Aurora: A Mine In The Making Investor Presentation September 2014 - PowerPoint PPT Presentation

Aurora: A Mine In The Making Investor Presentation September 2014

Forward Looking Statement This presentation of Guyana Goldfields Inc. (the "Company") contains statements that constitute "forward ‐ looking statements." Such forward ‐ looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward ‐ looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "aims," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Information inferred from the interpretation of drilling results and information concerning mineral resource and mineral reserve estimates may also be deemed to be forward looking statements, as such information constitutes a prediction of what might be found to be present when and if a project is actually developed. Forward ‐ looking statements this document includes are statements regarding: the Company's expectations regarding drilling and exploration activities on properties in which the Company has an interest; and the Company's statements regarding estimates of reserves and resources on properties in which the Company has an interest. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward ‐ looking statements that speak only as of their respective dates. Important factors that could cause actual results to differ materially from the Company's expectations include among others, risks related to fluctuations in mineral prices; uncertainties related to raising sufficient financing to fund planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in the estimation of resources and reserves; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overrun or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from the Company's operations; risks associated with title to mineral properties; and other risks and uncertainties discussed appear elsewhere in the Company's documents filed from time to time with the Toronto Stock Exchange and Canadian securities regulators. These statements are based on a number of assumptions, including assumptions regarding general market conditions, the availability of financing for proposed transactions and programs on reasonable terms, and the ability of outside service providers to deliver services in a satisfactory and timely manner. Forward ‐ looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as expressly required by applicable securities laws, the Corporation undertakes no obligation to update these forward ‐ looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. This presentation uses the terms "Inferred Resource", "Indicated Resource", “Measured Resource” and "Mineral Resource". The Company advises readers that although these terms are recognized and required by Canadian securities regulations (under National Instrument 43 ‐ 101 "Standards of Disclosure for Mineral Projects"), the US Securities and Exchange Commission does not recognize these terms. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, "Inferred Resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that any part of an Indicated or Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre ‐ feasibility studies, or economic studies except for a Preliminary Assessment as defined and permitted under National Instrument 43 ‐ 101. Readers are cautioned not to assume that part or all of an Inferred Resource exists, or is economically or legally mineable. The Mineral Resources stated in this presentation are not Mineral Reserves and, in the absence of a current feasibility study, do not demonstrate economic viability. The determination of Mineral Reserves can be affected by various factors including environmental, permitting, legal, title, taxation, socio ‐ political, and marketing issues. www.guygold.com 2 TSX : GUY

Corporate Snapshot Top 10 Shareholders Shares % Symbol: TSX: GUY Basic Shares Issued 150,265,149 The Baupost Group 29.7M 19.8% Options 8,575,000 Franklin Resources (Templeton) 15.2M 10.1% Warrants 0 Total Shares Outstanding 158,840,149 Van Eck 12.3M 8.2% 52 week: Hi/Lo C$3.43 / C$1.53 IFC (World Bank Group) 6.9M 4.6% Market Cap (at C$ 3.21) C$482 million Patrick Sheridan Jr. (Founder) 6.5M 4.3% Cash Position (July 31, 2014) US$68 million Debt * $0 Jennison 6.4M 4.3% Sun Valley Gold 4.9M 3.2% Sprott Asset Mgmt 3.4M 2.2% Fidelity Investments 3.0M 2.0% AMG Analysen 2.3M 1.5% * The Company announced on Sept 3, 2014 the signing of a Credit Agreement for a US$185 Million Project Finance Facility. First drawdown expected in late September. www.guygold.com 3 TSX : GUY

What Sets Us Apart? Simple Lower High Grade : Metallurgy Growth Fully Funded Quartile Flexibility in and Mine Potential & Permitted Cash Costs Mine Plan Plan Robust Compact, High grade and Over 8M+ oz All capital and economics and simple design low strip ratio discovered to permitting in high grade and excellent allow for cash date of which place for nature allows gold recoveries costs in the 3M oz in Aurora Gold for continued of 94%+ allow lower quartile. reserves. Large Project to variability in for smooth land package reach the open pit execution. for continued commercial mine plan and exploration. production in protection mid ‐ 2015. against a weak gold price. www.guygold.com 4 TSX : GUY

Mining Friendly Jurisdiction & Government  Aurora is fully licensed and permitted  Guyana is the only English speaking country in South America  British common law and secure tenure - part of the Commonwealth  Democratically elected government under parliamentary system  Long history of significant gold production:  Gold was the largest export of the country in 2013 with 458,000 oz  Mining License Received and Mineral Agreement Signed (Nov.18/11):  Royalty:  5%: Gold price $1,000/oz or less 8%: Gold price $1,000/oz +   Corporate income tax:  30% with no withholding tax on interest payments “The Government of Guyana congratulates Guyana Goldfields Inc. in securing full financing for the wholly owned Aurora Gold Project. This level of investment from a large scale mining operation is important to the growth and development of the Guyanese economy. The Government of Guyana through the Ministry of Natural Resources and the Environment has been working with Guyana Goldfields to ensure that their undertaking is realized and will continue to work with this company throughout the lifetime of this project. The benefits for Guyana from this project such as local employment, contribution to national wealth, training and community development cannot be over-emphasized. In addition, Guyana’s level of gold declaration is expected to double with the anticipated output from the Aurora project.” - The Honorable Robert M. Persaud, Minister of Natural Resources and the Environment for Guyana, Sept 3, 2014 www.guygold.com 5 TSX : GUY

Mine Plan Jan 2013 Financials @ 5% Discount Rate 43 ‐ 101 Feasibility Study Gold Price Base Case $1,300/oz Mine Life 17 yrs Commercial Production Mid ‐ 2015 Average Mill Throughput 5,000/10,000 tpd Mine Depth 1,037m (970mbsl) Strip Ratio 4.7:1 Average Gold Grade 2.74 g/t Gold Recovery 97%(sap), 94.4%(fresh) Total Gold Production 3.29 M oz Avg Operating Cash Cost w/Royalty LOM $527/oz Initial Capital Expenditure $249 M Jan 2013 Operating Costs 43 ‐ 101 Feasibility Study Open Pit cost per tonne $2.42 Mining cost per tonne to the mill $13.68 Underground cost per tonne $19.28 Processing cost per tonne $13.78 G&A cost per tonne $3.83 www.guygold.com 6 TSX : GUY