TARUGA MINERALS LIMITED — M&A Activity 2014

Oct 30, 2014

ASX RELEASE

31 October 2014

TARUGA EXPANDS IN COTE D’IVOIRE – ADDITIONAL HIGHLY PROSPECTIVE CONCESSION GRANTED

Taruga Gold Limited ( Taruga or the Company ) is pleased to announce that it has been granted the Tiebissou concession in Cote d’Ivoire. Taruga is now the 100% owner of FIVE granted concessions within this highly prospective, yet very underexplored region of Birimian geology.

Taruga’s extensive landholding in Cote d’Ivoire is approximately 2,000km[2] with all concessions located within known mineralised belts and situated close to major structural zones and previous discoveries ( Figure 1 ).

Taruga has commenced a campaign of geological reconnaissance and geochemical sampling of these granted concessions and expects to continue this work for the field season, with a focus on infill and delineation of priority areas for reconnaissance drill testing.

The granting of Tiebissou continues the recent progression of the Targua strategy, which is to construct a world-class portfolio of West African assets that are highly prospective and capable of being quickly progressed.

Highlights:

• Tiebissou located in central Cote d’Ivoire along strike from the operating gold mines at Agbaou and Bonikro and immediately south of a Resolute Mining Limited concession

• Tiebissou concession contains extensive artisanal workings and strong geochemical anomalies identified in historic sampling

• Tiebissou has 20km of prospective strike length, with numerous major geological structures mapped and geochemical anomalies identified.

• Dabakala Concession - geochemical sampling of a 15km prospective zone with historical stream sediment samples including 102ppb Au, 72ppb Au and 300ppb Au

• Korhogo Concession – geochemical sampling of areas of artisanal working and geological structures commenced. Concession is adjacent to area of anomalous drilling completed by Perseus Mining Limited.

Commenting on the granting of the Tiebissou concession, Managing Director Bernard Aylward stated: “The granting of the Tiebissou concession continues our successful acquisitions in Cote d’Ivoire where our in-country team continues to work closely with the Government to ensure the timely approvals of our applications. We have targeted this highly-prospective region and focused on obtaining high-quality early stage concessions in areas of identified zones of gold mineralisation. Taruga has commenced an exploration program in Cote d’Ivoire

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and anticipates being able to report results from the field work in the coming months.”

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Figure 1 – Taruga Gold – Location map of Granted Concessions, Cote d’Ivoire

Tiebissou Concession

The Tiebissou concession (306km[2] ) has been granted for an initial period of four years. The concession is located in central Cote d’Ivoire and is along strike from the Agbaou Gold Mine (Endeavour Mining Corporation) and the Bonikro Gold Mine (Newcrest Mining Limited). The exploration is at an early stage for the concession, however previous surface geochemistry has highlighted zones of geochemical anomalism that are a high-priority target for immediate exploration ( Figure 2 ). It is noted that the surface geochemical anomalism continues to the north of the concession into ground held by Resolute Mining Limited, and recent reports[1] indicate Resolute have commenced infill soil sampling of the large gold and multi-element anomaly identified in 2009.

Taruga is planning to undertake an initial exploration program at Tiebissou to follow up on the known soil anomalism and artisanal workings, as part of its regional exploration work with Cote d’Ivoire.

Cote d’Ivoire Exploration Campaign

Taruga has commenced a geochemical sampling campaign in Cote d’Ivoire to begin to prioritise the project areas and rapidly advance high-priority targets to drill ready status.

1 See Resolute Mining Limited Quarterly Report announced to ASX 20 October 2014

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The program will consist of a series of reconnaissance spaced and infill geochemical soil and stream sediment samples and will target areas of geological complexity, artisanal workings and historic gold anomalism.

The exploration campaign has commenced at the granted Dabakala, Korhogo and Mangkono concessions and will also include work at the newly granted Tiebissou.

Dabakala Concession

Taruga has a program of surface geochemical samples targeting a zone of artisanal workings and major geological structures ( Figure 3 ). The project is at an early stage of exploration, with minimal exploration completed, however historic stream sediment samples collected in the area have identified gold mineralisation associated with the major structures and returned results up to 102ppb gold within the concession area. Taruga intends to follow this area up as a priority to determine the size of the geochemical anomaly and potential for significant gold mineralisation.

Korhogo Concession

The Korhogo concession is located in the northern portion of Cote d’Ivoire and is a 360.6 km[2] concession with a three year term.

The concession is at an early stage of exploration and initial field reconnaissance has identified areas of significant artisanal workings and prospective geological structures and units. The program for initial geochemical sampling will target the northern portion of the concession where it is interpreted that a “pressure shadow” at the margin of a granitic intrusion may develop a favourable environment for gold mineralisation to focus. This area has identified artisanal workings, and on adjacent ground recent aircore drilling was completed by Perseus Mining Limited that returned highly anomalous results.

Taruga will continue the geochemical sampling campaign in Cote d’Ivoire for the field season with the aim of developing key prospect areas to drill status through infill geochemical sampling and trenching.

For further information see the Company’s website www.tarugagold.com.au or contact:

Bernard Aylward Managing Director Taruga Gold Limited Mob: +61 418 943 345

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About Cote d’Ivoire

Cote d’Ivoire has recently introduced mining friendly legislation. The country hosts roughly 35% of West Africa’s Birimian Greenstone belts – Ghana, Africa’s second largest gold producer, hosts ~17%.

While historically underexplored, in recent years mining companies have enjoyed successful exploration results. The country now boasts seven multi-million ounce gold deposits (including Amara Mining’s 6moz+ Yaoure deposit and Randgold Resources 4.4moz Tongon deposit), with four commercial scale mines currently in production.

About Taruga Gold

Taruga is a West African focused gold explorer that has compiled a diverse portfolio of exploration projects within the Birimian geology of West Africa. This region is at present one of the world’s great gold districts and has had a significant rate of discovery and development of new gold mines over past decades.

Taruga has ~3,800km2 of highly prospective concessions in Niger, Southern Mali and Cote d’Ivoire, all within similar geological settings as world-class goldmines. The Company’s Kossa Project in Niger is 15km from the 5moz Essakane goldmine; in Mali, the Nangalasso project is 30km west of the 7moz Syama project

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Figure 2 – Tiebissou concession highlighting geochemical anomalism and major workings

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Figure 3: Dabakala concession highlighting prospective geological structures and the anomalous geochemical sampling from historic sampling

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Figure 4: Korhogo concession highlighting prospective geological structures and artisanal working in northern portion of concession.

Appendix 1: JORC 2012 Summary Table

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling	 Nature and quality of sampling (eg cut channels, random chips, or	Exploration information reported in this announcement relates to
techniques	specific specialised industry standard measurement tools appropriate	historical geochemical sampling with data compiled from government
	to the minerals under investigation, such as down hole gamma	and industry sources.
	sondes, or handheld XRF instruments, etc). These examples should	Sampling information has previously been reported to the ASX by
	not be taken as limiting the broad meaning of sampling.	companies including Resolute Mining Limited and Perseus Mining
	 Include reference to measures taken to ensure sample representivity	Limited. It was noted that industry standard techniques and
	and the appropriate calibration of any measurement tools or systems	appropriate QAQC procedures were followed
	used.	A program of stream sediment sampling was completed by
	 Aspects of the determination of mineralisation that are Material to the	International Goldfields in the Dabakala Concession area. This
	Public Report.	program was completed using industry standard techniques and
	 In cases where ‘industry standard’ work has been done this would be	QAQC procedures followed.
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1
	m samples from which 3 kg was pulverised to produce a 30 g charge
	for fire assay’). In other cases more explanation may be required,
	such as where there is coarse gold that has inherent sampling
	problems. Unusual commodities or mineralisation types (eg
	submarine nodules) may warrant disclosure of detailed information.
Drilling	 Drill type (eg core, reverse circulation, open-hole hammer, rotary air	No new drilling is reported in this announcement and no drilling has
techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple	been completed by Taruga. Historical information is reported relating
	or standard tube, depth of diamond tails, face-sampling bit or other	to reconnaissance Aircore drilling.
	_type, whether core is oriented and if so, by what method, etc). _
Drill sample	 Method of recording and assessing core and chip sample recoveries	No sampling information to report
recovery	and results assessed.
	 Measures taken to maximise sample recovery and ensure
	representative nature of the samples.
	 Whether a relationship exists between sample recovery and grade
	and whether sample bias may have occurred due to preferential
	loss/gain of fine/coarse material.
Logging	 Whether core and chip samples have been geologically and	No logging information to report

Criteria	JORC Code explanation	Commentary
	geotechnically logged to a level of detail to support appropriate
	Mineral Resource estimation, mining studies and metallurgical
	studies.
	 Whether logging is qualitative or quantitative in nature. Core (or
	costean, channel, etc) photography.
	 The total length andpercentage of the relevant intersections logged.
Sub-sampling	 If core, whether cut or sawn and whether quarter, half or all core	No sub-sampling to report
techniques	taken.
and sample	 If non-core, whether riffled, tube sampled, rotary split, etc and
preparation	whether sampled wet or dry.
	 For all sample types, the nature, quality and appropriateness of the
	sample preparation technique.
	 Quality control procedures adopted for all sub-sampling stages to
	maximise representivity of samples.
	 Measures taken to ensure that the sampling is representative of the in
	situ material collected, including for instance results for field
	duplicate/second-half sampling.
	 Whether sample sizes are appropriate to the grain size of the material
	being sampled.
Quality of	 The nature, quality and appropriateness of the assaying and	Samples referred to in this report are historical information compiled
assay data	laboratory procedures used and whether the technique is considered	from Government and Industry sources.
and	partial or total.	No comment is made on the quality of assay data or laboratory tests
laboratory	 For geophysical tools, spectrometers, handheld XRF instruments, etc,	other than it is noted work was completed by reputable companies
tests	the parameters used in determining the analysis including instrument	who followed industry standard practices and procedures.
	make and model, reading times, calibrations factors applied and their
	derivation, etc.
	 Nature of quality control procedures adopted (eg standards, blanks,
	duplicates, external laboratory checks) and whether acceptable levels
	of accuracy (ie lack of bias) andprecision have been established.
Verification of	 The verification of significant intersections by either independent or	No adjustments to the assay data have been made.
sampling and	alternative company personnel.	Information has been compiled from Government and Industry
assaying	 The use of twinned holes.	sources and is stored in an electronic database.
	 Documentation ofprimary data, data entry procedures, data	No new data is reported here and verification of historic data is not

Criteria	JORC Code explanation	Commentary
	verification, data storage (physical and electronic) protocols.	possible currently, however the current exploration campaign will
	 Discuss any adjustment to assay data.	target areas of previous anomalism to verify historic data.
Location of	 Accuracy and quality of surveys used to locate drill holes (collar and	No new data points reported.
data points	down-hole surveys), trenches, mine workings and other locations
	used in Mineral Resource estimation.
	 Specification of the grid system used.
	 Quality and adequacy of topographic control.
Data spacing	 Data spacing for reporting of Exploration Results.	Exploration is at a reconnaissance level and information reported
and	 Whether the data spacing and distribution is sufficient to establish the	here is derived from field reconnaissance, initial geological review
distribution	degree of geological and grade continuity appropriate for the Mineral	and compilation of historic data.
	Resource and Ore Reserve estimation procedure(s) and
	classifications applied.
	 Whether sample compositing has been applied.
Orientation of	 Whether the orientation of sampling achieves unbiased sampling of	No information is reported on the orientation of historic information
data in	possible structures and the extent to which this is known, considering
relation to	the deposit type.
geological	 If the relationship between the drilling orientation and the orientation
structure	of key mineralised structures is considered to have introduced a
	sampling bias, this should be assessed and reported if material.
Sample	 The measures taken to ensure sample security.	No comment on the historic sample security
security
Audits or	 The results of any audits or reviews of sampling techniques and data.	No audits or reviews have been completed
reviews

Section 2 Reporting of Exploration Results

Section 2 Reporting of Exploration Results	Section 2 Reporting of Exploration Results
(Criteria listed in theprecedingsection also applyto this section.)
Criteria	JORC Code explanation	Commentary
Mineral	 Type, reference name/number, location and ownership including	Tiebissou Concession is located in Cote d’Ivoire. The granting of the
tenement and	agreements or material issues with third parties such as joint	Tiebissou concession was reported in the Cote d’Ivoire Government
	ventures, partnerships, overriding royalties, native title interests,	gazette 1/October 2014. Tiebissou concession is a “Permis de

Criteria	JORC Code explanation	Commentary
land tenure	historical sites, wilderness or national park and environmental	Recherche”
status	settings.	Korhogo Concession is located in Cote d’Ivoire and is a “Permis de
	 The security of the tenure held at the time of reporting along with any	Recherche” with decree number 2014-04. The concession is granted
	known impediments to obtaining a licence to operate in the area.	for a 3 year term
		Dabakala Concession is located in Cote d’Ivoire and is a “Permis de
		Recherche” with decree number 2014-03. The concession is granted
		for a 3 year term
		Nielle Concession is located in Cote d’Ivoire and is a “Permis de
		Recherche” with decree number 2014-101. The concession is
		granted for a 3 year term
		Mangkono Concession is located in Cote d’Ivoire and is a “Permis de
		Recherche” with decree number 2013-435. The concession is
		granted for a 3 year term
		Taruga is the 100% owner of the concessions through subsidiary
		companies registered in Cote d’Ivoire
Exploration	 Acknowledgment and appraisal of exploration by other parties.	Exploration is at an early stage. Geochemical sampling has been
done by other		completed in International Goldfields Limited (ASX:IGS) on the
parties		Dabakala licence and geochemical sampling by Resolute Mining
		Limited on the Tiebissou licence. Reconnaissance exploration
		completed by other companies on nearby ground has been complied
		into a regional database for overview and planning. Exploration work
		completed to date is of an acceptable standard for the stage of
		exploration.
Geology	 Deposit type, geological setting and style of mineralisation.	The projects are located in the Birimian sequence of West Africa.
		Geology consists of Birimian volcanoclastics and sediments and
		intrusive granite and granodiorite bodies.
Drill hole	 A summary of all information material to the understanding of the	No new information is reported.
Information	exploration results including a tabulation of the following information
	for all Material drill holes:
	o easting and northing of the drill hole collar
	o elevation or RL (Reduced Level – elevation above sea level in
	metres) of the drill hole collar

Criteria	JORC Code explanation	Commentary
	o dip and azimuth of the hole
	o down hole length and interception depth
	o hole length.
	 If the exclusion of this information is justified on the basis that the
	information is not Material and this exclusion does not detract from
	the understanding of the report, the Competent Person should clearly
	explain why this is the case.
Data	 In reporting Exploration Results, weighting averaging techniques,	No data aggregation methods have been used – data is a compilation
aggregation	maximum and/or minimum grade truncations (eg cutting of high	of historic information
methods	grades) and cut-off grades are usually Material and should be stated.
	 Where aggregate intercepts incorporate short lengths of high grade
	results and longer lengths of low grade results, the procedure used
	for such aggregation should be stated and some typical examples of
	such aggregations should be shown in detail.
	 The assumptions used for any reporting of metal equivalent values
	should be clearly stated.
Relationship	 These relationships are particularly important in the reporting of	No sampling reported
between	Exploration Results.
mineralisation	 If the geometry of the mineralisation with respect to the drill hole
widths and	angle is known, its nature should be reported.
intercept	 If it is not known and only the down hole lengths are reported, there
lengths	should be a clear statement to this effect (eg ‘down hole length, true
	_width not known’). _
Diagrams	 Appropriate maps and sections (with scales) and tabulations of	Refer to announcement
	intercepts should be included for any significant discovery being
	reported These should include, but not be limited to a plan view of
	drill hole collar locations and appropriate sectional views.
Balanced	 Where comprehensive reporting of all Exploration Results is not	All available information reported
reporting	practicable, representative reporting of both low and high grades
	and/or widths should be practiced to avoid misleading reporting of
	Exploration Results.
Other	 Other exploration data, if meaningful and material, should be reported	Project is at an early stage of exploration. All information is in
substantive	including (but not limited to): geological observations; geophysical

Criteria	JORC Code explanation	Commentary
exploration	survey results; geochemical survey results; bulk samples – size and	announcement
data	method of treatment; metallurgical test results; bulk density,
	groundwater, geotechnical and rock characteristics; potential
	deleterious or contaminating substances.
Further work	 The nature and scale of planned further work (eg tests for lateral	Additional exploration programs include geochemical sampling and
	extensions or depth extensions or large-scale step-out drilling).	infill sampling to target zones of gold mineralisation.
	 Diagrams clearly highlighting the areas of possible extensions,	Additional geochemical sampling and additional trench samples are
	including the main geological interpretations and future drilling areas,	being reviewed.
	provided this information is not commercially sensitive.