32
1 High Grade, Low Cost West African Gold Producer TSX: ROXG Arlington Pre-Daba Conference February 2019
1
High Grade, Low Cost
West African Gold Producer
TSX: ROXG
Arlington Pre-Daba Conference
February 2019
2TSX: ROXG
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 (including proposed plant expansion), and the anticipated nature, success and timing thereof; (iii)
production, earnings, recovery rates and cost guidance as well as future sources of funding, capital expenditures and exploration budgets, (iv) permitting; and (v) expansion and growth potential and the
anticipated timing thereof including the anticipated production at Bagassi South and the timing thereof, and future economics and development activities related thereto; (vi) expectations the Company
will be within its 2018 and 2019 cost guidance; (vii) statements that are not of historical fact; and (viii) any potential updated Mineral Resource at the 55 Zone and the anticipated timing thereof. For
further details regarding the Yaramoko project, please refer to the technical report entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” dated December 20, 2017 (the “Technical
Report”) as well as the press releases of Roxgold Inc. (“Roxgold” or 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
presentation 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 Management’s Discussion and Analysis filed on SEDAR at www.sedar.com on March 28, 2018 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 43-101, have prepared or supervised the preparation of the scientific or technical information presented
in this presentation: Benny Zhang, P. Eng (SRK Consulting Canada Inc.), Sebastien Bernier (SRK Consulting Canada Inc.), Iain Cox, Interim Chief Operating Officer (Roxgold), and Paul Weedon, VP
Exploration (Roxgold).
All amounts are in U.S. dollars unless otherwise stated.
Cautionary Statement
3TSX: ROXG
Roxgold – Compelling Investment in the Gold Sector
▪ Operating the Yaramoko Mine located in the Houndé
belt in Burkina Faso
▪ 55 Zone – in production
▪ Bagassi South – in operation; commercial production
expected in Q2 2019
▪ High-Grade, Low Cost Underground Gold Producer
▪ High-grade at 17.1 grams per tonne1 at 55 Zone and
16.6 grams per tonne2 at Bagassi South
▪ LOM Site AISC3 ~$695 per ounce
▪ LOM production includes inferred resources out to 20274
▪ Growth Potential through Exploration
▪ Proven Management Team and Board
See Appendix – Endnotes 1,2,3,4
4TSX: ROXG
2018 HighlightsStrong operational and financial performance while delivering Bagassi South expansion project
Operations
Delivered 132,656 ounces exceeding guidance of 120,000 – 130,000 ounces
Exceeded plant throughput nameplate capacity by approximately 14%
Managed costs with cash operating costs5 and AISC5 expected to be at or below the lower end of the
guidance range
Growth
Financial
Delivered Bagassi South expansion project under budget and on schedule increasing annual production
growth
Self-funded Bagassi South expansion project of ~US$26.8 million from internally generated cash flow
Strengthened balance sheet through increasing net cash position
Strong earnings and return on equity
See Appendix – Endnote 5
5TSX: ROXG
Proven Track Record on Operating Performance
126,990 oz
2017 2018
132,656 oz
2019
Throughput
Exceeded production guidance and throughput capacity
145,000 – 155,000 oz
guidance
Original Guidance
Revised Guidance
Production
Forecasting to exceed
nameplate capacity
Current Nameplate - 1,100 tpd
Initial Nameplate – 750 tpd
201920182017
6TSX: ROXG
2018 Guidance Range $450 - $475
Low Cost Operator
2019
Continuing to manage costs through efficiencies
Cost per tonne
2017 Guidance Range $445 - $490
Cash Operating Cost5/oz
2019 Guidance Range $440 - $470
* Costs expected to be below
lower end of range for 2018
Beat Guidance at $438 for 2017
See Appendix – Endnote 5. All amounts in U.S. dollars
$0
$50
$100
$150
$200
$250
2017 2018 2019
Mining Processing Site G&A
Forecasting a 20% reduction in cost per tonne processed since 2017
7TSX: ROXG
Successful Project Execution
Pre-production capex spend under budget by ~10% or US$2.8 million
First ore delivered in October 2018 on schedule; commercial
production expected to be achieved in Q2 2019
Process plant nameplate capacity increased nearly 50% from 750
tonnes per day to 1,100 tonnes per day
Record throughput of 1,230 tonnes per day or 12% above name plate
capacity achieved in January 2019
Delivered Bagassi South Expansion below budget and on schedule
8TSX: ROXG
Strong Financial Position
2019
Strong cash flow generation providing financial flexibility and high returns
Growing Net Cash6 Position Return on Equity7
(6)
0
6
12
18
24
2016
2017 2018
US$m22.4%
18.0%
12.9%
9.2%
8.0%
6.4%5.7% 5.5% 5.3%
2.1%
0.5%
KL OGC CG WDO BTO GUY K TGZ AEM G
See Appendix – Endnotes 6,7
9TSX: ROXG
Maintaining a disciplined approach to growth
Growth Strategy
Pursuing Resource Growth - 55 Zone and Bagassi South
• 55 Zone shoot is open at depth: Resource conversion and extension program commenced in Q2 2018 will be completed
in Q1 2019 ahead of an updated Mineral Resource estimate planned for Q2 2019
• Bagassi South 2018 drill program focussed on extending western shoot down plunge and near surface infill around the
eastern shoot. Follow up drilling planned to test for further down plunge extensions in western shoot will commence in
Q1 2019
Regional Exploration – Maximizing the potential of Yaramoko
• RC drilling has commenced on a series of compelling targets in the Kaho area in Q4 2018 and will continue into Q1 2019
External Growth – Evaluating opportunities
• Continuing to evaluate external growth opportunities with a disciplined approach:
• Build on developing or advancing existing projects
• Low cost; high return on invested capital
• Capacity for growth
10TSX: ROXG
Resource Growth - 55 Zone
▪ High-grade shoot extended to 1.1 km below surface
with hole YRM-17-DD-443W1, down plunge from hole
YRM-16-DD-426 and remains open at depth,
characterized by a wide shear envelope and shear
hosted veins
▪ A resource conversion surface drilling program
commenced in Q2 2018 with an aim to convert inferred
resources to indicated resources
▪ Program averaged six surface and one underground
diamond drill rig
▪ 14,788 metres drilled in the quarter for a total of 41,038
metres at 55 Zone for 2018
▪ Program will be completed in early Q1 2019. All results
will be incorporated into an updated Mineral Resource
estimate planned for Q2 2019
2011-16 Drill Hole
2017/2018 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
55 Zone Resource*
Size Grade
Measured &
Indicated
738k
ounces17.1 g/t
Inferred347k
ounces16.1 g/t
5,200RL
5,000RL
4,800RL
4,600RL
4,400RL
4,200RL
4,000RL
Measured
Indicated
Inferred
Open
100m
0m
700m
1,100m
1,500m
Exploration
Potential
*As of Dec 31, 2016. See Appendix for Mineral Resource Statement – 55 Zone
See press release dated February 2, 2017, and November 13, 2018 for
more information which is available on the Company’s corporate
website (www.roxgold.com) and on SEDAR at www.sedar.com 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.
YRM-16-DD-42620.1 g/t over 23.8 m
YRM-18-DD-456A47.4 g/t over 2.2 m
YRM-17-DD-443W111.2 g/t over 12.5 m
and
12.9 g/t over 3.9 m
YRM-18-DD-475W19.5g/t over 10.1 m
YRM-18-DD-477W6.9 g/t over 16.5 m
YRM-18-DD-4829.2 g/t over 5.4 mYRM-18-DD-474W2
7.0 g/t over 3.6 m
YRM-18-DD-4736.6 g/t over 5.6 m
YRM-18-DD-485A34.1 g/t over 2.1 m
11TSX: ROXG
5,300RL
5,200RL
5,100RL
5,000RL
4,900RL
West
YRM-18-DD-BGS-435
16.1g/t over 0.5m
YRM-18-DD-BGS-415
38.6g/t over 0.5m
YRM-18-DD-BGS-406
15.5g/t over 1.8m
YRM-18-DD-BGS-422
6.4g/t over 1.0m
YRM-18-DD-BGS-410
7.3g/t over 0.6m
YRM-18-DD-BGS-412
6.0g/t over 0.8m
YRM-18-DD-BGS-371
20.9g/t over 2.3m
YRM-18-DD-BGS-430A
30.4g/t over 0.5m
YRM-18-DD-BGS-389B
10.6g/t over 2.8m
YRM-18-DD-BGS-428
55.8g/t over 0.9m
YRM-18-DD-BGS-437
10.2g/t over 2.3m
YRM-18-DD-BGS-393
66.6g/t over 0.4mEast
YRM-18-DD-BGS-431B
14.8g/t over 0.5m
Resource Growth - Bagassi South
▪ A total of 23,535m drilled along the QV1 structure in
2017 targeting resource conversion and growth at
depth
▪ Resource delivered in July 2017 and included all
drilling to date
▪ 2018 drill program focussed on extending western
shoot down plunge and near surface infill around the
eastern shoot. Follow on drilling planned to test for
further down plunge extensions in western shoot in Q1
2019
▪ Approximately 10,200 metres drilled at Bagassi South
on the QV1 structure as of the end of 2018
QV1 Structure Resource*
Size Grade
Indicated188k
ounces16.6 g/t
Inferred33k
ounces13.0 g/t
*As of July 19th, 2017
Block Model (Au Grade)
>10.0 g/t Au
<1.0 g/t Au
1.0 g/t – 3.0 g/t Au
3.0 g/t – 5.0 g/t Au
5.0 g/t – 10.0 g/t Au
Drill Holes
Mafic
Dyke
Indicated
Inferred
Open
250m
0m
400m
See press release dated July 19, 2017, and November 13, 2018 for
more information which is available on the Company’s corporate
website (www.roxgold.com) and on SEDAR at www.sedar.com 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.
Exploration
Potential
QV1 structure
12TSX: ROXG
Regional Exploration
▪ Large regional land package of approximately 230 km2, located
on the Houndé Belt
▪ Majority of known anomalies and deposits are located along
the Boni Shear regional break and the second order Yaramoko
Shear
▪ Systematic auger drilling along key structures with ~15,500m
completed to date
▪ Integrated structural, geochemical, geophysical, and
lithogeochemical model being developed; reprocessing of
regional geophysics underway
▪ Pathfinder element suites identified to discriminate targets
(Haho, Kaho and the Boni Shear zone are characterized by High
Zr/High Rb)
▪ Auger program to continue over Kaho granite with completion
in Q1 2019 extending grid to the south
Focus on exploring the regional land package
5. KAHO
6. Boni Shear
7. HOUKO
8. Bagassi Regional
9. Yaramoko Regional
10. 300 Zone East Auger Grid
11. 300 Zone North Auger Grid
1. TW West Contact
2. BSN Foot Wall
3. San MVOL-VS and VS-DIO Contacts
4. HAHO Prospects
ID Targets
13TSX: ROXG
Regional Exploration - Kaho
55 Zone
Bagassi
South
55 Zone
Kaho
Area
Basaltic Flows
Tarkwaian Basin
Granite
Tonalite
Granodiorite
Volcaniclastic
Legend
▪ First phase of auger drilling
completed in the third quarter
of 2018. Assays indicate
presence of potential structures
oriented NW-SE, oblique to the
Yaramoko Shear Zone
▪ 2,000 metres of RC drilling on
prospective Kaho coincident
geochemical and structural
targets commenced in
November 2018 and will be
completed in Q1 2019
Yaramoko Shear Zone
Prospective target▪ Kaho is prospective due to the presence of
meta-volcanic and granite contacts –
analogous to 55 Zone and Bagassi South
deposits
▪ Within the mineralised corridor of the
Yaramoko Shear Zone –potential for second
order structures which are thought to be the
dominant control at 55 Zone and Bagassi
South
14TSX: ROXG
Value PropositionCompelling investment in the gold sector
High-grade, low cost asset with strong margins
Proven track record of exceeding production and cost guidance
Production growth with Bagassi South expansion delivered under budget and on schedule
Actively pursuing growth opportunities through exploration program
Strong balance sheet and cash flow generation
Delivering industry-leading Return on Equity to shareholders7
Led by proven management team and board demonstrated by excellent operational
performance and safety record
See Appendix – Endnote 7
15
Appendix
TSX: ROXG 16
2019 Guidance
Exploration Spend$10 - $12 million
Sustaining Capital Expenditure8
$30 - $35 million
Gold Production
$12 - $15 million
Cash Operating Cost5 (per ounce produced)
$440-$470
AISC5 (per ounce sold)
$765-$795
See Appendix – Endnotes 5,8
Bagassi South pre-commercial production development spend9
145,000 – 155,000 oz
All amounts in U.S. dollars
17TSX: ROXG
Bagassi South – Underground Mine Plan
55 Zone
CampPlantTailing
Storage
Facility
Water
Storage
Dam
Yaramoko
Bagassi South
1.8 km from plant
to Bagassi South
QV1 Structure
18TSX: ROXG
Bagassi South – QV’ Resource Estimate 2017
▪ A total of 20,585m drilled along the QV’
structure in 2017 targeting resource
conversion and growth at depth
▪ Resource delivered in July 2017, an
additional 15,550m of drilling conducted
along the QV’ structure since July 2017
▪ QV’ mineralized shoot located along the
same K-rich granite lithological contact as
QV1
▪ The shoot is open to the East of the Mafic
Dyke and will be drill tested in 2019
QV’ Structure Resource*
Size Grade
Inferred36k
ounces22.0 g/t
*As of July 18th, 2017.
West East
YRM-17-DD-BGS-184
290.0 g/t over 0.8 m
< 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
Block Model
(Au Grade)
YRM-17-DD-BGS-181
55.8 g/t over 1.3 m
YRM-17-DD-BGS-240
72.6 g/t over 0.7 m
5,200RL
5,100RL
5,000RL
4,900RL
Mafic
Dyke
Inferred
Open
350m
0m
Exploration
Potential
See press release dated July 19, 2017 for more information which is available on the
Company’s corporate website (www.roxgold.com) and on SEDAR at www.sedar.com
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. For For further information, please
refer to the technical report dated December 20, 2017 and entitled “Technical Report
for the Yaramoko Gold Mine, Burkina Faso” (the “Technical Report”), available the
Company’s website and on SEDAR at www.sedar.com.
Area of
planned
drilling
19TSX: ROXG
Yaramoko – Lithogeochemistry Compilation & Auger Program
▪ Lithogeochemistry map shows
good spatial correlation
between High Zr/High Rb and
major structures such as the
Boni Shear zone and the
Yaramoko Shear Zone
▪ Major deposits such as 55 Zone
and Bagassi South are located
in anomalous High Zr/High Rb
areas
▪ Haho, Kaho and the Boni Shear
zone are characterized by High
Zr/High Rb
▪ Auger drilling will resume at
Kaho extending to the south in
Q1 2019
High Zirconium granite
High Titanium Basalt flow
Altered granite – High Zr & High Rb
Legend
Bagassi
South
55 Zone
Haho
Kaho
20TSX: ROXG
Yaramoko – Regional Drilling 2018
Ground Geophysical IP
Compilation:
▪ Exploring for late Eburnean
dextral reactivation within the
Yaramoko granite and along
the Boni Shear Zone
▪ Several areas of regional
disruption of structural fabric
within the Yaramoko granite
▪ Q1 2018 drilling focused on
Northern portion of the
concession along the Boni
Shear and Haho anomalies
▪ Q2 and Q3 2018 drilling
focused on southern portion
of the Yaramoko Shear
corridor, around the Bagassi
South deposit
2017 Boni Grid
2017 Houko Grid
Boni Shear Drilling
55 Extension
Basaltic Flows
Tarkwaian Basin
Granite
Tonalite
Granodiorite
Volcaniclastic
Legend
2014 Bagassi Grid
55 Zone Mine
Bagassi South Mine
Kaho Anomaly
Haho Drilling
21TSX: ROXG
Yaramoko – Kaho and Bagassi South Drilling Program – Phase 1
▪ Map shows interpreted second-order
structures over untested portion of
granitic bodies for the Bagassi South
and Kaho areas
▪ First phase of auger drilling over the
Kaho granite area has been
completed, helping to confirm the
potential orientation of the
interpreted second order structures
▪ Approximately 7,000 metres have
been drilled to date on the southern
structural targets around Bagassi
South
Bagassi
South
55 Zone
Basaltic Flows
Tarkwaian Basin
Granite
Tonalite
Granodiorite
Volcaniclastic
Legend
Kaho
Granite
20 to 40 ppb
40 to 100 ppb
100 to 1000 ppb
> 1000 ppb
Auger AU Grade:
22TSX: ROXG* See appendix for 55 Zone Mineral Resource and Mineral Reserve Notes
Proven
Mineral Reserves
Probable
Mineral Reserves
Proven and Probable
Mineral ReservesTonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
55 Zone 317 18.06 184 1,453 10.01 467 1,770 11.45 651
Stockpiles 26 13.26 11 0 0.00 0 26 13.26 11
Total 343 17.69 195 1,453 10.01 467 1,796 11.47 662
Measured
Mineral Resources
Indicated
Mineral Resources
Measured and Indicated
Mineral Resources
Inferred
Mineral ResourcesTonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
55 Zone 265 26.88 229 1,076 14.73 509 1,341 17.13 738 669 16.14 347
Total 265 26.88 229 1,076 14.73 509 1,341 17.13 738 669 16.14 347
Reserve grade largely maintained compared to BFS grade despite mined grade over the course of 2016 of 15.5 g/t.
Mineral Reserve and Mineral Resource Statement – 55 Zone* As of December 31, 2016
23TSX: ROXG
Mineral Resource Statement - Bagassi South*As of July 19, 2017
* See appendix for Bagassi South Mineral Resource and Mineral Reserve Notes
Measured
Mineral Resources
Indicated
Mineral Resources
Measured and Indicated
Mineral Resources
Inferred
Mineral ResourcesTonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
QV1
Structure0 0.00 0 352 16.6 188 352 16.6 188 79 13.0 33
QV’
Structure0 0.00 0 0 0.00 0 0 0.00 0 51 22.0 36
Bagassi
Total 0 0.00 0 352 16.6 188 352 16.6 188 130 16.6 69
Probable
Mineral ReservesTonnes
(000)
Grade
g/t Au
Ounces
(000)
QV1 Structure 458,000 11.54 170,060
Total 458,000 11.54 170,060
Mineral Reserve Statement - Bagassi South*As of November 6, 2017
24TSX: ROXG
55 Zone Mineral Resource NotesNotes:
1. Mineral Resources are reported compliance with National Instrument 43-101 (“NI 43-101”) with an effective date of December 31st, 2016.
2. 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 estimate 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 43-101.
5. All figures have been rounded to reflect the relative accuracy of the estimates.
6. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Reserves are reported in accordance with NI 43-101 with an effective date
of December 31st, 2016 and are included in Mineral Resources. For further information, please refer to the technical report dated December 20, 2017 and entitled “Technical
Report for the Yaramoko Gold Mine, Burkina Faso” (the “Technical Report”), available the Company’s website and on SEDAR at www.sedar.com.
7. See also 55 Zone Mineral Reserve Notes below.
Notes:
1. Mineral Reserves are reported in accordance with NI 43-101 with an effective date of December 31st, 2016 and are included in Mineral Resources. For further information,
please refer to the technical report dated December 20, 2017 and entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” (the “Technical Report”), available the
Company’s website and on SEDAR at www.sedar.com. 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 Mineral Reserves were prepared under the supervision of Benny Zhang, Principal Mining Engineer at SRK, PEng (PEO # 100115459). Mr. Benny Zhang is a Qualified Person as
defined by NI 43-101.
4. The Mineral Reserve estimate 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$100.00
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.
55 Zone Mineral Reserve Notes
25TSX: ROXG
Notes:
1. Bagassi South Mineral Resources are reported in compliance with NI 43-101 with an effective date of July 19th, 2017.
2. 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$100.00
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 estimate 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 43-101
5. All figures have been rounded to reflect the relative accuracy of the estimates. Mineral Reserves are reported in accordance with NI 43-101 with an effective date of
December 31st, 2016 and are included in Mineral Resources. For further information, please refer to the technical report dated December 20, 2017 and entitled
“Technical Report for the Yaramoko Gold Mine, Burkina Faso” (the “Technical Report”), available the Company’s website and on SEDAR at www.sedar.com.
6. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
7. See also Bagassi South Mineral Reserve Notes below.
Bagassi South Mineral Resource Notes:
Bagassi South Mineral Reserve Notes:
Notes:
1. The Mineral Reserve estimation used in the Technical Report 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, 2017.
2. Mineral Reserves are included in Mineral Resources and are 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 www.sedar.com.
4. The Mineral Reserve estimate was prepared under the supervision of Craig Richard, PEng (APEGA #141653), Principal Mining Engineer for Roxgold Inc., a Qualified
Person within the meaning of NI 43-101.
5. For further information, please refer to the technical report dated December 20, 2017 and entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” (the
“Technical Report”), available the Company’s website and on SEDAR at www.sedar.com.
26TSX: ROXG
People at YaramokoHead GradeHead Grade
Operate and built a mine together
▪ 83% Burkinabe employment
▪ 43% of employees from the immediate area
▪ 64% of skilled employees from Burkina
▪ 70% of process plant department people is from
the immediate area of the mine site with no prior
mining skills
▪ Provided 6 – 12 months of intensive training
prior to start up
▪ Part of the team that ramped up Yaramoko
▪ The plant delivers ~99% recovery rates with 95%
operating time
Case Study: Training local people to operate and
maintain the process plant
Localization and social responsibility vision have proven to be effective
World class safety record
▪ One Lost Time Injury (LTI) occurrence in 2018 calendar year
▪ Lost Time Injury Frequency Rate (LTIFR=0.39) per one
million hours worked
▪ 18.2K hours of health and safety training provided in 2018
Bagassi youth employees’ graduation ceremony with Mrs. ZONGO Laure, Minister of
Women and National Solidarity in May 2017
27TSX: ROXG
Local
procurement
Health and
safety
Community
investment
Local
employment
Cultural
heritage
Road
Biodiversity
Local procurement▪ 90% of expenditures from suppliers registered in Burkina Faso
▪ Capacity building training for local suppliers nearby the mine resulting in US$1.1 million of spending for transportation, construction, food supply and
preparation
2018 Community Social Programs
Local employment
▪ Improving employment opportunities for youth
Community health & safety
▪ Malaria control in three villages around the mine site
▪ Road safety, HIV and STIs education
Cultural heritage
▪ Supporting the traditional rituals and the preservation of the
Bwa ethnic group culture
Community development projects▪ 31 projects submitted, selected and implemented by the community representatives in collaboration with Roxgold
▪ 97 projects since 2014 including projects for women and youth such as occupational training center, potable water system, solar electrification
of schools and medical centers and construction of medical infrastructures
Win-Win situation to set up the foundations for common growth
Biodiversity
▪ Reforestation campaign planting over 20,000 trees per year for a total
of ~100,000 trees planted since 2014
▪ Protection and enhancement of local biodiversity areas
Community road infrastructures
▪ Progressive rehabilitation of the public road
28TSX: ROXG
Extensive community engagement program as foundation
of Roxgold’s Corporate Social Responsibility success
▪ Weekly meetings with the local public administration
(Prefect, Mayor)
▪ Monthly meetings with the surrounding villages
▪ Quarterly mine provincial committee
▪ Mine site visits
▪ Roxgold community relations office
▪ Billboards in each surrounding villages
▪ Local radio diffusion
Community EngagementBuilding trust by proactive outreach and open-door approach
127
Village meetings
9 Committee meetings
103
Local authorities meetings
10
Mine site visits
Roxgold was the proud recipient of the 2018 Best
Corporate Social Responsibility (CSR) Company
award at the West Africa Mining Activities Week
(SAMAO) gala ceremony held in Burkina Faso,
recognizing Roxgold’s leadership and efforts in
community engagement and environmental
responsibility at Yaramoko.
(2018 data)
29TSX: ROXG
Iain Cox, Interim COO25+ years development & operational mining
Former Roles:
▪ Newmont Corp
▪ AMR
▪ Centamin
Craig Richards, Principal Mining Engineer30+ years development & operational experience
Former Roles:
▪ Newmont Ghana
▪ Barrick Gold
▪ Ashanti Goldfields
Vince Sapuppo, CFO15+ years senior finance, commercial and mergers & acquisitions
experience in mining and energy sectors
Former Roles:
▪ GM Finance - Beach Energy Limited
▪ Newcrest Mining
▪ BHP
Management Team
John Dorward, President & CEO 20 years development & operating mines
experience
Former Roles:
▪ VP Business Dev. of Fronteer Gold
▪ Mineral Deposits Ltd
▪ Leviathan Resources
Eric Pick, VP, Corporate Development10+ years corporate finance and mergers &
acquisitions in mining sector
Former Roles:
▪ Cormark Securities Inc.
Paul Weedon, VP, Exploration25+ years exploration, development and production experience
Former Roles:
▪ Newmont Corp
▪ Anglogold Ashanti
30TSX: ROXG
Market Summary
Covering Sell-Side Firm Analyst
BMO (under review)
Canaccord Rahul Paul
Cormark Tyron Breytenbach
Echelon Wealth Partners Ryan Walker
Eight Capital Craig Stanley
GMP Ingrid Rico
Haywood Geordie Mark
Global Mining Research David Radclyffe
Macquarie Michael Gray
Raymond James Tara Hassan
RBC Dan Rollins
Capital Structure (as at January 25, 2019)
ListingsTSX: ROXG
OTC: ROGFF
Cash ~US$60 million1
Common Shares Outstanding 374.9M
Options (total vested and unvested) 7.7M
Market Capitalization ~C$300M
1. As of December 31, 2018
Major Shareholders
Appian Capital 13.1%
1832 Asset Management 8.7%
African Lion 3 Ltd 6.5%
International Finance Corp 6.5%
Insiders and Management 3.5%
Yaramoko Debt Facility
▪ Face value of long-term debt of ~US$38 million as of December 31, 2018
▪ Interest rate of LIBOR plus 3.75%
▪ Hedging component remaining of 34,424 ounces of gold at US$1,052/oz
over the life of loan which matures in June 2021
▪ Project remains unencumbered by third party streams or royalties
31TSX: ROXG
Endnotes
1. As of December 31, 2016. Measured & Indicated Resources. See appendix for Mineral Resource Statement – 55 Zone.
2. As of July 19, 2017. Measured & Indicated Resources. See appendix for Mineral Resource Statement – Bagassi South.
3. This is a non-IFRS financial performance measure with no standard definition under IFRS. Site All-in sustaining cost above represents both mines combined and
excludes corporate G&A and in-country corporate costs.
4. See Table 75 included in Section 23 titled “Other Relevant Data and Information” in the Company’s Technical Report dated December 20, 2017 and entitled
“Technical Report for the Yaramoko Gold Mine, Burkina Faso” available on SEDAR and the Company’s website.
5. These are a non-IFRS financial performance measures with no standard definition under IFRS. See the “non-IFRS financial performance measure” section of the
Company’s Q3 2018 MD&A available on the Company’s website at www.roxgold.com or www.sedar.com.
6. Net cash is calculated as cash minus face-value of debt.
7. Represents the last twelve month period through Q3 2018. Source: Company Reports. ROE calculated as net income adjusted for gains / losses on derivative
financial instruments, foreign exchange gains / losses and extraordinary events divided by average shareholder equity over the last 12 months. Companies
Included: KL – Kirkland Lake Gold Ltd.; OGC – OceanaGold Corporation; CG – Centerra Gold Inc.; WDO – Wesdome Gold Mines Ltd.; BTO – B2Gold Corp.; GUY –
Guyana Goldfields Inc.; K – Kinross Gold Corporation; TGZ – Teranga Gold Corporation; AEM – Agnico Eagle Mines Limited; G – Goldcorp Inc.
8. Sustaining capital is included in the All-in Sustaining Cost (AISC).
9. Bagassi South is expected to reach commercial production late in Q2. The spend is consistent with the December 2017 Technical Report.
32TSX: ROXG
Kelley StammManager, Investor Relations & Communications
360 Bay Street, Suite 500
Toronto, ON
M5H 2V6
www.roxgold.com
416 203 6401
