Significant Exploration Potential and Rapidly Growing Production TanGold Reports Fourth Quarter and Year End 2021 Results

Significant Exploration Potential and Rapidly Growing Production

TanGold Reports Fourth Quarter and Year End 2021 Results

FOR IMMEDIATE RELEASE – November 30, 2021

https://www.tangoldcorp.com/investors/presentations-and-videos/default.aspx

TORONTO, November 30, 2021 (GLOBE NEWSWIRE) - Tanzanian Gold Corporation (TSX:TNX) (NYSE

American:TRX) (TanGold or the Company) today reported its results for the fourth quarter (“Q4 2021”) and

year end 2021. Financial results will be available on the Company’s website on or before November 30, 2021.

Major Highlights Include:

• Significant Exploration Potential: Discovery of two new gold bearing shear zones in the Buckreef

West and Anfield Zone s. Assuming successful exploration results from ongoing diamond drilling, both

new zones and the Buckreef Main Zone have the potential to significantly add to the 2.0 million ounces

of gold in the measured and indicated mineral resources category and 0.6 million ounces of gold

contained in inferred mineral resource category.

• Low Cost, High Return Production Expansions: The capital cost of the 360 tpd gold processing plant

expansion was $1.6 milli on, which is expected to increase production to 750-800 ounces of gold per

month1 at a total average Cash Cost 2 of US$725 -825/oz once steady state processing has been

achieved. Assuming a gold price of US$1,750 per ounce, the project exhibits a quick capital payback

and high operating return. The 1,000+ tpd expansion is estimated to have a capital cost of approximately

US$4.0 million, with a targeted completion in calendar Q2/Q3 2022. The 360 tp d gold processing plant

expansion was completed in-house in approximately 5 months, on-time and on-budget.

• Improved Liquidity Profile : Recapitalization of the Balance Sheet and execution of low-cost, high

return gold production expansion projects.

• De-risked Production: Achievement of +90% recovery rates in the gold (oxide) test plant.

• Simple Processing Technology: Preliminary metallurgical test work on the sulphide project indicates a

straightforward flowsheet similar to the CIL plants currently in operation and at comparable gold recovery

rates.

• Solid ESG Credentials: Buckreef Gold: (i) is connected to the national electricity grid which primarily

sources electricity from hydroelectric facilities ; (ii) recycles all water and has no water disc harge from

operations; (iii) focuses on maximizing local content ; (iv) exhibits a ‘100 mile diet’ by sourcing food

locally; and (v) CSR activity is focused on local education and health program s in partnership with

regional and district councils for ‘win-win’ solutions.

• High Performing Team: Reset of the management team with significant mining backgrounds from high

performing organizations, including 100% Tanzanian team on the ground at Buckreef Gold.

“We closed 2021 on a strong note. Buckreef Gold has been repositioned to have significant exploration

potential with an increasing production profile. We are enthusiastic about continually developing our ‘high

return - low cost’ projects and are very excited about the drilling prospects at Anfield and Buckreef West. The

1,000+ tpd mine plan only represents approximately 10% of existing measured and indicated resources .

Consequently, we have considerable expansion potential, particularly in the Buckreef Main Zone ‘sulphides’,

which accounts for approximately 90% of our current measured and indicated mineral resources. The

Company has a safety -first, high-performance culture in which we invest in the well -being of employees and

the community in which we operate. Along with o ur rejuvenated, results oriented, experienced and energetic

new team, I am extremely excited for 2022.” noted Stephen Mullowney, TanGold’s Chief Executive Officer.

Fiscal 2022 Outlook

• The 360 tpd processing plant is expected to increase production to 750-800 ounces of gold per month1 at

a total average Cash Cost2 of US$725-825/oz once steady state processing has been achieved.

• Operating cash flow from the larger 360 tpd processing plant is anticipated to mitigate the negative

operating c ash flow at Buckreef Gold from the testing period of the 120 tpd test processing plant.

Anticipated cash flow generated from the larger plant will be reinvested in Buckreef Gold with a focus on

the following value enhancing activities: (i) exploration and drilling; (ii) additional capital programs focused

on growth and efficiencies; and (iii) enhanced CSR/ESG programs.

• Buckreef Gold will advance and construct a 1,000+ tpd operation while simultaneously operating the 360

tpd operation. Project capital expenditures for an expanded 1,000+ tpd processing plant are estimated to

be approximately US$4.0 million with a targeted completion in calendar Q2/Q3 2022. Buckreef Gold has

procured two additional 360 tpd ball mills (from the same manufacturer). The two additional ball mills have

been shipped and scheduled to arrive in Tanzania by calendar year end. The 1,000+ tpd operation is

expected to be capable of producti ng 15,000 – 20,000 ounces of gold per year based on the initial mine

plan and grade profile.

• The anticipated increase in cash flow from the 1,000+ processing plant will fund value enhancing activities

at Buckreef Gold, which are similar to those mentioned above for the 360 tpd processing plant, including

but not limited t o: (i) further expansion of the exploration program in the Buckreef Main Zone, Buckreef

West and the newly discovered Anfield Zone, which if successful, may expand mineral reserves and

mineral resources; and (ii) additional capital expansion programs to increase the Company’s production

profile; and (iii) further investments in CSR/ESG initiatives.

• The Company has retained STAMICO for diamond drilling services for a 10,000 meter program, which will

cover:

 PQ/HQ size holes for testing metallurgical variability in the top 150 meters of the sulphide

deposit;

 Infill drilling on the inferred mineral resource, which if successful will upgrade that resource to

the measured or indicated mineral resource category, and;

 Exploration of the Main Zone deposit to the north -east / south-west, and to commence drilling

on the recently discovered Anfield Zone.

• Metallurgical testing for sulphide project development moved to variability testing of the first 5- 7 years of

production and will continue into 2022, including tailing characteristics for dry stack tailings. Geotechnical

and groundwater work will continue on identified areas (i.e. plant, t ailings, waste rock storage facility). To

date, the metallurgical program of 18 holes (2,337 meters) has been completed and the holes are being

logged in preparation for shipment for metallurgical testing. The drill program has now switched to the

exploration phase.

• The land compensation process is expected to be completed by the end of calendar 2021 and has been

fully accrued in the Company’s financial statements. As of November 29, 2021, approximately 95% of

project affected persons have been paid representing 91% of the overall dollar amount.

• Geological work has commenced in evaluating the full extent of exploration potential at the Buckreef

Project. Analysis of Inferred Mineral Resources, exploration targets, advanced exploration, geophysical

data, geochemical data, and grassroots exploration through to conceptual targets have been evaluated.

The Company will provide updates on its exploration targets and strategy which will be finalized and

provided in Q1-2022, including the Anfield Zone.

• The Company will continue a review of its broader exploration portfolio and strategy to meet core strategic

objectives, including consideration of acquiring new licenses and/or partnerships. The Buckreef Project

licenses cover highly prospective ground with many geochemical and soil anomalies. The Company is

located in highly favorable Archean geological terrane in the prospective and producing Lake Victoria

Greenstone Belt, where numerous anomalous gold bearing shear zones have been identified.

Accomplishments During Fiscal Year Ended August 31, 2021

Operations

• Buckreef Gold reported zero lost time injuries, zero medical aid incidents and had no COVID -19 related

cases in 2021. There were also no reportable environmental or community related incidents in 2021.

• During October 2021, the Company completed construction of a 360 tpd processing plant expansion.

Buckreef Gold also continued to operate the 120 tpd processing plant subsequent to concluding the test

period, which achieved a 90% gold recovery rate as reported in September 2021. The existing 120 tpd

processing plant has been integrated into the new processing plant circuit as a ‘regrind mill’. The new

processing plant construction was completed in line with the scheduled completion date of late

September/October 2021 at a capital cost of US$1.6 million, also within guidance. The run- of-mine mill

feed commenced on November 6th, 2021 and continues to ramp up throughput. The 360 tpd throughput is

expected to increase production to 750 -800 ounces of gold per month 1 at a total average Cash Cost 2 of

US$725-825/oz once steady state processing has been achieved. The 360 tpd processing plant was

completed by the Buckreef Gold and TanGold teams in conjunction with key consultants/contractors,

including: (i) Ausenco; (ii) Solo Resources; and (iii) CSI Energy Group. Anticipated operating cash flow

from the new processing plant is expected to mitigate the negative cash flow from the testing period of the

120 tpd test processing plant.

• Buckreef Gold will cont inue with plans and construction to advance a 1,000+ tpd operation while

simultaneously operating the 360 tpd operation. It was determined that the most cost effective and timely

approach to building a 1,000+ tpd processing plant was to self -construct this operation, in effect, as an

expansion to the 360 tpd processing plant. Project capital expenditures for an expanded 1,000+ tpd

processing plant is estimated to be approximately US$4.0 million, which includes an upgraded elution

circuit and other capital equipment to accommodate the increased throughput. Ausenco has been retained

as TanGold’s owner engineer and the process circuit will be primarily locally sourced and constructed by

the same local teams in a manner similar to the 360 tpd processing plant expansion. The targeted

completion of the 1,000+ tpd operation is calendar Q2/Q3 2022 and is expected to produce 15,000 –

20,000 ounces of gold per year based on the initial mine plan and grade profile.

• The operation of the 120 tpd test plant continued in the fourth quarter 2021, operating 7 days a week with

two 12-hour shifts. Through the testing phase, objectives related to oxide mill feed grind, processing of

clays, retention times and optimized recovery rates have been achieved. Consequently, the testing phase

concluded in September 2021. The 120 tpd test plant produced 396 ounces of pure gold in the fourth

quarter and 1,836 ounces of pure gold on a year-to-date basis.

• During the year ended August 31, 2021, the Company attained recovery rates of 90% on a consistent

basis at the 120 tpd oxide test plant. During the test phase, the Company established that a grind size of

80% passing 75 microns and a retention time of approximately 30 hours led to consistent gold r ecovery of

greater than 90%.

• Through its testing program in 2021, Buckreef Gold has been able to substantiate the grade control block

model, confirm forecasted operating cost inputs such as mining and processing costs for 360 tpd and

1,000+ tpd oxide mining operations, and develop a comprehensive understanding of oxide mill feed grind,

processing of clays, retention times and how to optimize recovery rates. This knowledge has been applied

to the design of the 360 tpd and 1,000+ tpd mine operations, substantially de-risking these operations.

• During the year the Company hired a Tanzanian mining contractor (FEMA) on a two -year contract to mine

ore, waste and a tailings storage facility at Buckreef. During October and November 2021, the Company,

through FEMA, successfully and safely completed two blasts in high grade areas where transitional ore

reached near surface enabling access to high grade ore blocks.

• During the year, TanGold through Buckreef Gold hired a surveying consultant (Property Matrix Company

Limited) to commence the land compensation process required under Tanzanian mining law. The land

compensation survey has been completed, and to date, the land compensation process is approximately

90% complete. Land Compensation has been fully accr ued and is anticipated to be finalized by the end of

calendar 2021.

• As previously disclosed, TanGold and STAMICO agreed in principle to amendments to the Buckreef Joint

Venture Agreement (the “JV Agreement”) to bring the JV Agreement in line with recent changes in

Tanzanian mining laws and to modernize the working arrangement between the parties (the original JV

Agreement was entered into in 2011). Discussions between the Company and STAMICO remain ongoing

and are expected to continue.

Sulphide Development and Exploration

• Favourable Metallurgical Test Results: The Company announced updated and highly favorable

metallurgical test results from the sulphide component of the Buckreef mineral resource. Three diamond

drill core samples were taken from the fresh ro ck (‘sulphide’ mineral resource) of the Buckreef deposit for

the purposes of metallurgical test work. Highlights include:

 The following intercepts and gold recoveries have been confirmed in the report:

 MC01: 0.54 g/t Au over 78.88m – 94.1%

 MC02: 19.4 g/t Au over 27.99m – 95.4%

 MC03: 1.71 g/t Au over 52.53m – 85.3%

 A straightforward flowsheet consisting of:

 Primary grinding to P80 = ~100-150 µm

 Rougher flotation

 Regrind of the rougher concentrate to ~15-20 µm (P80)

 Cyanide leaching of the reground flotation concentrate

 Cyanide leaching of the flotation tailing

 No refractory association of gold with arsenic sulphide was detected;

 The samples tested did not exhibit any preg-robbing or other refractory characteristics;

 Clean tailings, high pr obability of mine tailings not being acid generating, confirming the

approach of dry stack tailings going forward; and

 Further opportunities to improve gold extraction from MC03 have been identified through

diagnostic leach testing.

• Buckreef West Discovery: The Company announced the discovery of Buckreef West, which lies in close

proximity to the Buckreef Main Zone, defining a near vertical shear zone, over a strike length of 400

meters (“m”), with interpreted gold mineralization shallowly plunging to the northeast. The mineralized

zone remains open to the south and at depth. Highlights include:

 Shallow depth: All reported intercepts are at shallow depth on a well-defined structure which is

interpreted as a splay off the Buckreef Main Zone;

 Open at depth and along strike: Over 400m of strike length has been drilled to date and the

deposit remains open at depth and along strike in both directions; and

 Select intercepts:

 Hole BWDD017 intersected 4.57m @ 6.4 g/t Au from 44.9m;

 Hole BWDD015, on the same line as Hole BWDD017, had two intersections: 2.18m

@ 1.24 g/t Au from 86.9m and (ii) 2.49m @1.3 g/t Au from 105.1m;

 Hole BWDD012 intersected 5.57m @ 4.95 g/t Au from 98.4m and 4.0m @ 2.19 g/t Au

from 92.0m;

 Hole BWDD013, on the same line as Hole BWDD012 intersected 1.5m @ 2.2 g/t Au

from 59.5m;

 BWDD0018 intersected 7.0m @ 2.03 g/t Au from 44.0m and 3.85m @ 2.86 g/t from

56.0m; and

 BWDD0031 intersected 2.5m @ 7.29 g/t Au from 46.1m.

• Anfield Zone Discovery: The Company announced that it has made a new discovery of three closely

spaced parallel, gold bearing structures at Buckreef, collectively now known as the Anfield Zone. Follow -

up field work and diamond drilling is planned for 2021 and 2022. Highlights include:

 The new prospective gold mineralized zones, totaling a combined 2.9- kilometer (km) strike

length were identified through geological (field) mapping, sampling and examination of

artisanal workings. Collectively, they have been named the Anfield Zone;

 Grab samples of mineralized bed (fresh) rock have been assayed, with highlights of:

 37.52 g/t

 28.55 g/t

 14.42 g/t

 Located approximately 500m to the east of the Buckreef Main Zone; and

 Aligns with and trends towards the Eastern Porphyry Mineral Resource.

Management

• Appointed on December 1, 2020, Mr. Stephen Mullowney, CPA, CA, CFA as Chief Executive Officer

(CEO) of Tanzanian Gold Corporation. He also accepted an appointment to the Board of Directors of the

Company. Mr. Mullowney was previously a Partner and Managing Director of PricewaterhouseCoopers

LLP (PwC) and PwC Canada’s mining deals leader. He has an extensive mining background, working

with miners, Governments, and institutional investors across the world and supporting them in making key

strategic business, financing, and policy decisions.

• On February 8, 2021, the Company appointed Andrew Cheatle, P.Geo., MBA, FGS, ARSM as Chief

Operating Officer of Tanzanian Gold Corporation. A graduate of the Royal School of Mines, Imperial

College, London, his 30-plus-years international career has encompassed operations/production,

development, and exploration in both the senior & junior mining sectors. His considerable operational and

project management experience includes senior positions with the development of (at that time) Anglo

American Corporation’s Moab Khotsong Gold Mine, JCI’s South Deep Project and major expansions of

Placer Dome’s/Goldcorp’s Musselwhite Mine.

• On March 1, 2021, the Company appointed Michael P. Leonard, CPA, CA as Chief Financial Officer. He

was previously at Barrick Gold Corporation in a series of progressively senior financial leadership

positions and brings a wealth of experience in investor relations and corporate global finance. He will fill a

vital role for the Company’s st rategy moving forward including use of state -of-the-art technology and

development and implementation of financial models, financial controls and procedures for financial

management.

• On March 4, 2021, the Company, through Buckreef Gold, appointed Isaac B isansaba and Gaston

Mujwahuzi as Co-Acting General Managers for Buckreef, on an alternating basis. Mr. Bisansaba and Mr.

Mujwahuzi are directly responsible for monitoring and improving the mining and processing operations at

Buckreef Gold. Mr. Bisansaba h as a BS.Geo, Masters in Mining Engineering, Mineral Resources

Evaluation, and twenty years of experience in the gold mining industry. Mr. Mujwahuzi has a BS, Mineral

Processing Engineering, and over sixteen years of experience in the gold mining industry. Collectively,

their experience encompasses all aspects of gold mining operations, including managing mining, process

plant and exploration activities. Their prior experience includes roles with AngloGold Ashanti, Barrick

Gold, Teranga Gold, PanAust Limi ted and various consulting firms. Together, they possess the

knowledge and experience Buckreef Gold requires going forward, as well as strong team leadership

capabilities for safe, smooth and ongoing management of on-site operations.

• On March 17, 2021, the Company appointed Shubo Rakhit, CPA, CA to the Board of Directors of

Tanzanian Gold Corporation. His 30+ year career has included positions at several large investment

banks and advisory firms including Canada’s major bank owned investment banks, Bank of America

Securities, KPMG Corporate Finance and Echelon Wealth Partners where he most recently served as

Managing Director, Head of Mergers and Acquisitions. His career includes leading over $80B of M&A

transactions and over $100 billion of global capital markets issuance including many complex strategic

and capital solutions. His background and experience will assist the Company in broadening its access to

capital markets at a time of rapid growth for the organization.

• On April 27, 2021, TanGold announced that Mr. Sinclair turned 80 years old and retired as Executive

Chairman to continue service as Chairman of the Board of Directors of the Company. TanGold has had

the privilege of being founded and directed since 2000 by the leadership of the renowned James E.

Sinclair. It is with profound gratitude that the Company acknowledges his contribution to the present

success and long-term resilience of our enterprise.

• On June 1, 2021, the Company appointed Khalaf Rashid as Senior Vice President, Tanzania and as

Managing Director of the Company’s wholly owned subsidiary in Tanzania, Tanzam2000. Mr. Rashid is a

Tanzanian citizen and resident and joins the TanGold Executive Team bringing a wealth of experience

and family history in Tanzanian business, politics and Government that dates back to the formation of the

country. He is highly respected and recognized in the business community having held senior executive

positions in multiple sectors including industrials, education and marketing communications.

• The Company changed its nominees to the Buckreef Gold Board of Directors to: (i) Stephen Mullowney;

(ii) Andrew Cheatle; (iii) Michael Leonard; and (iv) Shubo Rakhit to better reflect the new management

team and vision for the Company. Stephen Mullowney was nominated Chairman of Buckreef Gold.

Financing

• As at August 31, 2021, the Company had cash of $13.4 million and net working capital of $8.0 million.

After adjusting for $2.1 million in derivative liabilities, working capital on an adjusted basis is $10.1 million.

This reflects a significant improvement in in overall liquidity and financial flexibility compared to August 31,

2020.

• On February 11, 2021, the Company completed the sale of 32,923,078 common shares together with

warrants to purchase 16,461,539 common shares for $21.4 million in the aggregate. The common shares

and warrants were issued at $0.65 for each common share and a one-half purchase warrant with the right

of each whole warrant to purchase one common share at $0.80 for a period of five years from the issue

date. The Company also issued 1,152,307 broker warrants with the same terms.

On December 23, 2020, the Company completed the sale of 5,554,588 common shares together with

warrants to purchase 2,777,268 common shares for $3.0 million in the aggregate. The common shares

and warrants were issued at $0.54 for each common share and a one-half purchase warrant with the right

of each whole warrant to purchase one common share at $1.50 for a period of three years from the issue

date.

• During the year ended August 31, 2021 $7.0 million of Tranche A Convertible Debentures, representing

the entire outstanding balance, were converted and retired resulting in the issuance of 12,150,447

common shares of the Company.

ESG

• The Company is committed to working to the highest ESG standards and has initiated several programs,

whilst developing a broader framework and policies.

• Buckreef Gold’s operations: (i) are connected to the Tanzanian national electricity grid and utilizes grid

power which is sourced from hydroel ectric facilities in Tanzania; (ii) recycles all water used in its

operations; (iii) do not discharge water from its operations; (iv) workforce are 100% Tanzanian citizens; (v)

development and building activities are focused on maximizing local content; (v i) exhibit a ‘100 mile diet’

by procuring all food locally; and (vii) sulphide development is expected to utilize dry stack tailings.

• The Company is actively working with the Geita District Council and local Wards to collaboratively identify

key programs that focus on short to long term educational needs, which in turn aligned with the

Company’s local hiring practices, which includes STEM and gender goals.

• The Company, through Buckreef Gold procured and donated 300 school desks to the Kaseme Secondary

School in Geita District. The desks were sourced from local artisans.

• The Buckreef Gold Mine site has a 100% Tanzanian workforce.

• The Company supports local procurement in all activities by first sourcing within the immediate wards,

then out to district, region and nation. Only those items or services not available within country are

purchased externally from Tanzania, first prioritizing East Africa, Africa then globally.

Other

• A mine -based assay / chemical laboratory has been installed at Buckreef Gold. The laboratory has

commenced test work and is in the process of being fully commissioned.

• The accommodations and camp facilities at Buckreef Gold have been upgraded and renovated during

fiscal 2021.

About Tanzanian Gold Corporation

TanGold along with its joint venture partner, STAMICO is building a significant gold project at Buckreef in

Tanzania that is based on an expanded Mineral Resource. Measured Mineral Resource is 19.98MT at

1.99g/t gold containing 1,281,161 ounces of gold and Indicated Mineral Resource is 15.89MT at 1.48g/t

gold containing 755,119 ounces of gold for a combined tonnage of 35.88MT at 1.77g/t gold containing

2,036,280 ounces of gold. The Buckreef Gold Project also contains an Inferred Mineral Resource of

17.8MT at 1.11g/t gold for contained gold of 635,540 ounces of gold. The Company is actively

investigating and assessing multiple exploration targets on its property. Please refer to the Company’s

Updated Mineral Resources Estimate for Buckreef Gold Project, dated May 15, 2020, for more

information.

Tanzanian Gold Corporation is advancing on three value-creation tracks:

1. Strengthening its balance sheet by expanding near-term production to 15,000 - 20,000 oz. of gold

per year from the expanded 1,000+ tpd plant.

2. Advancing Sulphide Development that is substantially larger than previously modelled and

targeting significant annual gold production.

3. Continuing with a drilling program to further test the potential of its property, exploration targets

and Mineral Resource base by : (i) infill drilling to upgrade Mineral Resources currently in the

Inferred category in Buckreef Main; (ii) step- out drilling in the northeast extension of Buckreef

Main; (iii) infill drilling program of Buckreef West; (iv) develop exploration program for the newly

discovered Anfield Zone; (v) upgrade historical resources at Bingwa and Tembo; (vi) identification

of new prospects at Buckreef Gold Project and in the region.

For further information, please contact Michael Martin, Investor Relations, [email protected],

860-248-0999, or visit the Company website at www.tangoldcorp.com

Andrew M. Cheatle, P.Geo., the Company’s COO and Director, is the Qualified Person as defined by the

NI 43-101 who has reviewed and assumes responsibility for the technical content of this press release.

The Toronto Stock Exchange and NYSE American have not reviewed and do not accept responsibility

for the adequacy or accuracy of this release.

Endnotes

1 The 360 tpd Plant estimates have not been prepared in accordance with the results of the Company’s

2018 Prefeasibility Study, reflected in the Company’s May 15, 2020 Updated Mineral Resource

Estimate. The 18- Month mining plan estimates are based upon an internal mine model reviewed by

SGSC and cost inputs as validated by actual mining and processing costs from the 120 tpd test plan

over the 9 months ended May 31, 2021. No assurance can be given that the 18- Month Estimate

(Monthly Average) will reflect actual results. See “Cautionary Note Regarding Forward- Looking

Statements”.

2 ‘Total Cash Cost’ includes mine site operating costs such as mining, processing and local administrative

costs, royalties, production taxes, mine standby costs and current inventory write downs, if any.

Production costs are exclusive of depreciation and depletion, reclamation, capital and exploration costs.

Total cash costs are net of by -product sales and are divided by gold ounces sold to arrive at a per

ounce figure. Total Cash Costs is a non- IFRS financial performance measure often used in conjunction

with conventional IFRS measures to evaluate performance. Total Cash Cost does not have a

standardized meaning under IFRS and therefore may not be comparable to similar measures of

performance disclosed by other issuers; it is intended to provide additional information and should not