Operational Update - Scoping Study Findings

16 December 2015

Tengri Resources

("Tengri" or the "Company")

Operational Update - Scoping Study Findings

Tengri Resources (AIM: TEN) announces that it has now completed the scoping study for the Taldybulak gold copper project in the Kyrgyz Republic in Central Asia, following which it has decided not to proceed with the development of the project.

The scoping study, which was concluded against the back drop of lower gold and copper prices and a subdued outlook for commodity prices generally, was undertaken to ascertain the economic feasibility of a two-phased development at Taldybulak. The first phase was targeting a high grade gold copper zone at modest capital cost prior to a large scale bulk tonnage mining and processing operation, with the potential for the Andash project resource some 27 kilometres away to function as a satellite mine feeding Taldybulak's central plant.

The scoping study shows that the Taldybulak and Andash projects, under all studied development scenarios, do not meet the Company's investment criteria at this time. In particular, the Company had hoped that the scoping study would demonstrate that Taldybulak and Andash could deliver an internal rate of return in excess of 25% and production costs in the lowest quartile of the global cost curve.

The scoping study showed up-front capital costs to develop the project of approximately US$320 million that delivered annual production of an average of approximately 70,000 ounces of gold and approximately 7,750 tonnes of contained copper over a mine life of 28 years.

The key assumptions used in the scoping study included a gold price of US$1,200 per ounce and a copper price of US$5,500 per tonne.

The results demonstrated a negative net present value and an internal rate of return below the Company's cost of capital.

Whilst the Company believes that Taldybulak and Andash host large resources with significant upside exploration potential, the Board has decided not to proceed with the development of Taldybulak in the current commodity price environment. This decision would be impacted in the future by higher copper and gold prices, the discovery of higher grade zones near to the existing Taldybulak and Andash resources or a combination of both.

As a result of this decision, the Board of Tengri has begun a strategic review in respect of the Taldybulak and Andash projects. The Company will not be applying for development licenses over either project but intends to maintain its exploration licenses in the near term while it considers what options may be available for both projects.

In order to preserve shareholder capital during this strategic review period, the Board of Tengri has decided to suspend all material operational activities in the Kyrgyz Republic. This decision has been communicated to the Company's subsidiaries in the country.

Given the aforementioned general weakness in global resource prices, the Company believes that opportunities may exist outside the Company's existing areas of operation, which both require lower start-up costs and a faster route to production and cash flow than the Company's current asset base. Accordingly, management will start to devote additional resources to the search for such assets.

ENDS

For further information, please visit www.tengriresources.co.uk or contact:

Tengri Resources

Peter Moss +44 20 3301 9346

finnCap Ltd (Nomad)

Christopher Raggett/Grant Bergman/James Thompson +44 20 7220 0500

WH Ireland (Broker)

James Joyce/James Bavister +44 20 7220 1666

Peterhouse Corporate Finance Limited (Broker)

Heena Karani +44 20 7469 0936

Tengri Resources (AIM: TEN) is a mining exploration and development company currently focused on low-cost gold copper projects in Central Asia.

Tengri's portfolio includes the large scale Taldybulak deposit (TEN 100%), which has SAMREC compliant resources of 6.7 million oz of gold and 1.66 billion lbs of copper.

The Company listed on AIM in July, 2014.

Competent Person Statement

The information in this announcement that relates to a Scoping Study Report reviewed by Adriaan van Herk, Doctorandus Geology, a Competent Person who is a Member of The Australian Institute of Geoscientists. Mr van Herk is Geology Manager of the Company. Mr van Herk has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which is being undertaken to qualify as a Competent Person as defined in the 2012 Edition of 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.