Tanzanian Gold Corporation along with its joint venture partner, STAMICO is building a significant gold project at
Buckreef in Tanzania that is based on an expanded Mineral Resource base and the treatment of its mineable
Mineral Reserves in two standalone plants. Measured Mineral Resource now stands at 19.98MT at 1.99g/t gold
containing 1,281,161 ounces of gold and Indicated Mineral Resource now stand at 15.89MT at 1.48g/t gold
containing 755,119 ounces of gold for a combined tonnage of 35.88MT at 1.77g/t gold containing 2,036,280 ounces
of gold. The Buckreef Project also contains an Inferred Mineral Resource of 17.8MT at 1.11g/t gold for contained
gold of 635,540 ounces of gold. The Company is actively investigating and assessing multiple exploration targets on
its property. Please refer to the Company’s Updated Mineral Resources Estimate for Buckreef Gold Project, dated
May 15, 2020, for more information.
Tanzanian Gold Corporation is advancing on three value-creation tracks:
1. Strengthening its balance sheet by expanding near-term production to 15,000 - 20,000 oz. of gold per year from the
processing of oxide material from an expanded oxide plant.
2. Advancing the Final Feasibility Study for a stand-alone sulphide treating plant that is substantially larger than
previously modelled and targeting significant annual gold production.
3. Continuing with a drilling program to further test the potential of its property, Exploration Targets and Mineral
Resource base by: (i) identifying new prospects; (ii) drilling new oxide/sulphide targets; (iii) infill drilling to upgrade
Mineral Resources currently in the Inferred category; and (iv) a step-out drilling program in the Northeast
Expanding Production. TanGold has successfully operated a 5tph oxide test plant for over one year. With the experience and the data collected from this operation, the company plans to expand the size of the test plant to a 15 tph rate capable of producing an average of 750 ounces of gold per month for the first 18 months, beginning in September/October 2021 (please see July 15th Press Release on our website -www.tangoldcorp.com). Cash flow from this increased test plant production will enable reinvestment in the business and fund exploration, drilling and capital expenditures at Buckreef. Simultaneously, TanGold has begun its plan to increase oxide production further by expanding plant capacity to 40 tph, which is expected to produce gold at a rate 15,000 - 20,000 oz./yr. beginning in approximately 12 months., This expanded oxide production is a key value driver for TanGold beginning in the near term.
Advancing Development. The company has announced updated and highly favorable metallurgical results from the sulphide component of the Buckreef Mineral Resource, which stands at 2.036 million ounces M&I and 635,000 ounces Inferred. Sulphide ore represents approximately 93 % of the deposit. Initial test work conducted by SGSL is now complete. Details of the test work are summarized in the company’s July 15th Press Release of Q3 results, and discussion of the test work begins on page 24 of the MD&A (website - www.tangoldcorp.com) and suggests a straightforward flowsheet which sets the foundation for a final feasibility on the sulphide project. The ongoing feasibility study for the larger scale sulphide project is expected to be an important value driver for TanGold over the next 12 months.
Accelerating Exploration. The Buckreef Project has tremendous exploration potential. TanGold continues to evaluate and identify opportunities for the discovery of additional mineral resources and their conversion to mineral reserves. The recent discovery of Buckreef West and the Anfield Zone further expands this potential. Details regarding these important discoveries are summarized in the company’s July 15th Press Release of Q3 results, and in the MD&A (website - www.tangoldcorp.com). The company is currently evaluating these discoveries along with exploration potential in the Main Zone which remains open along strike and at depth. Targets are being delineated and drilling is expected to commence in the upcoming months. The significant amount of exploration potential at Buckreef provides a substantial value driver for the company over time.
Tanzanian Gold Corporation (“Tanzanian Gold” or the “Company”), has taken all reasonable care in producing and publishing information contained in this presentation. Tanzanian Gold does not warrant or make any
representations regarding the use, validity, accuracy, completeness or reliability of any claims, statements or information in this presentation. The information is not a substitute for independent professional advice before making
any investment decisions. Furthermore, you may not modify or reproduce in any form, electronic or otherwise any information in this presentation. Andrew M. Cheatle, P.Geo. is the Qualified Person as defined by the NI 43-101
who has reviewed and assumes responsibility for the technical content of this presentation. The disclosure contained in this presentation of a scientific or technical nature relating to the Company’s Buckreef Project has been
summarized or extracted from the technical report entitled The “National Instrument 43-101 Independent Technical Report, Updated Mineral Resource Estimate for the Buckreef Gold Mine Project, Tanzania, East Africa For
Tanzanian Gold Corporation (TRX)” with an effective date of May 15, 2020 (the “Effective Date”), and with an amendment date of June 8, 2020 (the “Technical Report”). The Technical Report was prepared by or under the
supervision Mr. Wenceslaus Kutekwatekwa (Mining Engineer, Mining and Project Management Consultant) BSc Hons (Mining Eng.), MBA, FSAIMM, of Virimai Projects., and, Dr Frank Crundwell, MBA, PhD, a Consul ting
Engineer. each of whom is an independent Qualified Person as such term is defined in NI 43-101. Certain references herein to information contained in the ‘2018 PFS’ refers to information initially disclosed in the Company’s June
26th, 2018 Amended National Instrument 43-101 Independent Technical Report Mineral Reserves Estimate and Pre-Feasibility Study on the Buckreef Gold Project, Tanzanian, East Africa. References to the ‘2018 PFS’ are for
convenience and clarity as to the original source of such information, however the Company notes that all information from the ‘2018 PFS’ contained herein has been included in the Technical Report, which is the sole current
technical report in respect of the Company’s Buckreef project. The information contained herein is subject to all of the assumptions, qualifications and procedures set out in the Technical Report and reference should be made to
the full details of the Technical Report which has been filed with the applicable regulatory authorities and is available on the Company’s profile at www.sedar.com
The Toronto Stock Exchange and NYSE American have not reviewed the information on our website and do not accept responsibility for the adequacy or accuracy of it.
This presentation contains certain forward-looking statements as defined in the applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements. Forward-looking statements are
frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “hopes”, “intends”, “estimated”, “potential”, “possible” and similar expressions, or statements that events, conditions or results “will”, “may”,
“could” or “should” occur or be achieved. Forward-looking statements relate to future events or future performance and reflect Tanzanian Gold management’s expectations or beliefs regarding future events and include, but are
not limited to, statements with respect to the estimation of mineral reserves and resources, success of mining operations, the timing and amount of estimated future production, and capital expenditure.
The 15 tph Oxide Plant estimates have not been prepared in accordance with the results of the Company’s 2018 Prefeasibility Study, reflected in the Company’s May 15, 2020 Updated Mineral Resource Estimate. The 18-Month
mining plan estimates are based upon an internal mine model reviewed by SGSC and cost inputs as validated by actual mining and processing costs from the 5 tph oxide test plan over the last 9 months. No assurance can be
given that the 18-Month Estimate (Monthly Average) will reflect actual results.
Although Tanzanian Gold believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance. The actual achievements
of Tanzanian Gold or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors. These risks, uncertainties and factors
include general business, legal, economic, competitive, political, regulatory and social uncertainties; actual results of exploration activities and economic evaluations; fluctuations in currency exchange rates; changes in costs;
future prices of gold and other minerals; mining method, production profile and mine plan; delays in exploration, development and construction activities; changes in government legislation and regulation; the ability to obtain
financing on acceptable terms and in a timely manner or at all; contests over title to properties; employee relations and shortages of skilled personnel and contractors; the speculative nature of, and the risks involved in, the
exploration, development and mining business. These risks are set forth under Item 3.D in Tanzanian Gold’s Form 20-F for the year ended August 31, 2020, as amended, as filed with the SEC.
The information contained in this presentation is as of the date of the presentation and Tanzanian Gold assumes not duty to update such information.
Note to U.S. Investors
US investors are advised that the mineral resource and mineral reserve estimated disclosed in this presentation have been calculated pursuant to Canadian standards which use terminology consistent with the requirements
CRIRSCO reporting standards. For its fiscal year ending August 31, 2021, and thereafter, the Company will follow new SEC regulations which uses a CRIRSCO based template for mineral resources and mineral reserves, that
includes definitions for inferred, indicated, and measured mineral resources.