Mr. Scott Caldwell reports

GUYANA GOLDFIELDS INC. PRODUCES 21,855 OUNCES OF GOLD YEAR TO DATE IN 2016 AND IS ON TRACK TO MEET PRODUCTION GUIDANCE

Gold production for the year-to-date mining operations in 2016 has totalled 21,855 ounces at Guyana Goldfields Inc.'s Aurora gold mine in Guyana, South America.

Since reaching commercial production on Jan. 1, 2016, the company has produced 21,855 ounces of gold and sold 22,551 ounces at an average realized price of $1,155 per ounce generating approximately $26.1-million (U.S.) in preroyalty, pretax revenue.

For the year to date, the mill processed an average of 5,083 tonnes of ore per day, of which 74 per cent of the ore processed was composed of hard rock, at an average head grade of 2.83 grams per tonne gold and gold recoveries averaged 89 per cent. All required mill maintenance, including a 36-hour planned maintenance interval, took place during this period.

Total overall gold production since September, 2015, is 57,757 ounces. The company has mined a total of 875,523 tonnes of ore grading 2.87 g/t Au and a total of 725,117 tonnes of ore has been fed to the mill and the remaining tonnes of ore were stored in the stockpile located near the mill. In addition, 2,207,929 tonnes of waste has been mined.

Mining is going well with total material mined for the year exceeding plan by 27 per cent or 261,749 tonnes. Drilling and blasting of ore and waste are continuing. Open pit mining at Rory's Knoll has reached approximately 25 metres below the river level elevation with minimal surface subsidence, as expected.

Scott A. Caldwell, president and chief executive officer, states, "With commercial production having been achieved and mining and milling throughputs performing above expectations, we will turn our focus to optimizing gold recovery, reducing reagent consumption rates, reducing freight and equipment rental costs, and other continuous improvement initiatives designed to further improve operating efficiencies and reduce costs."

The company currently has approximately $44-million (U.S.) in cash, of which, $27-million (U.S.) consists of restricted cash.

We seek Safe Harbor.