FOCUSED ON DISCOVERY, RESOURCE AND RESERVE GROWTH. Wa Gold Project, NW Ghana ASX : AZM TSX : AZR

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1 FOCUSED ON DISCOVERY, RESOURCE AND RESERVE GROWTH Wa Gold Project, NW Ghana Stephen Stone AGM 19 th November 2012 ASX : AZM TSX : AZR

2 Competent Person s Statement The scientific and technical information in this report that relates to Exploration Results is based on information compiled by Mr Nick Franey, who a full-time employee (General Manager Geology) of Azumah Resources Ltd. Mr Franey is a Member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and to qualify as a Qualified Person as defined in National Instrument Standards of Disclosure for Mineral Projects ( NI ) of the Canadian Securities Administrators. Mr Franey is the Qualified Person overseeing Azumah s exploration projects and has reviewed and approved the disclosure of all scientific or technical information contained in this announcement. For further information on the Wa Gold Project, including a description of Azumah s standard data verification processes, quality assurance and quality control measures, and details of the key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves set out in this report and the extent to which the estimate of previously declared Mineral Resources and Mineral Reserves set out herein may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or relevant issues, readers are directed to the technical report titled Wa Gold Project, Ghana Technical Report, effective as of 27 August, 2012, available on The reported Mineral Reserves have been compiled by Mr Harry Warries. Mr Warries is a Fellow of the Australasian Institute of Mining and Metallurgy and an employee of Coffey Mining Pty Ltd. He has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Qualified Person as defined in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards of November 2010, as well as a Competent Person as defined in the Australasian Code for Reporting of Mineral Resources and Ore Reserves of December 2004 ( JORC Code ) as prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of Australia. Mr Warries gives Azumah Resources Limited consent to use this reserve estimate in reports. Forward-Looking Statement This report contains forward-looking information. Such forward-looking information is often, but not always, identified by the use of words such as seek, anticipate, believe, plan, estimate, expect and intend, and statements that an event or result may, will, should, could, or might occur or be achieved, and other similar expressions. In providing the forward-looking information in this news release, the Company has made numerous assumptions regarding: (i) the accuracy of exploration results received to date; (ii) anticipated costs and expenses; (iii) that the results of the feasibility study continue to be positive; and (iv) that future exploration results are as anticipated. Management believes that these assumptions are reasonable. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking information. Some of these risks, uncertainties and other factors are described under the heading Risks Factors in the Company s annual information form available on Forward-looking information is based on estimates and opinions of management at the date the statements are made. Except as required by law, Azumah does not undertake any obligation to update forward-looking information even if circumstances or management s estimates or opinions should change. Readers should not place reliance on forward-looking information and readers are advised to consider such forward-looking statements in light of the risks set forth in the Company s continuous disclosure filings as found at the (Canadian) SEDAR website. 2

3 Azumah s 3,100km 2 licences. 150km strike of Birimian greenstone terrain Resource: 1.0Moz Au M&I, 0.7Moz Au Inf Reserve: 430,000oz at 2.0g/t Au Ampella s 1,900km 2 Batie West licences Same Birimian greenstone belt Resource: 1.5Moz Ind & 1.6Moz Inf 17% interest in Castle Minerals 10,000km 2 early stage exploration Resource: Julie West: 56,000oz Inf Kandia: 107,500oz Inf 3

4 Discovery Resource Growth Reserve Growth Production Corporate Large fertile Birimian landholding 3,100km 2 Less than 10% explored Track-record and experienced team Existing base - 1.7Moz global Mineral Resource (1.0Moz M+Ind and 0.7Moz Inf Mineral Resource) Update pending Stage 1 2g/t Update pending end-q Feasibility completed - $40M /yr av free-cash flow No impediments to development Permitting commenced Low sovereign risk Well funded $16M cash and listed investments 17% neighbour, Castle Minerals - 10,000km 2 4

5 Issued shares 333.7M Options (unlisted) 9.5M Performance Rights 3.5M Market Capitalisation A$33M Cash & Listed Investments A$16M Castle (CDT) 19,315,812 shares - $2.6M Endeavour (EVR/EDV) 2,547,615 shares - $6.1M Enterprise Value $17M EV / Resource Oz $10 EV / Reserve Oz $40 Retail ~ 4000 shareholders 50% Australasian Institutions 17% Canadian Sub Register - Other 6.1% Large Private Investors 9.0% Management 2.5% European Institutions 9% North American Institutions 6% 5

6 Michael Atkins - Non-Executive Chairman Corporate finance African company development Stephen Stone - Managing Director Exploration and mining geology. Corporate and management. Lived and worked in Africa Geoff M Jones - Non-Executive Director Project engineer. Developed mines in Africa/Ghana incl. Obotan. COO GR Engineering Bill LeClair - Non-Executive Director Canada based - Finance and management Former CEO Africa producer, Crew Gold Nick Franey GM Geology Tim Lagdon GM Corporate Marc Barnaby GM Community Paul Amoako-Atta Ghana Director & Licencing Hector Nyinaku Ghana Admin & Logistics Ghana site - 12 geologists plus technicians and support staff 6

7 Project Increased global Mineral Resource by 44% Delivered maiden Mineral Reserve Completed Feasibility Study Confirmed depth extensions to Kunche, Bepkong and Julie Stepped-out exploration from flagship deposits Advanced target pipeline Commenced permitting process Appointed detailed engineering and design contractor Commissioned 50 man fully-integrated Kalsegra exploration base Commissioned Wa East camp Established sample prep lab / reduced sample assay time Expanded and upskilled geological team Grew Community Relations team and advanced local engagement Employed and trained over 300 locals as technicians and assistants Expanded Accra admin and logistics team Corporate Listed on TSX main board Raised $18M Increased Castle interest to 17% Expanded Board and management team Established new West Perth HQ 7

8 Metres Drilled 1.7Moz global Mineral Resource: 1016,000oz Measured and Indicated 659,000oz Inferred 430,000oz Mineral Reserve 2.0g/t Au Proved and Probable) Cumulative Metres Drilled 450, , ,000 Measured & Indicated 300, ,000 Inferred 200, , ,000 50,

9 Gold-in-soil anomalism throughout 3,100km 2 tenure Less than 10% of 150km prospective Birimian strike effectively explored Pipeline of targets 9

10 Deposits Advanced Targets Prospects Areas of Interest Kunche Bepkong Julie Kunche South, Aduane Yagha North, Kjersti, Collette, Josephine North & South, Belandari, Yiziri, Duri South1-4, Kunche As, Eggu, Sabala,Gonggo, Danyawu, Kjersti West, Butele, Josephine Far South, Collette West, Julie Far West, Julie East, Manwe, Dorimon,Vapor South Duri North, Basabli North-West, Eremon, Samoa, Kjersti East, Julie-Collette Boundary Collette South-East, Kunche South East, 10

11 Bepkong a blind discovery Bepkong Aduane Kunche Based on gradient array IP & magnetics 11

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15 430,000oz 2g/t Au Stage 1 Mineral Reserve $144M establishment capital cost 1Mtpa nominal capacity gravity and CIL plant can process 1.4Mtpa of softer oxide material 6 year initial mine life Shallow pits: Strip Ratio 4.9 $802/oz LOM operating cost $624/oz year 1. $782/oz years % av recovery Non-refractory. 75μ grind size 2.0g/t feed grade LOM 2.5g/t year 1 92,000oz Year 1 74,000oz av years 1 4 Excellent logistics and infrastructure No communities to relocate Julie Mineral Reserve (Optimisation at US$1300/oz) Contained Ore Mined Grade Strip Ratio Gold Mt (g/t Au) (oz) Kunche ,000 Bepkong ,000 Julie ,000 Total ,000 Establishment Capital $US (millions) Plant 59 Infrastructure 26 EPCM, Owners Costs & Contingencies 37 Pre-Production Costs 22 Total 144 Operating Cost $US/t $US/oz Mining (ore and waste) Processing (inc power $0.15/kWh) G&A (per tonne processed) *after tax and royalties Total Site Direct (C1) Cash Cost (624/oz Yr 1, $782/oz avg Yr 1-4)

16 Stage One Mineral Reserve based on drilling to Nov ,000m infill and extensional drilling to be included in Q Mineral Resource update 38,000oz of in-pit Inferred gold to be reclassified as Reserve Reviewing capital and operating costs, throughput options, other initiatives All exploration now focused on early reserve increases Stage One Net Cash Flow $412M Pre-Tax $293M Pre-Tax..each 100,000oz Reserve increase could add $50M post-tax net cash flow* $225M Post Tax $278M Post Tax * Prior to recoupment of Capital Expenditure of $144M 16

17 Expected to be completed within 12 months, the project, among others, involves the extension of 90km of the 161 KV transmission line between Wa and Han through the site for the proposed Azumah Mines President Mahama performing the sod cutting for the commencement of work on the 161KM Wa-Han-Tamu transmission line project. 17

18 No communities to relocate Few artisanal or illegal miners - Galamsey Well maintained local roads Sealed airstrip Good telecommunications Grid power - 2km from mine gate Water: Black Volta river & groundwater On-site sample prep facility Azumah Kalsegra HQ Savannah landscape Black Volta River Azumah s Western Boundary 2km sealed airstrip 18

19 The premier West African destination Multiple +10Moz discoveries No. 2 African gold producer ~3.0Moz/yr Active tier-one majors AngloGold-Ashanti, Newmont, Gold Fields, Kinross Increasing mid-tiers + juniors Golden Star, Endeavour, Perseus, Keegan, PMI, Signature, Noble, Castle One of World s top 10 fastest growing economies English language and legal system Low sovereign risk Strong mining support industry 10% free carried interest. 35% corporation tax and 5% gross royalty 19

20 Beds and essential hospital equipment 20

21 Brownfields & Greenfields Exploration Results Resource Update Reserve Update & Feasibility Study Refresh Q Q Q Mining Lease Application Mining Lease Approval (EPA Licence Application) Finance Proposals Development Decision 21

22 $ Million $60 $50 Cash & Liquid Assets EnterpriseValue $40 $30 1.7Moz Mineral Resource 430,000oz Mineral Reserve at 2.0g/t Au Feasibility Study Completed $20 $10 $0 22

23 $ Million EV/Resource Oz $600 $200 Cash & Liquid Assets $180 $500 EnterpriseValue $160 $400 EV/Resource Oz (RH Axis) FS Feasibility Study Complete DEV Developing FS $140 $120 $300 $100 FS $80 $200 $100 FS PEA DEV FS FS $60 $40 $20 $0 $0 23

24 Dominant Regional Position 3,100km 2 of licences - Birimian greenstone terrain 17% of neighbour - Castle Minerals 10,000km 2 Extensive exploration infrastructure in place (incl sample prep lab) Defined Platform For Development and Upscaling 1.7Moz Mineral Resource - Update Q ,000oz Stage One Mineral Reserve - Update Q Feasibility Study completed - No impediments to development Robust operating margins and ~$40M annual free cash flow Excellent infrastructure, operating environment and security of tenure Several options for increasing life, margins and returns Undemanding Valuation ~$33M market cap ~$16M cash and listed investments ~$17M enterprise value ~US$10 EV/resource oz & US$40 EV/reserve oz 24

25 ASX: AZM TSX: AZR Contact: Stephen Stone Managing Director Mob: +61 (0) Off: +61 (0)

26 JORC & NI Compliant Mineral Resources (0.5g/t Au Cut - Off) Tonnes (Mt) Measured Grade (g/t) Gold (oz) Tonnes (Mt) Indicated Grade (g/t) Gold (oz) Tonnes (Mt) Measured and Indicated Grade (g/t) Gold (oz) Tonnes (Mt) Inferred Grade (g/t) Gold (oz) Kunche , , , ,000 Bepkong , , , ,000 Julie , , ,000 Collette ,000 Total , , ,016, ,000 26