Mr. John Dorward reports

ROXGOLD PROVIDES DEVELOPMENT UPDATE FOR THE YARAMOKO GOLD PROJECT; ISSUES NOTICE OF AWARD TO DRA/GROUP FIVE JOINT VENTURE AS CONSTRUCTION CONTRACTOR ON FIXED PRICE BASIS

Roxgold Inc. has selected the DRA/Group Five joint venture as its preferred engineering, procurement and construction contractor for the Yaramoko gold project.

The fixed-price, lump-sum contract totals $34.9-million (U.S.). The JV is responsible for the full delivery of engineering, procurement, project management services, construction and commissioning of the proposed 270,000-tonne-per-year gold ore processing plant, including performance tests and warranties, as well as the associated plant site infrastructure. The contract terms are subject to Roxgold's lenders' approval and collation of final schedules. To date, $10-million (U.S.) has been spent or committed on long lead project items such as the SAG mill, detailed design and Armtec tunnel for underground mine access, as well as tower steel and a transformer for the 90-kilovolt power line. The award of the fixed-price EPC contract to the DRA/Group Five JV results in over 50 per cent of the estimated total capital cost of the Yaramoko gold project as either being now spent or fixed in nature. This important contract is further confirmation of the validity of the capital cost assumptions made in the feasibility study completed last year.

"We are delighted to have the DRA/Group Five JV partner with us on this project," said Paul Criddle, Roxgold's chief operating officer. "This key contract being lump sum provides us with greater confidence in our ability to execute the project. Over half of the total project scope is now either fixed in price or spent, further derisking the delivery of the Yaramoko gold project."

In parallel with establishing the EPC agreement, Roxgold is in the final stages of executing several other important project contracts. The accommodation camp contract has been signed as a fixed priced lump sum agreement. In addition, the earthworks agreement is due to be executed in March.

"Roxgold is very pleased with the engagement of the DRA/Group Five JV as we progress in advancing the Yaramoko gold project. Our project execution planning is well advanced and we are in a strong position to shortly commence project works in Burkina Faso," commented John Dorward, president and chief executive officer.

DRA and Group Five's recent successes include the Kibali gold project in Congo, formerly known as Zaire, one of the largest gold plants in the world, the Edikan (Central Ashanti) gold project in Ghana, as well as the Perkoa zinc project in Burkina Faso. The JV's experience in the region uniquely qualifies the DRA/Group Five JV to support and successfully implement the Yaramoko project in Burkina Faso.

We seek Safe Harbor.