Tesoro Gold Ltd. provided production update. EL ZORRO GOLD PROJECT, CHILE: Ternera Infill and Extensional Drilling: The Company received assay results for 7 drill holes from infill and extensional drilling at Ternera. Best results include: 53.50m @ 1.17g/t Au from 57.00m including; 13.50m @ 3.63g/t Au from 70.50m; 8.50m @ 1.17g/t Au from 275.50m; and 6.37m @ 1.14g/t Au from 344.00m.

Multiple gold zones were intersected well outside of the existing 1.1Moz Mineral Resource Estimate (MRE) envelope. Hole ZDDH0309 also provides a new, shallow, high-grade gold zone, approximately 200m south of the existing MRE area, commencing at approximately 30m below surface adding another 200m of strike to the potential resource area. Calderillas Drilling: During the December quarter, the Company commenced a scout drilling program at the Calderillas target, where mineralisation was encountered in both holes.

The holes were drilled approximately 1.35km apart, testing the western and eastern end of the surface mineralised zone. The scout program was very encouraging as it recognises the potential for the El Zorro Gold Project to comprise multiple gold deposits. The Calderillas target occurs approximately 5km north of Ternera with the Kitsune target potentially linking the two areas, with widespread outcropping gold occurrences having been identified.

Results from holes ZDDH0310 and ZDDH0308 include: 21.00m @ 0.55g/t Au from 128.00m (ZDDH0310) including; - 7.20m @ 1.43g/t Au from 141.00m; and - 1.70m @ 3.92g/t Au from 147.30m. 1.00m @ 2.38g/t Au from 15.00m (ZDDH0308): and 1.90m @ 0.59g/t Au from 62.00m. Animas Viejas Channel Sampling: Results from first pass mapping and sampling at the Animas Viejas target were returned during the quarter.

Widespread outcropping gold mineralization hosted within favorable geology was identified approximately 35km north of the 1.1Moz Ternera Gold Deposit. The Company has now successfully identified prospective geology and outcropping gold occurring within a north south trending corridor over 50km long and up to 15km wide. Mapping and sampling of outcropping mineralization has defined prospective geology over an area spanning approximately 7km x 2km.

Best results include: 2.00m @ 2.78g/t Au; 2.00m @ 2.33g/t Au; 2.00m @ 1.72g/t Au; and 2.00m @ 1.28g/t Au. Further detailed work is planned over this area to define future drill targets.