TESORO GOLD LTD — Capital/Financing Update 2016

Dec 15, 2016

16 December 2016

ASX: PKA

PLUKKA SALES & OPERATIONS UPDATE

Plukka Limited (“ Plukka ” or the “ Company ”) wishes to provide investors with a further update to its announcement of 8 December 2016.

In June 2016, Plukka announced a revised business strategy to refine the execution of Plukka’s growth strategy, including by implementing a refined marketing plan to drive online traffic and conversions, focussing on lower price points to increase conversions and continuing to integrate the ‘bricks and clicks’ model to leverage the Company’s offline presence to drive the scalability of the online channel. Part of this strategy was to reduce overhead and target a monthly fixed cost of approximately US$130,000 per month. Pleasingly the Company is well on the path to achieving this with non-operating costs in October and November, averaging US$117,000 per month, down from average monthly non-operating costs of $325,000 in April, May, June 2016. Unaudited sales revenue from offline and online channels during October, November and December (month to date) 2016 is approximately US$590,000.

To assess the performance of the revised strategy, management now attribute online sales revenue as that which is generated from the online store and which does not have any obvious or reported dependency on an offline channel or event. In absolute dollar terms, online sales revenues for October and November 2016 are not substantive, however, they represent a part of the business that is scalable and capable of substantial growth, which is the focus of the newly refined, ROI based marketing plan. Further, this category of revenue is comprised of a majority of Plukka branded jewellery and commands a higher gross margin than other brands. Of the jewellery pieces sold in October and November, over half were from the newly launched Plukka Essentials collection which are sold at an average price point of $700 each.

Plukka held 4 trunk shows during the period in South Korea, Taiwan, Hong Kong and London, which complemented the Hong Kong and Burlington Arcade boutiques. In addition, the Hemei joint venture in New York provided a strong public relations platform for the brand, with an additional 7 trunks shows held in the New York boutique (with an additional scheduled for next week). The NYC base provided an important touch point for Plukka USA consumers and, importantly, for designers who were attracted to the large and prominently located Madison Avenue location / store. This was achieved, via the joint venture, at a fraction of the cost normally associated with a similarly located pop-up.

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Plukka is seeking to be a first mover in providing a global online platform to consolidate the fragmented international fine jewellery market. This segment is the highest growth with the most potential to expand in the world's largest jewellery markets. The improvement in online sales performance noted in the announcement of 8 December 2016 suggests that the refocussed marketing spend, targeted ROI-positive investments, lower price points and increasing brand awareness has the Company well positioned to expand this revenue base considerably in 2017.

For more information, please contact:

Natalia Obolensky

natalia@plukka.com Managing Director

Charly Duffy charly@cdplus.com.au Director / Company Secretary

About PLUKKA

Plukka is a global, bricks and clicks retailer for creative and fashion-forward fine jewelry. Founded in 2011 as a discovery machine for jewellery, Plukka has evolved into a sophisticated ecommerce platform, supported by offline retail operations, that is actively disrupting the highly fragmented, but growing jewellery market world-wide.

The majority of the collections on the website are priced between US$500 and US$2,000, but all feature stylish, edgy pieces which are true style signifiers and have been embraced by the press and celebrities world-wide. The collection, including rings, earrings, bracelets and necklaces, is made of precious and semiprecious stones, 14K or 18K gold, as well as other precious metals.

With industry spending forecast to reach $370B in 2020[1] , and with 10% of spending shifting to online, Plukka is uniquely positioned to capture this new and dynamic jewellery market. Additionally, Plukka is one of the first creative fine jewellery retailers to vertically integrate through strategic partnerships and ensure that the jewellery designs are customer-centric, rather than product driven. www.plukka.com