WAF V GRY, page-11

Other projects to look at in Burkina to get an idea of where WAF and GRY may end up are advanced explorer/developer Roxgold and producer Semafo

ROG:TSX.V trading at $0.88

Base case is stated assuming 100% basis and a gold price of $1,300/oz

- Pre-tax IRR of 53.7% with a 1.5 year payback on initial capital
- After-tax IRR of 48.4% with a 1.6 year payback on initial capital
- Pre-tax NPV5% of $300 million
- After-tax NPV5% of $250 million
- Average Total Cash Costs of $467/oz (including royalties)
- Average All-in Sustaining Costs of $590/oz
- Pre-Production capital of $106.5 million
- Estimated average annual gold production of 99,500 ounces
- Current study mine life of 7.4 years
- Average metallurgical recoveries of 96.9% gold

SEMAFO (TSX, OMX: SMF) trading $5.30

First Quarter 2014 in Review*

• Gold production at Mana of 35,100 ounces, compared to 42,700 ounces for the same period in 2013
  
  
• Commenced processing ore from Siou, which positively impacted Mana’s overall head grade and resulted in the production of 17,340 ounces of gold in the month of March at a cash operating cost of $689 per ounce
  
  
• Bulk test results from Siou provided very good reconciliation against the reserve block model – achieved a recovery rate of over 96%
  
  
• The Corporation is maintaining its 2014 guidance
  
  
• Gold sales at Mana of $38.5 million, a 47% decrease year over year
  
  
• Operating loss from continuing operations of $14.7 million, compared to operating income of $21.0 million for the same period in 2013
  
  
• Net loss from continuing operations attributable to equity shareholders of $12.9 million or $0.04 per share compared to net income of $11.5 million or $0.04 per share for the same period in 2013
  
  
• Cash flow from operating activities from continuing operations1 of $2.1 million or $0.01 per share2compared to $28.0 million or $0.10 per share for the same period in 2013
  
  
• Auger drilling on the Pompoi Nord permit revealed a promising geochemical anomaly trend over more than 15 kilometers along the east contact of the Siou intrusive
  
  
• Commenced pre-stripping activities at Fofina, one quarter ahead of schedule
  
  
• Increased our exploration land package in Burkina Faso by 1,678 km2 through the signature of two farm-in agreements and the acquisition of one permit