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Goldplat plc

Continued record gold production for Goldplat plc

Goldplat plc, the AIM listed gold producer, with international gold
recovery operations located in South Africa and Ghana and a gold mine in
Kenya, is pleased to announce a trading update for the year ended 30
June 2017 (‘FY 2017’), a production update for FY 2017 and an
operational update for the three months (the ‘Quarter’) ended 30 June

Trading update

Goldplat is pleased to announce that consolidated profit before tax for
the Company before any adjustment for the Nyieme Project (as described
further below) is expected to exceed market expectations for FY 2017.
The Company expects to publish its annual financial results in September

Production for the year ended 30 June 2017

— 42,857 gold equivalent ounces, representing a 14% increase over the
previous year were produced during FY 2017 (FY June, 2016: 37,666
ounces). All operations contributed to the year-on-year increase which
exceeded targets for the year

— 40,285 gold equivalent ounces were sold and transferred during FY 2017
(FY 2016: 40,763 ounces). The high level of gold sold and transferred
during FY 2016 was due to stock carried over from the previous year being
sold, whereas the Gold equivalent ounces sold during 2017 reflects a
build-up of material in Ghana which will be sold in the first quarter of
the new year

Production for the Quarter

Overall production of 14,790 ounces of gold and gold equivalents was
achieved during the Quarter. This relatively high quarterly production
was primarily as a result of:

— commissioning most of the stage two expansion at Kilimapesa Gold Limited
(‘KPG’) during the Quarter and consequent increase in production to 1,254
ounces of gold

— production from a large contract with a new client in Africa being
completed at Goldplat Recovery Limited (‘GPL’) during the Quarter,
resulting in 11,896 ounces of gold equivalent ounces of production at GPL
for the Quarter.

4th Qtr ending 4th Qtr ending Year ending Year ending
June 2017 June 2017 June 2017 June 2017 Year ending June 2016 Year ending June 2016
Goldplat Plc Equivalent Gold Equivalent Gold Equivalent Gold Equivalent Gold Equivalent Gold Equivalent Gold
Consolidated kg oz kg oz kg oz
Gold Recovery
Ghana 51 1 640 312 10 031 214 6 883
Gold 39 1 254 106 3 408 62 2 005
Recovery 370 11 896 915 29 418 895 28 778
Total 460 14 790 1 333 42 857 1 171 37 666
Gold Recovery
Ghana 13 418 259 8 327 279 8 964
Gold 38 1 222 100 3 215 62 1 999
Recovery 306 9 838 702 22 570 516 16 575
Total 357 11 478 1 061 34 112 857 27 538
Recovery 34 1 094 192 6 173 411 13 225
Total 34 1 094 192 6 173 411 13 225
Sold and
Gold Recovery
Ghana 13 418 259 8 327 279 8 964
Gold 38 1 222 100 3 215 62 1 999
Recovery 340 10 932 894 28 743 927 29 800
Total 391 12 572 1 253 40 285 1 268 40 763

Goldplat Recovery (Pty) Ltd (‘GPL’), South Africa

— Gold production at GPL during the Quarter was high (at 11,896 ounces of
gold equivalent produced) due primarily to the completion of processing
of a large one-off batch of carbon from a new client in Africa. Most of
this production was also sold during the Quarter with the remainder
planned for sales in the first quarter of the new year

— The Carbon-in-leach (‘CIL’) circuits exceeded planned gold production due
to higher grade of processed material, despite an unplanned stoppage of a
mill during the period.

— With sourcing of feed for the CIL circuits remaining a priority, the
Company is pleased that large volumes of material for the CIL circuits
for the new financial year were sourced during the Quarter. Some of this
material will benefit from various different testwork being undertaken to
improve recoveries.

— Metallurgical testwork and pilot tests on the stock dam material
continue. The process of securing the West 3 Pit for deposition tailings
continues but with the different interests of the various stakeholders
and the changing regulatory environment, the approval process is taking
longer than initially anticipated. The Company remains confident that the
logistical and regulatory issues will be overcome and the pit will be

— No further progress has been made on the Rand Refinery dispute.

Goldplat Recovery Ghana (‘GRG’), Ghana

— Gold production at GRG improved significantly during the Quarter to 1,640
ounces of gold equivalent resulting in an annual production of 10,031
ounces of gold equivalent production.

— With sources of material from within Ghana continuing to deplete for
various reasons, focus remained on sourcing from outside of the country.
Momentum in this regard is picking up with contracts secured from
elsewhere in Africa as well as South America.

— The planned elution plant was shipped from GPL during the Quarter and
arrived in Ghana shortly after the end of the Quarter, with work started
on site preparation and civils. Whereas the deadline for commissioning is
June 2018, GRG would like to target the end of December 2017 for

— A third fluidised bed incinerator which was purchased second-hand from an
operator in Tanzania is currently being transported for shipment to GRG.

— During the Quarter, more focus was put into improving security at the
plant and also in processing the large stockpiles of low-grade material.
These projects are ongoing and contribute to ensuring space for and a
secure environment for planned increased production at GRG in the future.

— GRG is investigating a major project with the Ghanaian Government to
assist in clean-up of artisanal mining tailings. The Company is
conducting extensive sampling programmes to assess both gold as well as
contaminant (mainly mercury and cyanide) content and is simultaneously
investigating the most efficient processing methods so as to recover gold
and deal with contaminants in an environmentally acceptable manner (in
compliance with acceptable global standards).

Kilimapesa Gold (‘KPG’), Kenya

— Production at KPG of 1,254 ounces of gold equivalent during the Quarter
represented a 41% increase on the previous quarter and a record gold
production quarter for the operation. Notwithstanding the improvement,
the production was lower than that planned due to both lower tonnages and
grades mined.

— Production rates were impacted by problems with generators, mainly
associated with poor diesel quality. These issues have been largely dealt
with during the Quarter. A new diesel bowser has been installed at the
new plant, a new supplier has been engaged, and the process of installing
grid power at plant 2 has been initiated.

— KPG achieved operational profitability during the months of May and June
2017 – for the first time since the acquisition a decade ago. Management
is confident that profitability will now be maintained and improved.

— Full commissioning of stage two of the new plant is still not complete
due to ongoing delays in clearing key equipment through the port. Planned
mill throughput was achieved as sufficient fine material was previously
stockpiled for processing during commissioning. Increased mine production
and final commissioning of the crusher section during the first quarter
of the new financial year should improve both tonnage and grade of
material and should allow improved recoveries.

— All sections of the crusher section have been run on trial basis and have
performed very well. Full commissioning is expected during the first
quarter of the new financial year.

— KPG continues to acquire good quality tailings for processing at the old
plant where the tailings facility capacity has been increased to provide
for a further 12 months of production.

Anumso Gold Project, Ghana

— During the Quarter, Ashanti Gold Corp completed an extensive soil
sampling programme across the Anumso Gold Project properties to test the
strike extent of the Banka conglomerate. 1,300 samples were collected
which are now being assayed locally

— All core has been reviewed and a 320Kg sample was selected for
metallurgical testing. Samples are currently in Vancouver for test work.

— All core is now being stored on GRG’s site in Tema

— Ashanti Gold Corp’s planned work for the next period includes the
completion of assaying of soil samples and metallurgical testwork of core

Nyieme Gold Project, Burkina Faso

The exceptional 3-year extension granted for Nyieme Gold Project in
Burkina Faso on 29 September, 2014 expires in October 2017. The Company
has no intention to apply for a further extension or a renewal as
previous work at the project found it to be of too small a scale to be
viable and the Company does not wish to commit any further capital on
exploration at this project. A decision has been taken by the Board to
fully write-off the value of the Nyieme Gold Project during FY 2017. The
value of this write-off in Goldplat’s income statement for the year
ended 30 June 2017 is expected to be approximately GBP980,000.

South America

— Strong progress has been made in securing contracts with operators in
various South American countries. A local Brazilian metallurgist has been
employed to work alongside the Company’s local partner (Oretec).

— Deliveries of material to GRG from the Company’s first large, long-term
contract in Uruguay were received during the Quarter with production
expected in the new financial year.

— Trial batches of mill liners, wood chips and low-grade carbon have proved
to be economically viable. This is important as significant competition
for higher grade carbon has been encountered.

— The Board expects further progress in South America in the new financial
year which will assist with the growth plans at GRG.

Gerard Kisbey-Green, CEO of Goldplat plc, commented:

“The final quarter of the financial year produced good results all
around for Goldplat, with a particular highlight being the continued
record gold production and first operational profitability at our
Kilimapesa operation. Delays in the final commissioning of stage two of
the new plant were largely out of the team’s control and I remain very
proud of the work done on the project which should reap rewards in the
years to come! Securing and completion of a very large contract for a
new client in Africa was a further highlight at GPL! Despite this being
a one-off contract, it proved our ability to source material from new
clients and geographies, manage the logistics and process large amounts
of material quickly and profitably! This is an important aspect of
overall risk mitigation for Goldplat. I believe that the extensive
progress being achieved in the diversification of sourcing of material
at all of our operations will stand the Company in good stead for the
coming financial year. I look forward to sharing comprehensive results
with the market in September 2017”.

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.