Mining High Grade Gold in Burkina Faso TSX: ROXG Investor Presentation | July 2017 TSX: ROXG 1
Cautionary Statement This presentation contains forward-looking information. Forward looking information contained in this presentation includes, but is not limited to, statements with respect to: (i) the estimation of measured, inferred and indicated mineral resources and probable mineral reserves including, without limitation, statements with respect to the potential establishment of new mineral resources and the expansion potential of existing mineral resources/reserves; and (ii) the success of exploration and development activities; and (iii) statements that are not of historical fact that are taken from or based on the technical report entitled “Technical Report for the Yaramoko Gold Project, Burkina Faso” dated June 4, 2014 (the “Feasibility Study”) as well as the press release dated April 18, 2017. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Forward-looking information contained in this press release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves (and potential establishment and increases in respect thereof), the realization of resource estimates and reserve estimates, gold metal prices, the timing and amount of future exploration and development expenditures, and materials to continue to explore and develop the Yaramoko project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration, risks relating to variations in mineral resources and mineral reserves, grade or recovery rates resulting from current exploration and development activities (including risks that new mineral resources may not be established, or the anticipated expansion potential of existing mineral resources/reserves may not be realized), risks relating to changes in gold prices and the worldwide demand for and supply of gold, risks related to increased competition in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources and mineral reserves, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, capitalization and liquidity risks, risks related to disputes concerning property titles and interest, and environmental risks. Please refer to the 2017 first quarter’s Management’s Discussion and Analysis filed on SEDAR at www.sedar.com on April 18, 2017 for political, environmental or other risks that could materially affect the development of mineral resources and mineral reserves. This list is not exhaustive of the factors that may affect any of the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking information. The Company does not undertake to update any forward-looking information that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws. Slide 13 contains production guidance for 2017 as previously disclosed in the press release dated January 17, 2017. The following Qualified Persons, as defined in National Instrument 43-101, have prepared or supervised the preparation of the scientific or technical information presented in this presentation: Jean François Couture, PGeo (SRK Consulting Canada Inc.), Benny Zhang, P. Eng (SRK Consulting Canada Inc.), Sebastien Bernier (SRK Consulting Canada Inc.), Paul Criddle (Roxgold), Yan Bourassa (Roxgold). All dollars are in US currency unless otherwise stated. TSX: ROXG 2
Roxgold Snapshot Canadian Based Gold Producer ▪ Experienced Management Team and Board Mauritania Mali ▪ Proven Track Record of Meeting or Exceeding Expectations Niger ▪ May 16, 2016: Poured First Gold at Senegal Yaramoko Project in Burkina Faso Yaramoko Gambia Burkina o Low cost, high grade underground mine Faso o 17.1 grams per tonne (“g/t”) measured and indicated at 5.0 g/t cut-off Guinea Benin ▪ Market Cap of ~C$405 Million Nigeria Sierra Togo (as at July 17, 2017) Leoné Côte Ghana d’Ivoire ▪ ~US$53 Million Cash Balance after Liberia repayment of $19 million at March 31, 2017 (unaudited) AFRICA ▪ Strong Analyst Coverage and Institutional Atlantic Ocean Support TSX: ROXG 3 3
Yaramoko – Continuing to Rapidly Evolve Production ▪ 105,000 – 115,000 ounces production in 2017 ▪ Well on track with YTD results February 2011 ▪ 35,594 ounces produced in Q1 Initial Discovery ▪ AISC guidance of $740 - $790 per ounce ▪ Development well ahead of budget to underpin balance of August 2012 2017 and 2018 Maiden Resource Development Announced ▪ Bagassi South Feasibility Study on track for Q4 delivery 5 June 2014 ▪ Infill program was very successful in H1 Feasibility Study ▪ Bagassi South Indicated mineral resource estimated at Years Filed 352,000 tonnes at 16.6 g/t for 188,000 ounces of gold. Inferred mineral resource estimated at 130,000 tonnes at 16.6 May 16 2016 May 16, 2016 g/t for 69,000 ounces of gold. Reported at 5.0 g/t Au cut-off. First Gold Pour Exploration May 16, 2017 ▪ Two rigs turning on the 55 Zone aimed at resource expansion Total ounces of gold ▪ One rig drilling regional targets produced: ~125,000 (From May 16, 2016 to May 16, 2017) ▪ 16,000 metres of drilling for H2 on regional targets TSX: ROXG 4
Yaramoko From 1 st Pour to 125,000 ounces December 2015 May 2016 Jun 2016 July 2016 Aug 2016 Sep 2016 Oct 2016 Nov 2016 Completed Intersected Received $9M Achieved First double level Declared First gold pour ▪ ▪ ▪ ▪ ▪ ▪ ▪ construction $4M stope successfully 20.1g/t of gold from IFC early 1,000,000 hours Commercial under budget extracted over 23.8m at warrant exercise LTI Free Production and ahead of Zone 55 in Hole schedule YRM-16-DD- 426 Jan 2017 Feb 2017 Dec 2016 Mar 2017 Apr 2017 May 2017 Produced 77,155 Passed lender’s Identified new Produced 125,000 Graduated to Completed ▪ ▪ ▪ ▪ ▪ ▪ ounces of gold for completion test Shoot at Bagassi ounces of gold Bagassi South TSX first 7 months since May 2016 facility South infill drilling program 5 5
Key Information 2016 Q3 1 2016 Q4 2017 Q1 Gold Poured (ounces) 32,987 29,688 35,594 Gold Sold (ounces) 34,594 34,271 34,979 Tonnes Milled 60,876 61,265 63,955 Head Grade 17.0 15.4 17.3 Cash Operating Costs 350 414 404 AISC 707 702 720 Average realized gold price per ounce $1,335 $1,208 $1,229 Adjusted earnings (loss) 2 ($3,227) $15,744 $9,689 ($0.009) $0.042 $0.026 Adjusted earnings per share 2 (C$0.012) C$0.056 C$0.034 Cash flow from Mining Operations 2 $29,482 $22,639 $23,747 $0.080 C$0.061 $0.064 Cash flow from Mining Operations Per Share 2 C$0.104 $0.081 C$0.085 Cash on Hand $60,552 $68,902 $52,330 LTD $69,569 $71,068 $51,905 1. Commercial production was declared on October 1, 2016, as such the third quarter Revenue and operating expenses were accounted for against Mineral properties under development on the Company’s balance sheet and were not accounted for as part of the quarterly earnings. 2. This is a non-IFRS financial performance measure with no standard definition under IFRS. See the “non -IFRS financial performance measure” section of the Company’s 2017 MD&A available on www.SEDAR.com 6
2017 First Quarter Operational Highlights Ore Development (m) Waste Development (m) 1,200 1,200 Q1 2017 1,000 1,000 800 800 Total Development (metres) 912 600 600 Ore Mined (tonnes) 69,237 400 400 200 200 Milled (tonnes) 63,955 - - 16/Q3 16/Q4 17/Q1 16/Q3 16/Q4 17/Q1 Head Grade (g/t Au) 17.30 Gold Recovery (%) 99.2 Tonnes Mined Stopes Completed Mill Operating Time (%) 94.0 10 70,000 60,000 8 Gold Poured (ounces) 35,594 50,000 6 40,000 Gold Sold (ounces) 34,979 30,000 4 20,000 2 10,000 - - 16/Q3 16/Q4 17/Q1 16/Q3 16/Q4 17/Q1 TSX: ROXG 7
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