VANCOUVER, BRITISH COLUMBIA—(Marketwired - Nov. 7, 2016) - Asanko Gold Inc. (“Asanko” or the “Company”) (TSX:AKG)(NYSE MKT:AKG) reports its financial results for the three-month and nine-month period ended September 30, 2016 (“Q3”). The Company released its production and revenue results for Q3 on October 13, 2016. All amounts are in US dollars unless otherwise stated. Management will host a conference call and webcast today at 9am Eastern Time, further details below.

Q3 2016 Highlights:
•Net income of $11.7 million ($0.06/share) and adjusted net income1 of $10.7 million ($0.05/share)
•Cash provided by operating activities of $33.1 million ($0.17/share).
•Quarterly gold production increased from Q2 by 49% to 53,986 ounces.
•Gold sales of 54,393 ounces generating gross revenue of $71.3 million.
•Balance sheet strengthening with cash of $57.6 million, unrefined doré on hand with a market value of $9.7 million and $5.3 million in receivables from gold sales.
•Working capital1 position improved to $66.7 million.
•Total cash costs2 decreased quarter on quarter by 28% to $609/oz.
•All-in sustaining costs3 decreased from Q2 by 29% to $907/oz.

Commenting on the Company’s performance, Peter Breese, President and CEO, said “The Asanko Gold Mine really hit its stride during this quarter as the ore grade from the Nkran pit continued to increase and the process plant was further optimized to improve throughput to 20% above design at 3.6Mtpa.

Gold production and gold sales were up 49% and 55% respectively quarter on quarter and costs improved accordingly, with a 28% decrease in total cash costs to $609/oz and a 29% reduction in AISC to $907/oz. This is a very pleasing result one quarter after commercial production was declared.

We are well positioned to advance our Phase 2A expansion project with a strong balance sheet and 52,000 to 57,000 ounces of gold production expected in Q4.”

Key Operating and Financial Highlights

Asanko Gold Mine, 100% basis

Q3 2016 Q2 2016
Waste Mined (t) 6,005,355 5,816,173
Ore Mined (t) 1,326,471 1,242,657
Strip Ratio (W:O) 4.5:1 4.7:1
Mining Cost ($/t mined) 3.88 3.74
Ore Processed (t) 851,538 702,318
Gold Feed Grade (g/t) 2.12 1.69
Gold Recovery (%) 94 92
Processing Cost ($/t milled) 13.25 13.79
Gold Production (oz) 53,986 36,337

Gold Sales (oz) 54,393 35,074
Average Realised Gold Price ($/oz) 1,311 1,231
Operating Cash Costs2 ($/oz) 544 785
Total Cash Costs2 ($/oz) 609 846
All-in Sustaining Costs3 ($/oz) 907 1,280
Adjusted All-in Sustaining Costs4 ($/oz) 667 934

Revenue ($m) 71.5 43.3
Production Costs, including Royalties ($m) 33.5 30.0
Income from Mine Operations ($m) 20.5 0.33
Net Income (Loss) ($m) 11.7 (12.5)
Net Income (Loss) per Share $0.06 ($0.06)
Adjusted Net Income1 (Loss) ($m) 10.7 (11.8)
Adjusted Net Income1 (Loss) per Share $0.05 ($0.06)
Cash provided by Operating Activities ($m) 33.1 18.1
Cash provided by Operating Activities per share $0.17 $0.09

Q3 2016 Operational Results
•Safety and Health are key pillars to the success of the Asanko Gold Mine. No lost time injuries (“LTI’s”) were recorded in the period with only one LTI in the past 12 months. The rolling 12 month lost time injury frequency rate is exceptional at 0.17 per million man-hours worked.
•Q3 was the first full quarter of steady state operations at the Asanko Gold Mine; during the quarter the main mineralized domains in the Nkran pit were further exposed and the mix of mining in those zones increased.
•Mined ore grade increased steadily during the quarter with 2.0g/t mined in September.
•Mining now substantially de-risked for a single pit operation with strategic stockpile of 1.12 million tonnes reached, fully clad twin ramp system operational and multiple working faces available at variable elevations to manage water ingress and any pit slope instability.
•In Juy and August, the process facility operated at 10% above design capacity at 3.3 million tonnes per annum (“Mtpa”).
•During September a new mobile crusher was commissioned to mitigate a bottleneck in the primary crushing circuit and the processing plant increased its throughput, operating at 20% above design capacity (3.6Mtpa).
•A 10,000 metres drilling program at Akwisiso delivered highly encouraging drill results with visible gold intercepts and extensive mineralized intersections of similar style to the main Nkran pit.
•The 2016 near mine exploration program yielded success during Q3 with the completion of the Nkran Extension resource estimate.
•Environmental permit received for a portion of the Adubiaso Extension and initial grade control drilling was completed during the quarter.

Q3 2016 Financial Performance
•The Company earned net income of $11.7 million ($0.06/share) and adjusted net income $10.7 million1 ($0.05/share).
•Cash provided by operating activities was $33.1 million ($0.17/share), 83% higher than Q2.
•The Company sold 54,393 ounces of gold at an average realized gold price of $1,311/oz for total gold revenue of $71.3 million.
•Revenues net of royalties were $68 million from the sale of gold, being 65% higher than Q2 and indicative of the achievement of above planned production.
•Total cost of sales (including depreciation and depletion) of $47.5 million resulted in income from mine operations of $20.5 million, as compared to $0.33 million for Q2.
•Unit costs of production in the mining and processing areas are substantially in-line with expectations with mining costs averaging $3.88/tonne mined and processing costs averaging $13.25/tonne milled.
•The Company lowered operating cash costs2 per ounce to $544/oz and total cash costs2 per ounce to $609/oz by 31% and 28% respectively compared to Q2.
•All-in Sustaining Costs3 decreased by 29% to $907/oz in the quarter largely due to a increase in sales in Q3 as a result of record production.
• Adjusted all-in sustaining costs4 were $667/oz, down from $934/oz in Q2.

Q3 2016 Liquidity and Capital Resources
•The balance sheet at September 30, 2016 remains strong with cash of $57.6 million, unrefined gold dore on hand with a market value of $9.7 million and $5.3 million in receivables from gold sales.
•The working capital position1 of the Company as of September 30, 2016 improved to $66.7 million from $21.5 million at June 30, 2016 as the Company begins to accumulate cash from gold sales.
•The Company received total VAT refunds of $20.3 million in Ghana, being all VAT relating to Phase 1 of construction of the AGM as well as operational VAT receivables from Q1 pre-commercial production operations. Going forward the Company expects VAT outflows to be offset by VAT inflows as the process of auditing and claiming operational VAT is entrenched.

2016 Outlook and Opportunities
In light of the strong production performance during Q3 and the above design performance of the processing facility, the Company reiterates its recently increased production guidance of 52,000 - 57,000 ounces for Q4 2016.

The Company also recently received the Environmental Invoice (a precursor to the receipt of the Environmental Permit) for mining and conveyor operations at Esaase and the Board has consequently approved an early works program for the Phase 2A expansion, which includes Front End Engineering and Design which will commence immediately. The Phase 2 Definitive Feasibility Study is expected to be published in Q4 2016 and will include production and cost guidance for the Phase 1 operations for 2017 and 2018.

Notes:

1 Non-GAAP Performance Measures

The Company has included certain non-GAAP performance measures in this press release, including working capital, adjusted net income (loss), adjusted net income (loss) per share, operating cash costs, total cash costs, all-in sustaining costs per ounce of gold produced, and adjusted all-in sustaining costs per ounce of gold produced. These non-GAAP performance measures do not have any standardized meaning. Accordingly, these performance measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

2 Operating Cash Costs per ounce and Total Cash Costs per ounce

Operating cash costs are reflective of the cost of production, adjusted for share-based payments, by-product revenue and non-cash inventory movements for each ounce of gold sold. Total cash costs include production royalties of 5%.

3 All-in Sustaining Costs Per Gold Ounce

The Company has adopted the reporting of “all-in sustaining costs per gold ounce” (“AISC”) as per the World Gold Council’s guidance. AISC include total cash costs, corporate overhead expenses, sustaining capital expenditure, capitalized stripping costs and reclamation cost accretion for each ounce of gold sold.

4 Adjusted All-in Sustaining Costs Per Gold Ounce

The Company reports “adjusted all-in-sustaining costs” per ounce of gold in order to adjust out capitalized stripping costs incurred during the period, which is a non-GAAP performance measure. By adjusting out capitalized stripping costs, the Company provides additional information about costs which the Company does not expect to continue at the same level in future or that management does not believe are an accurate reflection of the Company’s ongoing all-in sustaining costs.