Mr. David Scott reports

TEMBO REPORTS FIRST DEEP DIAMOND DRILL RESULT IN DRILL HOLE TDD0041 AT NGULA 1 TARGET WITH 22.81 G/T GOLD OVER 15.00 METERS

Tembo Gold Corp. has released the results of the first deep hole from the 2012 initial drill program at the Ngula 1 target on the Tembo project in the Lake Victoria goldfield of Tanzania. The results of this deep hole strongly support the company's geological model that mineralization grades will improve with depth, as was the case at the adjacent Bulyanhulu mine of African Barrick Gold.

Highlights of the latest drill results include:

• TDD0041: 22.81 grams per tonne gold over 15 metres from 299 m, including 34.78 g/t Au over 9.7 m from 302.3 m, including 205 g/t gold over one m.

Tembo Gold's president and chief executive officer, David Scott, stated: "These exceptional results from diamond drill hole TDD0041 at Ngula strongly support the model that the regional geological controls on mineralization will result in improved gold grades at Tembo with depth. Given the robust nature of the structures hosting the mineralization and these results, our expectation and confidence of discovering multiple parallel laterally and vertically extensive zones of high-grade gold mineralization at depth has increased. Having achieved high-grade and wide intersections in both the northern and southern half of the shear package in steep north-dipping structures supports this. We eagerly anticipate the 2013 drilling program which will be designed to delineate resources, and extend the depth and strike of high-grade mineralization at Ngula 1."

The latest Ngula 1 drill hole results are presented in the table.

Ngula 1 target

The Ngula 1 target consists of a 600 m long, 150 m to 200 m wide package of massive and locally intensely sheared mafic metavolcanic rocks bounded to the north and south by thin metasedimentary units. Within the package there are a number of strong subparallel, near-vertical north-dipping, east-west shear structures. These shear structures consistently host gold mineralization in association with quartz veining, alteration and sulphides, predominantly pyrrhotite, pyrite and chalcopyrite. These east-west structures are of variable thickness, ranging from less than a metre to 50 m, and it is interpreted that they are intersected by northwest- and northeast-trending secondary shear structures that result in thicker zones of deformation and alteration, and higher-grade mineralization.

The drilling program to date has consisted of alternating 100 m spaced diamond drill hole and reverse circulation drill hole sections drilled from the south to test the zone at vertical depths between 50 m and 200 m from surface, and 100 m spaced diamond hole drill sections drilled from the north testing to similar depths. The earlier drill results announced in 2012 (March 13, June 7 and Sept. 26) provide initial definition of these zones of deformation and mineralization, and drill holes intersected variable grades and widths of mineralization within numerous robust parallel east-west shear structures.

These intersections include:

• TDD0004: 3.13 g/t Au over 25.89 m, including 8.87 g/t Au over 3.89 m;
• TDD0005: 10.76 g/t Au over four m, including 93.3 g/t Au over 0.38 m;
• TRC0013: 17.23 g/t Au over four m from 19.00 m, including 48.8 g/t Au over one m, and 13.00 g/t Au over one m from 104 m;
• TRC0014: 19.80 g/t Au over one m from 114.00 m and 10.00 g/t over one m from 122.00 m;
• TDD0054: 8.17 g/t over 11.05 m from 116.95 m.

A comparison with shallow early drilling at Bulyanhulu reveals that like Bulyanhulu, Ngula 1, despite displaying consistent deformation, alteration and sulphide mineralization, has inconsistent grades near surface. As drilling progressed to greater depths at Bulyanhulu, grades and grade continuity improved, with a one-kilometre orebody near surface extending to approximately four kilometres at depth with grades showing a marked improvement below 200 m.

Diamond drill hole TDD0041 was drilled from the north to enter the northern margin of the shear package at the upper metasedimentary marker at a vertical depth of 200 m and to exit at a vertical depth of approximately 400 m, whereas earlier holes entered the zone at depths between 50 m and 100 m and exited at between 100 m and 200 m. The drill hole has reached a depth of 387 m and will be deepened to a depth of approximately 500 m to intersect further potential wide mineralized structures when drilling recommences. The drill hole has intersected a broad zone of deformed and foliated metavolcanic rocks with strong chlorite and epidote alteration, and abundant disseminated pyrrhotite and pyrite mineralization. A gold mineralized zone of 22.81 g/t over 15 m from 299 m downhole is associated with subvertical shearing and quartz veining, and may correlate to the well-mineralized gold-bearing shear in drill hole TDD0054, and other wide zones of shearing and mineralization that host low-grade gold. This zone is located in the northern half of the metavolcanic package. Within the southern half, a similarly well-developed shear structure is interpreted to host the mineralization in TRC0013, TDD0004 and TDD0005. The pervasive nature of the alteration, the width of the deformation zones and the wide distribution of gold through these zones suggest strong shear structure controlled zones of mineralization that should have extensive lateral and vertical continuity. The stronger and higher-grade mineralization in this drill hole suggests that the tenor of gold is increasing at depth.

The Ngula 1 drilling to date indicates:

• There are several robust steep north-dipping subparallel east-west shear structures containing gold.
• The width of the structures and mineralization along strike and downdip is variable.
• Gold mineralization tenor at the depths drilled to date (shallower than 200 m) is inconsistent.
• Structures bifurcate and converge, but drilling is too wide spaced for detailed and certain correlation between individual structures in both directions.
• Extensive alteration, shearing, quartz veining and sulphide mineralization typify high-grade gold-bearing zones.
• Zones are developed that display the typical characteristics of well-mineralized gold intersections, appear to correlate with high-grade zones, but contain low-grade gold.
• The structures are converging with depth and where they converge, higher grades and wider intersections are expected.
• The deepest hole drilled to date has given the best results.

Follow-up drilling of the Ngula 1 target at Tembo is planned for 2013. This program will be designed to infill the shallow drilling to approximately a 50 m drill hole spacing in order to improve geological interpretation, define gold distribution with a view to modelling a shallow potential open-pit resource; deep drilling will test the entire structural zone along strike and at depth to assess the continuity and gold tenor of the TDD0041 mineralized structure, and the downdip and along-strike continuity of the parallel gold-bearing structures intersected updip.

              TEMBO PROJECT, NGULA 1 TARGET, NEW DRILL RESULTS                                               
                                                                          
                                               Greater         Greater         
                                               than            than            
                                               0.50 g/t        2.00 g/t         

Hole         From       To   Width      Au    Width     Au   Width      Au
               (m)      (m)     (m)    (g/t)    (m)   (g/t)     (m)   (g/t)

TDD0041    120.00   121.00    1.00    0.60    1.00    0.60                        
           237.60   238.10    0.50    1.89    1.50    1.58                
           238.10   239.10    1.00    1.43                                        
           241.00   242.00    1.00    1.00    2.00    0.94                
           242.00   243.00    1.00    0.87                                        
           299.00   299.80    0.80    2.72                   15.00   22.81
           299.80   300.30    0.50    1.25                                
           300.30   300.80    0.50    1.98                                
           300.80   301.30    0.50    0.74                                
           301.30   301.80    0.50    0.67                                
           301.80   302.30    0.50    1.12                                
           302.30   302.80    0.50  110.00                                
           302.80   303.30    0.50  300.00                                
           303.30   303.80    0.50   18.20                                
           303.80   304.30    0.50   23.10                                
           304.30   304.80    0.50   22.50                                
           304.80   305.30    0.50    5.75                                
           305.30   305.80    0.50   14.40                                
           305.80   306.30    0.50   37.50                                
           306.30   306.80    0.50    3.94                                
           306.80   307.30    0.50    4.15                                
           307.30   307.80    0.50    4.80                                
           307.80   308.30    0.50    0.37                                
           308.30   308.80    0.50   19.60                                
           308.80   309.30    0.50    1.10                                
           309.30   309.80    0.50    0.47                                
           309.80   310.30    0.50    7.64                                
           310.30   310.80    0.50    1.41                                
           310.80   311.30    0.50   35.10                                
           311.30   312.00    0.70   43.50                                
           312.00   313.00    1.00    1.14                                
           313.00   314.00    1.00    0.46                                

1) 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 60 degrees and 
subvertical dip of the structures suggest that the true width will be 
approximately 86 per cent of the intersected width. 
2) Drill holes have not been drilled in numerical sequence and not all
drill holes in a sequence have necessarily been drilled. Drill hole
numbers represent the original drill hole identification assigned when
planned. 
3) No capping of high-grade values has been applied to the assay 
results.

A stringent quality assurance/quality control practice is being applied to all sample batches. A verified reference material standard is inserted every 20th sample, a known blank or blank standard every 20th sample, and all samples with assays greater than 0.5 g/t Au are reassayed. Of all samples, 1 per cent are submitted to an alternative laboratory for check analysis. In addition the laboratory adheres to an internal QA/QC procedure including standard samples, repeats and blanks inserted independently.

The above information has been prepared under the supervision of David Scott, PrSciNat, who is designated as a qualified person with the ability and authority to verify the authenticity and validity of the data.

Conference call/webinar

The company will be hosting a webinar and conference call on Wednesday, Jan. 16 at 4:15 p.m. ET. President and CEO David Scott will discuss the latest developments with the drilling program at the Tembo property. To register to attend this webinar, please visit the company's website or call 416-907-4148.

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