TESORO GOLD LTD — Capital/Financing Update 2012

Jun 14, 2012

CONTINUATION INVESTMENTS LIMITED

15 June 2012

Manager of Company Announcements ASX Limited Level 8 Exchange Plaza 2 The Esplanade PERTH WA 6000

By E-Lodgement

ENTITLEMENT ISSUE – LETTER TO SHAREHOLDERS

Continuation Investments Limited (ASX: COT) advises that the attached letter relating to the Company’s renounceable entitlement issue has been dispatched to Shareholders today.

Yours Sincerely

==> picture [35 x 36] intentionally omitted <==

Sarah Smith

Company Secretary

______________ Continuation Investments Limited 945 Wellington Street WEST PERTH WA 6005 ABN 91 106 854 175 phone: (08) 9322 7600 fax: (08) 9322 7602 email: reception@grangeconsulting.com.au

CONTINUATION INVESTMENTS LIMITED

15 June 2012

Dear Shareholder

Entitlement Issue – Shareholders

On 13 June 2012 Continuation Investments Limited ( Continuation ) or ( the Company ) lodged an Offer Document for a pro rata renounceable entitlement issue to eligible Shareholders of 2.4 New Shares for every 1 Share held at the record date at an issue price of $0.05 per New Share, to raise approximately $701,000 before costs ( Entitlement Issue ).

All Shareholders whose registered address is in Australia or New Zealand and are registered at close of business on 22 June 2012 ( Record Date ) will be entitled to participate in the renounceable entitlement issue of New Shares on the basis of 2.4 New Shares for every 1 Share then held. Shareholders whose registered address is outside of Australia or New Zealand should seek professional advice in respect of taking up their entitlements under the Offer.

Generally, Shares purchased on market in the period from 18 June 2012 (‘Ex’ date) to 3 July 2012 (Record date) are NOT entitled to participate in the Entitlement Issue. If you have any doubt, please consult your stock broker.

The New Shares will be issued at a cost of $0.05 per New Share. The latest trading price on ASX of the ordinary fully paid shares prior to the date of this letter was $0.20 on 13 June 2012.

Entitlements to Shares pursuant to the Entitlement Issue are renounceable and accordingly, rights may be traded on ASX. Rights trading will commence on 18 June 2012 and end on 3 July 2012. Please refer to the Offer Document for further details on how to sell your rights.

Full details of the Entitlement Issue are contained in the Offer Document dated 13 June 2012, which was lodged with ASX Limited on 13 June 2012.

The Offer Document together with an Acceptance Form will be mailed to all eligible shareholders on or about 26 June 2012. Other key dates which shareholders should note are as follows:

______________ Continuation Investments Limited 945 Wellington Street WEST PERTH WA 6005 ABN 91 106 854 175 phone: (08) 9322 7600 fax: (08) 9322 7602 email: reception@grangeconsulting.com.au

CONTINUATION INVESTMENTS LIMITED

Ordinary Shares trade ex-Entitlements on ASX (“Ex Date”)	18 June 2012
Rights trading commences	18 June 2012
Record Date for determining Entitlements	22 June 2012
Rights trading ends	3 July 2012
Closing date for acceptances 5pm (WST)	10 July 2012
Expected date for allotment of New Shares	18 July 2012

The above dates are indicative only. The Company reserves the right to vary the above dates subject to the ASX Listing Rules and the Corporations Act.

Application for New Shares under the Entitlements Issue may only be made by completing the Acceptance Form which accompanies the Offer Document. Shareholders eligible to participate in the Entitlements Issue should read the Offer Document carefully. For further information on the Continuation Entitlements Issue you should contact your professional advisor.

Yours faithfully

==> picture [120 x 28] intentionally omitted <==

Jeremy King Director

Continuation Investments Limited

______________ Continuation Investments Limited 945 Wellington Street WEST PERTH WA 6005 ABN 91 106 854 175 phone: (08) 9322 7600 fax: (08) 9322 7602 email: reception@grangeconsulting.com.au