VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/05/17 -- Asanko Gold Inc. ("Asanko" or the "Company") (TSX:AKG)(NYSE MKT:AKG) is pleased to announce the Definitive Feasibility Study ("DFS") results of a staged expansion at the Asanko Gold Mine (the "AGM"), located in Ghana, West Africa, which confirms the AGM is a large scale, long life quality asset with a viable and robust two stage organic growth plan and strong cash generation capability.

The Expansion DFS is comprised of two growth projects, Project 5 Million and Project 10 Million.

Project 5 Million:
•Designed on modular basis allowing plant upgrade and development of Esaase as discrete packages
•Processing plant upgrade to 5Mtpa ?US$22 million capital cost
?Approved and under construction
?Completion in Q4 2017

•Development of large scale Esaase deposit ?Includes construction of overland conveyor linking Esaase to processing facility
?Capital cost of US$120 million
?Capital leverages the Company's ability to further grow production at any time in the future

•Averages 230,000oz/pa over 20 year mine life at an AISC3 of US$968/oz
•Robust business on standalone basis with a long life ?Over US$80 million average annual projected pre-tax cash flow from operations at steady state
?13% after-tax incremental IRR, NPV of US$658 million at 5% discount rate and a gold price of US$1,250/oz


Project 10 Million:
• Modular expansion with full flexibility on timing of project execution •Construction of additional 5Mtpa CIL plant to double processing capacity to 10Mtpa
•Capital cost of combined growth projects, P5M & P10M, of US$350 million

•Averages 450,000oz/pa at steady state for eight years at an AISC3 of US$890/oz
•US$185 million average annual projected pre-tax cash flow from operations at steady state
•20% after-tax incremental IRR, NPV of US$811 million at 5% discount rate and a gold price of US$1,250/oz
•Timing dependent on ability to predominantly fund from internal cash flow, supported by debt financing and market conditions

Commenting on the announcement, Peter Breese, President and CEO, said, "Our growth plan has been designed to be fully flexible so that it can be advanced in modular components, according to cash flow generation, balance sheet strength, financing opportunities and market conditions.

Our first expansion module, the plant upgrade to 5Mtpa, is a great low cost capital efficient project which is fully funded, delivering a 40% increase in throughput. We expect to see some volumetric increases in Q3 2017, ahead of full commissioning in Q4 2017.

The Board is reviewing the optimal timing for the development of Esaase and the conveyor, as well as Project 10 Million, and the respective investment decisions will be dependent on the Company's cash position and financing opportunities. This review will enable us to prudently bolster our liquidity position to over US$100 million by Q2 2018 without overextending the balance sheet or diluting shareholders, thereby securing our growth pipeline to ultimately deliver a production profile of over 450,000oz a year, making the Asanko Gold Mine one of the largest mines in Africa."

Summary

The Expansion DFS is comprised of two discrete growth projects, Project 5 Million and Project 10 Million and is based on the optimal NPV on a capital unconstrained basis for the AGM which assumes the sequential development of each project. However there is complete flexibility on the timing of the development of Esaase and the conveyor, as well as the Project 10 Million plant expansion. A construction decision to proceed will be at the Board's discretion and dependent on an optimized balance sheet, financing opportunities as well as favourable market conditions.

Project 5 Million

Project 5 Million comprises two modules, the upgrade of the existing carbon-in-leach ("CIL") processing plant from a design of 3 million tonnes per annum ("Mtpa") to 5Mtpa, and the development of the large Esaase pit, which includes the construction of an overland conveyor from Esaase to the processing facility. Production averages 230,000oz/pa over a 20 year life of mine ("LoM") at an AISC3 of US$968/oz.

The plant upgrade to 5Mtpa has been approved and is currently progressing ahead of the original schedule. Some volumetric increases are expected in Q3 2017, with commissioning of the full 5Mtpa plant due in Q4 2017.

Based on Front End Engineering Design ("FEED"), the final capital cost estimates are US$22 million for the plant upgrade, US$78 million for the conveyor and US$32 million for the development of the Esaase deposit and associated infrastructure, with a total project capital cost of approximately US$150 million.

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