Investor Presentation April 2016 Reactivating the BK11 Kimberlite - - PowerPoint PPT Presentation

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Tango Mining Limited TGV:TSXV

Investor Presentation April 2016 Reactivating the BK11 Kimberlite Diamond Mine Orapa/Letlhakane Kimberlite District, Botswana

• Roadmap to +500,000 carats

production

BK11 Diamonds 2011 34.579 carats – 6 grainer sawables (Dodecahedral and Octahedral shapes)

Certain information set forth in this presentation contains “forward-looking statements” and “forward-looking information” under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include management’s assessment of future plans and

• perations and are based on current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Someofthe forward-looking

statements may be identified by words such as “forecasts”, estimates”, “expects” “anticipates”, “believes”, “projects”, “plans”, “outlook”, “capacity” and similar expressions. These statements are not guarantees of futureperformanceand unduerelianceshould not beplaced on them. Such forward-looking statements necessarily involveknown and unknown risks and uncertainties, which may cause Tango Mining Limited (the “Company”) actual performance and financial results in future periods to differ materially from any projections offutureperformanceor results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: risks that the presence of economic mineral deposits mentioned nearby the Company's property are not indicative of mineralization on the Company's properties, the supply and demand for, deliveries of and the level and volatility of prices of rough diamonds, risks that the actual revenues will be less than projected; risks that the target production for the existing mining contracts will beless than projected or expected; risks that production will not commenceas projected due to delay or inability to receive governmental approval ofthe Company’s acquisition or thetimely completion ofa National Instrument 43-101 report; technical problems; inability of management to secure sales or third party purchase contracts; currency and interest rate fluctuations; foreign exchange fluctuations and foreign operations; various events which could disrupt operations, including labour stoppages and severe weather conditions; and management’s ability to anticipateand managethe foregoing factors and risks. The forward-looking statements and information contained in this presentation and/or website are based on certain assumptions regarding, among other things, future prices for coal and diamonds; future currency and exchange rates; the Company’s ability to generate sufficient cash flow from operations and access capital markets to meet its futureobligations; coal consumption levels; and theCompany’s ability to retain qualified staffand equipment in a cost-efficient manner to meet its demand. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The reader is cautioned not to place undue reliance on forward-looking statements. The Company does not undertake to update any of the forward-looking statements contained in this presentation unless required by law. The statements as to the Company’s capacity to achieverevenue are no assurancethat it will achievetheselevels of revenue.

Forward Looking Statement

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Our Board of Directors and Senior Management

Terry Tucker has over 26 years‘ experience in mineral exploration and development projects and has served on various executive Boards that include CEO and Director

• f Nyota Minerals Limited (AIM, ASX: NYO) and President, CEO and Director of TSX-listed StrataGold Corporation. His current appointment to the Board of Firestone

Ventures (TSXV: FV) also supports his role on strategic, operational and corporate matters of Tango. Mr. Tucker holds a B.Sc. Geology degree from the University of Alberta and is a member of the Association of Professional Engineers and Geoscientists of British Columbia.

Terry L Tucker (P.Geo) Executive Chairman and Interim CEO

Kevin Gallagher has over 40 years’ experience in the Southern African mining and metallurgical process engineering industry, at various coal, gold and platinum plants that includes Harmony Gold, Rand Mines Group & Rio Tinto and De Beers. He was also the founder and President of the Kwena Mining Group and is a member of the South African Coal Processing Society, and the Mine Metallurgical Managers Association, holds a Diploma (Hon) Mineral, Processing & Extractive Metallurgy from the School of Mines Rhodesia and completed the Management and Executive Development Program with UNISA and UCT respectively.

Kevin Gallagher Director Antonio Ponte Director

Antonio Ponte is a Swiss based financier with 25 years of asset management and mining corporate finance experience in Switzerland and Europe. He is the Chairman and Founder of Raifin SA, a European Mining Finance Consultancy, and in the past has held positions at UBS Switzerland and Citibank Switzerland . Mr. Ponte has been a director and consultant to a number of TSXV companies for a number of years.

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Theodor Boshoff General Manager –Plant & Metallurgical Process Engineering

Devin McKay is a metallurgist with 28 years experience, having worked for Anglo American and DeBeers (21 years), Gem Diamonds (3 years), and Centar Limited (4 years). He has worked throughput the mining value chain; exploration, mining, metallurgy, engineering, environmental, finance, strategic planning, and management. Experience includes areas of; operations, R&D, projects, commissioning, mine optimization, feasibility studies, business development, corporate finance, and marketing and sales. He has a National Higher Diploma in Extractive Metallurgy and completed Management Development Program at Gibbs University.

Devin McKay Chief Operating Officer

Theodor Boshoff has over 11 years diamond mining and processing experience of which 5 years were with De Beers Consolidated Mines at Cullinan, Koffie Fontein, Venetia Mines; AK6 Mothae or Boteti Mine for Lucara Diamonds; and Metallurgical Project Manager on the Projectio Alto Cuilo for Petra Diamonds; Saurimo Projects and Itengo alluvial projects in Angola. A fellow with the South African institute for Mining and Metallurgy and the Coal processing Society of South African, registered with the Engineering Council of SA and holds an Honors and M.Eng. Metallurgical Engineering (2014) with the University of Pretoria.

Corporate Profile

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Tango Mining Limited (“Tango” or the “Company”) is an TSXV-listed diamond producer with the producing Oena Diamond Mine in South Africa, an option to acquire and reactivate the past producing BK11 Kimberlite Diamond Mine in Botswana and four thermal coal, metallurgicaland processing plant and engineering contracts in South Africa.

• BK11 Kimberlite Diamond Mine Option:

In July 2015, the Company agreed the purchase the BK11 Mine and production facility in Botswana from Firestone and the minority partner for a total acquisition price of US$8.8M, of which:

• US$350,000 was paid on 9 July 2015;
• US$7,650,000 is payable to Firestone and US$0.8M is

payable to the minority partner (US$8.45M total) by 29 July 2016; and

• Care and maintenance fees of up to US$40,000 per month

are payable on closing.

• The transaction is subject to Botswana Government approvals

and financing. The Company has received unconditional approval from the Competition Authority and has made application to the Minister of Mines.

• African Starholds:
• a 100% interest in the Oena Diamond Mine, a producing alluvial diamond mine that has been sold for USD$3M,

subject to approvals, to Bothma DiamanteCC;

• Kwena Group holds:
• four toll treatment contracts for four coal production collieries located within the Ogies and Highveld coalfields,

Mpumalanga Province and Kliprivier coalfield, KwaZulu-Natal Province, South Africa.

SHARE STRUCTURE (8.4.2016) Total Issued and Outstanding 142,426,710 Insiders 42,088,713 (29.55%) Warrants 25.2.2017 (C$0.10) 4,000,000 Options 7,350,000 Fully Diluted Issued and Outstanding 153,776,710

South Africa Operations – Locations

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South Africa based team of 325 skilled engineering and metallurgical skilled persons. Established 1988 – 27 years experience in the precious metal, base metal, thermal coal and diamond industry. Management has a combined >200 years of mine operating and multi stream processing expertise. Service contracts with 4 plants operating with capacity in excess of 12M tpa under management that allows potential increase of revenue base from current 50% utilization to the historical production results. Clients include Exxaro and Glencore.

7,286,981 t processed to year end August 2015 (6,500,000 t budget)

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South Africa Operations – Kwena Group

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South Africa Operations – African Star

Pre stripping 9 February 2015

Oena is a producing alluvial diamond project that operated from 2000 to 2007 and with mine permit renewal and recommenced of operations in 2015. Tango`s first diamond tender closed on 28 July 2015 and diamonds were sold at an average of US$2,480/ct, the highest price received was US$6,016/ct and largest stone was 11.39 ct. Year to date production results produced an average stone size of 3.28 ct and a grade of 0.278 cpht. NI43-101 resource estimate supports average stone size of 1.22 cts and grade of 0.12 cpht. Life of mine ≥ 15 years. *Tango has entered agreement with Bothma Diamante to acquire 100% of African Star for total consideration of USD$3M subject to approvals in South Africa. Trench mining , Oena July 2015

Bulk-sampling Program ongoing and asset sold to Bothma*

Acquisition: BK11 Kimberlite Diamond Mine 100% of production plant facility & 100% interest of the mining license (valid to 30 June 2022) Acquisition Price: Firestone Diamonds PLC for US$8.0m & Minority partner 10% interest US$0.8m for total of US$8.8m Historic Capitalized Development Costs to Date: (2012 – US$45m) Pit development US$24m & plant establishment US$21m Tango has:

• proven technical capability and established operational presence
• access to sound mining technology to increase performance
• detailed knowledge of the project and regional operating culture

BK11 acquisition will transform Tango into a kimberlite diamond producer

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Acquisition – BK11 Kimberlite Diamond Mine, Botswana Production Facility (1,34 Mtpa)

BK11

100% of BK11 plant & 100% of mining license from Firestone & minority partner for US$8.8m The History Discovered in 1974 by De Beers Explored and evaluated by Firestone 2007-2009 Mined by Firestone 2010-2011 Care & maintenance since February 2012 The Property Pit development to 60 m at a cost of US$24M 3.54 km2 mining license, granted July 2010 (valid till 2022) Established 250 tph processing plant with 125tph DMS capacity & infrastructure at a cost of US$21M Additional available 15 tph bulk sample & 25 tph evaluation plant and earthmoving equipment available to allow for further district resource development Available deferred tax assets of US$45M

What we are buying – BK11 Kimberlite Diamond Mine, Botswana

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BK11 Geological Model

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• Accurate geological model created in 2015 (NI 43-101 report dated 15 August 2015)
• Total kimberlite pipe volume modelled at 12.5M mɜ (22M tonnes)
• High resolution ground magnetics, EM and gravity carried out in 2008.
• Accurately re-modelled in 2015 – kimberlite surface size of 6.5 ha 1975 (De Beers); > 8 ha 2008 (Firestone); >9.6

ha 2009 (MPH); 8.7 ha 2015 (Tango).

• Basalt breccia raft identified in 2015 that diluted the mined resource to date.

BK11 NI 43-101 Inferred Resource Statement – effective 15.8.2015*

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• 17.4 million tonnes (Mt) Inferred Resource containing a total of 780,820 carats (“cts”) of which approximately 9.0

Mt (Kimberlite Facies K2U, K2L and K3) averages 6.8 cts per hundred tonnes (“cpht”) for a total of 608 000 cts, with higher-grade areas being identified at 9.8 cpht.

• BK11 contains good quality white diamonds in the top 10% of global gem diamond production in terms of value

per ct.

• The recovery of a 1.5 ct high quality Type IIa D colour diamond is significant as it indicates the presence of top

quality stones within the BK11 kimberlite, with the potential for large +100 ct stones.

• Based on the 2015 market, diamond valuation experts advise price of US$260/ct and

an upside price of US$285/ct. *see News Release dated 24.8.2015

1.5 ct high quality Type IIa D colour diamond 13.7 ct diamond

Focus : Improve cost efficiency to below US$11/t levels § Tie in installed grid power to replace diesel generator power system § Support outsource model on mine face extraction § Utilize deferred tax assets US$45M § Autogenous milling can reduce operating cost and increase throughout Result: Improve on historical cost to US$10.20/t estimate Focus : Extend life of mine to > 10 years § Access additional Orapa kimberlite targets through presence and local influence § Improve resource confidence through mining activities Focus : Improve process recovery rate to >95% § Cut 2 pit extension to access high grade material § Optimize newly installed secondary crushing circuit § Implement an autogenous milling circuit to improve diamond liberation Result : Improved quality, less diamond damage and size distribution of stones unlocking higher pricing potential (Nov 2011: stones > 2 ct sold for $ 1200/ct) Cut 2 Extension Current Pit BK11 East

November 2011: 2 ct stones recovered

• f high color and quality @ $1,200/ct

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waste stripping estimate 926,719t

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What went wrong and how can we do it differently?

Autogenous Milling will improve recovery and revenue § Build during mid 2016, start up mid 2017. § Build 200tph mill as separate installation in 11-12 months from placing of order then retrofit to plant. § Mill will be 5.5m diameter, 3.1m effective grinding length with a 750kW motor. § Maximize use of current equipment (Primary gyratory crushers, secondary crusher, DMS etc), infrastructure and amenities (Power and water) § Quotation from RSA engineering company for 200tph mill including silo and screen is ZAR50M(US$4M) and with contingency estimate is US$5M.

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Autogenous milling deemed to be a low risk investment with highest return wrt. extending life of mine and diamond liberation

What Tango will do differently to get recovery from historical 20 - 30% to >95% and why the previous operators were not able to achieve these results –

implement autogenous milling

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BK11 NI 43-101 Preliminary Economic Assessment (PEA) – effective 12.10.2015

NI43%101(PEA(Results((0(–(143(m)

POST(TAX(DISCOUNTED(NPV(( (excluding(acquisition(costs(and(8%(discount) IRR( (including(acquisition(costs) Development(CAPEX((including(autogenous(mill) US($15M (Resource(Statement( !!!!!Kimberlite!pipe!area!hectares 8.7 !!!!!!Indicated!tonnes nil !!!!!!Inferred!tonnes 17.4!million!(780,820!ct)!@!4.49!cpht !!!!!!Life!of!Mine 7!years (Mining(and(Process !!!!!!Ore!processed!capacity!(tpa) 1.4!million !!!!!!Carats!(cts)!produced!life!of!mine 569,610!(90,000!per!annum) !!!!!!Plant!feed!grade! 6.31!cpht Strip!Ratio 0.86 (Costs(US$/t(processed US($10.20/t !!!!! (Revenues( (Gross(LOM(Revenue US($188M !!!!!August!2015!Diamond!price!US$/ct! US!$260 !!!!!USS/tonne US!$20.80/t !!!!!Operating!margin!(US$/t) US!$10.60/t US$40M 43%

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BK11 NI 43-101 Preliminary Economic Assessment (PEA) – effective 12.10.2015

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Budgets Financing 1. Completion by 29 July 2016 (or 29 August 2016)

• USD$30M Secured Credit Facility Loan Disclosure Agreement announced 24.3.2016 for US$30M with

Vanderbilt Commercial Lending, Inc, California.

16 TGV.TSXV US$ US$ US$ Acquisition Costs Balance due 29 July 2016 to Firestone $7,650,000 Balance due 29 July 2016 to Minority Partner $800,000 Subtotal $8,450,000 Capital Summary Mining and mining equipment - prestripping $2,900,000 Processing Plant Refit (including autogenous mill) $6,840,000 EPCM, Grid power, water delivery, storage, site infrastructure $1,750,000 Contingency On Capital (25%) $2,910,000 Care & Maintenance fees to 29 July 2016 and report costs $600,000 Subtotal $15,000,000 Working Capital including fees $6,283,000 $6,283,000 Subtotal $21,283,000 TOTAL $29,733,000

Botswana, southern Africa - Why Botswana?

• Second largest diamond producing country in the world
• Damtshaa, Letlhakane and Orapa are operated by Debswana as well as four shareholder owned

diamond mines: Gem Diamonds, Firestone (care and maintenance), Lucara and Kimberley Diamonds (recommissioning).

• Stable, mining friendly environment
• Botswana is rated by the Fraser Institute as the best country in Africa and 26 of 122 in the

investment attractive index for mining.

• The fiscal regime for mining:
• Mineral Royalty Rates: 10% for precious stones;

(calculated from the gross market value of sales at the “mine gate”);

• Income Tax Rate: diamond tax regime is negotiated;
• Capital allowances: 100% depreciation of capital expenditures;
• Allowable losses: Unlimited carry forward of tax losses;
• Import Duty: Mining equipment and spares are zero-rated,otherwise duties are payable;
• Value Added Tax: 12% applies to all but zero-rated items, which includes exports of minerals.

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Contact Information

Tango Mining Limited, Canada

5626 Larch Street, Suite 202 Vancouver, British Columbia, Canada V6M 4E1 Office Line +1 604 696 4236 www.tangomining.com Representatives: Terry L Tucker, P.Geo., Executive Chairman and Interim CEO terry.t@tangomining.com Tango Mining Limited, South Africa Witbank Regional Office 205A, 2nd Floor Smokey Mountain Office Park Route N4 Corner Nelson Mandela & Paul Sauer Street Witbank South Africa Office Line: + 27 21 853 2185

www.tangomining.com

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