SAS REPORTS 2013 THIRD QUARTER RESULTS, WITH A SIXTH CONSECUTIVE QUARTER OF POSITIVE CASH FLOW FROM OPERATIONS

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1 19/13 NEWS RELEASE All dollar amounts are stated in Canadian dollars, unless otherwise indicated SAS REPORTS 2013 THIRD QUARTER RESULTS, WITH A SIXTH CONSECUTIVE QUARTER OF POSITIVE CASH FLOW FROM OPERATIONS Toronto, Canada November 6, 2013 St Andrew Goldfields Ltd. (T-SAS) (OTCQX-STADF), ( SAS or the Company ) reports a net loss attributable to shareholders for Q of $0.6 million, or nil on a per share basis, compared to net income of $6.3 million, or $0.02 per share, for Q For Q3 2013, adjusted net loss (1) was $0.9 million, or nil on a per share basis, compared to adjusted net earnings of $5.0 million, or $0.01 per share, for Q Earnings continued to be impacted by the significant decrease in the gold price since the beginning of Q and the increase in non-cash depreciation and depletion charges due to the depletion of the mineral reserves at the Holloway and Hislop mines. Q production of 25,434 ounces of gold was in line with the Company s expectation. With the cost reduction program implemented in Q and a stronger US dollar, all-in sustaining cost per ounce of gold sold (1) was US$1,086 per ounce during the quarter. Operations continued to perform well with a total cash cost per ounce of gold sold (1) in the quarter of US$832 per ounce (including royalty costs of US$112 per ounce). Mine cash costs of US$720 per ounce were below guidance and improved by 8% or US$60 per ounce over Q SAS reiterates its 2013 production guidance of between 95,000 to 105,000 ounces of gold with mine cash costs between US$800 to US$850 per ounce. SAS generated operating cash flow of $8.9 million, or $0.02 per share, and net cash flow (1) of $3.0 million for Q as compared to operating cash flow of $15.2 million or $0.04 per share and net cash flow (1) of $6.8 million, in Q Both operating cash flow and net cash flow for the quarter were negatively impacted by a 19% decrease in the average realized price per ounce of gold sold (1) when compared to the same period last year. We had another strong quarter with year-to-date production of 75,248 ounces of gold, and a significant improvement in mine cash costs, said Duncan Middlemiss, President & CEO of SAS. We are pleased to see that we were able to reduce cash costs and return to a positive net cash flow state despite the current gold price. Holt continued to perform well, with a 13% increase in throughput in the quarter. Our team has worked hard to meet our stated objectives of generating net cash flow from our operations, and maintaining a strong financial position during these volatile markets. We have a relatively strong balance sheet, we will continue to operate well in the current gold price environment, and thrive in better ones. (1) See pages 9-13 for an explanation of non-gaap measures 1

2 Q HIGHLIGHTS Produced 25,434 ounces of gold from three operations (Holt, Holloway and Hislop). Sold 26,600 ounces of gold at an average realized price per ounce of gold sold (1) of US$1,329 per ounce for revenues of $36.4 million. Mine cash costs of US$720 per ounce and a royalty cost of US$112 per ounce, for a total cash cost per ounce of gold sold (1) of US$832 per ounce. For Q3 2013, the Company began to report all-in sustaining cost per ounce of gold sold (1) adopting the reporting guidelines as released by the World Gold Council. All-in sustaining costs (1) for the quarter was US$1,086 per ounce. Earned cash margin from mine operations (1) of $13.4 million and operating cash flow of $8.9 million or $0.02 per share. Gold production remains on track to meet the 2013 guidance of between 95,000 to 105,000 ounces. When compared to Q3 2012, gold sales revenue decreased by $4.3 million due to a US$311 per ounce decrease in the average realized price per ounce of gold sold (1). Achieved a US$63 per ounce reduction in total cash cost per ounce of gold sold (1) over Q Mine cash cost per ounce of gold sold was better than the Company s guidance of US$800-US$850 per ounce. All-in sustaining cost per ounce of gold sold (1) for the quarter decreased by US$181 per ounce when compared to Q The reduction was a result of a disciplined capital expenditure program implemented at the beginning of Q In addition, the US dollar strengthened relative to the Canadian dollar during the quarter. Despite a 19% decrease in the average realized price per ounce of gold sold (1) when compared to Q3 2012, both cash margin from mine operations (1) and operating cash flow remained strong. SAS generated positive net cash flow of $3.0 million during the quarter. On September 16, 2013, SAS announced the appointment of Duncan Middlemiss (the former Chief Operating Officer and Vice-President of Operations) as the new President, and Chief Executive Officer, and Director of SAS effective October 1, Q Conference Call Information A conference call and webcast is scheduled for 10:00am EST, Thursday November 7, 2013 to discuss the Q results. Participants are invited to join via webcast from the Company s website under the section titled Events, at A recorded playback of the call will also be available via the website and will be posted within 24 hours of the call. (1) See pages 9-13 for an explanation of non-gaap measures 2

3 Operating and Financial Summary Amounts in thousands of Canadian dollars, except per unit and per share amounts Q Q YTD 2013 YTD 2012 SAS Operating Results Gold production (ounces) 25,434 25,742 75,248 69,775 Commercial gold production sold (ounces) 26,600 25,197 74,669 68,017 Per ounce data (US$) Average realized price (1) $ 1,329 $ 1,640 $ 1,455 $ 1,650 Mine cash costs $ 720 $ 768 $ 763 $ 799 Royalty costs $ 134 Total cash cost (1) $ 832 $ 895 $ 887 $ 933 All-in sustaining cost (1) $ 1,086 $ 1,267 $ 1,194 $ 1,377 SAS Financial Results Gold sales and total revenue $ 36,363 $ 40,690 $ 111,276 $ 112,059 Cash margin from mine operations (1) $ 13,381 $ 18,250 $ 43,505 $ 48,369 Net income (loss) for the period $ (599) $ 6,269 $ (653) $ 13,360 Adjusted net earnings (loss) (1) $ (880) $ 4,954 $ (685) $ 12,539 Operating cash flow $ 8,880 $ 15,205 $ 29,628 $ 32,575 Net cash flow (1) $ 2,953 $ 6,754 $ 6,397 $ 7,258 Per share information: Net income (loss) $ 0.00 $ 0.02 $ 0.00 $ 0.04 Adjusted net earnings (loss) (1) $ 0.00 $ 0.01 $ 0.00 $ 0.03 Operating cash flow (1) $ 0.02 $ 0.04 $ 0.08 $ 0.09 SAS Financial Position September 30, 2013 December 31, 2012 Cash and cash equivalents $ 31,559 $ 30,656 Working capital $ 19,586 $ 18,210 Total assets $ 216,860 $ 219,748 Long-term debt $ 12,906 $ 18,581 Financial Performance Despite a US$311 per ounce or 19% decrease in the average realized price per ounce of gold sold (1), gold sales revenue saw a slight decrease over Q Total cash cost per ounce of gold sold (1) decreased by US$63 per ounce when compared to Q mainly due to an increase in commercial gold production sold and a reduction in royalty costs due to the decline in the gold price. The decrease in the average realized price per ounce of gold sold (1), partially offset by the increase in commercial gold production sold and lower royalty costs, resulted in a $4.9 million decrease in cash margin from mine operations (1). When compared to Q3 2012, depreciation and depletion expense increased by $3.3 million. The increase resulted from the depletion of mineral reserves at Holloway and Hislop. Mark-to-market on derivative instruments in Q resulted in a net gain of $0.4 million compared to a net gain of $1.2 million in Q3 2012, due to the significant decline in the gold price and the strengthening of the US dollar relative to the Canadian dollar. (1) See pages 9-13 for an explanation of non-gaap measures 3

4 Holt Mine, Operations and Financial Review (see Operating and Financial Statistics on page 14) During Q3 2013, the Holt Mine ( Holt ) produced 16,807 ounces of gold, an increase of 28% over Q When compared to Q3 2012, despite a 19% decline in the the average realized price per ounce of gold sold (1), gold sales revenue increased by 12% as a result of the increase in production. Total cash cost per ounce of gold sold (1) decreased by US$183 per ounce or 21% from Q3 2012, mainly as a result of the increase in commercial gold production sold and the reduction in royalty costs due to the decline in the gold price. Cash margin from mine operations (1) increased by $1.4 million over Q due to the increase in commercial gold production sold, offset partially by the decrease in the gold price during the quarter. Holt contributed 80% of the total cash margin from mine operations (1) earned during the quarter. Holt is expected to contribute approximately 59% of the Company s total gold production for Holloway Mine, Operations and Financial Review (see Operating and Financial Statistics on page 15) The Holloway Mine ( Holloway ) produced 4,662 ounces of gold for Q3 2013, a decrease over Q For Q3 2013, head grades averaged 4.02 g/t Au, a decrease of 3% when compared to Q Mill recoveries during the quarter were in line with expectations at approximately 90%. Gold sales revenue for the quarter decreased by 15% when compared with Q3 2012, mainly due to the decrease in production and the decrease in the average realized price per ounce of gold sold (1) during the quarter. Total cash cost per ounce of gold sold (1) during the quarter increased by US$102 per ounce when compared to Q3 2012, mainly due to the decrease in throughput. Cash margin from mine operations (1) decreased by $2.3 million over Q as a result of the decrease in the gold price and higher unit operating costs due to the reduction in throughput and increased ore development. Holloway is expected to contribute approximately 22% of the Company s total gold production for Hislop Mine, Operations and Financial Review (see Operating and Financial Statistics on page 16) The Hislop Mine ( Hislop ) produced 3,965 ounces of gold during Q The head grade averaged 2.27 g/t Au, with mill recoveries of 81%. Commercial gold production sold during the quarter decreased by 37% when compared to Q as a result of the reduced production. Total cash cost per ounce of gold sold (1) increased by US$181 per ounce over Q mainly as a result of the reduction in throughput and slightly lower head grade. (1) See pages 9-13 for an explanation of non-gaap measures 4

5 Hislop is expected to contribute approximately 19% of the Company s total gold production for Taylor Project Update ( Taylor ) During Q3 2013, the Company released results from 22 drill holes totalling 4,032 metres, collared from the ramp development on the 220m elevation, targeting the easterly strike extension of the 1004 lens (in the vicinity of the second proposed bulk sample) of the West Porphry Zone. SAS reported near surface intersections over significant widths in hole T , which returned g/t Au over 18.6 metres (21.67 g/t Au uncut), including g/t Au over 4.6 metres (47.66 g/t Au uncut), and hole T , which returned g/t Au over 16.2 metres (13.14 g/t Au uncut), including g/t Au over metres (14.22 g/t Au uncut) (see press release dated August 27, 2013, available under the Company s profile on or on the Company s website at This phase of drilling confirmed that: (i) wider, more continuous and higher grade mineralized zones are present along the eastern edge of the 1004 lens than were previously defined; and (ii) potential exists to expand mineralization on the 1004 lens both to the east and to depth. These findings support advancing the underground exploration program. Exploration Projects Exploration activities during Q mainly focussed on the targets at Holloway and Hislop. Drilling during the quarter totalled approximately 12,900 metres with all programs now substantially complete. Holloway Mine - Smoke Deep and Sediment Zones A total of 15 holes and 4,300 metres were drilled from surface and from underground focussing on the down dip and down plunge extension of Smoke Deep to the east and updip, and also targeted the Sediment Zone. Underground drilling on the Smoke Deep target will continue into Q4 2013, with program results currently being assessed. Hislop Mine Hislop North Project ( Hislop North ) and Hislop Pit Complex As reported on October 31, 2013, drilling at Hislop North focussed on tightening the drill spacing on the 147 and Grey Fox zone extensions, from the claim boundary towards the West Pit. A total of 18 holes and 8,700 metres were drilled, using one drill from surface with Phase I of this drilling program now complete. SAS reported near surface intersections over significant widths intercepted in hole H which returned 8.08 g/t Au over 5.4 metres and H which returned 5.50 g/t Au over 2.7 metres and 8.43 g/t Au over 1.2 metres (see press release dated October 31, 2013, available under the Company s profile on or on the Company s website at Expansion of the mineralization remains open at depth and the Company expects to commence with a second phase of drilling on both target areas at Hislop North in early During the quarter, one surface drill continued to test for the depth extension beneath the East and West pits with 11 holes and approximately 3,600 metres completed at the end of the quarter. Recently released drill results highlighted well mineralized intercepts being reported below both pits. Hole HP returned 3.40 g/t Au over 28.2 metres including g/t Au over 2.5 metres which is situated approximately 350 metres below the bottom of the current West Pit. Drilling below the East Pit returned strong mineralization in Hole HP which assayed 6.34 g/t Au over 11.0 metres (8.62 g/t Au uncut), including a (1) See pages 9-13 for an explanation of non-gaap measures 5

6 higher grade intercept of g/t Au over 3.2 metres (24.38 g/t Au uncut), situated approximately 100 metres below the bottom of the current East Pit. The mineralized zones remain open at depth below both pits (see press release dated October 31, 2013, available under the Company s profile on or on the Company s website at Capital Resources SAS generated cash flow from operations of $8.9 million in Q3 2013, a decrease of $6.3 million over Q The decrease in cash flow from operations over Q3 2012, was mainly due to the decline in gold price during the quarter. Working capital as at September 30, 2013, was $19.6 million compared to a working capital of $18.2 million as at December 31, The slight increase was primarily due to the change in mark-to-market positions of derivative instruments. At the end of Q3 2013, the Company had cash and cash equivalents of $31.6 million, in conjunction with an additional cash resource of US$10.0 million in an undrawn revolving credit facility. The Company s financial position remains strong at the end of the quarter despite the significant decline in the gold price since Q SAS expects to incur a total of $3.8 million in capital expenditures at the two underground mines, the Holt Mill, and at Taylor during Q Qualified Person Production at the Holt, Holloway and Hislop mines, processing at the Holt Mill, and mine development and production activities at the operations were being conducted under the supervision of Duncan Middlemiss, P.Eng. Mr. Middlemiss was the Company s Chief Operating Officer and Vice-President of Operations during the third quarter, and was appointed as SAS President & CEO on October 1, Exploration activities on the Company s various properties, including the drilling program at the Taylor Project is under the supervision of Mr. Doug Cater P. Geo, the Company s Vice-President of Exploration. Messrs. Middlemiss and Cater are qualified persons as defined by NI , and have reviewed and approved this news release. Non-GAAP Measures The Company has included the following non GAAP performance measures: adjusted net earnings (loss); total cash cost per ounce of gold sold; all-in sustaining cost per ounce of gold sold; mine site cost per tonne milled; cash margin from mine operations; average realized price per ounce of gold sold; cash margin per ounce of gold sold; net cash flow; and operating cash flow per share; throughout this news release, which do not have standardized meanings prescribed by International Financial Reporting Standards ( IFRS ) and are not necessarily comparable to other similarly titled measures of other companies due to potential inconsistencies in the method of calculation. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors use this information to evaluate the Company s performance. Refer to pages 9-13 of this news release for a discussion and the reconciliation of these non-gaap measurements to the Company s Unaudited Condensed Interim Financial Report for Q (1) See pages 9-13 for an explanation of non-gaap measures 6

7 The Unaudited Balance Sheets, Statements of Operations and Statements of Cash Flows for the Company for the three and nine months ended September 30, 2013, can be found on pages To review the complete Unaudited Condensed Financial Report for Q3 2013, and the Interim Management s Discussion and Analysis for Q3 2013, please see SAS s SEDAR filings under the Company s profile at or the Company s website at The following abbreviations are used to describe the periods under review throughout this release. Abbreviation Period Abbreviation Period FY 2013 January 1, 2013 December 31, 2013 YTD 2012 January 1, 2012 September 30, 2012 YTD 2013 January 1, 2013 September 30, 2013 Q October 1, December 31, 2012 Q October 1, December 31, 2013 Q July 1, 2012 September 30, 2012 Q July 1, 2013 September 30, 2013 Q April 1, 2012 June 30, 2012 Q April 1, 2013 June 30, 2013 Q January 1, 2012 March 31, 2012 Q January 1, 2013 March 31, 2013 Q October 1, December 31, 2011 FY 2012 January 1, 2012 December 31, 2012 About SAS SAS (operating as SAS Goldmines ), is a gold mining and exploration company with an extensive land package in the Timmins mining district, north-eastern Ontario, which lies within the Abitibi greenstone belt, the most important host of historical gold production in Canada. SAS owns and operates the Holt, Holloway and Hislop mines, which contribute approximately 100,000 ounces of annual gold production. The Company is also advancing the Taylor Project and is conducting a number of exploration programs across 120km of land straddling the Porcupine-Destor Fault Zone. For further information about St Andrew Goldfields Ltd., please contact: Tel: or (416) ; Fax: (416) Website: Suzette N Ramcharan Manager, Investor Relations sramcharan@sasgoldmines.com Duncan Middlemiss President & CEO dmiddlemiss@sasgoldmines.com Ben Au CFO, VP Finance & Administration bau@sasgoldmines.com FORWARD-LOOKING INFORMATION This news release contains forward-looking information and forward-looking statements (collectively, forward-looking information ) under applicable securities laws, concerning the Company s business, operations, financial performance, condition and prospects, as well as management s objectives, strategies, beliefs and intentions. Forward-looking information is frequently identified by such words as may, will, plan, expect, estimate, anticipate, believe, intend and similar words referring to 7

8 future events and results, including in respect of the 2013 targeted level of gold production and mine cash costs from Holt, Holloway and Hislop; the level of capital expenditures for the balance of 2013; the continuance of exploration drilling at Holloway and the commencement of the second phase of drilling at Hislop North and the timing thereof; and the sufficiency of the Company s cash flow and existing cash resources to finance its capital programs and the further development of its advanced stage exploration projects. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, fluctuations in gold prices, unanticipated operational or technical difficulties which could increase the time necessary to complete the development initiatives, escalate operating and/or capital costs and reduce anticipated production levels; uncertainties relating to the interpretation of the geology, continuity, grade and size estimates of the mineral reserves and resources; the Company s dependence on key employees and changes in the availability of qualified personnel; fluctuations in exchange rates; operational hazards and risks, including the inability to insure against all risks; changes in laws and regulations; and changes in general economic conditions. Such forward looking information is based on a number of assumptions, including in respect of the ability to achieve operating cost estimates, the volatility and level of the price of gold including that the gold price will generally remain within a reasonable range of current levels, the accuracy of reserve and resource estimates and the assumptions on which such estimates are based, the sufficiency of the Company s cash flow and financial resources to carry out its planned programs, the ability to attract and retain qualified personnel to conduct its exploration programs and operate its mines and general business and economic conditions. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, readers are cautioned not to place undue reliance on this forward-looking information. SAS does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws. A further description of the risks and uncertainties facing the Company may also be found in the Company s Annual Information Form available on SEDAR at 8

9 NON-GAAP MEASURES Adjusted net earnings (loss) Adjusted net earnings (loss) is a non-gaap performance measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS, as well it may not be comparable to information in other gold producers reports and filings. Adjusted net earnings (loss) is calculated by removing the gains and losses, resulting from the mark-to-market revaluation of the Company s gold-linked liabilities and foreign currency derivative contracts, one-time gains or losses on the disposition of non-core assets, periodic adjustments to the Company s asset retirement obligations, and expenses, asset impairment gains or losses and significant tax adjustments not related to current period s earnings, as detailed in the table below. The Company discloses this measure, which is based on its Financial Reports, to assist in the understanding of the Company s operating results and financial position. Amounts in thousands of Canadian dollars, except per share amounts Q Q YTD 2013 YTD 2012 Net income (loss) per Financial Reports $ (599) $ 6,269 $ (653) $ 13,360 Reversal of unrecognized deferred income tax assets - - (1,256) - Mark-to-market loss (gain) on gold-linked liabilities (1,002) 1,818 Mark-to-market loss (gain) on foreign currency derivatives (1,084) (1,416) 974 (2,394) Write-down of investment in joint venture Write-down of mining equipment Impairment loss on available-for-sale investment Gain on divestiture of non-core assets - (519) - (519) Tax effect of above items (242) 274 Adjusted net earnings (loss) $ (880) $ 4,954 $ (685) $ 12,539 Weighted average number of shares outstanding (000s) Basic 368, , , ,246 Diluted 368, , , ,572 Adjusted net earnings (loss) per share - basic and diluted $ 0.00 $ 0.01 $ 0.00 $ 0.03 Total cash cost per ounce of gold sold Total cash cost per ounce of gold sold is a non-gaap performance measure and may not be comparable to information in other gold producers reports and filings. The Company has included this non-gaap performance measure throughout this document as the Company believes that this generally accepted industry performance measure provides a useful indication of the Company s operational performance. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company s performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The following table provides a reconciliation of total cash costs per ounce of gold sold to production expenses per the Financial Report for Q3 2013: 9

10 Amounts in thousands of Canadian dollars, except where indicated Q Q YTD 2013 YTD 2012 Mine site operating costs per Financial Reports $ 19,876 $ 19,245 $ 58,283 $ 54,527 Production royalties per Financial Reports 3,106 3,195 9,488 9,163 Adjustments (1) (99) Total cash costs $ 22,982 $ 22,440 $ 67,771 $ 63,591 Divided by gold ounces sold 26,600 25,197 74,669 68,017 Total cash cost per ounce of gold sold (Canadian dollars) $ 864 $ 891 $ 908 $ 935 Average USD:CAD exchange rate $ 1.04 $ 0.99 $ 1.02 $ 1.00 Total cash cost per ounce of gold sold (US$) $ 832 $ 895 $ 887 $ 933 Breakdown of total cash cost per ounce of gold sold (US$) Holt Mine Mine cash costs $ 548 $ 708 $ 598 $ 684 Royalty costs $ 691 $ 873 $ 752 $ 850 Holloway Mine Mine cash costs $ 938 $ 746 $ 953 $ 815 Royalty costs $ 1,052 $ 950 $ 1,107 $ 1,021 Hislop Mine Mine cash costs $ 1,070 $ 889 $ 1,058 $ 1,012 Royalty costs $ 1,070 $ 889 $ 1,058 $ 1,012 Total Mine cash costs $ 720 $ 768 $ 763 $ 799 Royalty costs $ 832 $ 895 $ 887 $ 933 Notes: (1) In Q1 2012, the Company accrued a royalty liability of $99 at Holloway which was incurred during the period from August 2011 to December This amount has been retroactively applied to the calculation of the total cash cost per ounce of gold sold for YTD All-in sustaining cost per ounce of gold sold All-in sustaining cost per ounce of gold sold is a non-gaap performance measure and may not be comparable to information in other gold producers reports and filings. The Company has included this non-gaap performance measure throughout this document as the Company believes that this generally accepted industry performance measure provides a useful indication of the Company s operational performance. Effective September 30, 2013, the Company has adopted the all-in sustaining definition as set out in the guidance note released by the World Gold Council on June 27, All-in sustaining costs include mine-site operating costs and production royalties incurred at the Company s mining operations, sustaining capital expenditures, corporate administration expense, mine-site exploration costs, and reclamation cost accretion. The Company believes that this measure represents the total costs of producing gold from current operations, and provides the Company and other stakeholders with additional information that illustrates the Company s operational performance and ability to generate cash flow. This cost measure is reported on a consolidated level, and a per ounce of gold sold basis. As the measure seeks to reflect the full cost of gold production from current operations, new project capital is not included. Certain other cash expenditures, including tax payments and financing costs are also not included. 10

11 Amounts in thousands of Canadian dollars, except where indicated Q Q YTD 2013 YTD 2012 Total cash costs per total cash cost per ounce of gold sold reconciliation table $ 22,982 $ 22,440 $ 67,771 $ 63,591 Add (less): Sustaining mine capital 3,781 7,349 12,532 24,277 Mine site exploration 1, , Mine reclamation obligation Corporate administration 1,492 1,740 5,445 5,151 All-in sustaining costs $ 29,983 $ 31,770 $ 91,210 $ 93,833 Divided by gold ounces sold 26,600 25,197 74,669 68,017 All-in sustaining cost per ounce of gold sold (Canadian dollars) $ 1,127 $ 1,261 $ 1,222 $ 1,380 Average USD:CAD exchange rate $ 1.04 $ 0.99 $ 1.02 $ 1.00 All-in sustaining cost per ounce of gold sold (US$) $ 1,086 $ 1,267 $ 1,194 $ 1,377 Mine-site cost per tonne milled Mine-site cost per tonne milled is a non-gaap performance measure and may not be comparable to information in other gold producers reports and filings. As illustrated in the table below, this measure is calculated by adjusting Production Costs, as shown in the statements of operations for inventory level changes and then dividing by tonnes processed through the mill. Since total cash cost per ounce of gold sold data can be affected by fluctuations in foreign currency exchange rates, Management believes that mine-site cost per tonne milled provides additional information regarding the performance of mining operations and allows Management to monitor operating costs on a more consistent basis as the per tonne milled measure reduces the cost variability associated with varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, the estimated revenue on a per tonne basis must be in excess of the mine-site cost per tonne milled in order to be economically viable. Management is aware that this per tonne milled measure is impacted by fluctuations in throughput and thus uses this evaluation tool in conjunction with production costs prepared in accordance with IFRS. This measure supplements production cost information prepared in accordance with IFRS and allows investors to distinguish between changes in production costs resulting from changes in production versus changes in operating performance. 11

12 Amounts in thousands of Canadian dollars, except per tonne amounts Q Q YTD 2013 YTD 2012 Holt Mine Mine-site costs $ 9,310 $ 8,724 $ 27,144 $ 23,395 Inventory adjustments (1) Mine site operating costs $ 9,399 $ 8,965 $ 27,829 $ 24,242 Divided by tonnes of ore milled 104,800 80, , ,585 Mine-site cost per tonne milled $ 90 $ 112 $ 97 $ 107 Holloway Mine Mine-site costs $ 5,593 $ 4,263 $ 15,667 $ 13,394 Inventory adjustments (1) (326) (157) Mine site operating costs $ 5,267 $ 4,106 $ 15,814 $ 13,426 Divided by tonnes of ore milled 40,152 44, , ,866 Mine-site cost per tonne milled $ 131 $ 92 $ 123 $ 93 Hislop Mine Mine-site costs $ 4,972 $ 6,258 $ 15,472 $ 17,738 Inventory adjustments (1) (487) 82 (50) 311 Mine site operating costs $ 4,486 $ 6,340 $ 15,422 $ 18,049 Divided by tonnes of ore milled 66, , , ,035 Mine-site cost per tonne milled $ 67 $ 62 $ 66 $ 61 Notes: (1) Inventory adjustment reflects production costs associated with unsold bullion and in-circuit inventory. Cash margin from mine operations Cash margin from mine operations is a non-gaap measure which may not be comparable to information in other gold producers reports and filings. It is calculated as the difference between gold sales and production costs (comprised of mine-site operating costs and production royalties) per the Company s Financial Reports. The Company believes it illustrates the performance of the Company s operating mines and enables investors to better understand the Company s performance in comparison to other gold producers who present results on a similar basis. Amounts in thousands of Canadian dollars Q Q YTD 2013 YTD 2012 Gold sales per Financial Reports [A] $ 36,363 $ 40,690 $ 111,276 $ 112,059 Mine site operating costs per Financial Reports 19,876 19,245 58,283 54,527 Production royalties per Financial Reports 3,106 3,195 9,488 9,163 [B] 22,982 22,440 67,771 63,690 Cash margin from mine operations [A] - [B] $ 13,381 $ 18,250 $ 43,505 $ 48,369 Breakdown of cash margin from mine operations by mines: Holt Mine $ 10,677 $ 9,250 $ 31,905 $ 27,190 Holloway Mine 1,561 3,835 5,747 10,132 Hislop Mine 1,143 5,165 5,853 11,047 $ 13,381 $ 18,250 $ 43,505 $ 48,369 12

13 Average realized price per ounce of gold sold Average realized price per ounce of gold sold is a non-gaap measure and is calculated by dividing gold sales proceeds received by the Company for the relevant period by the ounces of gold sold. It may not be comparable to information in other gold producers reports and filings. Amounts in thousands of Canadian dollars, except where indicated Q Q YTD 2013 YTD 2012 Gold sales per Financial Reports $ 36,363 $ 40,690 $ 111,276 $ 112,059 Realized foreign exchange loss (gain) on the settlement of gold sales (497) 171 Realized loss on foreign currency derivative cash flow hedges $ 36,645 $ 40,963 $ 111,185 $ 112,230 Average USD:CAD exchange rate $ 35,346 $ 41,318 $ 108,676 $ 112,220 Divided by gold ounces sold 26,600 25,197 74,669 68,017 Average realized price per ounce of gold sold (US$) $ 1,329 $ 1,640 $ 1,455 $ 1,650 Cash margin per ounce of gold sold Cash margin per ounce of gold sold is a non-gaap measure, and is calculated by subtracting the total cash cost per ounce of gold sold from the average realized price per ounce of gold sold. It may not be comparable to information in other gold producers reports and filings. Amounts in United Sates dollars Q Q YTD 2013 YTD 2012 Per ounce of gold sold: Average realized price per ounce of gold sold [A] $ 1,329 $ 1,640 $ 1,455 $ 1,650 Total cash cost per ounce of gold sold [B] $ 832 $ 895 $ 887 $ 933 Cash margin per ounce of gold sold [A] - [B] $ 497 $ 745 $ 568 $ 717 Net cash flow Net cash flow is a non-gaap measure and is calculated by taking cash flow from operating activities less cash used in investing activities as reported in the Company s Financial Reports. It may not be comparable to information in other gold producers reports and filings. Amounts in thousands of Canadian dollars Q Q YTD 2013 YTD 2012 Cash flow from operating activities per Financial Reports $ 8,880 $ 15,205 $ 29,628 $ 32,575 Less: Cash used in investing activities per Financial Reports 5,927 8,451 23,231 25,317 $ 2,953 $ 6,754 $ 6,397 $ 7,258 Operating cash flow per share Operating cash flow per share is a non-gaap measure and is calculated by dividing cash flow from operating activities in the Company s Financial Reports by the weighted average number of shares outstanding for each period. It may not be comparable to information in other gold producers reports and filings. Amounts in thousands of Canadian dollars, except per share amounts Q Q YTD 2013 YTD 2012 Cash flow from operating activities per Financial Reports $ 8,880 $ 15,205 $ 29,628 $ 32,575 Weighted average number of shares outstanding (000s) 368, , , ,246 Operating cash flow per share $ 0.02 $ 0.04 $ 0.08 $

14 Operating and Financial Statistics Holt Mine Amounts in thousands of Canadian dollars, except per unit amounts Q Q Q Q Q Q Q Q YTD 2013 YTD 2012 Tonnes milled 104,800 93,081 89,985 89,901 80,219 78,429 67,937 67, , ,585 Head grade (g/t Au) Average mill recovery 95.0% 94.9% 94.8% 94.7% 94.4% 94.2% 94.1% 94.1% 94.9% 94.3% Gold produced (ounces) 16,807 13,706 14,806 15,082 13,145 11,193 11,025 11,421 45,319 35,363 Commercial gold production sold (ounces) 16,381 14,230 13,715 15,043 12,373 11,073 10,674 12,175 44,326 34,120 Gold sales revenue $ 22,417 $ 20,865 $ 22,750 $ 25,584 $ 20,000 $ 18,250 $ 18,015 $ 21,060 $ 66,032 $ 56,265 Cash margin from mine operations (1) $ 10,677 $ 9,341 $ 11,887 $ 14,538 $ 9,250 $ 8,886 $ 9,054 $ 12,054 $ 31,905 $ 27,190 Mine-site cost per tonne milled (1) $ 90 $ 95 $ 106 $ 93 $ 112 $ 96 $ 114 $ 95 $ 97 $ 107 Total cash cost per ounce of gold sold (US dollars) (1) Mine cash costs $ 548 $ 636 $ 619 $ 573 $ 708 $ 671 $ 670 $ 556 $ 598 $ 684 Royalty costs Total cash cost per ounce of gold sold $ 691 $ 791 $ 785 $ 741 $ 873 $ 837 $ 838 $ 722 $ 752 $ 850 Capital expenditures $ 3,104 $ 3,487 $ 3,383 $ 4,536 $ 4,990 $ 5,036 $ 3,177 $ 4,250 $ 9,974 $ 13,203 Depreciation and depletion expense $ 2,338 $ 2,667 $ 2,709 $ 2,979 $ 2,293 $ 1,804 $ 1,549 $ 1,611 $ 7,714 $ 5,646 Notes: (1) Total cash cost per ounce of gold sold, mine-site cost per tonne milled and cash margin from mine operations are non-gaap measures and are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation (see pages 9-13 for an explanation and reconciliation of non-gaap measurements). 14

15 Operating and Financial Statistics Holloway Mine Amounts in thousands of Canadian dollars, except per unit amounts Q Q Q Q Q Q Q Q YTD 2013 YTD 2012 Tonnes milled 40,152 45,642 43,252 46,606 44,546 53,169 47,151 56, , ,866 Head grade (g/t Au) Average mill recovery 89.7% 92.6% 91.5% 89.7% 91.0% 91.2% 88.6% 84.1% 91.4% 90.3% Gold produced (ounces) 4,662 5,874 5,140 5,240 5,408 5,923 5,058 6,126 15,676 16,389 Commercial gold production sold (ounces) 5,741 5,175 5,126 4,981 5,749 5,744 4,907 6,208 16,042 16,400 Gold sales revenue $ 7,831 $ 7,568 $ 8,521 $ 8,473 $ 9,267 $ 9,467 $ 8,275 $ 10,750 $ 23,920 $ 27,009 Cash margin from mine operations (1) $ 1,561 $ 1,795 $ 2,391 $ 3,262 $ 3,835 $ 3,805 $ 2,492 $ 4,116 $ 5,747 $ 10,132 Mine-site cost per tonne milled (1) $ 131 $ 113 $ 124 $ 94 $ 92 $ 82 $ 105 $ 93 $ 123 $ 93 Total cash cost per ounce of gold sold (US dollars) (1) Mine cash costs $ 938 $ 947 $ 977 $ 834 $ 746 $ 771 $ 948 $ 853 $ 953 $ 815 Royalty costs (2) Total cash cost per ounce of gold sold $ 1,052 $ 1,090 $ 1,186 $ 1,055 $ 950 $ 976 $ 1,157 $ 1,056 $ 1,107 $ 1,021 Capital expenditures $ 816 $ 1,189 $ 912 $ 1,443 $ 1,794 $ 2,539 $ 4,342 $ 3,666 $ 2,917 $ 8,675 Depreciation and depletion expense $ 4,843 $ 2,149 $ 2,144 $ 1,970 $ 2,346 $ 2,181 $ 1,808 $ 2,339 $ 9,136 $ 6,335 Notes: (1) Total cash cost per ounce of gold sold, mine-site cost per tonne milled and cash margin from mine operations, are non-gaap measures and are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation (see pages 9-13 hereof for an explanation and reconciliation of non-gaap measurements). (2) In Q1 2012, the Company accrued a royalty liability of $99 at Holloway, which was incurred during the period from August 2011 to December This amount has been retroactively applied to the calculation of the total cash cost per ounce of gold sold for each of these quarters, respectively. 15

16 Operating and Financial Statistics Hislop Mine Amounts in thousands of Canadian dollars, except per unit amounts Q Q Q Q Q Q Q Q YTD 2013 YTD 2012 Overburden stripped (m 3 ) 43,094 64, (32,205) 29,236 4, , ,901 1,243 Tonnes mined (ore) 92, ,900 82, ,617 99,287 76, , , , ,969 (waste) 389, , , , , , , , ,589 1,730, , , , , , , , ,157 1,251,228 2,025,193 Waste-to-Ore Ratio Tonnes milled 66,940 88,093 79,771 95, ,191 97,183 94,660 92, , ,035 Head grade (g/t Au) Average mill recovery 81.0% 84.0% 82.1% 80.8% 86.5% 85.6% 86.4% 83.0% 82.5% 86.1% Gold produced (ounces) 3,965 5,773 4,515 5,507 7,189 5,899 4,935 4,803 14,253 18,023 Commercial gold production sold (ounces) 4,478 5,655 4,168 6,026 7,075 5,678 4,744 4,985 14,301 17,497 Gold sales revenue $ 6,115 $ 8,290 $ 6,919 $ 10,275 $ 11,423 $ 9,356 $ 8,006 $ 8,625 $ 21,324 $ 28,785 Cash margin from mine operations (1) $ 1,143 $ 2,579 $ 2,131 $ 3,700 $ 5,165 $ 3,505 $ 2,377 $ 2,528 $ 5,853 $ 11,047 Mine-site cost per tonne milled (1) $ 67 $ 64 $ 67 $ 65 $ 62 $ 61 $ 61 $ 60 $ 66 $ 61 Total cash cost per ounce of gold sold (1)(2) $ 1,070 $ 987 $ 1,139 $ 1,100 $ 889 $ 1,020 $ 1,185 $ 1,196 $ 1,058 $ 1,012 Capital expenditures $ 20 $ - $ - $ (39) $ 390 $ 970 $ 463 $ 701 $ 20 $ 1,823 Depreciation and depletion expense $ 2,364 $ 4,252 $ 3,224 $ 1,981 $ 1,644 $ 1,363 $ 885 $ 905 $ 9,840 $ 3,892 Notes: (1) Total cash cost per ounce of gold sold, mine-site cost per tonne milled and cash margin from mine operations are non-gaap measures and are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation (see pages 9-13 hereof for an explanation and reconciliation of non-gaap measurements). (2) Hislop is subject to a 4% net smelter return royalty, which includes a minimum Advance royalty payment obligation (see Gold-linked Liabilities in the Company s Q MD&A). 16

17 Statements of Operations (unaudited) St Andrew Goldfields Ltd. Expressed in thousands of Canadian dollars except per share information Three months ended September 30, Nine months ended September 30, Gold sales $ 36,363 $ 40,690 $ 111,276 $ 112,059 Operating costs and expenses: Mine site operating 19,876 19,245 58,283 54,527 Production royalty 3,106 3,195 9,488 9,163 Site maintenance Exploration 1,932 1,713 7,042 4,891 Corporate administration 1,492 1,740 5,445 5,151 Depreciation and depletion 9,770 6,433 27,358 16,354 Write-down of investment in joint venture Write-down of mining equipment ,189 32, ,783 90,538 Operating income 174 8,189 2,493 21,521 Finance costs ,499 2,180 Mark-to-market (gain) loss on gold-linked liabilities (1,002) 1,818 Mark-to-market (gain) loss on foreign currency derivatives (1,084) (1,416) 974 (2,394) Foreign exchange (gain) loss 276 (549) Impairment loss on available-for-sale investments Gain on divestiture of non-core assets - (519) - (519) Finance income and other (74) (97) (229) (183) 325 (1,843) 2,333 1,229 Income (loss) before taxes (151) 10, ,292 Deferred taxes 448 3, ,932 Net income (loss) for the period $ (599) $ 6,269 $ (653) $ 13,360 Other comprehensive income (loss) Unrealized gain (loss) on available-for-sale investments, net of tax of nil for all periods (76) (403) Reclassification adjustment for impairment loss on available-for-sale investments (nil tax effect) Unrealized gain (loss) on derivatives designated as cash flow hedges, net of tax ($371), $(301), $175, ($230) (716) 691 Reclassification adjustment for unrealized loss on the ineffective portion of cash flow hedges, net of tax ($64) ,170 1,034 (100) 288 Comprehensive income (loss) for the period $ 571 $ 7,303 $ (753) $ 13,648 Basic and diluted income (loss) per share attributable to shareholders $ 0.00 $ 0.02 $ 0.00 $ 0.04 Weighted average number of shares outstanding (000's) Basic 368, , , ,246 Diluted 368, , , ,572 17

18 Statements of Cash Flows (unaudited) St Andrew Goldfields Ltd. Expressed in thousands of Canadian dollars Three months ended September 30, Nine months ended September 30, Cash provided by (used in) operating activities: Net Income (loss) for the period $ (599) $ 6,269 $ (653) $ 13,360 Items not affecting cash: Deferred taxes 448 3, ,932 Mark-to-market loss (gain) on gold-linked liabilities (1,002) 1,818 Non-cash interest ,083 1,900 Mark-to-market loss (gain) on foreign currency derivatives (1,084) (1,416) 974 (2,394) Depreciation and depletion 9,770 6,433 27,358 16,354 Gain on disposal of equipment - (47) - (47) Write-down of investment in joint venture Write-down of mining equipment Impairment loss on available-for-sale investments Gain on divestiture of non-core assets - (519) - (519) Share-based payments Net change in non-cash operating working capital and other (847) 21 (908) (5,333) Interest paid (113) (149) (354) (242) 8,880 15,205 29,628 32,575 Cash used in (provided by) investing activities: Additions to exploration and evaluation assets 1,069 2,163 6,231 2,821 Mine development expenditures 3,263 4,768 9,957 17,054 Additions to plant and equipment 1,082 2,723 4,719 7,518 Amounts payable on capital additions 496 (1,071) 1,925 (299) Reclamation costs and other 17 (288) 376 (248) Cash advance to joint venture Cash collateralized for banking facilities (1,685) 5,927 8,451 23,231 25,317 Cash provided by (used in) financing activities: Advance royalty payments (411) (476) (1,383) (1,487) Capital lease payments (186) (11) (449) (33) Repayment of term credit facility (2,060) (1,966) (4,092) (1,966) Proceeds from term credit facility ,975 Bank facility transaction costs (644) Repayment of Gold Notes (14,775) (2,657) (2,453) (5,924) (3,930) Effects of exchange rate changes on cash and cash equivalents (237) (523) 430 (227) Increase in cash and cash equivalents 59 3, ,101 Cash and cash equivalents, beginning of period 31,500 16,940 30,656 17,617 Cash and cash equivalents, end of period $ 31,559 $ 20,718 $ 31,559 $ 20,718 18

19 Balance Sheets (unaudited) St Andrew Goldfields Ltd. Expressed in thousands of Canadian dollars September 30, 2013 December 31, 2012 Assets Current assets: Cash and cash equivalents $ 31,559 $ 30,656 Accounts receivable 2,653 4,475 Inventories 10,973 8,568 Derivative assets Prepayments and other assets ,424 44,661 Exploration and evaluation assets 37,608 31,382 Producing properties 53,494 64,363 Plant and equipment 50,962 50,537 Reclamation deposits 8,356 8,307 Restricted cash 1,718 1,695 Deferred tax assets 18,985 18,064 Investment in joint venture Other assets $ 216,860 $ 219,748 Liabilities and Shareholders' Equity Current liabilities: Accounts payable and other liabilities $ 12,698 $ 15,296 Employee-related liabilities 4,439 4,613 Provisions Derivative liabilities 1,205 - Current portion of long-term debt 5,714 5,822 Current portion of capital lease obligations 1, ,838 26,451 Long-term debt 7,192 12,759 Capital lease obligations 1, Asset retirement obligations 11,871 11,743 Deferred tax liabilities 2, ,834 51,811 Shareholders' equity: Share capital 98,575 98,556 Contributed surplus 20,317 19,892 Stock options 4,074 3,676 Retained earnings 45,143 45,796 Accumulated other comprehensive income (loss) (83) , ,937 $ 216,860 $ 219,748 19