Mr. Antonio Ponte reports

TANGO GOLD ACQUIRES MINING AND RELATED ASSETS IN SOUTH AFRICA

Tango Gold Mines Inc. has entered into an arm's-length definitive acquisition agreement with private South African companies (together referred to as African Star) and certain of their shareholders. Tango has agreed to issue 49 million shares at a deemed price of five cents to acquire a 51-per-cent interest in African Star, which: (i) holds a 100-per-cent interest in the Oena diamond project, a past-producing alluvial diamond property covering 8,800 hectares located in the Northern Cape province, South Africa; and (ii) has four toll treatment contracts in respect of four mutually exclusive coal operating and production collieries located in the Witbank coal district, Mpumalanga and Natal provinces, South Africa.

Oena is currently on care and maintenance, and the operations service contracts generate income within African Star based on coal throughput at each colliery. A nominee of African Star, Kevin Gallagher, will be appointed to Tango's board of directors on closing. There are no underlying royalties in respect of Oena; however, each of the four private companies constituting African Star qualifies as being BEE (Black Economic Empowerment) compliant, namely that it is in compliance with South Africa's Black Economic Empowerment regimes.

Tango and African Star have agreed: (i) to restrict the number of payment shares tradable on any given day; and (ii) to impose a 30-month escrow period, whereby 10 per cent of the payment shares shall be free trading (subject to a regulatory four-month hold period) at closing, and subsequently thereafter, 18 per cent shall be released at each six-month interval over the 30 months. Contemporaneously, 17.15 million of the payment shares shall be held in escrow pending receipt of applicable approvals under South African legislation. Lastly, in connection with the transaction, the company has agreed to pay a cash finder's fee of $100,000 (U.S.) to an arm's-length third party.

The transaction is subject to receipt of the approval of the TSX Venture Exchange.

Tango will also issue on closing a total of 1,474,522 common shares at a deemed price of five cents per share, payable as service fees to an arm's-length third party for consulting services rendered. The issuance of these shares is subject to the approval of the TSX Venture Exchange, and the shares shall be restricted from trading for a period of four months from issuance.

We seek Safe Harbor.