Mr. John Dorward reports

ROXGOLD PROVIDES FINANCING AND PROJECT DEVELOPMENT UPDATE

Roxgold Inc. has signed an updated mandate and commitment arrangement with Societe Generale Corporate and Investment Banking to replace the commitment letter announced on Sept. 30, 2014, which expired on Dec. 25, 2014. Under the revised arrangement, Societe Generale has reconfirmed, subject to the conditions described below, its commitment to provide $37.5-million (U.S.) of project finance and to act as sole mandated lead arranger for the balance under the $75-million (U.S.) facility. The commitment has been extended on the same terms as those outlined in the Sept. 30, 2014, news release.

Credit Suisse AG has elected not to extend its previously announced commitment to provide $37.5-million (U.S.) of project finance debt. Roxgold and Societe Generale are in discussions with a number of experienced project finance banks and are working toward closing the updated debt facility in first-quarter 2015 utilizing the extensive due diligence and documentation work already completed in 2014. As the availability of the financing facility is subject to a number of conditions precedent, including the receipt by Roxgold of the mining decree for the previously approved mining permit at Yaramoko and other standard conditions precedent for facilities of this nature, including completion of due diligence by any new lender and finalization of documentation, there can be no assurance that the debt facility transaction will complete. The Societe Generale reconfirmed commitment of $37.5-million (U.S.) is also subject to it arranging the balance of the $75-million (U.S.) facility.

Roxgold remains well financed to pursue early works at the Yaramoko gold project, with approximately $42-million (U.S.) in cash. In addition, the company has the ability to issue up to $15-million (U.S.) in equity to its underground mining contractor, African Underground Mining Services, once underground development commences.

Project development

Notwithstanding the recent events in Burkina Faso, Roxgold has continued to make significant progress on developing the Yaramoko gold project. Recent highlights include the following:

• Detailed design and engineering have been completed.
• The SAG mill being manufactured by Outotec is on schedule and is 60 per cent complete.
• The Armtec tunnel for underground mine access is now complete and awaiting shipment.
• The design of the power line to access the grid is complete, and long-lead-item procurement, including the tower steel and transformer, is approximately 40 per cent complete.

In addition, the company has made a key appointment, with Iain Cox joining Roxgold as Yaramoko's general manager, operations.

Mr. Cox is a mining engineer with significant experience in West Africa and the start-up of underground mining operations. Mr. Cox has directly relevant experience from roles performed in Ghana, Egypt, Vietnam, the Philippines, Turkey, Indonesia and Australia for companies including Newmont/Normandy, Centamin and Crew Gold. Over the last 19 years he has held senior leadership roles in development and operational phases at many underground mining projects. Mr. Cox holds a bachelor of engineering from the University of Queensland, as well as an MBA from Latrobe University.

Paul Criddle, Roxgold's chief operating officer, commented: "We are delighted to welcome Iain to Roxgold, as he is a high-calibre professional who brings a great deal of experience to the project. We are confident that he will contribute to Yaramoko's success as we continue to move forward with our development strategy."

Key early works contracts have been advanced and, pending receipt of the formal mining decree, Roxgold is in a strong position to initiate site works at Yaramoko. The company has agreed to the terms for key items of infrastructure, including the permanent camp and bulk earthworks, which will commence shortly after the award of the mining decree. Given progress on critical path items such as detailed design and engineering and the SAG mill, Roxgold remains confident that Yaramoko will be in production in just over a year following the award of the mining decree.

"Despite recent challenges in Burkina Faso, Roxgold is in excellent shape for the commencement of development at Yaramoko," commented John Dorward, president and chief executive officer. "We have a strong treasury, excellent partners in the form of AUMS and Societe Generale, and we have continued to attract experienced and motivated people to our company."

We seek Safe Harbor.