Tombola Gold Ltd. announced that it has entered into a Binding Term Sheet with True North Copper Pty Ltd. for the re-commissioning and short- term rental of the Great Australian Gold Production Plant ("Plant") owned by True North and located in the Cloncurry region. This development complements the Company's previously announced regional expansion and fast-track production initiatives. Tombola will work toward the commencement of gold production at the Plant within the next 12 weeks, whilst the Company completes the refurbishment of the Lorena facility.

The Binding Term Sheet requires Tombola to fund the cost of refurbishing the Plant, which is expected to cost up to $500,000, whilst True North is responsible for obtaining all authorities required, including environmental, and supplying the Senior Site Executive. The Company will then lease the refurbished Plant from True North for a period of 6 months at a cost of $110,000 (plus GST) per month, and provide the operational personnel and meet the operational running costs of production. The parties can extend the arrangement for a further 3 months by mutual agreement.

The Company is planning to process ore from the current mining operations at the Golden Mile for the production and sale of gold bullion to the Perth mint during the period of these arrangements. Completion of the transaction is subject to mutual conditions precedent associated with the scope of works for the refurbishment of the plant, and the execution of legal agreements within 30 days.