Mining High Grade Gold in Burkina Faso

Transcription

1 Mining High Grade Gold in Burkina Faso Denver Gold Forum September

2 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 proven and probable mineral reserves including, without limitation, statements with respect to the potential establishment of new mineral resources and/or reserves and the expansion potential of existing mineral resources/reserves and the expansion potential of mining operations including with respect to proposed development at Bagassi South and the anticipated timing thereof; (ii) proposed exploration and development activities (including proposed plant expansion), and the anticipated nature, success and timing thereof; (iii) production, earnings, recovery rates and cost guidance as well as future sources of funding, capital expenditures and exploration budgets, (iv) permitting; and (v) expansion and growth potential and the anticipated timing thereof including the anticipated production at Bagassi South and the timing thereof, and future economics and development activities related thereto; (vi) expectations the Company will be within its 2018 cost guidance; (vii) statements that are not of historical fact; and (viii) any potential share buyback by the Company. For further details regarding the Yaramoko project, please refer to the technical report entitled Technical Report for the Yaramoko Gold Mine, Burkina Faso dated December 20, 2017 (the Technical Report ) as well as the press releases of Roxgold Inc. ( Roxgold or the Company ) dated April 18, 2017 and the November 6, 2017, Bagassi South Feasibility Study news release. 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 presentation 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 potential expansion of mining operations, 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 permits, 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 and/or reserves may not be established, or the anticipated expansion potential of existing mineral resources/reserves or mining operations 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 Management s Discussion and Analysis filed on SEDAR at on March 28, 2018 for political, environmental or other risks that could materially affect the development of mineral resources and mineral reserves and other forward looking matters. 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. Unless stated otherwise herein, the following Qualified Persons, as defined in National Instrument , have prepared or supervised the preparation of the scientific or technical information presented in this presentation: Benny Zhang, P. Eng (SRK Consulting Canada Inc.), Sebastien Bernier (SRK Consulting Canada Inc.), Iain Cox, Interim Chief Operating Officer (Roxgold), and Craig Richards (Roxgold). All amounts are in U.S. dollars unless otherwise stated. 2

3 Roxgold Compelling Investment in the Gold Sector Canadian Based Best in Class West African Gold Miner Operating the Yaramoko Mine located in the Houndé belt in Burkina Faso 55 Zone in production Bagassi South in development High-Grade, Low Cost Underground Gold Producer High-grade at 17.1 grams per tonne 1 at 55 Zone and 16.6 grams per tonne 2 at Bagassi South LOM Site AISC 3 ~$695 per ounce LOM production includes inferred resources out to Growth Potential through Exploration Proven Management Team and Board 1. As of December 31, Measured & Indicated Resources. See appendix for Mineral Resource Statement 55 Zone 2. As of July 19, Measured & Indicated Resources. See appendix for Mineral Resource Statement Bagassi South 3. This is a non-ifrs financial performance measure with no standard definition under IFRS. Site All-in sustaining cost above represents both mines combined and excludes corporate G&A and incountry corporate costs. 4. See Table 75 included in Section 23 titled Other Relevant Data and Information in the Company s Technical Report dated December 20, 2017 and entitled Technical Report for the Yaramoko Gold Mine, Burkina Faso available on SEDAR and the Company s website. 3

4 2017 Results - Creating Value for Shareholders 2017 First Full Year of Operations All amounts in U.S. dollars Operations 55 Zone Gold production of 126,990 oz exceeding increased guidance Cash Operating Cost 1 $438 per oz beating guidance All-in Sustaining Cost 1 $740 per oz at bottom end of guidance Strong cash flow generation -$84 million in cash flow from mining operations 1 Return on Equity to shareholders of 24% in 2017 Delivered positive feasibility study for Bagassi South Project 53.2% after-tax IRR 2 Self funding expansion through existing cash and internally generated cash flows Actively pursuing growth opportunities through regional exploration program 64,000 metres of drilling planned for 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 Q MD&A available on the Company s website at or 2. Base case highlights on a 100% basis at a gold price of $1,300/oz 4

5 H Key Financial & Operational Highlights Six-months ended June 30, 2018 All amounts in U.S dollars Financial Highlights First Half Operational Highlights 2018 First Half Cash flow from operations EBITDA Margin Cash Operating Cost /oz AISC /oz ~$57M or $0.15/share 52% $401 $686 76,280 oz Gold Production 98.8% recovery rate 15.6 g/t >5.1M hrs head grade Lost Time Injury free 1. These are non-ifrs financial performance measures with no standard definition under IFRS. See the non-ifrs financial performance measure section of the Company s Q MD&A available on the Company s website at or 5

6 Continuous Improvement - Ore Throughput Q Record quarterly processing throughput for the second consecutive quarter 75,417 ounces processed in Q representing 12% above nameplate capacity 78,000 76,000 74,000 72,000 70,000 68,000 66,000 64,000 62,000 60,000 Q Q Q Q Q Ore Processed (tonnes) Gold Recovery (%) 6

7 Strong Balance Sheet As of June 30, 2018 in U.S. dollars Self-funding Bagassi South Expansion Project cost of ~$30 million Reduced long-term debt by 43% in 18 months Implemented share buy back of up to 10 million common shares Cash on hand Long-Term Debt 1 ~$66M ~$43M 1. Represents the Face Value of Long-term debt representing the remaining balance owing on the Amended Facility. 7

8 Return on Equity Roxgold Provided Shareholders with an Above Market LTM Return on Equity through Q % 17.7% 15.6% 12.3% 9.5% 8.1% 5.9% 5.9% 5.9% 5.7% 3.4% 2.1% KL OGC CG K GUY BTO TGZ WDO ALO AEM G Source: Company Reports Note: ROE calculated as net income adjusted for gains / losses on derivative financial instruments, foreign exchange gains / losses and extraordinary events divided by average shareholder equity over relevant periods of 2017 and Companies Included: KL Kirkland Lake Gold Ltd.; OGC OceanaGold Corporation; CG Centerra Gold Inc.; K Kinross Gold Corporation; GUY Guyana Goldfields Inc.; BTO B2Gold Corp.; TGZ Teranga Gold Corporation; WDO Wesdome Gold Mines Ltd.; ALO Alio Gold Inc.; AEM - Agnico Eagle Mines Limited; G Goldcorp Inc. 8

9 2018 Guidance All amounts in U.S. dollars Gold production of 120, ,000 oz Cash Operating Cost 1 (per ounce produced) $450-$475 AISC 1 (per ounce sold) $740-$790 Bagassi South Pre-Production Capital Expenditure $30 million Exploration Budget $9 million 1. 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 Q MD&A available on the Company s website at or 9

10 Bagassi South Expansion 10

11 Bagassi South Second High-Grade, Low Cost Underground Mine All amounts in U.S. dollars ~40% increase in Yaramoko annual gold production Estimated average gold production of 40,000 oz per year Cash Operating Cost 1 $361 per oz (LOM) All-in Sustaining Cost 1 $630 per oz (LOM) Funded by internal cash flow Pre-production capital - $29.6 million Utilizes synergies with the existing Yaramoko operation personnel and equipment Works at site are well advanced including boxcut construction for underground portal First ore expected in Q 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 Q MD&A available on the Company s website at or 11

12 Bagassi South Underground Mine Plan QV1 Structure Yaramoko Water Storage Dam Plant Camp Tailing Storage Facility 55 Zone 1.8 km from plant to Bagassi South Bagassi South 12

13 Process Plant Expansion Continuing to Progress Well Expanded crushing circuit Expanded gold room Expanded leaching circuit Low voltage switch room and transformer Additional water tank Plant expansion sees throughput increased from 750 tonnes per day ( tpd ) to 1,100 tpd Engineering and procurement activities are complete Secondary crusher has been shipped; expected to be delivered to site in October as planned Overall project completion expected to be on schedule in latter part of Q4 13

14 Growth 14

15 55 Zone Resource Estimate ,200RL Measured 0m 100m 55 Zone Resource* Measured & Indicated Size 738k ounces Grade 17.1 g/t 5,000RL YRM-18-DD g/t over 2.5 m 4,800RL 4,600RL YRM-18-DD g/t over 2.9 m YRM-18-DD-456A 47.4 g/t over 2.2 m Indicated 700m Inferred *As of Dec 31, k ounces 16.1 g/t The 55 Zone 2017 deep drilling program was completed in Q High-grade shoot extended to 1.1 km below surface with hole YRM-17-DD-443W1, down plunge from hole YRM-16-DD-426 4,400RL YRM-16-DD g/t over 23.8 m Inferred The 55 Zone shoot is open at depth and characterized by a wide shear envelope and shear hosted veins at depth 4,200RL 4,000RL Drill Hole 2017/2018 Drill Hole < 1.0 g/t 1.0 to 3.0 g/t 3.0 to 5.0 g/t 5.0 to 10.0 g/t > 10.0 g/t YRM-17-DD-443W g/t over 12.5 m and 12.9 g/t over 3.9 m Exploration Potential Open 1,100m 1,500m Resource conversion surface drilling program commenced in Q2 2018, with aim to convert inferred resources to indicated Four rigs currently drilling See press release dated February 2, 2017 for more information which is available on the Company s corporate website ( and on SEDAR at and contains details regarding data verification undertaken, the results and interpretation of the exploration, details regarding location, types, depths and other details of the drill holes and QA/QC information. 15

16 Focus on Regional Exploration Siou 10 Km Large regional land package of approximately 230 km 2, located on the Houndé Belt Yaramoko Niankongo Boni Shear North Boni Shear Central Majority of known anomalies and deposits are located along the Boni Shear regional break and the second order Yaramoko Shear Yaro 300 Zone Haho 109 Zone 55 Zone 55 Zone 2018 drilling program shifting to a more regional focus with drilling along the Boni Shear, Haho, Kaho and Houko targets - 64,000 metres of drilling was planned for 2018, with approximately 20,500 metres drilled to date Legend Basaltic Flows Tonalite Granite Granodiorite Tarkwaian Basin Volcaniclastic Houko Hounde Project 12 Km Bagassi South Kaho Several low grade structures have been identified in the Boni Shear and Haho programs, for follow up in Q4 Two large auger grids on the Houko concession and Tarkwaian basin completed in Q1 - Additional auger program commenced over Kaho granite, with completion in early Q4 16

17 Regional Exploration - Kaho Legend Basaltic Flows Tonalite Granite Granodiorite Tarkwaian Basin Volcaniclastic Yaramoko Shear Zone 55 Zone Bagassi South Kaho Area 55 Zone Kaho is prospective due to the presence of meta-volcanic and granite contacts analogous to 55 Zone and Bagassi South deposits Within the mineralised corridor of the Yaramoko Shear Zone with potential for second order structures which are thought to be the dominant control at 55 Zone and Bagassi South Auger drilling completed in the third quarter of Assays indicate presence of potential structures oriented NW-SE, oblique to the Yaramoko Shear Zone Drill targeting is underway with follow up by reverse circulation or diamond drilling scheduled for the fourth quarter of

18 Near Term Priorities Bagassi South Expansion Adding ounces to production profile Increases production by ~40% to approximately 160,000 ounces in 2019 from both mines combined Construction and process plant expansion currently underway. On track to deliver first ore in Q Zone and Bagassi South Pursuing resource growth The 55 Zone shoot is open at depth. Resource conversion surface drilling program commenced Q2 2018, with aim to convert inferred resources to indicated Bagassi South 2018 drill program underway to extend western shoot down plunge, and near surface infill around the eastern shoot Regional Exploration Maximizing the potential of Yaramoko Compelling targets in Kaho area with drilling expected in Q External Growth - Evaluating opportunities Continuing to evaluate external growth opportunities with a disciplined approach: Build on developing or advancing existing projects Low cost; high return on invested capital Capacity for growth 18

19 In Summary - Compelling Investment in the Gold Sector Generating strong cash flow through high-grade, low cost asset Delivering industry-leading Return on Equity to shareholders Increasing production through Bagassi South expansion at an estimated average gold production of 40,000 oz per year Self-funding accretive growth while paying down debt and building net cash Implemented share repurchase plan Actively pursuing growth opportunities through exploration program Led by proven management team and board demonstrated by excellent operational performance and safety record 19

20 Mining High Grade Gold in Burkina Faso Q&A Denver Gold Forum September

21 Appendix 21

22 5,300RL 5,200RL 5,100RL Bagassi South QV1 Resource Estimate 2017 West YRM-18-DD-BGS g/t over 13.4 m East Indicated 0m QV1 Structure Resource* Indicated Inferred *As of July 19th, 2017 Size 188k ounces 33k ounces Grade 16.6 g/t 13.0 g/t 5,000RL 4,900RL YRM-18-DD-BGS-370A 2.0 g/t over 5.5 m Exploration Potential YRM-17-DD-BGS g/t over 2.3 m Mafic Dyke Inferred 250m 400m A total of 23,535m drilled along the QV1 structure in 2017 targeting resource conversion and growth at depth Resource delivered in July 2017 and included all drilling to date Feasibility delivered in November Block Model (Au Grade) <1.0 g/t Au 1.0 g/t 3.0 g/t Au 3.0 g/t 5.0 g/t Au 5.0 g/t 10.0 g/t Au >10.0 g/t Au Drill Holes Open 2018 drill program underway to extend western shoot down plunge, and near surface infill around the eastern shoot See press release dated July 19, 2017 for more information which is available on the Company s corporate website ( and on SEDAR at and contains details regarding data verification undertaken, the results and interpretation of the exploration, details regarding location, types, depths and other details of the drill holes and QA/QC information. 22

23 Bagassi South QV Resource Estimate 2017 QV Structure Resource* West 5,200RL YRM-17-DD-BGS g/t over 0.8 m East 0m Inferred *As of July 18th, 2017 Size 36k ounces Grade 22.0 g/t 5,100RL YRM-17-DD-BGS g/t over 0.7 m 5,000RL YRM-17-DD-BGS g/t over 1.3 m Area of planned drilling Inferred A total of 20,585m drilled along the QV structure in 2017 targeting resource conversion and growth at depth Resource delivered in July 2017, an additional 15,550m of drilling conducted along the QV structure since July 4,900RL Mafic Dyke Exploration Potential Block Model (Au Grade) Open 350m QV mineralized shoot located along the same K-rich granite lithological contact as QV1 The shoot is open to the East of the Mafic Dyke and will be drill tested in 2018 < 1.0 g/t 1.0 to 3.0 g/t 3.0 to 5.0 g/t 5.0 to 10.0 g/t > 10.0 g/t See press release dated July 19, 2017 for more information which is available on the Company s corporate website ( and on SEDAR at and contains details regarding data verification undertaken, the results and interpretation of the exploration, details regarding location, types, depths and other details of the drill holes and QA/QC information. 23

24 Yaramoko Lithogeochemistry Compilation & Auger Program Haho 55 Zone Bagassi South Kaho Lithogeochemistry map shows good spatial correlation between High Zr/High Rb and major structures such as the Boni Shear zone and the Yaramoko Shear Zone Major deposits such as 55 Zone and Bagassi South are located in anomalous High Zr/High Rb areas Haho, Kaho and the Boni Shear zone are characterized by High Zr/High Rb Auger programs completed over Boni Shear and Haho areas Kaho granite grid underway Legend High Titanium Basalt flow High Zirconium granite Altered granite High Zr & High Rb 24

25 Yaramoko Regional Drilling Boni Grid 2017 Houko Grid Legend Basaltic Flows Tonalite Granite 2014 Bagassi Grid 55 Extension Granodiorite Tarkwaian Basin Volcaniclastic Boni Shear Drilling Haho Drilling 55 Zone Mine Bagassi South Mine Kaho Anomaly Ground Geophysical IP Compilation: Exploring for late Eburnean dextral reactivation within the Yaramoko granite and along the Boni Shear Zone Several areas of regional disruption of structural fabric within the Yaramoko granite Q drilling focused on Northern portion of the concession along the Boni Shear and Haho anomalies Q drilling focused on southern portion of the Yaramoko Shear corridor, around the Bagassi South deposit and the Kaho intrusive 25

26 Yaramoko Boni Shear Drilling Program Phase 1 Niankongo 2017 Boni Grid Boni Shear Central Larger tonnage shear hosted targets, a more traditional deposit target in West African Shield The Boni Shear survey redefined the Boni Shear Central, Contact and Niankongo anomalies 2017 Houko Grid Boni Shear Contact Addition of new Tarkwaian Inlier anomaly Phase 1 drilling program of 10,000m on the Boni Shear IP grid complete, at a 200m drill spacing Legend Basaltic Flows Granodiorite Tarkwa Inlier Several Low grade structural targets identified for follow up Tonalite Tarkwaian Basin Granite Volcaniclastic 26

27 Yaramoko Haho Drilling Program Phase Boni Grid 2017 Houko Grid Drilling Untested Anomalies Phase 1 drilling targeting untested concordant auger and IP anomalies Previous drilling programs focused on artisanal area Best result of 12.8 g/t Au over 1.5m, in weakly altered basalts, with narrow carbonate veining. Follow up drilling on this target to be undertaken in Q4 Legend Basaltic Flows Tonalite Granite Granodiorite Tarkwaian Basin Volcaniclastic 27

28 2018 Second Quarter Operational Results 76,280 ounces of gold produced in H putting Roxgold in a strong position to achieve the upper end of its increased guidance range of 120, ,000 ounces for the full 2018 year ROM Stocks of 45,877 tonnes at 12.1 g/t Au at the end of the quarter representing ~2 months of plant feed Q2 18 Q2 17 YOY Change Gold Produced (ounces) 35,828 27,970 28% Ore Mined (tonnes) 86,831 66,044 31% Ore Development (m) 1,200 1, /Q3 17/Q4 18/Q1 18/Q2 Ore Mined (tonnes) Gold Produced (ounces) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, /Q3 17/Q4 18/Q1 18/Q2 Ore Processed (tonnes) Ore Processed (tonnes) 75,417 65,159 16% Head Grade (g/t Au) % Gold Recovery (%) NM Mill Operating Time (%) (1.5%) 120, ,000 80,000 60,000 40,000 20, /Q3 17/Q4 18/Q1 18/Q2 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, /Q3 17/Q4 18/Q1 18/Q2 28

29 2018 Second Quarter Financial Highlights All amounts in U.S. dollars unless otherwise indicated Q Q YOY Change Gold produced (ounces) 35,828 27,970 28% Gold sold (ounces) 35,320 28,788 23% Revenue $46M $36M 27% Average realized gold price $1,296/oz $1,254/oz 3% Cash operating cost 1 $424/oz $498/oz (15%) Total cash cost 1 (per ounce sold) $483/oz $549/oz (12%) Sustaining capital cost 1 (per ounce sold) $190/oz $280/oz (32%) Site all-in sustaining cost 1,2 (per ounce sold) $672/oz $829/oz (19%) Corporate, sustaining and in-country costs 1 $46/oz $44/oz 5% All-in sustaining cost 1 (per ounce sold) $718/oz $873/oz (18%) Cash flow from mining operations 1 $25.7M $18.6M 38% Cash flow from mining operations per share 1 $0.07/C$0.09 $0.05/C$ % Adjusted earnings per share 1 $0.02/C$0.03 $0.01/C$ % 1. 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 Q MD&A available on or 2. Site All-in sustaining costs excludes corporate G&A and in-country corporate costs. Cash Operating Cost 1 $424/oz produced All-In Sustaining Cost 1 $718/oz sold EBITDA Margin 1 51% Return on Equity (Last twelve Months) 26% Cash Flow From Mining Operations 1 $25.7M or $0.07/C$0.09 per share 29

30 Mineral Reserve and Mineral Resource Statement 55 Zone* As of December 31, 2016 Reserve grade largely maintained compared to BFS grade despite mined grade over the course of 2016 of 15.5 g/t. Tonnes Proven Mineral Reserves Grade g/t Au Ounces Tonnes Probable Mineral Reserves Grade g/t Au Ounces Tonnes Proven and Probable Mineral Reserves Grade g/t Au Ounces 55 Zone , , Stockpiles Total , , Tonnes Measured Mineral Resources Grade g/t Au Ounces Tonnes Indicated Mineral Resources Grade g/t Au Ounces Measured and Indicated Mineral Resources Tonnes Grade g/t Au Ounces Tonnes Inferred Mineral Resources Grade g/t Au Ounces 55 Zone , , Total , , * See appendix for 55 Zone Mineral Resource and Mineral Reserve Notes 30

31 Mineral Resource Statement - Bagassi South* As of July 19, 2017 QV1 Structure QV Structure Bagassi Total Tonnes Measured Mineral Resources Grade g/t Au Ounces Tonnes Indicated Mineral Resources Grade g/t Au Ounces Measured and Indicated Mineral Resources Tonnes Grade g/t Au Ounces Tonnes Inferred Mineral Resources Grade g/t Au Ounces Mineral Reserve Statement - Bagassi South* As of November 6, 2017 Tonnes Probable Mineral Reserves Grade g/t Au Ounces QV1 Structure 458, ,060 Total 458, ,060 * See appendix for Bagassi South Mineral Resource and Mineral Reserve Notes 31

32 55 Zone Mineral Resource Notes Notes: 1. Mineral Resources are reported compliance with National Instrument ( NI ) with an effective date of December 31st, Underground Mineral Resources are reported at gold grade cut-off of 5.0 g/t Au, based on a gold price of US$1,250/ounce. 3. The identified Mineral Resources in the block model are classified according to the CIM definitions for the Measured, Indicated, and Inferred categories. The Mineral Resources are reported in situ without modifying factors applied. 4. The Mineral Resource estimate was prepared under the supervision of Sébastien Bernier, Principal Resource Geologist at SRK Consulting (Canada). Mr. Bernier is a Qualified Person as defined in NI All figures have been rounded to reflect the relative accuracy of the estimates. 6. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Reserves are reported in accordance with NI with an effective date of December 31st, 2016 and are included in Mineral Resources. For further information, please refer to the technical report dated December 20, 2017 and entitled Technical Report for the Yaramoko Gold Mine, Burkina Faso (the Technical Report ), available the Company s website and on SEDAR at 7. See also 55 Zone Mineral Reserve Notes below. 55 Zone Mineral Reserve Notes Notes: 1. Mineral Reserves are reported in accordance with NI with an effective date of December 31st, 2016 and are included in Mineral Resources. For further information, please refer to the technical report dated December 20, 2017 and entitled Technical Report for the Yaramoko Gold Mine, Burkina Faso (the Technical Report ), available the Company s website and on SEDAR at Mineral Reserve estimates reflect the Company s reasonable expectation that all necessary permits and approvals will be obtained and maintained. Mining dilution and mining recovery vary by deposit and have been applied in estimating the Mineral Reserves. 2. Mineral Reserves are the economic portion of the Measured and Indicated Mineral Resources. Mineral Reserve estimates include mining dilution at grades assumed to be 1.3 g/t. Mining dilution and recovery factors vary with specific reserve sources and are influenced by several factors including deposit type, deposit shape and mining methods. 3. The Mineral Reserves were prepared under the supervision of Benny Zhang, Principal Mining Engineer at SRK, PEng (PEO # ). Mr. Benny Zhang is a Qualified Person as defined by NI The Mineral Reserve estimate at December 31, 2016 is reported at a cut-off grade of 4.5g/t gold assuming: metal price of US$1,250 per ounce of gold, mining cost of US$ per tonne, G&A cost of US$28.30 per tonne, processing cost of US$38.90 per tonne, and process recovery of 98.5%. Reserve estimates include mining dilution and mining recovery. 5. All figures have been rounded to reflect the relative accuracy of the estimates. 32

33 Bagassi South Mineral Resource Notes: Notes: 1. Bagassi South Mineral Resources are reported in compliance with NI with an effective date of July 19th, Underground Mineral Resources are reported at gold grade cut-off of 5.0 g/t Au, based on a gold price of US$1,250/ounce of gold using mining cost of US$ per tonne, G&A cost of US$28.30 per tonne, processing cost of US$38.90 per tonne and process recovery of 98.5%. 3. The identified Mineral Resources in the block model are classified according to the CIM definitions for the Measured, Indicated, and Inferred categories. The Mineral Resources are reported in situ without modifying factors applied. 4. The Mineral Resource estimate was prepared under the supervision of Yan Bourassa, P.Geo (APGO #1336), VP Geology for Roxgold Inc., a Qualified Person within the meaning of NI All figures have been rounded to reflect the relative accuracy of the estimates. Mineral Reserves are reported in accordance with NI with an effective date of December 31st, 2016 and are included in Mineral Resources. For further information, please refer to the technical report dated December 20, 2017 and entitled Technical Report for the Yaramoko Gold Mine, Burkina Faso (the Technical Report ), available the Company s website and on SEDAR at 6. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 7. See also Bagassi South Mineral Reserve Notes below. Bagassi South Mineral Reserve Notes: Notes: 1. The Mineral Reserve estimation used in the Technical Report only considered the indicated portion of the Mineral Resources. The Mineral Reserve estimation assumed a minimum mining width of 1.2 metres, included 26.8% stope dilution at a grade of 1.22 g/t and was base gold price of $1,250 per ounce. The effective date of the Mineral Reserve estimate is November 6, Mineral Reserves are included in Mineral Resources and are reported at a cut-off grade of 4.8 gpt gold assuming: metal price of US$1,250 per ounce of gold, mining cost of US$73 per tonne, G&A cost of US$36 per tonne, processing cost of US$36 tonne and process recovery of 98.5%. 3. For further information, please refer to the press release dated November 6, 2017, entitled Roxgold Announces Positive Feasibility Study for its Bagassi South Project available on the Company s website and on SEDAR at 4. The Mineral Resource estimate was prepared under the supervision of Yan Bourassa, P.Geo (APGO #1336), VP Geology for Roxgold Inc., a Qualified Person within the meaning of NI For further information, please refer to the technical report dated December 20, 2017 and entitled Technical Report for the Yaramoko Gold Mine, Burkina Faso (the Technical Report ), available the Company s website and on SEDAR at 33

34 People at Yaramoko Localization and diversity have proven to be effective 87% Burkinabe employment 51% of employees from the immediate area 72% of skilled employees from Burkina Head Grade Local area Roxgold employees working at the metallurgical lab Case Study: Training local people With its commitment to local development, Roxgold has been recognized as a responsible mine receiving a CSR Award from the Accountability Group in % of process plant department is from the immediate area with no prior mining skills Provided 6 12 months of intensive training prior to start up Part of the team that ramped up Yaramoko The plant delivers 99% recovery rates with 96% operating time 34

35 2018 Community Social Programs Community investment Projects submitted and selected by the community representatives in collaboration with Roxgold 91 projects have been selected since 2014 including projects for women and youth such as occupational training center, potable water system, solar electrification of schools and medical centers and construction of medical infrastructures Local procurement 93% of expenditures from suppliers registered in Burkina Faso Capacity building training for 25 local suppliers near the mine resulting in U.S.$1 million of spending per year for transportation, construction, food supply and preparation Community health & safety Malaria control in three villages around the mine site Road safety, HIV and STIs education Local employment Improving employment opportunities for local youth and community integration by providing training Cultural heritage Supporting the traditional rituals and the preservation of the Bwa ethnic group cultural festival Community road infrastructures Progressive rehabilitation of the main road between the national road and the mine site Biodiversity Reforestation campaign planting over 20,000 trees per year for a total of ~100,000 trees planted since 2014 Protection and enhancement of a forest located on the mine site Community investment Local procurement Health and safety Biodiversity Local employment Cultural heritage Road 35

36 Community Engagement Building trust by proactive outreach and open-door approach Our extensive community engagement program is the foundation of Roxgold s Corporate Social Responsibility success Monthly meetings in 19 different villages with the community representatives Organization of quarterly mine provincial monitoring committee Participation in the municipal, departmental, provincial and regional committees Weekly meetings with the local public administration (Prefect, Mayor) Mine site visits Roxgold community relations office Billboards, phone, mail and s Press articles, radio and television Committee meetings 12 Village meetings 135 Mine site visits 9 Local authorities meetings 74 Governor s mine site visit in June 2018 Performance to date: Strong support from the community No issues affecting performance of the operation Positive Governmental appreciation NGO s CSR Award Positive reputation at international, national and local levels 36

37 Management Team John Dorward, President & CEO 20 years development & operating mines experience Former Roles: VP Business Dev. of Fronteer Gold Mineral Deposits Ltd Leviathan Resources Iain Cox, Interim COO 25+ years development & operational mining Former Roles: Newmont Corp AMR Centamin Vince Sapuppo, CFO 10+ years senior finance, commercial and mergers & acquisitions experience in mining and energy sectors Former Roles: GM Finance - Beach Energy Limited Newcrest Mining BHP Craig Richards, Principal Mining Engineer 30+ years development & operational experience Former Roles: Newmont Ghana Barrick Gold Ashanti Goldfields Eric Pick, VP Corporate Development 10+ years corporate finance and mergers & acquisitions in mining sector Former Roles: Cormark Securities Inc. 37

38 Finance Summary Insiders & Mgmt Yaramoko Debt Facility 6.2% 3.5% 12.9% Retail Face value of long-term debt of ~US$43 million as of June 30, % Interest rate of LIBOR plus 3.75% 7.9% Hedging component remaining of 42,068 ounces of gold at US$1,052/oz over the life of loan which matures in June % Project remains unencumbered by third party streams or royalties 41% N. America Institutional 13.2% Institutional Holdings by Country 23% 8% 34% 2% Source: Nasdaq IR Insight at July 31, % Other 4% 38

39 Corporate Information Covering Sell-Side Firm Analyst Capital Structure (as at August 14, 2018) BMO Canaccord Andrew Breichmanas Rahul Paul Listings OTC: ROGFF Cormark Echelon Wealth Partners Eight Capital GMP Haywood Global Mining Research Macquarie Raymond James RBC Tyron Breytenbach Ryan Walker Craig Stanley Ingrid Rico Geordie Mark David Radclyffe Michael Gray Tara Hassan Dan Rollins Cash ~US$66 million 1 Common Shares Outstanding 374.2M Options (total vested and unvested) 8.1M Market Capitalization ~C$337M 1. As of June 30,

40 Kelley Stamm Manager, Investor Relations & Communications 360 Bay Street, Suite 500 Toronto, ON M5H 2V