Guyana Goldfields Inc - GUY.t

Guyana Goldfields Inc - GUY.t flagship is the Aurora Gold Project in Guyana which achieved first gold production in August 2015. The Company has been operating in Guyana continuously since 1996. The Company expects 2016 production of between 130-150k ozs at all in production costs around $ 661 per oz.

On January 18, 2016 the company released News Guyana Goldfields Inc. (TSX: GUY) (the “Company”) is pleased to report the key findings from its feasibility study entitled “AGM Inc. Aurora Gold Project- Updated Feasibility Study” dated January 18, 2016 and effective September 30, 2015 (the “FS”) for the 100% owned Aurora Gold Mine (the “Project”). The FS was authored by Metal Mining Consultants with contributions from SRK Consulting Inc. and others. The full FS is available on SEDAR at www.sedar.com and the Company’s website at www.guygold.com. The updated FS reflects an extended open-pit/deferred underground mining scenario, as well as current cost parameters, and reserves based on a revised gold price of US$1,000 per ounce. The mine plan produces 2,865,726 ounces of gold at an average life of mine (“LOM”) grade of 2.94 grams per tonne (“g/t”) gold over an initial 16 year mine life at an all-in sustaining cost (“AISC”) of US$661 per ounce. Average annual gold production over the LOM is 188,000 ounces, and averages 200,000 ounces per year over the period from 2017 - 2028. Gold production peaks in year 2023 at 231,000 ounces. Gold production is staged with an initial open pit mill throughput rate of 5,000 tonnes per day (“tpd”) from the Rory’s Knoll deposit expanding to 8,000 tpd in early 2017 with the inclusion of other open pit feeds from the Aleck Hill and Mad Kiss deposits. Underground mining at Rory’s Knoll commences in year 2022 and lasts for nine years. Scott A. Caldwell, President & CEO states, “Operating results to date and this updated FS confirm the economic strength of the Aurora deposit. Good grade, great metallurgy, low operating and capital costs allow GGI to stand out amongst its industry peers”. Highlights of the Study Gold Price (base case) US $1,000/oz Mine Life (LOM) 16 years Average Mill Throughput (initial) 5,000 tpd Average Mill Throughput (extended) 6,040 tpd Strip Ratio 6.8:1 (waste to ore) Average Gold Grade (mill head) 2.94g/t Gold Recovery (saprolite) 97% Gold Recovery (fresh rock @ 5,000 tpd) 94.4% Average Annual Production (LOM) 188,000 oz/yr Average Annual Production (Years 2017-2028) 200,000 oz/yr Total Gold Production (Recovered Gold) 2,865,726 oz LOM Cash Costs (with royalty) US $564/oz LOM AISC US $661/oz All-IN cost (AISC + Corp G&A + Exploration+ Debt) US $778/oz Expansion Capital Cost Mill (Year 2016) US $5.6 M Open Pit (Year 2016 + 2017) US $18.8 M Underground Development Cost US $227.4 M Pre-Tax NPV (5% Discount Rate) US $672 M After-Tax NPV (5% Discount Rate) US $568 M Net Revenue US $2.7 B Net Operating Income US $1.2 B Project Economics The following table provides details of the Project’s economics at variable gold price assumptions and assumes no sunk initial development capital costs of US$249M (see press release dated December 9, 2013). Financials (at 5% Discount Rate) Units Gold Price Per Ounce in US$ $800 $900 $1,000 Base Case $1,100 $1,200 Average Operating Cash Cost (LOM) US$/oz 554 559 564 602 610 All-In Sustaining Cost (LOM) US$/oz 651 656 661 699 707 Pre-Tax NPV US$M 297 485 672 795 977 After-Tax NPV US$M 278 435 568 656 784 After-Tax Net Cash Flow1 US$M 371 590 777 901 1,086 1. After-tax net cash flow defined as revenue less operating costs less capital expenditures. LOM Operating Costs Cash operating costs (@ $1,000 gold, includes royalty) US$564/oz Mining cost per tonne (open pit) US$2.45/tonne Mining cost per tonne to the Mill (open pit) US$19.23/tonne Mining cost per tonne to the Mill (underground) US$29.85/tonne Processing cost per tonne US$12.86/tonne G&A cost per tonne milled US$8.29/tonne

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