Related Party Transaction

Tengri Resources

("Tengri" or "the Company")

Related-party transaction

Tengri Resources (AIM: TEN), announces that subject to the services agreement (the "Services Agreement") with Robust Resources Branch ("Robust Branch") as set out in the 18th June 2014 AIM admission document, costs to the value of US$389,687 will be charged to Tengri by Robust Branch in respect of expenditures incurred in the Kyrgyz Republic.

Kyrgyz legislation provides that certain operations and, in particular, employment matters must be undertaken by a Kyrgyz entity. The Services Agreement enables Tengri to avail itself of Robust Branch's status as a Kyrgyz entity in order to undertake such operations and payments in relation to employment matters and negates the need for Tengri to incur the separate cost of establishing a Kyrgyz branch office. Accordingly, these costs were incurred by Robust Branch on Tengri's behalf in respect of, inter alia, the use of office space, payment of employee benefits and other ancillary office expenses. Pursuant to the terms of the Services Agreement, Robust Branch charges 80 per cent. of the expenses incurred in this regard to Tengri.

As the Robust Branch is part of the same group as Robust Resources Limited which collectively owns 87.3% per cent. of the issued share capital of Tengri, the payment of the US$389,687 under the Services Agreement is a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. Accordingly, the Independent Directors of Tengri, being Peter Moss and Allen Wang, having consulted with finnCap Limited, the Company's Nominated Adviser, consider that the terms of the payment relating to the Services Agreement are fair and reasonable insofar as the Company's shareholders are concerned.

ENDS

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