Mr. Cliff Davis reports

NEVSUN ACCELERATES PRODUCTION, SALES AND NET INCOME IN SECOND QUARTER 2014

Nevsun Resources Ltd. has released its financial and operating results for the three and six months ended June 30, 2014. Unless otherwise noted, with the exception of earnings per share, and realized price and cost per pound figures, all financial results are in millions of U.S. dollars.

Second quarter 2014 highlights

• Produced 47.4 million pounds of copper in the quarter;
• Sold 51.5 million pounds of copper, a 51-per-cent increase over first quarter 2014;
• Achieved C1 cash costs of $1.05 per pound with strong earnings and cash flows;
• Working capital approaching $500-million;
• Announced successful drilling results from Bisha regional exploration;
• Paid peer-leading annualized dividend of 14 cents per share.

                                                    HIGHLIGHTS

                                                              Q2 2014            Q1 2014           YTD 2014

Revenues                                                       $169.2              $99.2             $268.4
Copper in concentrate produced, millions of pounds               47.4               39.7               87.1
Copper in concentrate produced, tonnes                         21,500             18,000             39,500
Payable copper sold, millions of pounds                          51.5               34.0               85.5
Payable copper sold, tonnes                                    23,400             15,400             38,800
Copper price realized, per payable pound sold                   $3.21              $3.01              $3.14
C1 cash cost per payable pound sold                              1.05               0.98               1.01
Net income attributable to Nevsun shareholders                   30.5               15.4               45.9
Earnings per share                                               0.15               0.08               0.23

"As expected, Bisha accelerated both production and sales of copper concentrate during Q2 2014 with 87.1 million pounds of production year to date, including a record monthly production in June, 2014, of 17.8 million pounds," stated Cliff Davis, president and chief executive officer of Nevsun. "This additional truck capacity allowed us to sell 51.5 million pounds during Q2 2014, a 51-per-cent increase versus the prior quarter."

Nevsun earned $54-million during Q2 2014 ($31-million attributable to Nevsun shareholders), or 15 cents per share. "We ended Q2 with an even stronger balance sheet with working capital approaching $500-million," stated Mr. Davis. "Our strong balance sheet allows us to comfortably maintain our quarterly dividend and continue to build up capital for future acquisitions or mergers."

On June 16, 2014, Bisha announced drilling results and the regional exploration program update. Mr. Davis commented: "We are excited to see some early success in our 2014 exploration program and have expanded the budget. We will be providing more updates throughout 2014 as we further evaluate the potential of the Bisha volcanogenic massive sulphide belt."

Operations review

                            KEY OPERATING INFORMATION -- BISHA MINE  
                                                    
                                                          Q2 2014       Q1 2014      YTD 2014 
Mining -- copper     
Ore mined (tonnes)                                        697,000       487,000     1,184,000
Waste mined (tonnes)                                    2,719,000     3,471,000     6,190,000
Strip ratio (using tonnes)                                    3.9           7.1           5.2
Processing -- copper                                                                       
Ore milled (tonnes)                                       386,000       353,000       739,000
Copper feed grade (%)                                         6.6           6.1           6.4
Recovery (% of copper)                                       84.6          83.5          84.1
Copper in concentrate produced (millions of pounds)          47.4          39.7          87.1
Copper in concentrate produced (tonnes)                    21,500        18,000        39,500
Payable copper sold (millions of pounds)                     51.5          34.0          85.5
Payable copper sold (tonnes)                               23,400        15,400        38,800
Copper price realized per payable pound sold        $        3.21 $        3.01 $        3.14

During Q2 2014, 697,000 tonnes of ore were mined, of which 531,000 tonnes were supergene ore, and the remaining oxide, pyrite sand and primary ores which were stockpiled for later processing. The oxide and pyrite sand stockpiles are estimated to contain over 80,000 ounces of gold. Mobile equipment maintenance issues coupled with some in-pit dewatering activities had an adverse impact on waste mining with 2,719,000 tonnes mined in the quarter. However, the lower-than-expected stripping during Q2 2014 is not expected to impact achieving copper production guidance in 2014.

Copper grades continued to exceed expectations at 6.6 per cent in the quarter due to a combination of positive metal reconciliation and a variance to the original mine plan. As previously disclosed, the copper concentrator was designed for an average 4.5-per-cent-copper feed. Accordingly, mill feeds in 2014 have been purposely reduced in order to match the 13.2 tonnes of copper produced per operating hour to avoid excessive copper losses to the tails management facility. The company expects grades to decrease during the second half of 2014, approaching the original design of the flotation circuit by year-end. With lower copper feed grades, the company can increase mill feed and maintain or potentially increase recoveries during the second half of 2014. The company expects its C1 cash costs to increase during the second half of 2014 due to anticipated lower precious metals byproduct credits and increased volumes of ore mined and milled.

Copper concentrate grades of 27 per cent are lower than the planned 30 per cent as the plant is carefully managed to ensure the company meets the specifications of its contractual commitments with various counterparties. Bisha will work to increase concentrate grades as much as possible in the second half to minimize shipping and smelting charges.

We seek Safe Harbor.