Ann: Operational and Commercial Update, page-7

So, what Really Happened,
As usual we have to do the numbers ourselves, so here is what we know from what we have been told up to now!

Scoping Study:
Comstock. feed grade: 33,000 tonnes @ 2.2g/t Au
Shamrock. 90,000 tonnes @ 3.7g/t Au.
Total 133,000 tons average @ 3.23g/t Gold.

So how did the mining manager and contract operators perform in reality?

To date: 40,000 tons, Processed for 665 ounces.So that's 40,000 tons @ 0.36g/t Au.
So, the dilution rate was 90% waste to ore ratio.

Anyone who doesn’t understand that, for every ton of rock containing gold, we actually mined and processed, 9 tons of waste rock as well. What does that mean, it means there was no management on the mining of the ore bodies, none, zero, zilch, no grade control whatever. Basically, a blast of the area where the gold should be and then just mine "Whatever you want" just get tons, put some in the waste area and some in the ore stockpile. So based on what we gleaned from the first gold pour, we got enough to repay the loan guy his 200ozs, and this new pour 465 ozs.

Fyi the average benchmark for gold production using a contract mill is $60 per ton. So, we have processed 40,000 tons @ $60 ton for a cost of $2,400,000, plus approx transport from Golden Mile $15 ton, $650,000 transport. So, NOT taking into account rental of $110,000 month for GAM plant, in reality, it has cost Tombola a total of $3,050,000 to pour around $924,000 worth of gold. Then todays update says there is still 16,000 tons to process, so, assuming same gold grade 0.36g/t Au, that will give TBA another 185 oz’s gold or at today’s gold price another $507,000 based on current processing and transport (without $110k month rental) it will cost 16,000 × $60 ton processing costs $960,000 plus, transport costs 16,000 x $15 $240,000. Means our total costs for transport and processing the remaining 16,000 tons is $1.2m to pour $507,000 worth of gold. (Loss of $693,000)

The only positive thing, it seems to be based on all the numbers, is that, the announcement today says there is still 36,000 tonnes of ore to come in from Golden Mile. The positive of that is, "lucky we don't have any money to bring it from the Golden Mile to the GAM plant." Ok, so what does it all mean, well Tombola just borrowed $4.25m for 3 months for $850,000 interest or in banking terms equivalent of 80% interest per year. The security it seems, (without shareholders’ approval) is the security is 100% of the total assets of Tombola. The numbers above do not reflect all the additional creditors or contracted debt amounts, owed by the company, consisting of several million dollars. (Purchase of Lorena project and others)

So what does it mean for shareholders, well first it shows that the mining management and contractors failed and were not experienced, incompetent or really didn't really give a toss, as long as the money flowed into their pockets.(that's a given.) Secondly the directors never had their eye on the ball & thirdly, Tombola Gold Ltd is not in any position to repay the loan of $4.25m, nor any of its accumulated creditors or debt. Any chance of raising money, for Tombola to continue, as a going concern has been dealt a fatal blow by today’s announcement, so were to from here. There is obviously a common thread of incompetence and false and misleading information given to shareholders, my guess is that the recent lender or another creditor will appoint a receiver and the lender will attempt to seize all of the Tombola assets. The lender I believe will struggle to seize the assets, because I believe the directors were not authorized to enter into that transaction for offering 100% of the assets, with the security being only 10% of the current market cap of the company and that a long and drawn-out court cases will follow. The first lender will be seen as a preferred creditor and deemed unlawful payment if can be proved the Company was trading whilst insolvent at that time. I think that the mining contractor and mine management who were managing the mining operations and did not follow the correct procedures or grade control will be sued by the receivers or shareholders.

They are clearly the "prime reason" we are in this position, the directors will be required to pay all creditors, if proven TBA was trading whilst insolvent which, again is looking like a given. That's where we are, I don't believe TBA will ever trade for a long time unless big money comes in and restructures. The thing is, Tombola Gold had all the best gold properties in the Cloncurry Mineral field, no one has questioned that, the talk of "no DFS" doesn't change the gold grade or ore dilution or the incompetence and derelict mismanagement we have all witnessed. God may save the queen but nothing will save Tombola. Let the blame game and feed cash the lawyers begin. It's over folks! Anyway just an opinion nothing more, always happy to hear some different views of how people see it.

Always pays to do your research.

Sayonara!