B2Gold Corp. (TSX: BTO) (NYSE AMERICAN: BTG) (NSX: B2G) ("B2Gold" or the "Company") is pleased to announce its operational and financial results for the fourth quarter and year-end December 31, 2017. The Company previously released its gold production and gold revenue results for the fourth quarter and full-year 2017, in addition to its production and cash cost guidance for 2018 (see news release dated 1/11/18). All dollar figures are in United States dollars unless otherwise indicated.

2017 Full-Year Highlights

Record annual consolidated gold production, for the ninth consecutive year, of 630,565 ounces of gold (including 79,243 ounces of pre-commercial production1 from Fekola), exceeding the upper end of the revised guidance range (of 580,000 to 625,000 ounces) and well above the upper end of the original guidance range (of 545,000 to 595,000 ounces)
Annual consolidated gold revenue of $638.7 million (or an annual record of $739.5 million, including $100.9 million of pre-commercial production sales from Fekola)
Fekola Mine construction successfully completed in late September 2017, more than three months ahead of the original schedule
Fekola Mine achieved commercial production on November 30, 2017, one month ahead of the revised schedule and four months ahead of the original schedule
Fekola Mine gold production was 111,450 ounces in 2017 (including pre-commercial production), far surpassing the upper end of its original guidance range (of 45,000 to 55,000 ounces)
Fekola Mine achieves cash operating costs (see “Non-IFRS Measures”) of $277 per ounce and all-in sustaining costs (“AISC”) (see “Non-IFRS Measures”) of $419 per ounce (including pre-commercial results)
Masbate Mine achieves near-record annual gold production of 202,468 ounces and Otjikoto Mine achieves record annual gold production of 191,534 ounces
B2Gold’s full-year consolidated cash operating costs of $542 per ounce (including Fekola’s pre-commercial production results) were well below guidance of between $610 and $650 per ounce
B2Gold’s full-year consolidated AISC of $860 per ounce (including Fekola’s pre-commercial production results) were well below guidance of between $940 and $970 per ounce
Cash flow from operating activities (after non-cash working capital changes) of $155.0 million ($0.16 per share); additionally, sales of pre-commercial production from Fekola, which were included in investing activities rather than cash flow from operating activities, generated net proceeds of $73.4 million ($100.9 million of sales revenue net of related production costs of $27.5 million)
Strong cash position of $147.5 million at year-end
With the planned first full year of production from the Fekola Mine, the Company’s outlook for 2018 provides for dramatic production growth, with consolidated production expected to be between 910,000 and 950,000 ounces of gold; cash operating costs and AISC are expected to remain low and be between $505 and $550 per ounce and between $780 and $830 per ounce, respectively
Beginning in 2018, on average over the next three years, the Company is projecting per annum gold sales revenues of approximately $1.2 billion, cash flow from operations of close to $0.5 billion and a significant increase in free cash flow (operating cash flows less investing cash flows)
In 2018, B2Gold’s strategy will focus on organic growth through the expansion of its existing mines and further brownfields exploration and grassroots exploration
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1 Basis of presentation: The Fekola Mine commenced operation on September 24, 2017, and reached commercial production on November 30, 2017. In accordance with the Company's accounting policy, revenues and costs related to ounces produced in the pre-commercial operating period up to November 30, 2017, were not recorded in the consolidated statement of operations but were capitalized and treated as part of the net cost of construction of the Fekola Mine.

2017 Fourth-Quarter Highlights

Record quarterly consolidated gold production of 240,753 ounces (including 72,903 ounces of pre-commercial production from Fekola), 71% (or 100,102 ounces) greater than the same period in 2016
Consolidated gold revenue of $174.0 million (or a quarterly record of $274.9 million, including $100.9 million of pre-commercial production sales from Fekola)
Consolidated cash operating costs of $473 per ounce and AISC of $754 per ounce (including Fekola’s pre-commercial production results)
2017 Full Year and Fourth-Quarter Operational Results

For B2Gold, 2017 was an outstanding year of performance with the achievement of another record year of consolidated gold production (for the ninth straight year), and the successful construction and commissioning of its flagship Fekola Mine, in southwest Mali, which achieved commercial production on November 30, 2017, one month ahead of the revised schedule and four months ahead of the original schedule. With the large, low-cost Fekola Mine now in production, B2Gold is on target to achieve transformational growth in 2018. In 2018, with the planned first full year of production from the Fekola Mine, consolidated gold production is forecast to be between 910,000 and 950,000 ounces (see "2018 Production Outlook and Cost Guidance" section). This represents an increase in annual consolidated gold production of approximately 300,000 ounces in 2018 from 2017. The Company's forecast consolidated cash operating costs are expected to remain low in 2018 and be between $505 and $550 per ounce and AISC are expected to decrease by approximately 6% from 2017 and be between $780 and $830 per ounce.

The Fekola Mine is projected to be a large, low-cost producer. The resulting increase in production levels combined with low costs are expected to dramatically increase B2Gold's production, revenues, cash from operations and cash flow for many years, based on current assumptions (including a gold price assumption of $1,300 per ounce). On average over the next three years, beginning in 2018, the Company is projecting per annum gold sales revenues of approximately $1.2 billion, cash flow from operations of close to $0.5 billion and a significant increase in free cash flow (operating cash flows less investing cash flows).

For full-year 2017, consolidated gold production was an annual record of 630,565 ounces (including 79,243 ounces of pre-commercial production from Fekola), exceeding the upper end of its revised guidance range (of 580,000 to 625,000 ounces) and was well above the upper end of its original guidance range (of 545,000 to 595,000 ounces). Consolidated gold production for the year also increased by 15% (or 80,142 ounces) over 2016. B2Gold's record performance in 2017 reflected the early start-up and strong ramp-up performance of the new Fekola Mine and the continued, very strong operational performances of both the Masbate Mine in the Philippines and the Otjikoto Mine in Namibia.

In the fourth quarter of 2017, consolidated gold production was a quarterly record of 240,753 ounces (including 72,903 ounces of pre-commercial production from Fekola), exceeding reforecast production by 5% (or 10,473 ounces) and significantly exceeding budget by 28% (or 52,141 ounces). Consolidated gold production for the quarter also increased by 71% (or 100,102 ounces) over the same quarter in 2016.

The Company's full-year 2017 consolidated cash operating costs of $542 per ounce (including Fekola's pre-commercial production results) came in well below the guidance range of between $610 and $650 per ounce, as a result of the Company's strong operating performance. In addition, the Company's full-year 2017 consolidated AISC of $860 per ounce (including Fekola's pre-commercial production results) also came in well below the guidance range of between $940 and $970 per ounce.

In the fourth quarter of 2017 (including Fekola's pre-commercial production results), consolidated cash operating costs were $473 per ounce (Q4 2016 — $546 per ounce) and AISC were $754 per ounce (Q4 2016 — $877 per ounce).

2017 Full Year and Fourth-Quarter Financial Results

The Fekola Mine commenced operation on September 24, 2017, and reached commercial production on November 30, 2017 (see "Operations, Fekola Gold Mine — Mali" section). In accordance with the Company's accounting policy, revenues and costs related to ounces produced in the pre-commercial operating period up to November 30, 2017, were not recorded in the consolidated statement of operations but were capitalized and treated as part of the net cost of construction of the Fekola Mine. Consistent with the exclusion of these pre-commercial production revenues and costs from the determination of net income for the period, the related net cash flows were not reflected as part of cash flow from operating activities in the Company's 2017 consolidated statement of cash flows (but instead were reflected in the investing activities section). For full-year 2017, the Fekola Mine produced a total of 111,450 ounces (from September 24 to December 31). A total of 84,000 ounces were sold in the fourth quarter of 2017, with the remaining 27,450 ounces being recorded in inventory at December 31, 2017. Of the ounces sold, 79,243 ounces related to pre-commercial production. Consequently, only 4,757 of the ounces sold (for revenue of $6.1 million) related to Fekola Mine commercial production and were recorded in the Company's 2017 consolidated statement of operations. Proceeds from the sale of the 79,243 pre-commercial production ounces totaled $100.9 million and together with related production costs of $27.5 million for a total net credit of $73.4 million were capitalized and offset against Fekola Mine construction costs.

For the full-year 2017, consolidated gold revenue was $638.7 million (or an annual record of $739.5 million, including $100.9 million of pre-commercial production sales from Fekola) on sales of 510,966 ounces (or an annual record of 590,209 ounces including 79,243 ounces of pre-commercial production sales from Fekola) at an average price of $1,250 per ounce compared to $683.3 million on sales of 548,281 ounces at an average price of $1,246 per ounce in 2016.

Consolidated gold revenue in the fourth quarter of 2017 was $174.0 million (or a quarterly record of $274.9 million including $100.9 million of pre-commercial production sales from Fekola) on sales of 137,695 ounces (or a quarterly record of 216,938 ounces, including 79,243 ounces of pre-commercial production sales from Fekola) at an average price of $1,264 per ounce compared to $181.2 million on sales of 151,524 ounces at an average price of $1,196 per ounce in the fourth quarter of 2016.

Consolidated gold revenue for the fourth quarter and year ended December 31, 2017, included $15 million and $60 million, respectively, relating to the delivery of gold into the Company's Prepaid Sales contracts (accounted for as deferred revenue) entered into in March 2016. Proceeds from the Prepaid Sales transactions, used to fund a portion of the Fekola Mine construction rather than a potentially dilutive equity financing, were originally received in March 2016 and are being recognized in revenue as the underlying Prepaid Sales contracts are delivered into. During the fourth quarter and year ended December 31, 2017, 12,909 ounces and 51,633 ounces, respectively, were delivered under these contracts.

For the full-year 2017, cash flow from operating activities (after non-cash working capital changes) was $155.0 million ($0.16 per share) compared with $411.8 million ($0.44 per share) in 2016. In addition, sales of pre-commercial production from Fekola in the fourth quarter of 2017, which were included in investing activities rather than cash flow from operating activities, generated net proceeds of $73.4 million ($100.9 million of sales revenue net of related production costs of $27.5 million). Cash flow from operating activities for the year ended December 31, 2017, included a negative $39.7 million adjustment for changes in non-cash working capital (compared to a positive $2 million adjustment for changes in non-cash working capital in 2016), mainly relating to an increase in inventories at the Fekola Mine. Cash flow from operating activities for the year ended December 31, 2016, included $120 million of proceeds which were received from the Company's Prepaid Sales transactions in March 2016. In the fourth quarter of 2017, cash flow from operating activities was $25.6 million ($0.03 per share) compared with $82.3 million ($0.09 per share) in the fourth quarter of 2016.

For the year ended December 31, 2017, the Company recorded net income of $61.6 million ($0.06 per share) compared to net income of $38.6 million ($0.04 per share) for 2016. Adjusted net income (see "Non-IFRS Measures") was $51.8 million ($0.05 per share) for 2017 compared to $99.0 million ($0.11 per share) for 2016. As discussed above, for the year ended December 31, 2017, proceeds from the sales of pre-commercial production from Fekola ($100.9 million) and related production costs ($27.5 million), for a net amount of $73.4 million, were netted against Fekola Mine construction costs and not recorded as part of net income.

For the fourth quarter of 2017, the Company recorded net income of $34.5 million ($0.03 per share) compared to net income of $8.1 million ($0.01 per share) in the fourth quarter of 2016. Adjusted net income was $5.7 million ($0.01 per share) in the fourth quarter of 2017 compared to $2.5 million ($0.00 per share) in the fourth quarter of 2016. As discussed above, for the year ended December 31, 2017, proceeds from the sales of pre-commercial production from Fekola ($100.9 million) and related production costs ($27.5 million), for a net amount of $73.4 million, were netted against Fekola Mine construction costs and not recorded as part of net income.

Liquidity and Capital Resources

At December 31, 2017, the Company had cash and cash equivalents of $147.5 million compared to cash and cash equivalents of $144.7 million at December 31, 2016. The Company had a working capital deficit at December 31, 2017 of $98.7 million compared to a working capital of $101.0 million at December 31, 2016. The working capital deficit resulted from the reclassification of the Company's convertible senior subordinated notes to current liabilities, as they are due on October 1, 2018.

In 2016, the Company made a strategic decision to fund the construction of the Fekola Mine without using any equity to fund part of the construction cost. With the successful and earlier than anticipated ramp-up of the Fekola Mine in 2017, the Company is well positioned to execute the second part of its debt funding strategy and has started to reduce its overall consolidated debt levels. This planned repayment of debt balances includes the anticipated repayment of the Company's $259 million convertible notes which mature on October 1, 2018, unless the notes are converted into shares prior to that date. While current convertible market conditions remain attractive, the Company has allowed the notes to fall under amounts due within one year on the basis that the Company projects that it will have sufficient liquidity from 2018 operating cash flows and existing credit facilities to repay the notes in full and maintain a strong cash position. This position mirrors the Company's current strategy to focus on developing its budgeted organic growth opportunities in the short to mid-term using a portion of its projected ongoing cash flow from existing operations, as well as its amended Revolving Credit Facility ("RCF") without the need for additional new external debt or equity financing.

At December 31, 2017, the Company had drawn down $350 million under the $500 million amended RCF, leaving an undrawn and available balance under the existing facility at that time of $150 million. Subsequently, the Company repaid $50 million under the amended RCF leaving an undrawn and available balance of $200 million. At December 31, 2017, the Company also had Euro 22 million ($26.4 million equivalent) of undrawn capacity on its Fekola equipment loan facility and $9.1 million of undrawn capacity on its Masbate equipment loan facility.

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