure and secondary supplier and service industry companies, enhancing the operational environment.

The geology of the goldfield consists of a classical granite-greenstone suite, an Archean age succession of volcanic and sedimentary rocks that have been intruded by a variety of Archean granitic plutons as well as younger dolerite dykes and possible kimberlite intrusions. This well understood greenstone geology is host to a significant proportion of the gold mines around the world, in Canada, Australia, West Africa, South Africa and Zimbabwe, and South America.

Although the world mineral exploration investment environment has resulted in a slowdown of exploration activity in the region, the goldfield is still considered underexplored and to have potential for future large discoveries.

The Tembo Project Background

Importantly, approximately 60-70% of the Tembo Project licence area is underlain by similar gold-hosting greenstone lithologies, metamorphosed volcanic rocks that have been subjected to geological processes that have introduced gold into major structures evidenced by linear zones of alteration, veining and mineralization.

The western boundary of the property is within 5.5km of the shaft head frame and within 3km of the known western limit of the orebody at the neighboring Acacia owned Bulyanhulu Mine. The Bulyanhulu Reef 1 and Reef 0 western extension mineralization, host to the bulk of the resources at the mine, constitutes one of the largest and highest grade continuously mineralized (in excess of 5km) narrow shear-hosted vein structures known, with mineralization extending to an open-ended depth of 2.3km, and host to more than 15 million ounces of gold at an average in situ grade of about 20g/t. The greenstone geology that is host to Bulyanhulu and the mineralization host structure, comprising a sub-vertical northwest trending shear zone located largely on the contact between mafic and felsic metavolcanic units, trends directly into the Tembo Project area. Within the Bulyanhulu mining licence a number of similar northwest trending structures including Reef 0 and Reef 2 are also host to economic mineralization.

The geology of the Tembo project area is largely concealed by a thin transported cover between 4 and 10m thick. The known geology is interpreted from high resolution airborne magnetics and subsequent drilling, as well as residual material at surface mined by artisanal miners over the past 30 to 40 years. Extensive artisanal mining (in excess of 13 linear kilometers of strike) along three major structural directions, corresponding with three magnetic linear trends (northwest, northeast and east-west) bear witness to the presence of extensive mineralization within the property, and highlights the potential.

During 2011, all existing data, consisting of conventional soils, pits and cover bedrock interface RAB geochemistry, limited earlier drilling, a detailed LIDAR survey to identify and locate artisanal workings, the high resolution airborne magnetics, and regolith and geological mapping, was integrated and interrogated. Seven geographical target areas were identified designated Ngula 1, Ngula 2, Buly Trend, Iyenze, Nyakagwe East, Nyakagwe Village and Mgusu. Each of these targets contained significant artisanal workings comprising extensive surface rubble excavations and vertical shafts to bedrock, and corresponding linear magnetic anomalies.

Target Generation and Prioritization

  • Targets on the Tembo property have been generated by the integration of historical data including soil geochemistry and airborne magnetics, and by the more recently conducted LIDAR survey, which mapped out the extent of artisanal workings. This work focused on one area of the licence, which is approximately 15km2 in area or 20% of the greenstone geology within the Tembo licences.
  • This integration of data has shown that there is an almost 100% correspondence of artisanal workings (linear trends of vertical shafts reaching to bedrock) and magnetic linear anomalies.
  • Artisanal workings are initiated when gold-bearing quartz vein fragments are found on the surface, leading to extensive excavations and the removal of surface rubble found in the transported cover. The quartz vein fragments are derived from, and an important indicator of, mineralized shear structures.
  • Ultimately this surface mining locates an in situ mineralized structure, the source of the rubble, and deeper bedrock mining follows through a series of short vertical shafts along the strike of the structure.
  • An important factor in the planning and targeting of future exploration is the consideration that the artisanal workings mined to date (~13km of strike within the area of focus) reflect only approximately 10% of the linear magnetic anomalies present along the three prevailing trends, northwest, northeast and east-west in that area.
  • Significantly the drilling along the prioritized targets (workings plus magnetic lineaments) has only tested (incompletely) 30-40% of these known areas of mining.
  • The many magnetic lineaments, along which the near surface geology is concealed in 80-90% of the entire greenstone package area, have the potential to host gold mineralization.
  • Clearly there remains extensive exploration to be conducted. The many magnetic lineaments parallel to mineralization and the many potential intersection zones of different linear structures require follow up and further exploration.

Based on the definition and prioritization of these targets, an initial drilling programme of approximately 90,000m was planned to test beneath the artisanal workings with diamond drill holes, and along potential extensions and areas with potentially mineralized structures interpreted from airborne magnetics using reverse circulation drilling.

During the Phase 1 drilling programme carried out during 2012 a total of 35,000m was drilled, 139 holes totaling 20,000m of RC drilling and 57 holes totaling 15,000m of diamond drilling. Most of this was targeted at the Ngula 1 and Nyakagwe East targets. A second phase of drilling was conducted during 2014 and comprised 27 diamond drill holes totaling 7,000m primarily targeting Nyakagwe East and Nyakagwe Village. Limited drilling has been conducted along the remaining targets.

Drilling Results

The drilling at the Tembo Project has returned good results and all the targets that have had significant drilling have returned gold intersections, some of which have been exceptional. Diamond drilling beneath workings was initially targeted to intersect structures at 50m and 100m below surface on 100m spaced section lines. Highlights of the targets and drilling, and the best results to date are:

Ngula 1:

  • To date 35 DD holes totaling 9,107m and 41 RC drill holes totaling 7,623m have been completed at Ngula 1.
  • A 150-200m wide zone of meta-basalts hosting at least three east-west shear zones and multiple sub-shears that host gold along a known strike of approximately 600m.
  • Northwest and northeast trending cross-cutting sub-shears have been interpreted and the intersection of these with the east-west structures may define higher-grade shoots, which is supported by the changeable grades and widths encountered in the drill holes along strike and down dip.
  • Diamond drilling and RC drilling targeted beneath workings and along strike to the west.
  • The structures remain open to the east and down dip.
  • TDD0004: 3.13g/t Au over 25.89m from 41.00m including 9.38g/t Au over 6.30m;
  • TDD0005: 8.50g/t Au over 5.14m from 152.85m including 58.49g/t Au over 0.68m;
  • TDD0010: 3.72g/t Au over 2.50m from 189.00m including 6.44g/t Au over 1.20m;
  • TDD0012: 8.6g/t Au over 0.98m from 171.92m;
  • TDD0041: 22.81g/t Au over 15.00m from 299.00m including 34.78g/t Au over 9.70m;
  • TDD0054: 8.17g/t Au over 11.05m from 116.95m including 9.78g/t Au over 8.02m, and 3.74g/t Au over 2.04m from 132.00m including 7.00g/t Au over 1.00m;
  • TDD0059: 5.93g/t Au over 0.64m from 142.33m and 3.73g/t Au over 0.61m from 310.99m;
  • TDD0106: 11.70g/t Au over 0.98m from 286.26m;
  • TDD0110: 3.17g/t Au over 1.00m from 95.00m and 4.22g/t Au over 5.00m from 195.00m including 6.58g/t Au over 3.00m;
  • TDD00125: 19.03g/t Au over 0.94m from 35.16m including 26.40g/t Au over 0.66m, and 5.90g/t Au over 1.14m from 208m;
  • TDD0133: 4.81g/t Au over 0.62m from 176.38m;
  • TDD0146: 10.70g/t Au over 1.00m from 308m;
  • TRC0001: 38.20g/t Au over 1.00m from 85.00m;
  • TRC0002: 4.50g/t Au over 1.00m from 8.00, and 3.77g/t Au over 1.00m from 54.00m;
  • TRC0003: 3.76g/t Au over 2.00m from 21.00m: 28.57 g/t gold over 3.00m 54.00m: and 5.28 g/t Au over 4.00m from 72.00m;
  • TRC0006: 4.42g/t Au over 1.00m from 5.00m: and 3.16g/t Au over 3.00m from 206.00m;
  • TRC0008: 5.18g/t Au over 1.00m from 9.00m, and 3.75g/t Au over 6.00m from 35m;
  • TRC0013: 17.23g/t Au over 4.00m from 19.00m including 22.53g/t Au over 3.00m and 48.8g/t Au over 1.00m, and 13.00g/t Au over 1.00m from 104.00m; and
  • TRC0014: 19.80g/t Au over 1.00m from 114.00m: and 10.00g/t over 1.00m from 122.00m.

Nyakagwe East:

  • Twenty-three diamond drill holes (6,924m) and 20 RC drill holes (2,238m) have been completed to date.
  • A potential mineralized strike length of over 1,000m along at least one structure within a broad 325m wide zone that contains multiple structures.
  • Limited historical diamond drilling had intersected mineralization.
  • Diamond drilling targeted the area under the northern structure of two extensively minednorthwest trending zones containing multiple structures and extended in depth to test for parallelstructures.
  • Artisanal shafts have been excavated along approximately 750m of strike.
  • RC drilling where no mining has been carried out showed that the structures continue to thenorthwest where 300m of mineralization was intersected in the adjoining target area, Mgusu.
  • DD001: 10.25g/t Au over 3.50m from 38.50m
  • DD005: 9.73g/t Au over 3.40m from 81.94m
  • RC056: 36.70g/t Au over 1.00m
  • TDD019: 4.69g/t Au over 1.67m from 67.35m;
  • TDD0056: 4.42g/t Au over 2.60m from 130.60 including 10.57g/t Au over 1.00m;
  • TDD070A: 1.55g/t Au over 7.21m from 93.24m, including 3.15g/t Au over 0.94m and 3.19g/t Auover 0.51m;
  • TDD0072: 8.44g/t Au over 1.30m from 99.90m, including 25.00g/t Au over 0.42m;
  • TDD0074: 6.55g/t Au over 7.46m from 370.46m;
  • TDD104: 4.72g/t Au over 2.11m from 66.80m;
  • TRC233: 5.66g/t Au over 1.00m from 84.00m; and
  • TRC234: 5.46g/t Au over 2.00m from 109.0m.

Nyakagwe Village:

  • To date fifteen DD holes (2,916m) and 11 RC holes (1,315m) have been completed.
  • Diamond drilling has intersected gold mineralization in the east-west structures along a 600mstrike.
  • A previously unknown northeast trending mineralized zone associated with a 1.8km longmagnetic lineament associated with wider mineralization at this target where it intersects with theeast-west structures.
  • TDD0071: 9.64g/t Au over 3.95 m from 85.25m, including 24.72g/t Au over 1.45m;
  • TDD0101: 78.1g/t Au over 1.00m from 294m;
  • TDD0102: 2.90g/t Au over 0.92m from 48.08m;
  • TDD0103: 15.10g/t Au over 1.00m from 54.00m: and 1.87g/t Au over 1.00m from 71.00m;
  • TDD0107: 16.58g/t Au over 3.55m from 43.88m and 27.88 g/t Au over 3.00m from 65.90m;
  • TDD0111: 35.14g/t Au over 2.45m including 167g/t Au over 0.50m from 53.35m;
  • TDD0112: 3.35g/t over 5.98m from 64.12m: and 2.94g/t Au over 2.00m from 72.00m;
  • TDD0115: 2.74g/t Au over 8.50m from 53.00m including 7.73g/t Au over 1.00m, 3.43g/t Au over1.40m and 4.04g/t Au over 2.00m; and 2.04g/t Au over 9.00m from 69.00m including 2.89m over4.80m;
  • TDD0137: 2.63g/t Au over 1.50m from 38.00m;
  • TRC0552: 8.42g/t Au over 3.00m from 86m;
  • TRC0554: 2.53g/t Au over 1.00m from 47.00m; and
  • TRC0562: 4.61g/t gold over 5.00m from 82m.Other TargetsVery little drilling has been done along other targets and results returned to date include:
  • Mgusu: TDD0140: 2.80g/t Au over 2.70m from 54.30m. TRC0158: 3.20g/t Au over 1.00m from 23.00m. TRC0423: 10.17g/t Au over 6.00m from 36.00m including 19.10g/t Au over 3.00m. TRC0424: 3.46g/t Au over 1.00m from 71.00m. TRC0526: 2.88g/t Au over 2.00m from 31.00m. TRC0527: 3.70g/t Au over 1.00m from 30.00m and 4.38g/t Au over 2.00m from 44.00m.
  • Buly Trend, Ngula 2 and Iyenze have not returned significant results.


When the Tembo Project was revitalized in 2011, the goal set by the Company was to explore for a large high quality deposit. There was no shortage of targets to choose from and the drilling strategy adopted was to test them according to a priority established through a collective review of data by a multi- disciplinary team of geoscientists. There was no intention of modeling or declaring a resource until a substantial one was possible. Unfortunately with the markets not favoring junior greenfields gold explorers, achieving the valuations and raising the funding that would ensure the original drilling programme could be completed and extended if necessary was difficult. This continues to be the case.In light of this, Tembo will now contract a resource geologist to model the data along at least one of the targets, Ngula 1, which we consider to have the highest probability to host a near surface mineable resource. This resource, once defined, will be used as the basis for discussions to invest in production.

Tanzania, the Country

Recent changes in government and mining and investment legislation have created a perception of uncertainty for investment and a perceived heightened political risk. Previous investment incentives have been replaced with changes to operational circumstances, and tax and government equity participation in operations that will affect the bottom line of existing and future operations. These are:

  • The export of mineral concentrates containing gold has been banned, affecting existing and new operations, and requiring that in future smelting and refining of minerals, including those to extract and refine gold from concentrates must be carried out locally. It is understood that this does not include the export of doré.
  • The royalty rate for metallic minerals has been increased from 4% to 6% and a 1% clearing fee is being imposed on all export product.
  • Amendment to the VAT Act of 2015 means that no input tax credit can be claimed on exported raw minerals, which are defined to include concentrate and doré.
  • The government of Tanzania proposes through the new legislation to take a 16% free carried non-dilutable interest in all mining operations that are the subject of mining licences and special mining licences.
  • The provisions of Mine Development Agreements on special mining licences has been removed, implying that the benefits and incentives that previously could be negotiated no longer will apply. Companies will simply be required to conduct business according to the laws of the country.
  • In cases where the government grants tax incentives in favour of companies investing in mining, it is intended that the government will through these incentives take up to a 50% stake in companies receiving the benefit.
  • Revenues from mineral sales made must be lodged in banks in Tanzania and may only be repatriated in compliance with the Tanzanian legislation.
  • Disputes arising from mineral extraction and related industry activities must be dealt with according to Tanzanian law and only with Tanzanian arbitration, international arbitration is no longer allowed.
  • All agreements under which mining projects are developed must be subjected to parliamentary scrutiny and approval, where such agreements are required or considered by the investor.
  • The government has a lien on all minerals and mineral concentrates before export. This is currently the case until the obligations of royalty payments have been made.
  • The provision that allowed the issue of a retention licence on expiry of the second renewal of prospecting licences has been removed.

Although these changes will and do affect the bottom line of existing and future operations, they are not considered extraordinarily onerous when compared with similar arrangements in many countries worldwide and will be considered and incorporated into future feasibility study and operational considerations.

Community Integration and Engagement

Tembo, within its limited means as a junior exploration company, endeavors to be a responsible member of the communities within which it operates and seeks to establish strong, positive and mutually beneficial relationships. In so doing, it aims to achieve its social license to operate. Through regular visits by our country manager, our relationship with local communities has been maintained.


    • The Company has a skeleton care and maintenance and security crew based at the camp taking care of the invaluable operations base, core storage facility and vehicles, ensuring a presence and ensuring the properties from being taken over by artisanal operators;
    • David Scott the CEO, assisted by the company country manager, Paul Magege, has ensured that the licence portfolio has been maintained, company accounts and audits have been kept up to date and audits completed, and that the field crew is carrying out the necessary functions maintain the physical assets and to protect the licence area from artisanal invasions;
    • The loss of the NAMF investment, the resignation of our CFO John Seaman and changes in the Stratex Board resulted in forced changes to Tembo’s Board of Directors, currently consisting of David Scott (CEO), Marc Cernovitch (CFO and Corporate Development) and Frank Högel (representing CCM, a strong supportive shareholder). The Board is to be strengthened with additional selected members with appropriate skills and experience who will assist in achieving the strategy; and
    • Tembo maintains a strong relationship with highly professional exploration geologists and mining professionals who have been involved in the past in the Tembo Project and has the capability of mobilizing these personnel resources at short notice.

Conclusions, Recommendations and the Future Strategy

The Tembo Project has delivered strong exploration drilling results. It is obviously a high quality greenfields exploration project. The many high-grade, and in places wide intersections clearly demonstrate the gold endowment of the area. The area of focus of the past drilling campaigns, as well as the other greenstone host lithology areas to the north and south, all require further investigation and exploration. This exploration is costly and time consuming, but the potential discovery size and quality is self evident from the results returned to date and the quality of the deposit of the neighboring property. Financing long and costly programmes at the stage that the Tembo Project is, is not sensible at present market valuations. In order to de-risk and advance the project, the following strategy is proposed: 1. Ensure the licence tenure is maintained and secured. 2. Ensure the operational base is available for mobilization and that assets are protected. 3. Progress development of the project so that it becomes self-financing through the future exploration phase.

To discover and delineate a large deposit continues to be the Company’s goal. To achieve this and to ensure that the licence tenure is secured, a strategy of small-medium production development is proposed. As a first step towards achieving this end, the company will shortly undertake a resource modeling exercise on the drilling done to date. Once this is completed and assuming there is a positive outcome, this model will be used to develop the necessary further studies to justify a production decision. In parallel with this Tembo is engaging with potential investors with an interest in small-medium scale, low capital cost and low operating cost mine development. If production is successfully achieved it is planned that excess free cash flow generated will be used to further the exploration.

The scientific and technical information contained in this news release has been reviewed and approved by David Scott, Pr. Sci. Nat., a Qualified Person as defined by National Instrument 43-101.

About Tembo

Tembo Gold is a Canadian public company listed on the TSX Venture Exchange (“TSX-V”) under the symbol TEM. The Company currently has 100% interest in the Tembo Gold Project that is located adjacent to African Barrick’s 20Moz Bulyanhulu Mine in the prolific Lake Victoria Greenstone belt in Tanzania. Our focus is the discovery and development of world-class gold projects in Africa. The company has assembled a highly experienced team with a proven history of developing, financing, and operating mining projects in Africa.

Forward-Looking Statements

Certain information set out in this news release constitutes forward-looking information. Forward looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. In particular, this news release contains forward-looking statements in respect of the use of the net proceeds from the Private Placement, the completion and timing of additional closings of the Non- Brokered Private Placement, the payment of certain finders’ fees and the listing of the Common Shares on the TSXV. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases, information provided or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. With respect to forward-looking statements contained in this news release, the Company has made assumptions regarding, among other things, the ability to develop the Company’s properties, the economic climate in the jurisdictions where the Company carries on operations and commodity prices. Although the Company believes that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, a significant drop in the price of gold, political turmoil in Tanzania and other risk factors set forth in the Company’s continuous disclosure. Readers are cautioned that this list of risk factors should not be construed as exhaustive. These statements are made as at the date hereof and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these forward-looking statements.



Tembo Gold Corp.

Marc Cernovitch
1.416.619.9010 mcernovitch@lakevictoriagold.com www.tembogold.com

David Scott
CEO and Director 255.767.366.146 dscott@lakevictoriagold.com


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