TESORO GOLD LTD — Capital/Financing Update 2014

Aug 6, 2014

Continuation Investments Limited

7 August 2014

Market Announcements Office Australian Securities Exchange, Sydney

By E-Lodgement

TBC moves to Pre-Production Ramp Up

Continuation Investments (ASX:COT) is pleased to advise that the BioFusionary Corporation Inc ( TBC ) has moved to pre-production ramp-up in the manufacture of its FDA approved device, the BioFusionary Bebe™.

CAPITAL STRUCTURE

Shares: 19.86m Options: 2.25m Cash: $1.48m (June 2014) Debt: Nil

BOARD & MANAGEMENT

Mr Jeremy King Chairman

Mr Andrew Worland Non-Executive Director

COT has injected US$300,000 of equity into TBC to accelerate the manufacturing process.

COT chairman Mr Jeremy King commented:

“We’re excited by the opportunity to help move the BioFusionary Bebe’s market launch along. Physicians in the US who have used the device have strongly endorsed it as highly effective and non-invasive, which augurs well for the US market roll-out. We’re confident it will be equally well received in the Australian market. And TBC has already received expression of interest from outside the US to distribute the device.”

Evergreen Research Inc

TBC has engaged specialty medical device manufacturer, Evergreen Research, Inc. ( ERI ) to manufacture the BioFusionary Bebe™. ERI maintains a world-class manufacturing facility with extensive experience in the successful production of medical devices. Its quality system is certified to ISO 9001: 2000 and ISO 13485: 2003, the worldwide standard.

Importantly, TBC’s engagement of ERI frees the company to focus on sales and marketing and the development of additional products in its pipeline.

TBC’s CEO, Damon Cox said:

“We’ve negotiated a very attractive arrangement with ERI. Initially, we planned to manufacture the device in-house. However, by engaging ERI, we can leverage their Quality Systems, regulatory experience and history of manufacturing medical devices for many international organizations. This has saved TBC a tremendous amount of capital and resources up-front and poises TBC for rapid expansion as the market accelerates.”

Mr David Church Non-Executive Director

Ms Sarah Smith Company Secretary

REGISTERED OFFICE 945 Wellington Street West Perth WA 6005

CONTACT DETAILS Tel: +61 8 9322 7600 Fax: +61 8 9322 7602

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ASX CODE COT

More information on the manufacturer can be found at: www.evergreenresearch.com/index.html.

TBC expects the first BioFusionary Bebe units to be produced in the 4[th] quarter of 2014 and arrangements around promotion and marketing in the US are currently underway.

For and on behalf of the Board

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Jeremy King Chairman

About COT & TBC

COT announced its intention in a binding Heads of Agreement on 29 July 2014 to acquire 100% of The BioFusionary Corp for the issue of 100 million shares in COT as consideration. COT’s US$300,000 investment in TBC results in an adjustment to the consideration for the acquisition of TBC by way of a reduction of 3.27m shares to be issued to TBC shareholders. It does not affect the milestone payment of an additional $2.25 million worth of COT shares to be issued at the 20 day volume weighted average price on achievement of the Therapeutic Goods Administration approval of the BioFusionary Bebe™ for the Australian market.