Toronto, Ontario – March 5, 2020 - Roxgold Inc. (“Roxgold” or the “Company”) (TSX: ROXG) (OTCQX: ROGFF) today reported its fourth quarter and full year financial results for the period ended December 31, 2019.
For complete details of the audited Consolidated Financial Statements and associated Management’s Discussion and Analysis please refer to the Company’s filings on SEDAR (www.sedar.com) or the Company’s website (www.roxgold.com). All amounts are in U.S. dollars unless otherwise indicated.
Full Year 2019 Highlights:
During the year ended December 31, 2019, the Company:
Safety
• Continued a strong safety record with no lost time injuries recorded over the last twelve months
Operations
• Record annual production of 142,204 ounces compared to 132,656 ounces in 2018
• Record plant throughput of 466,157 tonnes in 2019 exceeding nameplate capacity by 16%
• Cash operating cost2 of $489 per ounce produced and all-in sustaining cost2 of $844 per ounce sold
• Operating costs2 of $149 per tonne processed were 19% lower than 2018 due to increased throughput and improved efficiencies
Financial
• Sold 140,800 ounces of gold1 for a total of $196.2 million in gold sales1 in 2019 (133,030 ounces and $169.2 million respectively in 2018)
• Achieved an adjusted EBITDA2 and adjusted EBITDA margin2 of $83.3 million and 43% respectively in 2019 compared to $83.7 million and 49% in 2018
• Generated improved cash flow from mining operations2 totalling $98.3 million for cash flow from mining operations per share2 of $0.27 (C$0.34/share)
• Adjusted net income2 of $19.5 million ($0.05 per share) in 2019 compared to $37.4 million ($0.10 per share) in 2018
Produced a mine operating margin2 of $825 per ounce and a return on equity2 of 11%
Growth
• Bagassi South achieved commercial production in September 2019
• Completion of the Séguéla Gold Project acquisition from Newcrest Mining in April 2019
• Reported an updated Mineral Resource Estimate for the Séguéla Gold Project in January 2020 with Total Indicated Mineral Resources increasing 7% to 529,000 ounces and Inferred Mineral Resources increasing 1,286% to 471,000 ounces
• New high grade discovery at Boussoura, Burkina Faso
Fourth Quarter 2019 Highlights:
During the quarter ended December 31, 2019, the Company:
• Record quarterly gold production of 41,162 ounces, an increase of 59% compared to 25,844 ounces produced in Q4 2018
• Plant throughout 131,439 tonnes in Q4 2019, exceeding nameplate capacity by 30%
• Achieved a cash operating cost2 of $466 per ounce produced for a total cash cost2 of $576 per ounce sold and all-in sustaining cost2 of $914 per ounce sold
• Generated cash flow from mining operations2 totalling $30.7 million for cash flow from mining operations per share2 of $0.08
“It has been a transformative year for Roxgold with the Séguéla Gold Project acquisition and recent exploration success with the new high grade discovery at Boussoura,” commented John Dorward, President and CEO of Roxgold. ”At Yaramoko, we continued to see strong operating performance and cashflow generation. Yaramoko achieved record production of 142,204 ounces of gold and record plant throughput of 466,157 tonnes exceeding nameplate capacity by 16% in 2019. We have also delivered on our growth objectives by successfully achieving commercial production at the Bagassi South mine in September 2019. As a result of the strong operational performance, we generated approximately $100 million in cash flow from mining operations for the year. This has enabled us to strengthen our balance sheet finishing the year with approximately $42 million in cash and in a net cash position of $16 million.
“We are looking forward to an exciting 2020 as we rapidly advance the Séguéla Gold Project. The Séguéla Gold Project has become a substantial value accretive project for Roxgold, and we believe the updated mineral resource announced in January 2020 underscores the potential for this project to deliver on our aspirations of being the next West African multi-asset gold producer. Our next priority will be the completion of a preliminary economic assessment on the Séguéla Gold Project in the second quarter of this year. We are very excited by Séguéla’s significant potential, notably at the Ancien deposit which remains open at depth and along strike, as well as the potential within the Boulder-Agouti corridor and the additional 22 highly prospective targets that have been identified. At Boussoura, we look forward to growing the current mineralized footprint and setting up the potential for Roxgold’s third high grade project.”

2019 Review
Safety continues to be our priority with no lost time injuries recorded in 2019. At Yaramoko, we continued to see strong operating performance and cashflow generation. Yaramoko achieved record production of 142,204 ounces of gold relative to low end of guidance of 145,000 ounces. This represented a 7% increase from the previous year primarily due to record plant throughput of 466,157 tonnes exceeding nameplate capacity by 16% in 2019. We also delivered on our growth objectives by successfully achieving commercial production at the Bagassi South mine in September 2019.
Cash operating cost2 of $489 was above the guidance range of $440 to $470 per ounce primarily due to the lower gold production. All-in sustaining cost2 of $844 was above guidance range of $765 to $795 per ounce sold primarily due to lower than forecasted gold production and higher royalties and levies due to the higher gold price and the introduction of a 1% levy toward a mining fund for local development. This increased royalties by $26 per ounce sold relative to guidance.
In April 2019, the Company announced the successful acquisition of Séguéla Gold Project from Newcrest West Africa Holdings Pty Ltd. The Company immediately commenced drilling leading to an updated Mineral Resource Estimate for the Séguéla Gold Project in January 2020 with Total Indicated Mineral Resources increasing 7% to 529,000 ounces and Inferred Mineral Resources increasing 1,286% to 471,000 ounces (refer to the press release titled “Roxgold Announces a Significant Increase in Mineral Resources at the Séguéla Gold Project” dated January 29, 2020 for more information). This led to exploration spend being higher than guidance due to the accelerated drilling programs at Séguéla. This increase in Resources was value accretive as it was achieved at a cost of only $7 per ounce.
We continued to strengthen our balance sheet finishing the year with approximately $42 million in cash and in a net cash position2 of $16 million.

2020 Operating Outlook
• Gold production between 120,000 and 130,000 ounces
• Cash operating cost2 between $520 and $580/ounce
• All-in sustaining cost2 between $930 and $990/ounce
• Non-sustaining capital spend of $5-$10 million
• Growth spend (includes Exploration and Séguéla study spend) of $15-$20 million
The increase in AISC is attributed to higher projected capital spend as the Bagassi South decline development is completed in 2020 along with enhanced security infrastructure investment. Growth spend is forecast to increase this year to $15-$20 million due to accelerating the drilling program at Séguéla and Boussoura following recent exploration successes at these projects.

Mine Operating Activities
Year ended December 31 2019 Year ended December 31 2018 Operating Data
Ore mined (tonnes) 479,929 351,689
Ore processed (tonnes) 466,157 307,591
Head grade (g/t) 9.5 13.5
Recovery (%) 98.2 98.6
Gold ounces produced 142,204 132,656
Gold ounces sold1 140,800 133,030
Financial Data (in thousands of dollars)
Revenues – Gold sales1 196,151 169,172
Mining operating expenses (69,371) (57,270)
Government royalties (10,680) (7,529)
Depreciation and depletion (51,823) (34,926)

Statistics (in dollars)
Average realized selling price (per ounce) 1,393 1,272
Cash operating cost (per tonne processed)2 149 184
Cash operating cost (per ounce produced)2 489 426
Total cash cost (per ounce sold)2 568 485
Sustaining capital cost (per ounce sold)2 216 196
Site all-in sustaining cost (per ounce sold)2 784 683
All-in sustaining cost (per ounce sold)2 844 740

Health and safety performance
There were no Lost Time Injury (“LTI”) incidents in 2019 with over 2.5 million hours worked.

Operational performance
The Company’s gold production in 2019 was 142,204 ounces at a head grade of 9.5 g/t compared to 132,656 ounces at 13.5 g/t in 2018. The 7% increase in gold production was mainly driven by higher tonnes processed in 2019 partially offset by lower head grade. The lower average head grade was primarily due to the ramp-up of the Bagassi South underground mine which delivered lower grade development ore during the year.
During 2019, 479,929 tonnes of ore at 8.9 g/t were extracted from the underground mines along with completing 6,346 metres of development compared to 351,689 tonnes of ore at 11.7 g/t and 5,826 metres of development in 2018. The 55 Zone mine produced 357,376 tonnes at 9.9 g/t and the Bagassi South mine contributed 122,553 tonnes at a grade of 6.0 g/t.

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