Quarterly Report...June 2016 Quarterly Report Page | 10 Figure 7. Detailed gold-in soil geochemical sampling with first vertical derivative detailed ground magnetic data at Boundary

Quarterly Report for the three months ended 30 June 2016

June 2016 Quarterly Report Page | 1

Summary & Highlights SINGIDA PROJECT

• 2,000 metre RC & Diamond drilling program completed at Winston with gold results including:

o WDH 014: 5m @ 49.43g/t Au from 123m to 128m incl. 1m @ 99.2g/t Au from 123m to 124m; and

5m @ 2.93g/t Au from 148m to 153m.

o WDH 006: 14m @ 13.33g/t Au from 133m to 147m incl. 3m @ 29.35g/t Au from 136m to 139m,

1m @ 15.75g/t Au from 141m to 142m; and 1m @ 18.45g/t Au from 146m to 147m.

o WDH 007: 26m @ 2.58g/t Au from 134m to 160m incl. 1m @ 25.60g/t Au from 134m to 135m,

1m @ 7.13g/t Au from 153m to 154m; and 2m @ 11.90g/t Au from 158m to 160m.

o WDH 012: 8m @ 9.46g/t Au from 102m to 110m incl. 3m @ 20.13g/t Au from 107m to 110m.

• Detailed ground magnetic survey completed over Wandela-Basotu area west of the Winston Prospect - 1,346 line km surveyed at 20m line spacing.

• The ground magnetics confirms 4 new structural targets

• Significant gold and structural targets identified along 6km of strike to the west of Winston: including the Boundary Hill area with gold-in soil results up to 2,340ppb.

• Circa 2,500 metres of drilling planned to commence on the western targets in August 2016.

• RC and diamond drilling continuing at Winston aimed at extensions of high grade gold mineralisation intersected in WDH 014.

• 3D pole-dipole induced polarisation geophysical survey commences at Winston

Tanga Resources Limited

Tanga is an exploration company exploring for gold in the United Republic of Tanzania and its aim is the discovery and development of economic gold resources.

ASX Code: TRL ABN: 41 141 940 230 Registered Office Ground Floor, 63 Hay Street Subiaco, WA 6008 t: +61(8) 9382 8822 [email protected] www.tangaresources.com.au Issued Capital 380.5 million Shares Options 15.5 M ($0.05 exp 24/12/16) 2.0 M ($0.05 exp 31/12/16) 7.4 M ($0.05) exp 30/4/17) Board & Management John Jones Chairman

John Stockley Technical Director

Mark Wilson Non-executive Director

Graeme Smith Company Secretary


Figure 1. Tanzanian Project Location Plan. Singida Project: Reverse Circulation (RC) and Diamond drilling (HQ triple tube) commenced at Winston on 18 April. A tracked multi-purpose drill rig had, at the end of June, completed 11 drill holes for a total meterage in excess of 2,000m.

Completion of close spaced ground magnetic surveys confirm 4 new structural targets: Boundary Hill, Wedge, Pauline and east of Winston at the School zone. These areas (apart from Wedge) coincide with gold-in soil geochemical anomalies.


Figure 2 Singida Tenement Plan


Figure 3 Winston drill plan showing all holes drilled. The underlying image is the analytic signal of the ground magnetics (20m line spaced)


Winston RC Drilling Results:

Drill Hole Coordinates: Elevation Azimuth Dip Metres Grade From To Geology

Easting Northing metres degrees Au g/t

WDH 006 724276 9517410 1680 180 -60 21 8.15 127 148 Mineralised BIF

Incl. 14 13.33 133 147 Pyrrhotite-amphibole-garnet

Incl. 3 29.35 136 139 Sulphides with visible gold

Incl. 1 15.75 141 142 Sulphides with visible gold

Incl. 1 18.45 146 147 Sulphides-quartz with visible gold in garnet-amphibole rock

WDH 007 724277 9517415 1679 180 -60 26 2.58 134 160 Banded and replaced pyrrhotite-chlorite-garnet rock

Incl. 1 25.60 134 135 Sulphide-silica-visible gold

Incl. 1 2.29 139 140 Sulphide-silica altered BIF

Incl. 1 7.13 153 154 Sulphide-silica-visible gold

Incl. 2 11.90 158 160 Sulphide-garnet-chlorite-amphibole rock with visible gold at 158.90

WRC 009 724282 9517268 1697 350 -60 3 5.79 97 100 Garnet-sulphide-amphibole

altered BIF

WDH 010 724279 9517204 1690 350 -60 2 1.09 256 258 Silica-pyrrhotite-altered BIF

WDH 012 724278 9517390 1702 180 -55 3 2.57 87 90 Altered BIF

2 3.93 93 96 Silica-pyrrhotite altered BIF

8

Incl. 3

9.46

20.13

102

107

110

110

Magnetite-pyrrhotite-silica-

garnet altered BIF with visible gold from 107m to 110m

WDH 014 724262 9517416 1680 180 -60 5 49.43 123 128

Sulphide-silica-altered BIF with visible gold from 124.3m to 125.3m. The 1m from 123m to 124m assayed 99.2g/t Au.

1 3.90 129 130 Altered BIF

1 3.95 145 146 Altered BIF

5 2.93 148 153 Altered BIF

WDH015 724264 9517497 1668 150 -60 309.7 Results pending



Drill Hole Coordinates: Elevation Azimuth Dip Metres Grade From To Geology

Easting Northing metres degrees Au g/t

WRC017 724247 9517423 1676 135 -60 200.0 Results pending



WRC020 724260 9517423 1697 180 -60 186 Results pending







Table 1: Winston RC Drilling Results-Intersections >1g/t Au

Projection: ARC 1960 UTM Datum All assays by ALS Johannesburg: Au <10g/t by AA24 (50gm Fire Assay); >10g/t Au by Au-GRA22 (gravimetric) All holes surveyed by down hole Reflex tool; collars picked up by DGPS All intercepts calculated using a 0.5g/t Au cutoff, no upper cut, maximum of 5m internal dilution


Singida Project Ground Magnetics:

Figure 4. Wandela-Dorirojiki ground magnetic survey showing prospect locations at Boundary Hill, Wedge, Winston and Pauline.


Figure 5. Ground magnetic Analytic Signal data showing the major fold structures west of Winston. The prominent northeast-southwest striking anomalies are Karoo Dolerite dykes.

The ground magnetic survey, shown above in Figure 4 & 5, has covered 1,346 line km at 20m spacing, westwards from the previously reported Winston-Pauline ground magnetic survey. The imagery shows a major east-west trending shear zone, the Wandela-Basotu structure, containing areas of structural disturbance affecting the Banded Iron Formation (BIF) stratigraphy that contain the Winston gold mineralisation (see update to the ASX on 27 June 2016).

Gold anomalies of up to 2,340 ppb occur at the Boundary Hill ground magnetic target, associated with magnetite rich BIF and garnet-amphibole skarn alteration. Rock chip sampling on the western side of the Boundary Hill target, has shown gold values >2g/t Au (see Figure 7).

Recent work at Boundary Hill has consisted of rock chip sampling, geological mapping, and follow-up detailed soil geochemistry on 25m centres.

The magnetic feature “Wedge” appears to be a thrust structure along a major fold limb of the east-west striking Archaean greenstone belt. This target is under deep laterite and black soil cover and will be a focus of up-coming angled Reverse Circulation drilling planned to commence in August. Results of this work will be released as received.


Figure 6. Winston Ground Magnetics Image First Vertical Derivative


Figure 7. Detailed gold-in soil geochemical sampling with first vertical derivative detailed ground magnetic data at Boundary Hill. The eastern part of this area has been followed up with the recent sampling and results are pending.

Previous wide spaced soil geochemistry (200m line spaced soil sampling) in 2013 discovered scattered gold-in soil anomalies of up to 57ppb in the Boundary Hill area, and up to 2,340ppb (2.3g/t Au) to the west at Babadede. These values are associated with garnet skarn, magnetite BIF and altered felsic porphyry. The soil anomaly is open to the north under black soil cover.

This data is shown above in Figure 7. The underlying magnetic data is previously flown wide spaced aeromagnetics (World Bank/Geological Survey of Tanzania).

This work defined a strong gold-in soil anomaly covering 500m by 400m in area, with anomalous values associated with altered porphyry 1km to the north.

This area has been one of the targets for the recent detailed ground magnetic survey. Data processing, filtering and modelling of the data is currently in progress.


FUTURE WORK Electrical Geophysics: A detailed (50m by 100m) ground electrical geophysical survey consisting of 3D pole-dipole Induced Polarisation (IP) and Resistivity work has commenced at Winston. This program will be carried out by geophysical consultants (Spectral Geophysics) and is expected to take one to two weeks. The IP work will be focussed on the down dip/down plunge and strike extensions of the high grade gold mineralisation at Winston; this gold mineralisation is hosted by conductive (and chargeable) semi-massive sulphides containing abundant pyrrhotite. Results of the ground electrical geophysical results will be made available to the market when the survey is completed and interpreted by the company’s consultants. When completed the geophysical crew will shift to the Wedge and Boundary Hill target areas and conduct several gradient array surveys. As is the case with the extended drill program westwards from Winston, community involvement is crucial to the success of the ground electrical geophysics and this community work is on-going, at local village and district level. Ground Magnetics Due to the success of the detailed ground magnetic surveys at Winston, it is planned to extend the current survey up to 3km east of Winston, to cover gold-in soil anomalies located along the shear structure. A cluster of subdued gold anomalies occurs where young Hanang volcanic rocks overlie the Archaean basement.

Values of between 10 to 21ppb Au extend over an area of 3km by 2km and this will be covered in this survey. The extended ground magnetic survey is planned to commence in mid-July and be completed by early August 2016.

The area of the proposed survey is shown below in Figure 8.


Figure 8. Area east of Winston showing extent of planned ground magnetic survey. Singida Project Tenements: Recent work targeting possible extensions of the Wandela Greenstone Belt has resulted in the Company applying for four new Prospecting Licences west, south and east of the Winston gold discovery: this increased tenement coverage now gives the Company a footprint of over 600km² on under-explored Archaean greenstone-granitoid terrain. Community Services In liaison with the local village committee at Basotu, a vertical water bore was successfully drilled 500m south of Winston (WRC 011 “Jacks Bore”). The hole encountered good water flows at 90m (around 2,000 litres per hour) and was completed at 120m. The water bore was cased off, gravel packed, and pump tested.

The hole was assayed for gold but did not encounter any mineralisation.

Other community work at Winston has included road reconstruction after the heavy wet season, and donations have been made to two of the local primary schools for school desks and this school aid program is continuing in liaison with the local village committees. All of this work has been done in co-operation with the District Commissioner’s Office at Katesh (Hanang District). Corporate

Cash on hand at June 30 2016 was $2.9 million.


Competent Persons Statement: The information in this report relates to Exploration Results based on information compiled by John Stockley who is a Competent Person and member of the Australian Institute of Geoscientists (AIG). John Stockley is a Director of Tanga Resources Ltd. John Stockley has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity they have undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves”. John Stockley consents to the inclusion in the report of the matters based on his information in the form and context which it appears. The geophysical information in this report is based on information compiled by Mr Barry Bourne, who is employed as a Consultant to the Company through geophysical consultancy Terra Resources Pty Ltd. Mr Bourne is a fellow of the Australian Institute of Geoscientists and a member of the Australian Society of Exploration Geophysicists and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bourne consents to the inclusion in the report of matters based on information in the form and context in which it appears.

For futher information please contact Mr John Jones Mr John Stockley Chairman Technical Director Tanga Resources Limited Tanga Resources Limited Tel: 08 9 322 4569 Mobile: 0447 826 166 Further information relating to Tanga Resources Limited and it’s exploration projects can be found at its website: www.tangaresources.com.au

http://www.tangaresources.com.au/


Appendix 1

Tenement Directory

Project Tenement Number Name Beneficial Interest

Singida PL 10971/2016 Wandela 99.95%

Singida PL 7246/2011 Wandela West 99.95%

Singida PL 7296/2011 Harare 99.95%

Singida PL 7344/2011 South Garauja 99.95%

Singida PL 7389/2011 North Garauja 99.95%

Singida PL 7405/2011 West Garauja 99.95%

Singida PL 7644/2012 Mbulu 99.95%

Singida PL 8208/2012 Wandela Renewal 99.95%

Geita PL 8293/2013 Mimbili 99.95%

Singida PL 9293/2013 Basuto 99.95%

Singida PL 9895/2014 Dorirojiki 99.95%

Singida PL 10570/2015 Singa Kubwa 99.95%

Singida PL 10572/2015 Mpipiti West 99.95%

Singida PL 10620/2015 Wandela Central 99.95%

Kahama PL 10675/2015 Bukombe 99.95%

Hanang PL 10981/2016 Gairo 99.95%

Hanang PL 10982/2016 Kiboroda 99.95%

Hanang PL 11000/2016 Mbulu application 99.95%

Singida PL 11013/2016 Mwando-Iambi application 99.95%

Hanang PL 11014/2016 Mpipiti East application 99.95%

Geita PL 11033/2016 Nyang'wale_Msalala application 99.95% Singida HQ-01285 (application) Mkalama application 99.95% Singida HQ-01290 (application) Mkalama application 99.95%

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+ See chapter 19 for defined terms. 01/05/2010 Appendix 5B Page 1

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

TANGA RESOURCES LIMITED

ABN Quarter ended (“current quarter”)

41 141 940 230 30 June 2016

Consolidated statement of cash flows

Cash flows related to operating activities

Current quarter $A’000

Year to date 12 months $A’000

1.1 Receipts from product sales and related debtors

1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration

(593)

(219)

(1,079)

(557) 1.3 Dividends received 1.4 Interest and other items of a similar nature

received 4 7

1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material)

Net Operating Cash Flows (808) (1,629)

Cash flows related to investing activities

1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets

(116)

(180) 1.9 Proceeds from sale of: (a) prospects

(b) equity investments (c) other fixed assets

1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material)

Net investing cash flows

(116)

(180) 1.13 Total operating and investing cash flows

(carried forward) (924) (1,809)


+ See chapter 19 for defined terms. Appendix 5B Page 2 01/05/2013

1.13 Total operating and investing cash flows (brought forward)

(924) (1,809)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc. 167 4,481 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows 167 4,481

Net increase (decrease) in cash held

(757)

2,672

1.20 Cash at beginning of quarter/year to date 3,657 228 1.21 Exchange rate adjustments to item 1.20

1.22 Cash at end of quarter 2,900 2,900

Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities Current quarter

$A'000 1.23

Aggregate amount of payments to the parties included in item 1.2

45

1.24

Aggregate amount of loans to the parties included in item 1.10

1.25

Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

2.2 Details of outlays made by other entities to establish or increase their share in projects in

which the reporting entity has an interest



Financing facilities available Add notes as necessary for an understanding of the position.

Amount available $A’000

Amount used $A’000

3.1 Loan facilities

3.2 Credit standby arrangements

Estimated cash outflows for next quarter

$A’000 4.1 Exploration and evaluation

600

4.2 Development

4.3 Production

4.4 Administration

200

Total

800

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

Current quarter $A’000

Previous quarter $A’000

5.1 Cash on hand and at bank 84 174

5.2 Deposits at call 816 1,483

5.3 Bank overdraft

5.4 Other (provide details) – term deposit 2,000 2,000

Total: cash at end of quarter (item 1.22) 2,900 3,657

Changes in interests in mining tenements and petroleum tenements

Tenement reference and location

Nature of interest (note (2))

Interest at beginning of quarter

Interest at end of quarter

6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed

6.2 Interests in mining tenements and petroleum tenements acquired or increased


+ See chapter 19 for defined terms. Appendix 5B Page 4 01/05/2013

Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number quoted Issue price per security (see note 3) (cents)

Amount paid up per security (see note 3) (cents)

7.1 Preference +securities (description)

7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions

7.3 +Ordinary securities

380,538,515 380,538,515

7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs

3,225,000

3,225,000

7.5 +Convertible debt securities (description)

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted

7.7 Options (description and conversion factor)

15,491,432 2,037,500 7,409,646

15,691,432 -

Exercise price $0.05 $0.05 $0.05

Expiry date 24 Dec 2016 31 Dec 2016 30 Apr 2017

7.8 Issued during quarter 1,009,646 $0.05 30 Apr 2017 7.9 Exercised during quarter 200,000

1,500,000 1,525,000

200,000 $0.05 $0.05 $0.05

24 Dec 2016 31 Dec 2016 30 Apr 2017

7.10 Expired during quarter 7.11 Debentures

(totals only)

7.12 Unsecured notes (totals only)

Compliance statement 1 This statement has been prepared under accounting policies which comply with

accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

2 This statement does give a true and fair view of the matters disclosed.

Sign here: .......... .............. Date: ..30 July 2016.... (Company secretary)

Print name: Graeme Smith



Notes 1 The quarterly report provides a basis for informing the market how the entity’s

activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of

interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not

required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of

Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International

Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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Documents

Quarterly Report...June 2016 Quarterly Report Page | 10 Figure 7. Detailed gold-in soil geochemical sampling with first vertical derivative detailed ground magnetic data at Boundary