Investor Presentation

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1 Investor Presentation December 2015 MAKING THE GRADE

2 FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. Forward-looking statements include words or expressions such as on track, guidance, expect, target, will, committed, evolve, become, pursuing, growth, opportunities and other similar words or expressions. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward-looking statements include the ability to complete the Natougou feasibility study early in the second quarter of 2016 within the $12.5 million budget, the ability to achieve the midrange of our 2015 production guidance of between 245,000 and 275,000 ounces, the ability to achieve our 2015 total cash cost guidance of between $485 and $505 per ounce and our all-in sustaining cost guidance of between $630 and $650 per ounce, the ability to execute on our strategic focus, fluctuation in the price of currencies, gold or operating costs, mining industry risks, uncertainty as to calculation of mineral reserves and resources, delays, political and social stability in Africa (including our ability to maintain or renew licenses and permits) and other risks described in SEMAFO s documents filed with Canadian securities regulatory authorities. You can find further information with respect to these and other risks in SEMAFO s 2014 Annual MD&A, as updated in SEMAFO s 2015 First Quarter MD&A, Second Quarter MD&A and Third Quarter MD&A and other filings made with Canadian securities regulatory authorities and available at These documents are also available on our website at SEMAFO disclaims any obligation to update or revise these forward-looking statements, except as required by applicable law. All mineral resources are exclusive of mineral reserves. In this presentation, all amounts are in US dollars unless otherwise indicated. 2

3 SEMAFO HAS. A TRACK RECORD OF OPERATING SUCCESS IN WEST AFRICA A DISCIPLINED GROWTH STRATEGY A STRONG CSR PROGRAM HIGH-GRADE OPEN-PIT DEPOSITS FINANCIAL STRENGTH LARGE EXPLORATION PACKAGE 3 3

4 OVERVIEW Commissioned three mines in West Africa over 20 years Owner-operator of Mana Mine in Burkina Faso 6,820 km 2 in Burkina Faso over three prospective belts 780 km 2 in Côte d Ivoire Inata BURKINA FASO Bissa Essakane Taparko Niger MANA Natougou Nabanga Youga Benin BANFORA GOLD BELT PERMITS Bantou Capital Ghana Mana Mine Korhogo Côte d Ivoire SEMAFO property Other mines Electric line Togo 4 5 Côte d Ivoire

5 000 oz US$/oz OPERATING SUCCESS On track to meeting production guidance for eighth consecutive year Increasing production and declining costs Built and expanded Mana on time and on budget Reserves at Mana more than doubled since inauguration of the mine in 2008 Total cash and all-in sustaining costs benefit from a full year of production from the Siou and Fofina deposits in ,7 158, , months Mana Reserves Net of Depletion: +150% Guidance Production '000 ounces All-in Sustaining Cost ($/oz) Total Cash Cost ($/oz) 0 Dec. 31, 2007 Dec. 31, 2014 Reserves in M. oz Au 5

6 PRODUCTION AT MANA TO INCREASE BY UP TO 11% IN 2015 All-in sustaining costs for the 9-month period of 2015 decreased by 26% year over year Q months 2015 REVISED GUIDANCE November 2015 INITIAL GUIDANCE January 2015 Ore processed (t) 618,300 1,756,500 2,500,000 2,500,000 Head grade (g/t) 3, Recovery (%) Total gold ounces produced (K) Total cash cost/ounce sold 1 ($) All-in sustaining cost 2 ($) Total cash cost is a non-ifrs financial performance measure with no standard definition under IFRS and represents the mining operation expenses and government royalties per ounce sold. 2 All-in sustaining cost is a non-ifrs financial performance measure with no standard definition under IFRS and represents the total cash cost, plus sustainable capital expenditures and stripping costs per ounce 6

7 $M STREAMLINED OPERATIONS ESTIMATED CAPEX (in millions of $) 2015 Guidance (1) Sustaining Capital Stripping Costs Sustaining Capital Deferred Total % relative to 2014 As a result of our cost control focus, G&A expenses have been trending downward for the past three years: G&A Expense in $M (E) (1) 2015 Guidance Exploration: $18.0M Natougou Feasibility Study: $12.5M 7

8 LOW ALL-IN SUSTAINING COST RELATIVE TO OUR PEERS $1 600 $1 466 $1 400 $1 334 $1 237 $1 200 $1 000 $1 041 $1 148 $1 066 $965 $932 $1 077 $800 $780 $600 $1 090 $400 $200 $665 $850 $728 $608 $692 $770 $634 $476 $490 $0 GSC BTO PRU ACA ELD GOLD EDV TGZ ASR SMF All-in Sustaining Costs Production and Cash Cost - By-Product Source: BMO CAPITAL MARKETS as at November 16, 2015 Total Cash Costs (Co-Product): The Gold Institute definition of Total Cash Cost is cash operating costs plus royalties and production taxes. For averages, total cash costs are weighted to the number of ounces produced in each respective year. AIC (All-In-Cost): All-In-Sustaining-Cost plus development capital 8

9 MANA S RESERVES (AS AT DECEMBER 31, 2014) Wona-Kona: 13,275, g/t Au 970,100 oz Mana Processing Plant Fofina: 2,443, g/t Au 205,700 oz Siou: 6,972, g/t Au 980,000 oz 9

10 TARGETED EXPLORATION WITHIN TRUCKING DISTANCE OF MANA 25 km from the mine $11 million exploration budget established for Mana project in 2015 H exploration will concentrate exclusively within trucking distance of the mine ~30,000 meters of RC drill program to be completed in H2 2015

11 GROWTH PIPELINE Grassroots projects Advanced projects Production Massala Maoula Mana Est (Siou sector) Yaho Natougou Banfora (15 permits) Bantou sector Nabanga Siou Fofina Wona/Kona Natougou Explo Nabanga Explo Korhogo permits (CDI) Acquisition of Orbis Gold Q for $155M 11

12 GROWTH IN MINERAL RESERVES AND RESOURCES Inferred Resources Measured and Indicated Resources Proven and Probable Reserves 2,2 2,1 1,9 1,4 2,7 0,5 1,0 0,9 1,6 3,8 2,8 3,0 2,4 1,1 2,2 2,0 1,9 2,3 2,2 9% 43% Fofina 2.62 g/t Au 205,700 oz Wona-Kona 2.27 g/t Au 970,100 oz 0,9 0, * 44% Siou 4.37 g/t Au 980,000 oz - Mana Reserves estimate using price of $1,100 /oz. - Mana Resources estimate at $1,400/oz * Includes Orbis acquisition - Resources at Tapoa Permit Group (Natougou deposit) estimate at $1,300/oz. NI report, March Resources at Yactibo Permit Group (Nabanga deposit) were reported above a 5.0 g/t Au cut-off grade. NI report, June

13 SEMAFO S QUALITY OPEN-PIT ASSETS NATOUGOU MINERAL RESOURCES (1) Category Tonnes Grade Ounces Indicated 5.8 Mt 5.87 g/t Au 1.1 Moz Inferred 3.9 Mt 3.49 g/t Au 0.4 Moz SIOU MINERAL RESERVES Total reserves 7.0 Mt 4.37 g/t Au 1.0 Moz 6 Natougou Indicated 5 4 Siou Reserves Natougou Inferred Grade of West African Open Pit Gold Deposits (2) (1) Mineral Resources reported above an 0.77 g/t Au cut-off grade. NI report, March 2015 (2) Source: Brokers and company reports. Gold Deposits Mines Projects 13

14 FEASIBILITY STUDY UPDATE AT NATOUGOU November 12, % complete on track for completion in early Q $9.9M of $12.5M total budget disbursed 14 Process: 90% completed This includes the plant and site layout, equipment specification, RFQs (Request for Quotes) Remaining work items: test work on tailings and CAPEX/OPEX estimates Environmental study: 40% completed (September 30, 2015) 75% completed (November 12, 2015) Results from 56,000 meters of drilling for the feasibility study are in line with expectations Positive metallurgical test work met expectations o Fresh rock - gold recovery rate of over 92% o Oxidized - gold recovery rate of over 96%

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16 NATOUGOU DEPOSIT GROWTH POTENTIAL Results from Phase I of proximal exploration returned values of up to g/t Au over 10 meters at depths between meters Target area measures about 200 meters wide, is open towards the west and northwest TPA0103 Au TPA0406 Au TPA0356 Au TPA0401 Au 16

17 THE BOUNGOU SHEAR ZONE DRILLING CAMPAIGN 17

18 REGIONAL EXPLORATION PROGRAM : $1.3M H

19 NABANGA: A SECOND HIGH GRADE DEPOSIT Nabanga Inferred Mineral Resource (1) Cut-off Grade Tonnes Grade Ounces 5.0 g/t Au 1.84 Mt 10.0 g/t Au 590,000 oz (1) Inferred Mineral Resource figures at a 5.0 g/t Au cut-off grade. NI report, June

20 BANFORA: A 30-KILOMETER ANOMALY TREND Portfolio of 10 farm-in and 5 acquired permits covering 1,600 km² Auger drilling revealed a major NEtrending 30-km anomaly called the Mouro Trend 2015 RC drilling found some good intersections that lack continuity Project on hold pending decision on 2016 exploration budget 20

21 EXPLORATION UPSIDE: ACQUIRED PERMITS IN CÔTE D IVOIRE Côte d Ivoire Highly mineralised greenstone belts Korhogo Project Along strike from Tongon Mine - priority targets Gold Mine Gold Deposits Target Corridor Fapoha North (Randgold) Fapoha South (Randgold) Target Corridor Korhogo West Permit Korhogo Permit /Application 21 Korhogo East Application

22 FINANCIAL FLEXIBILITY Cash at September 30, $138M Excluding $17.5M received in early October which represents the September 30 gold shipment Long-term debt (LIBOR +6.5%) of $90M Debt-Equity Ratio at September 30, % Generated $108M ($0.37 per share) of cash flow from operating activities for the 9-month period 22

23 SHORT-TERM PRIORITIES Disciplined exploration within trucking distance of the Mana Mine and Natougou deposit Deliver our production guidance for an eighth consecutive year Complete the feasibility study at Natougou Ongoing cost optimisation programs 23

24 > SEMAFO Foundation - six years of activities bolster our ability to establish strong relations with communities > Strong Safety Record accident frequency rate of 1.88 per 200,000 hours worked as of September 30, 2015 SOCIAL INVESTMENT - AT THE HEART OF OUR VALUE CREATION > National Workforce Development Program training of promising national employees for management or trainer posts > Training 10,000 hours of training were dispensed in 2014, of which 75% benefited our Burkinabè employees 24

25 IN SUMMARY Track Record of Operating Success in West Africa Achieved production guidance for seven consecutive years Production of 198,400 ounces for 2015 YTD ( 15% YOY) Total cash cost of $494 per ounce for 2015 YTD ( 26% YOY) All-in sustaining cost of $621 per ounce for 2015 YTD ( 26% YOY) Successfully commissioned three mines in West Africa Disciplined Growth Strategy Targeted exploration in vicinity of Mana Mine and Natougou deposit Feasibility study for Natougou deposit in line for completion in early Q Initiated exploration in Côte d Ivoire on a strong geological trend High-grade open-pit assets Financial Strength $138M in cash (as at September 30, 2015) $17.5M in gold receivables from September 30 gold shipment Long-term debt of $90M Generating free cash flow 25 Strong CSR Program 2009 pledge to commit up to 2% of net profit to support SEMAFO Foundation community activities Accident frequency rate of 1.88 per 200,000 hours worked (September 30, 2015) 294 days without lost time injury Well-established National Workforce Development Program

26 SMF: HIGH LIQUIDITY AND BROAD COVERAGE TSX, OMX: SMF Average Daily Trading Volume (1) 2.1M Coverage 16 analysts* Close C$3.49* Market Cap C$1.03B* Solid balance sheet *As at December 9, 2015 TOP 5 SHAREHOLDERS 1. Van Eck 2. Prudential (including M&G & Vanguard) 3. Tocqueville 4. Royal Bank of Canada 5. Fiera Capital O/S 294M SHARES 90% Institutional Retail 9% Geographic Distribution of Shares (2) Canada 40% USA 43% Europe 17% Jean Lamarre Chair of the Board John LeBoutillier Lead Director ADMINISTRATORS Terence F. Bowles Benoit Desormeaux President and Chief Executive Officer Flore Konan Gilles Masson Lawrence McBrearty Tertius Zongo 26 (1) Three-month moving average as at December 9, MAKING 2015 TSXTHE GRADE (2) Estimated - CDS (Canadian Clearing and Depository Services), Computershare, Euroclear