An anonymous director reports

WEST AFRICAN RESOURCES LIMITED QUARTERLY ACTIVITIES REPORT

West African Resources Ltd. has released an update for its activities on its 100-per-cent-owned and 100-per-cent-earning gold and copper-gold projects in Burkina Faso, West Africa, for the quarter ended Sept. 30, 2014.

As reported last quarter, West African announced the results of a technical and financial assessment of a heap leach starter project on its Mankarga 5 project, Burkina Faso.

Highlights included:

• Preproduction capital of $35-million plus working capital and contingency of $9-million;
• Internal rate of return of 57 per cent with a 16-month payback on initial capital;
• Free cash flow of $103-million after capital costs;
• Net present value at 5 per cent of $84-million;
• Estimated average annual gold production of 59,400 ounces for first three years;
• Estimated average annual gold production of 44,100 ounces for life of mine;
• Current study mine life of 5.4 years;
• Life-of-mine strip ratio 1 to 1;
• Cash costs of $614 per ounce;
• All-in sustaining cash costs of $685 per ounce (including cash costs, royalties, refining and sustaining capital).

Material from Mankarga 5 also achieved outstanding gold recoveries in column testwork, with recoveries of up to 90 per cent gold, supporting the company's plans for a heap leach starter project development approach for Mankarga 5.

Diamond drilling during the quarter confirmed potential for a Stage 2 carbon-in-leach project at Mankarga 5, demonstrating excellent grade continuity beneath the proposed oxide starter pit that West African intends to treat by conventional heap leach processing.

West African also reported further high-grade gold results from oxide definition drilling at Mankarga 5, including step-out oxide drilling that intercepted the Mankarga 5 structure 500 metres northeast of the existing resource on sections NE1400 and NE1500, which remain open to the northeast.

West African will use drill results from the quarter to expand the Mankarga 5 resource in an update planned for the December quarter.

A breakdown of drilling for the September quarter includes:

• Diamond: 10 holes; 1,458.8 metres;
• Aircore: 87 holes; 2,504 metres.

Mankarga 5 deposit (Tanlouka permit)

West African acquired the Tanlouka permit in January, 2014, following its acquisition of TSX Venture Exchange-listed Channel Resources Ltd.

Since the acquisition, West African fast-tracked exploration at Mankarga 5, including reverse circulation drilling, metallurgical diamond core drilling and oriented diamond core drilling targeting high-grade zones. On April 14, 2014, West African reported an updated independent resource estimate of 5.7 million tonnes grading 1.7 grams per tonne gold containing 315,000 ounces gold indicated and 11.4 million tonnes grading 1.6 g/t gold containing 568,000 ounces gold inferred (at a 1.0-gram-per-cent cut-off) for Mankarga 5. West African plans to update this estimate in the December 2014 quarter.

The company aims to be a more-than-50,000-ounce-per-annum gold producer by the end of 2015 through a low-cost heap leach starter project at the Mankarga 5 deposit, subject to study outcomes. West African secured a second-hand 1.6-million-tonne-per-annum heap leach plant in February as part of its plan to fast-track development of Mankarga 5.

Scoping study

West African announced a scoping study for the Mankarga 5 gold project on July 28, 2014. The study demonstrated Mankarga 5 as a high-margin, low-capex gold project. The study assumed annual throughput of 1.6 million tonnes per annum, which is in line with the capacity of the second-hand plant the company purchased earlier in 2014. The base case is stated assuming a 100-per-cent basis and a gold price of $1,300 per ounce. All amounts are in U.S. dollars unless otherwise stated.

A mineral resource estimate prepared by Ravensgate Mining Consultants in April, 2014 (reported in accordance with NI 43-101 standards and Joint Ore Reserves Committee (2012) guidelines), was used for the scoping study. This was based on drilling data until March, 2014. The company has completed 20,000 metres of drilling since then and intends to upgrade the resource in the December, 2014, quarter.

The study demonstrated positive results for starter project focusing on the oxide portion of the Mankarga 5 resource.

For full details of the scoping study, refer to the Australian Securities Exchange/TSX Venture Exchange announcement dated July 28, 2014.