Tembo Announces Final Closing of Non-Brokered Private Placement, and Commencement of the 2014 Drilling Program - Seite 4

GEOPHYSICS
An IP geophysical survey will be conducted across the full 1.5km width of the northwest trending structural zone centered around the Buly trend. This trend is evident in the airborne magnetic interpretation as a series of sub-parallel northwest trending lineaments, the strongest of which is considered to be an extension of the adjoining Bulyanhulu Mine's Reef 1 structure, which hosts the large resource at the mine. Based on the results of this survey a drilling program will be designed to test any targets within this area that return a geophysical response that may suggest the presence of significant sulfides and/or quartz veining (both commonly associated with gold mineralization) along the northwest trends or other potential cross-cutting structures.

NOTES
Widths represent drill intersection widths not corrected for drill hole inclination and dip of the geological zone. True widths have not been determined. The drill hole inclination of 60deg and sub vertical dip of the structures suggests that the true width will be approximately 50 % of the intersected width.

PRIVATE PLACEMENT CLOSING
Each Unit consists of one common share of the Company and one common share purchase warrant (a "Warrant"). Each Warrant is exercisable for one common share of the Company ("Common Share") until January 9, 2017 at an exercise price of C$0.12.

CCM is currently an insider of the Company and as a result the Financing is considered a "related party transaction" for the purposes of Multilateral Instrument 61-101 ("MI 61-101"). However, the Financing is not subject to the minority approval and valuation requirements under MI 61-101 as there is an applicable exemption from these requirements as neither the fair market value of the subject matter, nor the fair market value of the consideration, for the Financing, insofar as it involves the interested parties, exceeds 25% of Tembo's market capitalization.

CCM now collectively owns 22,500,000 Common Shares or approximately 16.6% of the outstanding Common Shares on a non-diluted basis. CCM also own 20,000,000 Warrants and if exercised an aggregate of 42,500,000 Common Shares or approximately 27.3% of the outstanding Common Shares on a partially-diluted basis.

The board of directors of the Company reviewed the Financing and considered it to be in the best interests of the Company. All the directors approved the transaction as the board considers the nominee appointed to the board by CCM to be an independent member of the board.