To: Shareholders of Tashota Resources Inc.

From: Charles J. Elbourne, President & CEO, Tashota Resources Inc.

Issue 6 – June 15, 2016

Trump - Clinton – And 2,700 grams (86 ounces) of GOLD!

While the majority of readers probably haven’t been following the stock market as long as I have (45 years); no doubt, you have to be wondering – What’s next in the market place for stock prices and gold? In this Market Letter, I will cover the following topics: 1. Background on the present state of the stock market and the effects of negative interest

rates on the economy and political interference.

2. The CNN Trump & Clinton Show - more specific, the Punch and Judy Show (look it up).

3. Who will win the U.S. Election – who knows but we all know who needs to win.

4. Gold’s obvious direction.

5. The Project Generation Model (PGM) and why you should buy into this concept. I call it probability insurance.

6. Why Tashota Resources Inc. (TRI) is an obvious choice for investment in this gold market.

Here we have the DJIA and S&P searching, or better yet, grasping for any news that can keep this market moving to the upside while gold has been acting like an old lion that just broke out of its cage after 4 years and four months – and its hungry for bear meat – that’s gold bear meat. The gold bears are finally starting to really feel the squeeze from the gold bulls since last December, and they have been covering their shorts ever since. In my April 2015 News Letter, I made the statement: “But one thing I have learned about the

stock market is this; “The public is always right in the middle and wrong at both ends”.

This very much appears to be the case in today’s market place (DJIA, S&P) – the DJIA is

pushing to get through to new highs (above 18,350). But why is this happening given the

state of the U.S. economy; as well as most other nation’s economies in the world, including

Europe?

CONTINUED EASY MONEY – that’s why!

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Pools of government generated cash (via the printing press) creates easy money for the

general public to invest/spend in many commodities like, housing, cars, furniture, phones,

computers, vacations, and the stock markets. The “Installment Plan” was another name for

buying on credit in the 1920’s and because it was so easy to buy this way, too many people

did so. Today, too many people are doing exactly the same thing. In the 1920’s many

people bought stocks on margin; which helped cause the Crash of 1929. Anyone that has

ever received a margin call from their broker is familiar with that scenario. The chart below

doesn’t look too encouraging either.

This chart illustrates what happens when margin debt goes to extremes - Recession

The above chart merely illustrates where too much borrowed money is finding a home in

the stock market (same thing applies to today’s housing market – again). One of the many

reasons is cheap money, i.e. low interest rates.

Of course one of the major actors in using cheap debt to borrow capital is large public

companies buying back their shares in the marketplace with the hope of inflating their

earnings and increasing their share price. This is self serving at its best.

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And this scenario of cheap money does not only apply to the U.S.; it appears in most

countries and some countries have already succumbed to negative interest rates, as noted

below.

In other words, in these countries you are given the privilege of paying the banks to hold

your money!

As I also pointed out in my December 2015 market letter; “Assume you are retired back in

2007 and have at least $1,000,000 stacked away in a short term bank savings account or other

form of saving instrument. Take the higher rate of return of, say Prime rate plus 2%, or 8%,

which is a very good return and would provide you with cash flow of $80,000/year. Two years

later in 2009 Prime is around 3%, and your instrument is paying out approximately 5%, which

produces $50,000/year; life is not so good anymore.”

You would not want to be retired or getting ready to retire living in the above noted

countries, but as I also noted in the same market letter; “Where do you go; the stock market?

So you join the crowd over time, perhaps reluctantly at first, but as the market picks up, more

and more investors jump in and reach for the companies that are most in favour, hence fanning

the flames of a new bull market in stocks – just what the government wanted you to do.

Meanwhile the government kept printing money, just like they are doing to this day – until the

merry-go-round stops and people start to get off.”

Negative rates are essentially a tax on your bank deposits, intended to discourage saving.

But while you may be thinking the market is the safe place to be, or bonds for that matter,

one should consider what might be getting ready to happen again, as happened in 2007-

2008.

This is why the U.S. government as well as most governments is really between a rock and a

hard place.

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Madam Yellen did not come out yelling about an increase in the interest rate today –see

what happened above just on that little announcement. This scenario will continue for

some time, and when they do raise rates, it will be too late and gold will probably be near

the 1400 – 1600 level - if not higher.

An interesting statistic I found at (danielamerman.com) illustrates what happens when

governments borrow money and keep on borrowing money; “Because the government (U.S.)

borrows the money to make interest payments, this could set off a chain reaction of paying

interest on money borrowed to pay interest, leading to a national debt increase of the current

$19 trillion up to $94 trillion in 20 years. So unless there are some huge tax increases, a 5%

increase in interest rates would increase the national debt by $75 trillion.”

When this happens, and it will happen (.25-point increase in December 2015 which was

just a test run to see the stock market reaction); the future will not look encouraging –

except for gold, because gold pricing thrives on uncertainty.

So if we are eventually heading into a recession or financial crisis like the financial crisis of

2007-2008, the place to be is gold and senior and junior gold stocks, because based on

present global debt outstanding, governments are cornered and can only continue to print

money.

The chart below is not encouraging, but shows how letting governments print money

(which creates more debt) at random, can lead to devastation for the average investor.

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Easy financing at first exploded housing prices in the U.S causing a real estate bubble, but

then came the downturn starting in 2006-2007 and finally bottomed out in 2012. Now the

real estate market is forming a bubble in commercial real estate as buyers look for

improved rates of return on their capital, thus fueling the next major bubble. In addition, if

the government increases bank rates indirectly, this will have an immediate effect on those

home buyers who purchased property using variable rate financing.

I remember back in the 70’s getting caught with a variable mortgage that went from 8% to

19% very quickly.

So the question now becomes; is the merry-go-round getting ready to grind to a halt? The

chart below appears to be suggesting that the DJIA is having problems at this stage.

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In my December 2015 newsletter I suggested that; “The chart of the Dow Jones above

(referring to previous December 2015 chart) doesn’t really look to healthy at this point; it seems

to have caught the flu around 18,000+. And while there are those out there that say the DJIA is

getting ready to go to 30,000, one has to wonder how that’s possible with over

US$18,000,000,000,000 in debt and counting every minute like a fire out of control, see

(www.usdebtclock.org/index.html). Meanwhile with the first leg of a downside already finished

and the rebound seems to be stopped dead in its tracks at 18,300, the stock market doesn’t look

that encouraging going into 2016.”

At this point the chart above is suggesting that the DJIA has once again caught the flu and

will have problems trying to work its way through that major distribution top.

And this is where we come to the present day sitcom known as the CNN Trump & Hilary

Show; better known as the Punch & Judy Show. This sitcom is part of the reason that the

present market place is in no-man’s-land. It is referred to as “taking the eye off the ball”.

This is what the American public is engaged in right now; their eye is off the economy and

their mind is really not on the marketplace. They are too busy watching the sitcom play out.

I believe it is reasonable to make the statement that America thrives on sensationalism; it is

part of their culture. Of course, easy access to guns fuels that sensationalism because it

presents countless incidences of shootings, based on sometimes simple disagreements over

trespassing or music being too loud.

When terrorism raises its ugly head and individuals use religion as a means to an end, the

result is more shootings and killings and unrest and uncertainty. Uncertainty in the

marketplace leads to falling market prices and increased valuation for gold.

Effectively, the government hacks are engaging in political theatrics, both Democrats and

Republicans, alike. This carnival show has come to the point of stupidity wherein the

privileged are in a contest with the poor. Read up on the French Revolution; it got so out of

control, people lost their head over it.

Trump, being a master at presentation; knows where to hit the unrest button - the poor.

Hilary being part of the establishment is relying on drawing the rich and privileged to use

their funds to try and turn the poor (and the rich) against Trump. Many of the Republican

elite are also against Trump because they are also part of the inner circle of government.

Unfortunately, Bernie lost to Hilary, although he is still swinging.

The media is doing a marvelous job of putting the public to sleep about the growing

problems in the economy and whenever Trump opens his mouth about the $19 Trillion in

debt, the elite try and change the subject.

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Who will win? The fact is America needs a business person to turn the economy around;

not economists and politicians. Reality is - the plurality of the privileged in both parties will

take every measure to make sure Trump does not win. That leaves Hilary, and almost

guarantees the U.S. economy will get into even deeper trouble (based on past performance

of Obama and the Democratic Party). This is why it is reasonable to assume that gold will

continue its uptrend at least until the elections in November, but based on election results;

either way will probably result in continuing higher gold prices because neither Hilary nor

Trump can fix the debt crisis which is now out of control.

Economists and politicians would do well to heed the advice of Winston Churchill who

stated; “However beautiful the strategy, you should occasionally look at the results.”

A quick look at the latest weekly gold chart (below) would suggest that the reverse head

and shoulders formation and very large “cup and saucer” formation as outlined in the

December 2015 market letter proved out to be a reasonably accurate call.

In that market letter I suggested a possible bottom at 1047 on the Dow;

“With the price of gold continuing to move sideways in a very sporadic fashion during the

summer months, I thought it best to just wait until something would come along and set the

stage for a breakout in the gold price, one way or the other. In other words - waiting for the

perfect storm!”

“So what could probably happen if the Fed increases the interest rate? One could expect to see

a rather sharp downdraft in the gold price on the announcement at which point I would expect

that gold might test the 1046 level and even drop to the 958 level. But that would probably be

the extent of the drop because the Chinese and Russians would be jumping in with buckets of

U.S. dollars and exchange the overstretched U.S. dollar for gold. Any drop would be rather

contained based on the probability that the current gold price has already priced in the risk of

the fed increase.”

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“Indications in the dramatic price movements in gold over the past few months would seem to

illustrate that nervousness in the marketplace is coming to a head.”

In my February 2016 market letter, I mentioned that the gold had formed a cup and handle

formation: “A case could also be made (though I’m sure technical chartists would disagree with

me) that the gold market has actually established a “cup and handle” formation. This is a very

strong formation which usually requires a previous advance before forming but in this case gold

did have somewhat of a previous uptrend from July through October of last year, so I believe it

fits the definition.” Indeed this has proven to be the case and such a technical pattern

usually proves to be not only a sustaining pattern but usually also signals a major move in

the commodity.

It is for this reason that I also stated that; “In fact a more positive outcome and much higher

prices for gold, say 1350-1400, and perhaps has high as 1600 during 2016; could take place if

more time was spend building a further base between April and June. This would provide a

huge reverse head and shoulders as long as the April – June right shoulder traded within a

boundary between, say, the present price (1240) and 1140.”

In fact this is exactly what gold has been doing; building a nice right side shoulder of a

major head and shoulder reversal pattern. Importantly; it is building this right arm with a

preference to the upside of the arm, which tends to indicate there is an increasing rush to

break out from the short term previous high of 1303. That could happen as early as this

week.

Unfortunately, another factor affecting the short term price of gold is the recent terror

attack which the other day killed 49 people and injured even more at a nightclub in Florida.

This type of action will be sure to repeat itself, in the coming year since the U.S. military

and its partners are gearing up, finally, against ISIS and now we will see copycats coming

forth.

So now that we have covered the theatrics of politicians and economists and the probable

outcome of gold; where does that leave us as investors in Tashota Resources Inc. (TRI)?

Management of Tashota designed the company in 2011 as a Prospect Generation Model

(PGM) resource company. PGM was an idea originating with the resource veteran Rick Rule

back in the 90’s wherein his concept was based on the adage that; (1) mining is capital

intensive, and (2) only one of 3,000 anomalies becomes productive.

Basically, a PGM exploration company arranges to acquire a large portfolio of prospective

grassroots projects. The company then arranges to have joint venture partners enter into

agreements to pay cash and perform work on the properties to acquire majority control,

after having fulfilled their J/V requirements.

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This provides the opportunity for PGM companies such as TRI to benefit from others’

capital to increase the value to TRI shareholders while offsetting the risks of large dilution.

Like any business model, there are certain guidelines that must be followed to ensure

success as the outcome. Guidelines include; finding the right properties, operating in safe

jurisdictions, acquiring experienced management, and most important – developing the

properties to an advanced stage before bringing in the joint venture partners. The last

guideline is where many PGM’s falter; they do not expand their exploration activities

sufficiently to add value before engaging a J/V partner. In many cases, this is a case of being

underfunded or choosing bad properties or using inexperienced geologists and not

adhering to a disciplined approach to exploration. And let’s not forget promotion, because

you can have a great property but if nobody knows about it; nobody cares.

Let’s use Hemlo as an example of promotion. Prospectors Don McKinnon, John Larche, and

Richard Hughes staked claims and discovered gold in the Hemlo camp in the early 1980s.

David Bell, a Geologist was instrumental in determining the geology of the camp, but it was

Murray Pezim and Ned Goodman that made Hemlo into the great mine it became

(21,000,000+ ounces of gold to date and expanding) – and that was the result of promotion

and capital.

Management of TRI determined early on that there were three (3) major requirements in

determining the best properties for its portfolio, these were;

1. Acquire property that is as close as possible to an existing mine or mill.

2. Acquire property that is easily accessible, has good prospects; that someone else has

spent serious money on the property and abandoned it for what they believe is the next

great news story (this is where many juniors go wrong) or because they ran out of

capital.

3. Acquire property in an area of the latest great mine find.

Tashota has managed over the past five (5) years to acquire a portfolio of

excellent targets for discovery, including Hemlo, Larose and Opinaca. Focus has been

on gold.

Management has remained private during this time in order to avoid

expensive listing fees, legal and audit as required for a listing company. In effect this

has resulted in shareholders of TRI avoiding the fate of many mining juniors who

have seen their share price reduced by 80-90% in the market place and they needed

to take on debt to maintain their listings in many cases. TRI debt is less than

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$100,000 while having acquired options on over 50,000 acres of excellent targets.

Pricing has been maintained within the $0.10 range, thereby limiting any loss for our

investors in a very bad market for gold.

Management has investigated and conducted work on these properties to

increase their value for exploration purposes and possible J/V opportunities with

other larger mining companies.

Because of our positioning in the Hemlo Gold Camp, well in advance of the

gold price increase and Barrick Gold expanding their exploration efforts (with

excellent results to date), TRI is well positioned to leverage this situation. This has

resulted in institutional interest in investing in our Company. This is an important

development because the exploration budget for the company exceeds $6,000,000

based on a 3-phased drill and exploration program for the three (3) properties.

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The purchase of Virginia Mines by Osisko Gold Royalties on or about

November 2014, for $461Million for the Éléonore royalties was fortuitous for TRI, in

that it drew attention to the Opinaca, James Bay, Quebec area. During that time TRI

acquired a 50% working interest in 18,600 acres at Opinaca. TRI is presently in

discussion with the two companies that hold the balance of the Opinaca claims, in

conjunction with TRI, which total over 23,100 acres. Airborne was completed on the

entire 23,100 acres back in 2012 which resulted in defining excellent drill targets for

further exploration. The Éléonore/Goldcorp mine is situated approximately 16

kilometres to the north east of the TRI Opinaca property.

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Work performed on the Larose property (Shebandowan Gold Belt) by

Freewest Resources and others (over $1,000,000 during 2011-13) produced

excellent trenching results, including sample values as high as 8 and 10 ounces gold

near surface. TRI had previously gained access to a 50% interest in the 8,000 acre

Echo Ridge property to the west adjoining the Larose in 2012, but the main focus was

to acquire the 8,000 acre Larose property which was acquired January 2015.

Having just completed a First Nations ceremony on the Larose property this

week, which was also attended by geology students from Lakehead University, and a

geologist from the Ministry of Northern Development and Mines (MNDM), TRI will

this week conduct exploratory drilling to better determine the geological structure

under the overburden. TRI has also signed a contract to have a complete airborne

survey performed on the Echo Ridge/Larose property, subject to obtaining

additional financing. Wesdome Mines is situated just 7 kilometres to the south of

Larose and own the Moss Lake Mine which has over 3,000,000 ounces of proven and

probable gold. Wesdome recently bought out Canoe Mining to the north east of the

Moss Lake Mine in order to consolidate their land position in the Shebandowan Gold

Belt. The Shebandowan Gold camp has recently seen increased activity in this old

gold camp, due to the increase in gold prices and management of TRI is well

positioned with a large land position that has to date produced excellent exploration

results.

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This has been a very long, but what I believe to be, a very important Market Letter to our

investors in TRI because there has been a marked change in not only world events, both

political and economic; but importantly in the price of gold. This bodes well for our

company and management of TRI believes that we are very well positioned with our

mining portfolio of properties to profit from the continuing rise in the price of gold.

The Golden Cross for gold is a great technical analysis marker for major turns in

commodities, stock markets, etc., and has usually performed in a consistent manner as a

foreteller of the longer term direction for the commodity or stocks. I believe this will prove

to be true over the next several months.

Management of TRI has hired an Investor Relations executive to keep our base of

shareholders aware of the ongoing opportunities in TRI and will be in touch shortly.

Meanwhile contact the offices of Tashota Resources Inc. to get an update with regard to

your current shareholder position.

For further information, please contact: Charles J. Elbourne B. Comm., M.B.A., President, and C.E.O. C :( 416) 315-6490 Email: mining@tashotaresources.com

CAUTIONARY NOTE: The information contained herein is provided for informational and

educational purposes only, and nothing contained herein should be construed as investment

advice, either on behalf of a particular security or an overall investment strategy. Neither

Tashota Resources Inc., nor any of its affiliates makes any recommendation to buy or sell any

security. Actual results may differ materially from those expressed or implied.

Past performance is not indicative of future results. Investors should undertake their own

due diligence and carefully evaluate companies before investing. ADVICE FROM A

SECURITIES PROFESSIONAL IS STRONGLY ADVISED.