Barrick Gold Transaction

BARRICK GOLD CORP. TRANSACTION

A Transformational Partnership With the World’s Top Gold Miner

On December 7, 2021, Tembo announced (See news release here) that it had entered into a binding agreement with Barrick Gold Corporation (TSE: ABX; NYSE: GOLD)(“Barrick”), Bulyanhulu Gold Mine Limited (“Buly“), a subsidiary of Barrick, agreeing to sell to Buly a 100% ownership interest in six of Tembo’s non-core prospecting licences.  On April 22, 2022, Tembo announced the completion of this transaction.

The Licences sold (See Figure 1), are located in areas on which Tembo has not previously focused its exploration activities. Tembo retains its core licence on which all of Tembo’s exploration activities over the past two drilling campaigns have been conducted, and on which there remain a significant number of untested new targets, as well as the three prime targets on which the bulk of the drilling was carried out.

Figure 1: Before / After Visual

"This agreement is a key milestone in the advance of Tembo’s exploration. We do not underestimate the significance of Barrick’s interest and the conclusion of this Purchase Agreement that will enable a serious advance of our exploration strategy."

David Scott, President & CEO - TEMBO GOLD CORP. - December 7, 2021

Transaction Highlights

Sale of Six Non-Core Licenses to Barrick Gold Corp.

Immediate Balance Sheet Strength

Provides Tembo with a significant upfront cash payment to advance development of our core target areas

US$6M

Unlocking Near Term Value

Barrick has committed to spending US$9M on exploration efforts to define resources on the acquired concessions

US$9M

Capturing The Future Upside Value

Barrick and Tembo have agreed to sliding scale contingent payments based on resource definition milestones on the acquired concessions up to a maximum total of five million ounces of resources in all categories

    • $20/oz Au for the first million ounces
    • $10/oz Au for the second million ounces
    • $5/oz Au for ounces defined beyond the first two million ounces

Access to all technical data and ability to commission resource study in certain circumstances

US$45M

TOTAL PARTERSHIP VALUE

US$60M

Barrick Gold Equity Investment

Creates a meaningful and long-term partnership with world’s second largest gold producer and one of the most influential companies within the East African region (~6% proforma ownership)

C$1.5M

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