Mining High Grade Gold in Burkina Faso

Transcription

1 Mining High Grade Gold in Burkina Faso Investor Presentation November

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, and the anticipated success and timing thereof; (iii) production and cost guidance, (iv) permitting; and (v) statements that are not of historical fact. For further details regarding the Yaramoko project, please refer to 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 releases of Roxgold Inc. (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 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 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 third quarter Management s Discussion and Analysis filed on SEDAR at on November 14, 2017 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: Jean François Couture, PGeo (SRK Consulting Canada Inc.), Benny Zhang, P. Eng (SRK Consulting Canada Inc.), Sebastien Bernier (SRK Consulting Canada Inc.), Paul Criddle, Chief Operating Officer (Roxgold), and Yan Bourassa (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 Senegal Gambia Guinea Sierra Leoné AFRICA Mauritania FLAGSHIP ASSET: Yaramoko Project in mining-friendly jurisdiction Liberia Côte d Ivoire Atlantic Ocean Mali Burkina Faso Togo Ghana Benin Niger Nigeria 1. Measured & Indicated Resources at 738,000 oz at 17.1 grams per tonne ( g/t ) Au at 5.0 g/t cut-off as of December 31, See appendix for Mineral Resource Statement 55 Zone. 2. As of September 30, 2017 High-Grade, Low-Cost Underground Gold Producer with Near-Term Expansion Potential High-grade at 17.1 grams per tonne 1 compared to average grade of gold mines in Burkina Faso at 1.5 g/t Au Strong cash flow generation from 55 Zone Bagassi South expansion increases production by ~40% to over 150,000 ounces in the near term Regional targets on large land package with focus on Haho and along the Boni Shear zone Proven Management Team and Board Discovery to production in 5 years; completed early and under-budget Only operating underground gold mine in Burkina Faso Company has healthy balance sheet with: ~$56M cash balance 2 ~$50M long-term debt 2 3

4 Roxgold Why Invest? Operations Expansion Team Growth Commercial production declared in Oct 2016 Produced ~169,000 oz since first gold pour in May 2016 to Sept 2017 Feasibility Study assumptions exceeded 99% recovery rates Estimated average gold production of 40,000 oz per year at Bagassi South Proven and Probable mineral reserves of ~170,000 oz at g/t Au First ore expected Q Operational Proficiency Over 3,400,000 hours Lost Time Injury Free Discovery to production in 5 years Project completed early and under-budget Additional new targets identified in 2017 Two drill rigs currently at Bagassi South and one drill rig on the regional targets of 55 Zone footwall, Haho and Boni Shear 4

5 Operations 5

6 55 Zone Currently in Production Measured & Indicated Resources 1 at 738,000 oz at 17.1 grams per tonne ( g/t ) Au at 5.0 g/t cut-off 115, ,000 ounces production guidance in 2017 Well on track with ~92,000 oz produced as of Q AISC 2 guidance of $740 - $790 per ounce for 2017 Development well ahead of budget to underpin balance of 2017 and third quarter production highlights include: 28,410 oz produced during the quarter (27,970 in Q2 2017) 13.6 g/t Au average head grade (12.8 g/t Au in Q2 2017) 98.6% recovery rate (99.0% in Q2 2017) 1. As of December 31, See appendix for Mineral Resource Statement 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 6

7 Tracking to Increased 2017 Production Guidance; Cost Estimates Unchanged (oz Au) Guidance maintained for full year for Cash Operating Cost 1 and AISC 1 115, , , ,000 Significant investment in underground development Cash Operating Cost Guidance Range All-in Sustaining Cost Guidance Range 91, , ,564 63,564 As of Q As of Q $445 $490 $740 $790 FY 2017 Guidance Revised FY 2017 Guidance $445 actual at Q3 2 $794 actual at 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 2017 MD&A available on 2. As of the nine-month period ended September 30,

8 Key Financial & Operational Highlights Nine months ended September 30, 2017 Financial Highlights Sept 30, 2017 Operational Highlights Sept Cash flow from operations Cash on hand Reduction in LT debt ~62M or $0.17/share ~56M ~33% 98.9% 91,970 recovery rate oz produced 14.5 g/t >3M hrs head grade Lost Time Injury free 8

9 55 Zone Developed Reserves 1 $44 $740 $790 $445 $490 $740 $790 Block Remain % Devt Developed 2017 Nov-Dec Total 1 35, % 35,400 7,900 24,200 3,300 35, , % 55,300 8,600 40,400 6,300 55, , % 103,100 24,800 40,900 37, , ,000 52% 34,200 4,900 14,800 14,600 34, , ,000 21, ,200 65,100 37, , See press release dated April 18, 2017 for more information which is available on the Company s corporate website ( 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. 9

10 Expansion 10

11 Bagassi South Positive Feasibility Study Base Case Highlights (100% basis, gold price of $1300/oz) Robust project economics $50M after-tax NPV 5 %, after-tax IRR 53.2% with a 1.8 year payback on initial capital Yaramoko Water Storage Dam ~40% increase in Yaramoko gold production Proven and Probable Mineral reserves of ~170,000 oz at g/t Au Plant Camp Tailing Storage Facility Estimated average gold production of 40,000 oz per year Plant expansion sees throughput increased from 750 tonnes per day ( tpd ) to 1,100 tpd First ore expected in late Q Funded by internal cash flow 55 Zone 1.8 Km from Plant to Bagassi South Utilizes synergies with the existing Yaramoko operation personnel and equipment Expansion capitalizes on existing infrastructure increasing revenue without commensurate increase in overheads Bagassi South 11

12 Bagassi South Timeline 2017 & 2018 Q Q Q Infill Drilling Program Complete Hydrology & Geotechnical Studies Commence Permitting in Burkina Faso Commence Camp Expansion Resource Update Mine Planning/Optimization Feasibility Study Approved ESIA received Development Decision Commence Plant Detailed Design Underground mining equipment mobilization Q Land compensation Mine development commences Q Commencement of Site Works Mine access works, plant expansion Construction First Ore Operating Cash Costs 1 LOM ($/oz) Cash Operating Cost $361 Total Cash Cost $426 All-in Sustaining Cost $630 Pre-production Capital Underground Mine $7.9M Plant Expansion $7.1M Infrastructure $6.0M Indirects $5.7M Contingency $2.8M Total $29.6M 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 MD&A available on

13 Contained Mined (Koz) Yaramoko Production Profile Reserves only Contained Mined 000s oz Au Bagassi South 55 Zone See Appendix for 55 Zone and Bagassi South Mineral Reserve Notes 13

14 Growth 14

15 Zone Deep Drilling Program 55 Zone Resource* Size Grade 5,200RL Measured & Indicated 738k ounces 17.1 g/t 5,000RL Inferred 347k ounces 16.1 g/t 4,800RL 4,600RL 4,400RL 4,200RL YRM-17-DD g/t over 5.1 m YRM-12-DD g/t over 4.1 m YRM-12-DD g/t over 4.4 m YRM-17-DD-443BW2 Results Pending YRM-16-DD g/t over 23.8 m YRM-17-DD-443BW g/t over 12.5 m and 12.9 g/t over 3.9 m Drill Hole 2017 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 *As of December 31st, Zone Deep Drilling program: Program completed in early Q4 Program targeted growth at depth following-up on 2016 drilling program High-grade shoot extended to 1.1 km below surface, down plunge from hole YRM-16-DD YE Resource Disclosure will include new drilling results 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 Bagassi South QV Potential Additional Upside Inferred Resource of 36,000 oz at 22.0 g/t Au West 5,200RL 5,100RL 5,000RL 4,900RL YRM-17-DD-BGS g/t over 0.7 m East Mafic Dyke YRM-17-DD-BGS g/t over 0.8 m YRM-17-DD-BGS g/t over 1.3 m Block Model (Au Grade) < 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 Drill Hole Planned Drill Hole Bagassi South drilling program: 10,000 meters along the QV structure Commenced in Q3 Continuing into Q4 Aims at converting inferred to indicated resources* QV mineralized shoot located along a K-rich Granite contact The shoot is open to the east of the Mafic Dyke along the lithological contact * 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. 16

17 Bagassi South QV Drilling Update YRM-17-BGS g/t over 1.6 m YRM-17-BGS g/t over 0.4 m YRM-17-BGS g/t over 0.4 m YRM-17-BGS g/t over 1.3 m YRM-17-BGS g/t over 1.0 m YRM-17-BGS g/t over 1.3 m YRM-17-BGS g/t over 0.6 m YRM-17-BGS g/t over 1.0 m Drill Hole (Au Grade x Thickness) <1 g/t x m 1-5 g/t x m 5-10 g/t x m g/t x m YRM-17-BGS g/t over 0.4 m YRM-17-BGS g/t over 0.5 m YRM-17-BGS-306A 12.0 g/t over 0.4 m YRM-17-BGS-290A 15.3 g/t over 0.5 m YRM-17-BGS-300A 13.2 g/t over 0.9 m YRM-17-BGS g/t over 1.2 m YRM-17-BGS g/t over 0.4 m YRM-17-BGS g/t over 0.4m YRM-17-BGS g/t over 0.4 m 5,200RL YRM-17-BGS g/t over 3.1 m 5,000RL 4,800RL Infill drilling program showing good continuity of the shoot along the lithological contact Results received for holes YRM-17-BGS-290 to 313 More drilling planned around dolerite dyke Approximately 2,600m of drilling remaining to complete the program Shoot open at depth East of Dolerite Dyke >25 g/t x m 17

18 Regional Geological Overview Siou 10 Km Yaramoko Niankongo Boni Shear North Boni Shear Central Yaro 300 Zone Haho 109 Zone 55 Zone Large regional land package of approximately 230 km2, located on the Hounde Belt Majority of known anomalies and deposits are located along the Boni Shear regional break and the second order Yaramoko Shear Legend Basaltic Flows Tonalite Granodiorite Tarkwaian Basin 55 Zone Bagassi South Kaho High grade deposits of 55 Zone and Bagassi South are located in the footwall of the Yaramoko Shear along East- West extensional zones Unique extensional style high grade deposits Granite Volcaniclastic Hounde Project 12 Km 18

19 Yaramoko Ground Geophysical Surveys 2017 The 2017 ground geophysical program included 4 individual grids: Boni Grid Haho Grid Two IP surveys: Boni Shear IP grid Houko IP grid Two Pole-Dipole surveys: Bagassi PD grid Haho PD grid Houko Grid Bagassi Corridor Grid Drilling program of 4,500m completed along Bagassi Corridor in the third quarter focusing on three IP targets The two Pole-Dipole surveys were conducted over a portion of the concession where the 2014 IP survey highlighted areas of disruption in the regional structural fabric Legend Basaltic Flows Granodiorite Tonalite Tarkwaian Basin Granite Volcaniclastic 19

20 Yaramoko Ground Geophysical IP Compilation Boni Houko Boni Shear Anomalies Haho Anomaly The ground IP Compilation includes the two 2017 IP grids of Boni Shear and Houko along with the 2014 IP survey Several areas of regional disruption of structural fabric Defined new targets in the footwall of 55 Zone Potential extension of 55 Zone along the Houko Grid Houko IP survey completed in Q3, soil geochemistry and auger program planned for Q4 55 Extension 55 Footwall Anomaly 55 Zone Bagassi South Kaho Anomaly 20

21 Yaramoko Boni Shear IP Surveys 2017 Niankongo Larger tonnage shear hosted targets Boni Boni Shear Central Niankongo East Boni Shear Contact More traditional deposit targets in West African greenstones The Boni Shear Survey redefined the Boni Shear Central, Contact and Niankongo anomalies Addition of new Tarkwaian Inlier anomaly Phase 1 drilling program of 10,000m on the Boni Shear IP grid scheduled for Q4 Tarkwa Inlier Phase 1 drilling program on 55 Zone Footwall, Bagassi South and Haho anomalies 2 km 21

22 Yaramoko Boni Shear Drill Targets Boni Phase 1 drilling of 10,000m to begin in Q4 Drilling pad preparation currently on going in the field Drilled fences planning completed for two southern anomalies Phase 1 drilling to be completed at 200m spacing Houko Boni Shear Contact Tarkwa Inlier 22

23 Upcoming Catalysts Q & 2018 Commencement of regional drilling programs along the Boni Shear zone, Haho and other regional targets Initial results of QV infill drilling program Commencement of Houko soil and auger program to followup on Q3 IP survey Commencement of early works infrastructure and procurement to facilitate the Bagassi South expansion Q Receipt of Bagassi South Mining Permit anticipated Commencement of Bagassi South mine development 23

24 Roxgold Compelling Investment in the Gold Sector Canadian Based Best in Class West African Gold Miner High-Grade, Low-Cost Underground Gold Producer with Near- Term Expansion Potential Strong cash flow generation from 55 Zone Expansion plan in place at Bagassi South Estimated average gold production of 40,000 oz per year Increases gold production by ~40% to over 150,000 oz in the near term Growth: Additional new targets identified in 2017 Regional targets on large land package with focus on Haho and along the Boni Shear zone Led by Proven Management Team and Board Operational Proficiency Company has a healthy balance sheet with: ~$56M cash balance ~$50M long-term debt 24

25 Appendix 25

26 Management Team John Dorward Paul Criddle Natacha Garoute President & CEO 20 years 18+ years 20 years development & operating operating & project mining finance mines experience development experience experience Former Roles: VP Business Dev. of Fronteer Gold Mineral Deposits Ltd Leviathan Resources COO Former Roles: COO Azimuth Resources Perseus Mineral Deposits Ltd. CFO Former Roles: Corporate Controller SEMAFO Inc. CN Railroad PWC Yan Bourassa VP, Geology 20+ years exploration & operations level geology experience Former Roles: Golden Star Resources SRK Consulting Craig Richards Principal Mining Engineer 30+ years development & operational experience Former Roles: Newmont Ghana Barrick Gold Ashanti Goldfields Iain Cox General Manager - Operations 25+ years development & operational mining Former Roles: Newmont Corp AMR Centamin 26

27 Finance Summary Insiders & Mgmt Yaramoko Debt Facility 6.2% 5.1% 18.1% Retail Debt Facility of $60 Million 6.5% Interest rate of LIBOR plus 3.75% 7.9% Hedging component of 65,000 ounces of gold over the 5 year life of the 1,052/oz Project remains unencumbered by third party streams or royalties 8.4% Institutional Holdings by Country N. America 34.6% 31% 8% 13.2% Institutional 34% 2% 23% Other 2% Source: Nasdaq IR Insight at July 24,

28 2017 Third Quarter Financial Highlights Average realized gold price Cash operating cost 2 Total cash cost 2 Sustaining capital cost 2 Site all-in sustaining cost 2 Q Corporate, sustaining and in-country costs 2 All-in sustaining cost 2 $1,286/oz $445/oz or $190/t $522/oz $258/oz $779/oz $52/oz $833/oz Revenue 3 $36M Cash flow from Mining Operations 2 $18M Cash flow from Mining Operations Per Share 2 Adjusted Earnings Per Share 2 $0.05 / C$0.06 $0.03 / C$0.03 Cash on Hand $56M 1. Represents the period of nine-months ended September 30, 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 3. Gold ounces sold and Gold Sales include revenues of $36,279,000 and Q3 deferred revenues of $1,091,000 related to 850 ounces sold, but not shipped, as of September 30, 2017, due to the timing of the shipment in Burkina Faso, offset by Q2 deferred revenues of $1,463, Year to Date 1 $1,400 $1,200 $1,000 $800 $600 $400 $200 $- Cash operating cost 1 $445/oz produced All-In Sustaining Cost 1 $794/oz sold Cash balance (unaudited) at September 30, 2017 ~US$56M 91,970 oz Cash Flow From of gold poured as of Mining Operations September 30, 2017 Per Share 1 $0.17/ C$0.22 Roxgold - Financial performance per ounce Q YTD 2017 Est Cash operating cost Total cash cost AISC AVG realized gold price 28

29 Financial Information Q YTD Month Financial Position Gold Poured (ounces) 28,410 91,970 Gold Sold (ounces) 1 27,912 91,679 Average realized gold price (per oz) $1,286 $1,255 LTD reduced by ~33% since Dec 31, 2016 Revenue 1 $36M $115M Adjusted earnings 2 $9M $23M Adjusted earnings per share 2 $0.03 C$0.03 $0.06 C$0.08 Cash flow from Mining Operations 2 $18M $62M Cash flow from Mining Operations $0.05 Per Share 2 C$0.06 $0.17 C$0.22 Cash on Hand $56M Long-Term Debt Face Value (LTD) 3 $50M 1. Gold ounces sold and Gold Sales include revenues of $36,279,000 and Q3 deferred revenues of $1,091,000 related to 850 ounces sold, but not shipped, as of September 30, 2017, due to the timing of the shipment in Burkina Faso, offset by Q2 deferred revenues of $1,463, 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 3. Long-term debt face value represents the remaining balance owing on the Amended Facility. $80 $70 $60 $50 $40 $30 $20 $10 $- $(10) Q Q Q Q Cash on hand NWC LTD Face value Cash and NWC 29

30 People at Yaramoko Training and localisation has proven to be effective at Yaramoko: 87% Burkinabe employment 49% of employees from the immediate area Tangible growth and benefit to the host community Head Grade Yaramoko Employee Origin Distribution 14% 49% 37% Local/Local Non Local Burkinabe Expats Case Study: Process Operators & Maintenance Teams 70% of Processing Department All (46) selected from the immediate area. No prior mining exposure Provided 6 12 months of intensive training prior to start up Part of the team that ramped up Yaramoko Now capably run and maintain the plant that delivers 99% Recovery and 94% Operating time 30

31 2017 Social Programs Community investment projects 30 projects submitted by groups from the community including seven projects for Women and eight projects for the benefit of Youth: creation of a community training center in Bagassi, improvement of the Bagassi potable water system, solar electrification of schools, and construction project adding three classrooms to a school Local procurement Increase and diversification of local suppliers incomes from Roxgold s purchases and capacity building of local small businesses Women and youth local entrepreneurship development Financial support for occupational trainings and starter equipment Community health & safety Malaria control in the villages around the mine site HIV and STIs sensitizations Community road infrastructures Rehabilitation of the main Bagassi road including road safety Environment biodiversity program Community reforestation campaign with 25,000 trees in 2017 and a total near 100,000 trees since the beginning of Roxgold in Burkina 31

32 Corporate Information Covering Sell-Side Firm BMO Canaccord Cormark Echelon Wealth Partners GMP Haywood Global Mining Research Macquarie Raymond James RBC Analyst Andrew Breichmanas Rahul Paul Tyron Breytenbach Ryan Walker Ingrid Rico Geordie Mark David Cotterell Michael Gray Chris Thompson Dan Rollins Listings Cash Capital Structure (as at September 30, 2017) OTC: ROGFF ~US$56 million Common Shares Outstanding 371.6M Options (total vested and unvested) 11.9M Market Capitalization ~C$435M (as at Nov 20, 2017) 32

33 2016 Financial Performance Pre-commercial production Four months ended September 30, Commercial production Three months ended December 31, 2016 TOTAL seven months ended December 31, 2016 Operating Data Ore mined (tonnes) 61,040 72, ,601 Ore processed (tonnes) 82,590 61, ,855 Head grade (g/t) Recovery (%) Gold ounces produced 2 45,390 29,688 75,078 Gold ounces sold 42,844 34,271 77,115 Financial Data (in thousands of dollars) Revenues Gold sales 3 56,625 41,385 98,080 Mining operating expenses 14,728 14,127 28,855 Government royalties 2,730 1,685 4,415 Depreciation and depletion - 4,081 4,081 Net loss attributable to equity shareholder N/A N/A (4,155) Basic and diluted earnings per share N/A N/A (0.01) Cash flow from mining operations 4 35,936 23,171 59,107 Per share Cash on hand end of period 60,552 68,902 68,902 Total assets 198, , ,208 Statistics (in dollars) Average realized selling price (per ounce) 1,322 1,208 1,271 Cash operating cost (per ounce produced) Cash operating cost (per tonne processed) Total cash cost (per ounce sold) Sustaining capital cost (per ounce sold) All-in sustaining cost (per ounce sold) The Company considers that pre-commercial production operations at the Yaramoko Gold Project commenced in June 2016 as the construction of the processing plant and associated was completed. 2. First gold pour was on May 16, 2016, during commission of the processing plant, which resulted in production of 2,079 ounces in May 2016, which are not presented in the table above. 3. During the four month pre-commercial production period, gold sales and mine operating profit (excluding depreciation) were recognized as a reduction of Property, Plant and Equipment as commercial production had not yet been declared. 4. Cash flow from mining operations and cash flow per share are non-ifrs financial performance measures with no standard definition under IFRS. See Note 19 the Non-IFRS financial performance measures of the Company s Management Discussion and Analysis ( MD&A ) dated April 18, 2017, available on SEDAR at 5. Cash operating cost is a non-ifrs measure with no standard definition under IFRS and is calculated using ounces produced and tonnes processed. See the Non-IFRS financial performance measures note of the Company s MD&A. 6. Total cash cost is a non-ifrs financial performance measure with no standard definition under IFRS and represents the mine operating expenses and the government royalties per ounce sold. 7. TSX: Sustaining ROXGcapital cost per ounce sold is a non-ifrs financial performance measure with no standard definition under IFRS and represents the investment in underground development per ounce sold. 8. All-in sustaining cost is a non-ifrs financial performance measure with no standard definition under IFRS. See the Non-IFRS financial performance measures note of the Company s MD&A. 33

34 55 Zone Life of Mine Design LOM Plan April 2017 DD Drives & Vent Intakes DD Drives & Vent Intakes 5066 DD Drive 5168 L Mined Out 2016 Resource model December 2016 Proven & Probable reserve updated to 4556L (760m) 4267L (1050m Depth). Single Decline, Exhaust Raise & Escape Ladderway Single Decline, Exhaust Raise & Escape Ladderway Inferred material to 4267L (1050m) Production Rate 750 tpd 4267L (1050m Depth). 34

35 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 Mineral Resource, Mineral Reserve Notes 35

36 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 Estimate Notes 36

37 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 Statement 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 necessarily demonstrate economic viability. 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 June 4, 2014 and entitled Technical Report for the Yaramoko Gold Project, 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 2016 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 Statement 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. 37

38 Bagassi South Mineral Resource Estimate 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 Statement 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. 6. Mineral Resources that are not Mineral Reserves do not necessarily demonstrate economic viability. Bagassi South Mineral Reserve Estimate Notes: Notes: 1. The Mineral Reserve estimation used in the Bagassi South Feasibility Study 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 included in Mineral Resources. 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 38

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