A growing platform for quality West African gold projects INVESTOR PRESENTATION | SEPTEMBER 2017
CAUTIONARY STATEMENT This Presentation is for information purposes in connection with African Gold Group materially, and a number of factors may cause our actual results to differ materially known as “ AGG ” or the “Company”(s), preliminary business plan only. While the from any such statement. Such factors include among others general market information contained herein has been prepared in good faith, neither the conditions, demand for our products, development in reserves and resources, Company nor any of its shareholders, directors, officers, agents, employees, unpredictable changes in regulations affecting our markets, market acceptance of consultants or advisers give, have given or have authority to give, any products and such other factors that may be relevant from time to time. representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability, completeness or suitability of the information in this Although we believe that the expectations and assumptions reflected in the Presentation, or any revision thereof, or of any other written or oral information statements are reasonable, any person relying on such Information and made or to be made available to any interested party or its advisers (all such Presentation are cautioned that we cannot guarantee future results, levels of information being referred to as "Information") and liability therefore is expressly activity, performance or achievement. 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The Information different from any future results, performances or achievements expressed or in this Presentation concerning the business and its affairs, shareholders, directors, implied by the forward-looking statements. Forward-looking statements may in officers, agents, employees, consultants or advisers or any other matter must be some cases be identified by terminology such as “may”, “will”, “could”, “should”, kept confidential at all times. If the Company suffers loss, damage or liability of any “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential” kind in connection with your breach of the restriction on reproduction or use, you or “continue”, the negative of such terms or other comparable terminology. These will indemnify the Company from and against such loss, damage or liability. forward looking statements are only predictions. Actual events or results may differ | TSX.V: AGG SEPTEMBER 2017 | 2
AFRICAN GOLD GROUP - VISION & STRATEGY A New Platform for Growth in West Africa. Current Portfolio of Projects: Kobada Gold Project | Mali • 2.2Moz Resource • Near-term production • Advanced stage of permitting • “Shovel ready” Madougou Project | Burkina Faso • Large land package, 30km from Endeavour’s Karma Mine • Exploration stage; several highly prospective targets identified • Excellent mineral growth and development potential | TSX.V: AGG SEPTEMBER 2017 | 3
HUMMINGBIRD STRATEGIC INVESTMENT INTO AGG Company Highlights: ▪ Hummingbird Resources plc (“HUM”) is and AIM-listed company with a market cap of US$155M and US$60M in cash ▪ Company is currently commissioning its Yanfolila mine in Mali located ~60km from Kobada ▪ HUM is also developing its Dugbe project located in Liberia ▪ Construction at Yanfolila is ~75% complete and is expected to pour gold in Q417 HUM to acquire up to 19.9% of AGG for $8M Joint Venture Highlights: ▪ Completion of NI 43-101 compliant Definitive Feasibility Study (“DFS”) for Kobada Gold Project via joint Technical Committee ▪ Upon completion of positive DFS, HUM to fund 100% of mine construction costs to earn 50% of the Kobada Gold Project ▪ 70% of profits to HUM until all construction costs repaid and thereafter all profits to be shared on a 50-50 basis ▪ High potential to truck Kobada high grade ore to Yanfolila plant | TSX.V: AGG SEPTEMBER 2017 | 4
STRATEGIC RATIONALE AGG potential to partner with a successful regional miner and operator Leverage the knowledge and experience gained through HUM’s mine build team and existing plant infrastructure at Yanfolila Transactions Details: ▪ Upon closing of the transaction, HUM will purchase 40,000,000 units at $0.09 for gross proceeds of $3.6M. ▪ Each unit contains a full warrant at $0.12 for 36 months ▪ AGG will grant HUM the right to purchase an additional 48,888,888 AGG shares to be paid in kind through the issuance of common shares of HUM equal to $4.4M divided by the volume weighted average trading price for the previous 20 days ▪ ~80% premium to last close of AGG shares, nearly a 100% premium to the 20-day volume weighted average price Completion of the transaction is subject to completion of definitive agreements and approval by the TSX Venture Exchange | TSX.V: AGG SEPTEMBER 2017 | 5
CORPORATE STRUCTURE OVERVIEW 10 YR. SHARE PRICE (HIGH: $1.90; LOW: $0.04) Trading Symbol (TSX.V) AGG Shares Outstanding 359.6 M Options 28.4 M New Board & Management Warrants 123.0 M Share Price (12/09/17) $0.045 52 Week Range $0.04 - $0.10 MAJOR SHAREHOLDERS Avg. Daily Volume 373,000 F&M and Affiliates 26.9% Market Cap. $16.2 M Georges Cohen 9.8% Cash $3.4 M Marco Durante 3.3% Debt Nil Sentry Investments 2.1% As at last reported quarter, Q2 ending June 30, 2017 | TSX.V: AGG SEPTEMBER 2017 | 6
TRACK-RECORD OF VALUE CREATION IN WEST AFRICA New Management & Board since March 2017 New team has extensive experience and past successes in West African mine project discovery, development, financing and operation – most notably with Avion Gold. ▪ The management team of Avion is largely intact, is now the largest shareholder of AGG and in charge of its administration ▪ The group originally acquired the assets for $0.20 on the dollar and later sold the company to Endeavour Mining for $400M ▪ From its acquisition to its ultimate sale, Avion raised a total of $142.5M and completed two M&A transactions which returned considerable value to the company ▪ The company acquired the Houndé project for $4.09M in January 2010 which is expected to pour gold in Q417 and “become Endeavour’s flagship mine” ▪ Avion successfully restarted operations in Mali profitably and was forecasting production between 140,000 and 150,000oz in fiscal 2012 prior to being acquired by Endeavour | TSX.V: AGG SEPTEMBER 2017 | 7
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