Tango Gold Closes Acquisition of Mining and Related Assets in South Africa and Appointment of Director and Officers

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 20, 2014) - Tango Gold Mines Inc. ("Tango" or the "Company") (TSX VENTURE:TGV) is pleased to announce that further to its news release dated 1 October 2014, it has closed the acquisition of 51% interest in four private South African companies (together referred to as "African Star"), which collectively hold a 100% interest in the Oena Project ("Oena"), a past producing alluvial diamond property, and four toll treatment contracts in respect of four mutually exclusive coal operating and production collieries located in the Witbank coal district, Mpumalanga and Natal Provinces, South Africa.

In consideration for the interest in African Star, Tango has issued 49,000,000 common shares, at a deemed price of CAD $0.05 ("Payment Shares"), that are subject to a four month regulatory hold period expiring on 17 February 2015 and escrow restrictions over a 30 month period. Contemporaneously, 17,150,000 of the Payment Shares will be held in escrow pending receipt of applicable approvals required under South African legislation.

The Company also announces that, effective immediately, Mr. Kevin Gallagher has been appointed to the Board of Directors, Mr. Marco Möller has been appointed as President and Chief Executive Officer of the Company and Mr. Terry L. Tucker, P.Geo., a director of Tango, has been appointed as Executive Chairman.

Mr. Kevin Gallagher has over 40 years' experience in the mining and metallurgical process engineering industry and was founder and is Executive Managing Director of the Kwena Mining Group (part of African Star). His operational experience includes 14 years as metallurgical supervisor at various coal, gold and platinum plants which includes Harmony Gold, Rand Mines Group & Rio Tinto. Mr. Gallagher is a member of the South African Coal Processing Society, a member of the Mine Metallurgical Managers Association, holds a Diploma (Hon) Mineral, Processing & Extractive Metallurgy from the School of Mines Rhodesia and completed the Management Development Programme with the Graduate School of Business, University of Cape Town (UCT).

Mr. Marco Möller has over 30 years' experience in the Southern African mining, energy markets and the export manufacturing and engineering sectors, which includes CEO of African Star. Mr. Möller was also founder and Executive Managing Director of AFRICO Engineering and JOSS Steelworks and was group financial controller of Firestone Diamonds PLC, where he was part of the key management team responsible for developing various alluvial and kimberlitic assets from early exploration through to production status. Mr. Möller holds an MBA from UCT, a B.Com postgraduate degree at the University of South Africa (UNISA) and has completed the South African Institute of Chartered Accountants (SAICA) training program with PriceWaterhouse Coopers.

Both a finder's fee of USD $100,000 was paid and 1,474,522 common shares (at a deemed price of CAD $0.05 per share) were issued as consideration for consulting services rendered to an arm's length third party. These shares are restricted from trading until expiry of the regulatory hold period on 17 February 2015.

About Tango Gold Mines Incorporated

Tango Gold Mines Inc. is a Canadian company that holds a 100% interest in the 2,088.8 ha El Santo concession, Nicaragua and the newly acquired assets referred to in this news release. El Santo is located south of B2Gold Corp.'s La Libertad mine and mill complex that is projected to produce approximately 143,000 to 150,000 ounces of gold in 2014. El Santo is believed to host several east-west trending, low sulphidation, epithermal quartz vein systems similar to those found on the La Libertad concession.

The TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. The presence of gold deposits mentioned nearby the Company's property is not indicative of the gold mineralization on the Company's property. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The technical disclosure in this news release have been approved by Terry L. Tucker, P.Geo., Executive Chairman of the Company and a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators.