Mr. Scott Caldwell reports

GUYANA GOLDFIELDS INC. PRODUCES 41,281 OUNCES IN THE FIRST QUARTER OF 2016

Guyana Goldfields Inc.'s first quarter 2016 gold production totalled 41,281 ounces at the Aurora gold mine in Guyana, South America.

In the first quarter ended March 31, 2016, the company produced 41,281 ounces of gold, of which 40,568 ounces were sold at an average realized price of $1,196 (U.S.) per ounce generating approximately $48.5-million (U.S.) in pretax revenue.

The mill processed an average of 5,083 tonnes of ore per day, of which 77 per cent of the ore processed was composed of hard rock, at an average head grade of 2.98 grams per tonne gold and gold recoveries averaged 90.4 per cent.

Mining is going well with total material mined for the year exceeding plan by 38 per cent or 566,066 tonnes.

Total overall gold production since September, 2015, is 77,182 ounces. The company has mined a total of 1,113,965 tonnes of ore grading 2.87 grams per tonne gold, and a total of 908,002 tonnes of ore have been fed to the mill and the remaining tonnes of ore were stored in the stockpile located near the mill. In addition 2,711,629 tonnes of waste have been mined.

At March 31, 2016, the company made its second principal debt repayment of $6.8-million toward the project loan facility of $160-million (see press release dated Sept. 3, 2014) totalling its combined principal debt repayment to $11.1-million.

Scott Caldwell, president and chief executive officer, stated: "We are extremely pleased with the overall performance of Aurora, and the company is well on its way to achieving its production guidance for 2016 of 130,000 to 150,000 ounces of gold. We continue to optimize gold recovery and are actively working on continuous improvement initiatives designed to improve operating efficiencies and reduce costs."

First quarter financial results and conference call

The company plans to release its first quarter 2016 operating and financial results before market open on Tuesday, May 10, 2016. Further information including conference call details will be released closer to date.

We seek Safe Harbor.