Tombola Gold Ltd. provided an operational and commercial update regarding activities at its Cloncurry Gold Projects. Update on Activities at its Cloncurry Gold Projects: A mobile crusher has been mobilised to site and has recommenced ore crushing, following a catastrophic failure of the original onsite crushing facility in December 2022. The Great Australian Mine CIP plant has now also recommenced operations to continue Tombola's gold production.

The first gold pour occurred on 12 February 2023. As outlined in the Company's previous ASX release of 20 January 2023, the Company's efforts to rectify the crusher breakdown were hampered by a number of convergent factors including the non-availability of spare parts, the shut-down of most businesses for the Christmas period, and the State Government moratorium on heavy vehicle movements on Queensland Roads over the holiday period. The Company is pleased to have successfully restarted processing on site, the culmination of which resulted in the initial gold pour on site on 12 February 2023.

The Australian Bullion Company took delivery of the initial gold bar produced, and refined it for delivery of 200 Ounces of refined gold to Ilwella Pty Ltd. as part of the USD 500,000 pre-purchase arrangements outlined in the Company's ASX release of 28 November 2022. This represented the majority of the gold produced from the initial gold pour. The Company's processing on site is continuing, and the next gold pour is currently scheduled for early March.

Since December 2022, gold prices have continued to increase with gold now priced at approximately USD 1,900 per ounce providing a positive outlook. The Company will commence the preparation of a Cleansing Prospectus to facilitate the issue of the options and any other securities. The loan contains a number of restrictive covenants which are typical for a facility of this nature, including that the Company maintain a minimum cash balance of USD 500,000.

A fuller summary of the terms of the loan transaction is contained in Appendix A. Based on production modelling for the operation of the GAM plant, the Company intends to repay the debt facility through the sale of gold produced from the processing of ore stockpiled at the GAM plant. If the Company does not generate sufficient cashflow from its operations to repay the debt facility, the Company intends to refinance the facility through further debt or equity or alternative financing arrangements. If the Company defaults on its obligations under the debt facility, and is unable to secure alternate financing, the lender may enforce its security over the assets of the Company.