Tembo Gold Reports 90-95% Gold Recovery From Preliminary Metallurgical Testing

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July 10, 2012

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Tembo Gold Corp. (TSX VENTURE:TEM) (FRANKFURT:T23) ("Tembo" or the "Company") is pleased to announce the results of its gold deportment and preliminary metallurgical testing which was conducted on 32 samples collected during an artisanal mining face sampling program conducted at the Tembo project in the Lake Victoria goldfield in Tanzania. The samples were submitted to SGS South Africa (Pty) Ltd for the study. The test work indicates that gravity recovery and direct cyanidation of near surface gold mineralization at the Tembo project is expected to yield gold recovery in the order of 90 to 95%.

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32 artisanal shafts and working places were accessed from a number of the 2012 drill target areas. A 20kg sample was taken across the width of each working face in safe and accessible artisanal shafts. No face mapping or geological control was applied and the geological context is therefore undefined. Photographs taken of the faces generally indicate 2 to 4m wide shear structures hosting smoky grey to black quartz veins.

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The study consisted of the following:

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• Gold (Au) and sulfur (S) assays were conducted on each sample. Based on the gold results, the samples were grouped into three composite samples: low grade 0 to 3g/t Au, medium grade 3 to 6g/t Au, and high grade 6 to 60g/t Au.
• Test work to determine the amenability of the mineralized material to gravity recovery.
• Grading analysis to determine the gold distribution across the size fractions.
• Heavy Liquid Separation (HLS) to determine the amount of free gold or gold that would respond to gravity recovery.
• Chemical analysis to determine the compositions of ore and metallurgical test products.
• General mineralogical characterization of the ore by XRD and QEMSCAN.
• Identification and quantification of gold minerals, including native gold, gold telluride etc. in the gravity concentrate.
• Exposure and mineral association analysis of particulate gold grains in the gravity concentrate.
• Grain size distribution analysis of gold grains in the gravity concentrate.
• Test work to determine gold recovery by direct cyanidation.
• Diagnostic leach test of gravity tails in order to determine the gold deportment in gravity tails.

The average grades of the three composites, low grade, medium grade and high grade were 1.83g/t, 6.22g/t, and 18.26g/t gold and 0.7g/t, 1.5g/t and 1.8g/t for silver respectively.
The study findings are as follows:

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Low Grade Composite

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Liberation and association characteristics indicate that approximately 93% of the gold is liberated and that the gold in this composite is moderately amenable to gravity recovery. Exposure and mineral association characteristics of the gold grains in the gravity concentrate indicate that the low grade composite will be amenable to cyanidation as the grains are highly exposed at ~99%. In an Intensive Leach Reactor, adequate retention time would be needed to ensure that larger gold grains are leached.

Medium Grade Composite

The composite displays moderate liberation characteristics and gold grain size analysis indicates that ~80% of the gold grains are less than 30mm. Liberation and mineral association characteristics indicate ~85% is liberated and ~15% locked up in silicate and sulphide particles. Exposure and association characteristics of the gold grains in the gravity concentrate indicate that the composite will be amenable to cyanidation as the grains are highly exposed at ~99%. Cyanidation would not require long retention time due to the fineness of the gold grains.

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High Grade Composite

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Liberation and mineral association characteristics found that the gold grains were highly liberated (~91%). The composite is partially amenable to gravity recovery. Exposure and association characterization indicate that the high grade composite has 99.7% exposed gold grains, suggesting that cyanidation will be effective. However, some coarse gold particles will require longer retention time to fully leach.

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Summary

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Gold in all three composites is well liberated and exposed. Gravity recovery plus direct cyanidation would be an effective method to recover the gold, but retention time may need to be increased to fully leach coarse gold particles. Gravity recovery is moderately effective and should be used to recover coarse gold particles that are amenable to this technology. This would be followed by direct cyanidation of the gravity tails with lower retention times.

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Diagnostic leach and direct cyanidation tests were conducted on the gravity separation tails to determine gold leach characteristics. The results indicate expected CIL recovery of 86.13%, 93.37% and 96.64% for the low, medium and high-grade composites respectively. The tests indicate 1.21%, 2.21% and 0.13% refractory gold in the three composites.

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Direct cyanidation of the head samples indicates high gold recovery in the medium and high-grade composites (94.7% and 98.9% respectively) whereas the low grade composite has a leach recovery of(87.3%. Lower gold recovery for the latter is considered to be due to gold locked in silicate minerals.

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Tembo Gold President & CEO, David Scott stated, “These preliminary gold deportment study and metallurgical response results on near surface gold mineralization being exploited by artisanal miners suggest that gravity recovery and direct cyanidation of shallow gold mineralization at the Tembo project will return high recovery. Tembo will continue to test artisanal ore and once sufficient gold intersections have been achieved from the current drill programs, conduct gold deportment test work on in situ mineralization encountered”

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David Scott of Tembo Gold Corp is the qualified person who supervised the preparation of the information that forms the basis of the disclosure contained herein and he has reviewed and approved the disclosure contained herein. There are not yet any mineral resources estimated for the Tembo project.

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About Tembo Gold Corp.
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Tembo Gold (TSX-V: TEM) is a Canadian publicly listed mineral exploration company focused on the exploration and development of gold projects in Tanzania and the rest of Africa. 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. The company is led by a highly experienced team with a proven history of developing, financing, and operating mining projects in Africa. The company has commenced its 90,000m drill program on its Tembo Gold Project.

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On Behalf of the Board of Directors of Tembo,
David Scott, President & CEO