Tango Announces Loan Financing for Acquisition of BK11 Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 29, 2016) - Tango Mining Limited ("Tango" or the "Company") (TSX VENTURE:TGV) is pleased to announce it has agreed to a non-convertible loan agreement (the "Loan Agreement") with a number of lenders (the "Lenders"), in order to fund the previously announced acquisition (the "Acquisition") of the processing facility and mineral rights comprising the Botswana diamond operations of Firestone Diamonds Limited (the "BK11 Mine"), and for general working capital purposes. Pursuant to the Loan Agreement, the Lenders will advance to the Company the aggregate principal amount of US$10,000,000 (the "Loan"). The Loan bears interest at a rate of 12% per annum calculated quarterly in arrears and is payable on demand on or after the first anniversary of the closing date of the Loan.

As consideration for providing the Loan, the Lenders will receive the maximum number of bonus shares allowable under TSX Venture Exchange ("TSXV") Policy 5.1 - Loans, Loan Bonuses, Finder's Fees and Commissions, anticipated to be a maximum of 28,771,111 common shares as at the date of this news release. The bonus shares will be issued on a pro-rated basis to each Lender, based on the amount loaned by each Lender. In the event that any issuance of bonus shares would result in the creation of any of the Lenders as a new control person of the Company, such issuance will be subject to the Company having received the requisite shareholder approval. The issuance of bonus shares will be subject to the Company receiving all necessary prior approvals from the TSXV. All bonus shares will be subject to a four month hold period from the date of issuance in accordance with applicable securities laws.

Tango is also pleased to announce that Firestone Diamonds Limited ("Firestone") has agreed to extend the date by when all conditions for the Acquisition must be satisfied, in order to facilitate the timing of closing of the Loan Agreement with the Acquisition.

As announced on 9 July 2015, the Company entered into a Sale of Shares and Claims Agreement (the "Firestone Agreement") with Firestone for the Acquisition, for a total consideration of US$8.0 million and, as announced on 13 October 2015, certain terms of the Firestone Agreement were amended by an amendment letter (the "Amendment Letter"). Pursuant to a further amendment to the Firestone Agreement, conditions of the Firestone Agreement and the Amendment Letter must now be satisfied by no later than 9 September 2016 (the "Revised Drop Dead Date").