Tonogold Due Diligence – Updated 9/27/14 Penny stocks all seem to have grand stories but most of them never produce or even intend to produce anything. Producing is actually a cardinal sin and the last thing many penny stocks want to do. This is why so many penny stocks are labeled as pump and dumps. Let me tell you about a penny stock that is the opposite of a non producing pump and dump. I believe this penny stock is about to explode in growth and become a dollar stock. Tonogold has excellent management with a proven and very stellar track record (6,875 % ROI). They have been endorsed by some of the biggest names in the resource sector. Tonogold recently purchased 100% of one of the largest iron ore mines in the world. This mine went into production last year. They are completing a 14 million private placement capital raising. Tonogold intends to use the money to expand production and complete an extensive drilling program. Tonogold is looking at purchasing other mining assets. Tonogold is in the process of going to full reporting status with the S.E.C. TNGL intends to move off of the pink sheets and go onto a higher exchange. TNGL recently completed a ten to one reverse split to help accomplish this goal. Tonogold owns a gold and silver project in Nevada, 72% of which TNGL acquired for free. A 75% interest in a smaller mine right next door to this TNGL mine was recently purchased for 20 million. Once the TNGL 14 million private placement capital raising is closed there will only be 20.7 million shares or 20.2% of the total shares available for trading. Check out this short video that will introduce you to the Tonogold iron ore mine. Read the description below the video. You will plainly see that this mine is the opposite of a pump and dump. https://www.youtube.com/watch?v=ueaYe54jrrI For more details on why I own Tonogold (TNGL) please read further: (9/19/14 bid .31 cents, ask 40 cents, Market Cap 8m) http://www.tonogold.com/s/Home.asp Tonogold – Management: • Tonogold CEO Mark Ashley held positions at LionOre (1994 - 2006) as CEO and Executive Director/CFO. During this time LionOre stock rose from 40 cents to $27.50. LionOre started as a dormant company and was transformed into the 8th largest nickel producer in the world. A 20 million dollar starting market cap turned into over 6 billion when LionOre was sold in an all cash deal to Russian based Norilsk. One thousand dollars invested at forty cents turned into $68,750. That is a 6,875% ROI. http://www.cnbc.com/id/18813361 http://www.24hgold.com/english/infocompany.aspx?id=4801014D5010&market=LIM.TO TNGL Endorsements: • Eddie Sugar at EAS is now working with Tonogold. http://www.easadvisors.com/ In a May 8, 2014 TNGL press release Eddie Sugar stated: “Mr. Eddie Sugar (the principle of EAS) said, "Although we were initially skeptical about the investment given the recent publicity in Mexico regarding iron ore, we were very pleasantly surprised to subsequently find a situation almost completely opposite of what we expected. Not only are the Mil-ler and Tonogold teams extremely professional and experienced, our understanding of Mexican iron ore and our skepticism were completely unfounded. We found the state of Sonora to be an extremely friendly place for mining and the supporting infrastructure to be of great quality, which even producers and developers in Australia and America would envy. We are very excited to be part of Tonogold's future and believe they are well on their way to creating a considerable business with a combination of characteristics that are rare in iron ore; strong cash flow generation off of a very small capital expenditure base with the added benefit of very significant production growth potential." http://www.tonogold.com/s/NewsReleases.asp?ReportID=652171&_Type=News-Releases&_Title=Tonogold-To-Acquire-100-Of-Iron-Ore-Project-Mexico • The EAS web site shows that they have been involved in over 2.5 billion worth of successful transactions since their inception in 2008. The principal at EAS Advisors LLC (EAS) is Eddie Sugar whom has closed near 7 billion in deals. Sugar is familiar with iron ore deals, having partially funded Andrew Forrest in 2003 when Forrest started Fortescue Metals Group Ltd, ticker FSUGY, $7.16 on 9/18/2014. • Fortescue Metals Group is an Australian based company that came from nowhere in 2003 and is now ranked as the 4th largest iron ore producer in the world, with a market cap of 11 billion (9/18/2014). Andrew Forrest is number 308 on the Forbes Billionaire list with an estimated worth of 5 billion. At one time Forrest was the wealthiest man in Australia. Forrest’s wealth was built on iron ore sales to China. • Eddie Sugar, EAS: http://www.easadvisors.com/ http://investing.businessweek.com/research/stocks/people/person.asp?personId=118598545&ticker=WTG:CN http://www.afr.com/p/business/companies/early_fortescue_backer_sets_sights_3bttqjyIyH4EOTGQI2ienN http://m.theaustralian.com.au/business/mining-energy/twiggy-backer-pumps-funds-into-lng/story-e6frg9df-1226779250468#mm-premium Tonogold - Iron Ore: • How Iron Ore Makes Steal. (Due Diligence) https://www.youtube.com/watch?v=i6BIyQJZdTg Tonogold iron ore PDF’s: PDF One: http://www.tonogold.com/i/pdf/Presentation_Iron_Ore_2013_10.pdf PDF Two: http://www.tonogold.com/i/pdf/AGM-June-23-2014.pdf • TNGL now owns 100% of one of the largest iron ore mining projects in the world, at approximately 135 square miles. This mine went into production with three shipments of iron ore to China in 2013. https://www.youtube.com/watch?v=ueaYe54jrrI • According to Google, the world’s largest Open Pit Iron Ore mine is in Northern Minnesota called "Grand Canyon of the North". It is 3 miles long by 2 miles wide and 540 feet deep. http://www.roadtripamerica.com/roadside/Minnesota-Hibbing-Hull-Rust-Mine.htm Compare that to the anomalies on the map of the Tonogold iron ore mine that is found on page 17 of the “PDF One” link above. Also look at the description of the TNGL iron ore mine found on this TNGL press release: http://www.tonogold.com/s/NewsReleases.asp?ReportID=626285&_Type=News-Releases&_Title=Tonogold-Resources-Secures-Option-to-Acquire-51-of-Mil-Ler-Resources-and-En... I believe that the two mines are comparable. Consider that at its peak in the early 1940’s, the Grand Canyon mine was providing nearly a quarter of all U.S. mined iron ore. I think this illustrates the world class asset potential that is found in the Tonogold iron ore mine. • Tonogold is in the process of completing a 14 million private placement capital raising. I believe the news on this is due out at any time. • Once the private placement money is in, Tonogold will immediately start their drilling program. This drilling program is part of a larger Resource Report and a 43-101 that is being done to prove up the amount of resources in the ground. Three drills working 24/7, 375 holes, over 56,000 meters of drilling on just the largest anomaly, at a cost of 4.5 million with a 9 month completion target date. See page 17 of the Tonogold “PDF Two”: http://www.tonogold.com/i/pdf/AGM-June-23-2014.pdf This is a big drilling program, considering all of those holes are going into just the one large anomaly circled in yellow on page 17 of “PDF Two.” I believe we will are likely going to see hundreds of millions of tons of iron ore, if not much more. Enough iron ore to catapult this project into a World Class Producer. • Once the private placement money is in Tonogold will start moving toward a production goal of 15 million tons of iron ore per annum, at a production cost of an estimated $55.24 per ton. See page 19 of PDF Two: http://www.tonogold.com/i/pdf/AGM-June-23-2014.pdf Infrastructure: • The TNGL iron ore mine is connected to a well maintained sealed highway. The Industrial Deep Water Port facilities at Guaymas, are only 180 km away and are currently being expanded at no cost to Tonogold. Guaymas is known as the “fastest growing seaport in Mexico”: http://www.dredgingtoday.com/2014/06/26/amc-plenary-highlights-investment-in-mexican-sea-port-expansion/ The mine already has water and power in place. There is a rail line literally just a few meters from the mine’s entrance. To get this in perspective look at the photos in “PDF One,” page 16. http://www.tonogold.com/i/pdf/Presentation_Iron_Ore_2013_10.pdf The truck in the top photo is parked at the mines main entrance. The idling train is literally only a few meters away. In the bottom photo you can see power and water already in place near the main entrance to the mine. You can also see the infrastructure in this video link at 2 minutes 14 seconds: https://www.youtube.com/watch?v=ueaYe54jrrI This mine is only 40 kms from Hermosillo, Mexico. Hermosillo is the capital of the Mexican State of Sonora with a population of 800,000. See page 3 of “PDF One”: http://www.tonogold.com/i/pdf/Presentation_Iron_Ore_2013_10.pdf The mining operations in Australia have average salary costs that are 700% higher than in Mexico. The Australian mines are also located in the Australian Out Back and require employees to be flow in and out. At the Tonogold mine, employees simply drive themselves to work. See page 13 of “PDF Two”: http://www.tonogold.com/i/pdf/AGM-June-23-2014.pdf Full Reporting Status & Moving to a Higher Exchange (Off the Pink Sheets): • Tonogold is in the process of going to full reporting status with the SEC, moving off the pink sheets and going onto a higher exchange. TNGL recently completed a ten to one reverse split to help accomplish these goals. Going to full reporting status with the SEC and moving to a higher exchange will allow the serious investors and big funds to purchase shares of the stock. Tonogold expects this process to be completed within the next three months. The following quote is from the TNGL November 6, 2013 press release: “Tonogold also wishes to advise investors that it has appointed Hamilton & Associates Law Group P.A. (Corporate Attorney) to assist the Company in its application to become Reporting Issuer under the Securities Exchange Act of 1934, as amended. Tonogold's objective is to become fully reporting and quoted on the OTC Bulletin Board as soon as possible.” http://www.tonogold.com/s/NewsReleases.asp?ReportID=610323&_Type=News-Releases&_Title=Tonogold-Resources-Inc.-Engages-RM-Corporate-Finance-for-6-Mill-Capital-Rai The Tonogold press release on May 8, 2014 states in part: “The Company is continuing to work with its advisors in a bid to become a fully reporting entity as soon as possible. Additionally, we expect the reverse share split share price will provide Tonogold the opportunity to list on secondary exchanges in the near-term, as well attract a broader investor base.“ http://ih.advfn.com/p.php?pid=nmona&article=62134973&xref=newsalert Purchasing Other Assets: • TNGL will continue in its stated goal of adding high quality mining assets to their portfolio and in fact is looking at several other mines near their iron ore mine in Sonora, Mexico. See page 15 of “PDF Two”: http://www.tonogold.com/i/pdf/AGM-June-23-2014.pdf Promotion and Awareness: • In the “Tonogold Resources, Inc. Financial Statements For the years ended December 31, 2013 and 2012,” on page 13; please note the 2012 TNGL Promotion budget at $13,314. The 2013 promotion budget was cut by about 50% to $6,615. There has been almost no promotion with TNGL. This is the opposite of a pump and dump. Thishttp://www.otcmarkets.com/financialReportViewer?symbol=TNGL&id=118129 • Also look at the TNGL web site and click on “News”. You will see the News or Press Releases put out by Tonogold. Look at the frequency of news and note that there is hardly any news coming out. This is again, the opposite of a pump and dump. http://www.tonogold.com/s/NewsReleases.asp • Tonogold has not been promoting itself because they were not producing anything. Now Tonogold has a producing mine with huge asset potential. Once the private placement money is in Tonogold will have a real budget for awareness and promotion. Tonogold now has production and assets fundamentals that they can promote. The investment world is going to know about the awesome TNGL fundamentals and exponential growth potential. The investment world will also know about the Tonogold drilling results as they come in over the next 9 months. Tonogold - Gold and Silver Mine: • Tonogold has a mining project in Nevada called Tonopah Divide. This project is next door to the Hasbrouck 3,000 Acre mine that has the same type of geological terrain in an area that is historically proven to be high yielding in gold and silver assets. The Hasbrouck mine was previously owned by Allied Nevada. The Technical Report that Allied Nevada did on Hasbrouck dated April 11, 2012 states that there are “Inferred mineral resources of 1.2 million ounces of contained gold and 29.3 million ounces of contained silver…” in the Hasbrouck mine. Based on the Friday 8/30/14 NY gold spot at $1,287 (bid) and the silver NY spot at $19.46, the numbers come out like this: Gold, 1,200,000 ounces X $1,287 = $1,544,400,000. Silver, 29,300,000 ounces X $19.46 = $570,178,000. $1,544,400,000 + $570,178,000 = $2,114,578,000. That is putting the Hasbrouck resource value roughly at 2 billion, 144 million, 578 thousand dollars. Tonopah Divide is about 233% larger than Hasbrouck. Look at the links below to see the details on the Tonopah Divide drilling program. TNGL GOT CONTROL OF 72% OF THE TONOPAH DIVIDE PROJECT ALONG WITH ALL OF ITS IMPROVEMENTS FOR FREE. In October of 2012 TNGL’s Tonopah Divide 72% partner, Centerra Inc. withdrew from the project. Centerra withdrew from all of their U.S. projects. CENTERRA HAD INVESTED ABOUT 4.6 MILLION IN IMPROVEMENTS WHICH ALSO WENT TO TNGL FOR FREE. TNGL now controls 100% of this project along with all the improvements. See the below links for more details: http://www.tonogold.com/s/Home.asp http://www.tonogold.com/s/NewsReleases.asp?ReportID=553146&_Type=News-Releases&_Title=Tonogold-Resources-Inc.-Regains-100-Control-of-Tonopah-Divide http://www.24hgold.com/english/news-company-gold-silver-announces-initial-work-program-at-tonopah-divide-gold-project.aspx?articleid=143943 http://www.tonogold.com/s/NewsReleases.asp?ReportID=417242&_Type=News-Releases&_Title=TONOGOLD-RESOURCES-INC-DRILLING-AT-TONOPAH-DIVIDE-RETURNS-30-FEET-OF-0.118-... • West Kirkland Mining (http://wkmining.com/) announced that they have raised 31.1 million, 20 million of that to acquire a 75% interest in the Hasbrouck project. The remaining 11.1 million will be used to immediately start exploration and initiate a prefeasibility study on the Hasbrouck project. It looks to me like West Kirkland Mining intends to produce on Hasbrouck, right next door to Tonogold’s Tonopah Divide project. http://www.4-traders.com/WEST-KIRKLAND-MINING-INC-11538217/news/West-Kirkland-Mining--Commences-Exploration-and-Prefeasibility-Study-for-Hasbrouck-Project-Nevada-18537587/ Total Shares Available for Trading – The Float: • Here is where things get interesting. In the Tonogold press release dated May 8, 2014 it states in part “The share structure contemplated following the completion of the capital raising and acquisition (pre and post the proposed capital re-structure) is provided in the table below:….. http://www.tonogold.com/s/NewsReleases.asp?ReportID=652171&_Type=News-Releases&_Title=Tonogold-To-Acquire-100-Of-Iron-Ore-Project-Mexico According to this table Tonogold will issue 28 million new shares for the “Current raising”. That represents the 14 million Private Placement. After the Private Placement is closed this will be 27.2% of the total shares issued. TNGL has also now issued another 54.1 million shares to purchase the iron ore mine. (The iron ore mine deal was a stock only, non cash deal). After the Private Placement is closed these shares will represent 52.6% of the total shares issued. All of these new shares will be RESTRICTED! That means that they will not be tradable for a specific period of time. I do not know how long these shares will be restricted but in the recent past TNGL issued shares have carried a one year restriction. So after the private placement is called in there will be 102.8 million shares issued. The total number of new restricted shares will be 82.1 million. That means that 79.8 percent of the total shares issued will not be available for trading. Only 20.7 million shares or 20.2 % of the total issued stock will be available for trading. The tradable float on TNGL is incredible small. Put Tonogold (TNGL) on your charts and note that there are very few shares available at the bid or ask and very few shares available at higher price above the ask. In my view this means that once Tonogold proceeds with the items I have mentioned in this report and the news comes out to this effect; new buyers will start to show up. I think that volume will increase and the supply / demand dynamics are going to set TNGL up for some potentially huge explosive upward movements in the stock price. Summary: I have been taking advantage of the recent pull back in price to add to my position. I have scaled into my position and personally own over one hundred thousand shares of Tonogold (TNGL) with an average buy in price of about 60 cents. I see Tonogold (TNGL) as a little, unknown penny stock that is about to become a dollar stock with explosive upward moves. I think TNGL is a tremendously undervalued asset with huge growth potential. I think the next 9 months are going to be historic for Tonogold and its shareholders. This is my humble opinion and my speculation. This is not a recommendation to buy or sell. Please do your own Due Diligence. But for me, I own Tonogold (TNGL) and have put my friends and family into this stock. Joeblow110percent