Mr. Scott Caldwell reports

GUYANA GOLDFIELDS INC. STRENGTHENS PRESENCE IN GUYANA, RESTRUCTURES COUNTRY OFFICE

Guyana Goldfields Inc. has restructured its country office in Guyana and provided an update on the progress it has made in employee development and the promotion of Guyanese nationals into key management positions at its Aurora gold mine.

As part of the continuing restructuring program launched on July 30, 2018, the company has promoted 60 Guyanese nationals into senior roles, and, of significance, has promoted Guyanese national, Jermaine Critchlow, as sustainability manager for Guyana -- a role previously held by an expatriate.

Further, the company has named another Guyanese national, Miranda LaRose, as corporate social responsibility/sustainability co-ordinator for Guyana. Ms. LaRose, a new hire, was formerly a senior writer with Guyana's Stabroek News newspaper.

In addition to realizing operational efficiencies, the company expects these changes and the new local leadership will further strengthen its presence in Guyana and its good relationship with the government.

As part of the restructuring, the company has reduced its expatriate work force by 14, representing approximately 30 per cent of the total expatriate staff. Total employment postrestructuring consists of 729 Guyanese nationals (representing approximately 96.4 per cent of the overall work force) and 27 expatriates. The Aurora gold mine is one of the largest employers in Guyana.

"These transformational changes, which are consistent with our Aurora gold mine strategic plan established last summer, will strengthen our presence in Guyana and further enhance our operations," said Scott Caldwell, president and chief executive officer. "These restructuring efforts complement recent initiatives undertaken to strengthen the management team, refocus exploration efforts and advance corporate governance."

Rene Marion, non-executive chairman, added: "The company remains focused on a continuous improvement process that the board initiated in the second half of 2018. The process started on July 30, 2018, with the termination of the company's executive chairman Patrick Sheridan and the elimination of an ineffective dual reporting structure under which Mr. Sheridan was responsible for government relations and exploration in Guyana."

Single country office

All of Guyana Goldfields' and the Aurora gold mine's activities in Georgetown will be managed out of a single office in the country, which will increase synergies and efficiencies while reducing costs. The second office located at North Road will be closed effective immediately. As part of the restructuring, country manager Violet Smith is leaving the company, as her position has become redundant. Guyana Goldfields thanks Ms. Smith for more than 20 years of service.

As the company announced on Jan. 3, 2019, Perry Holloway has been appointed senior vice-president, strategy and corporate affairs. Mr. Holloway has assumed responsibility for all activities involving government relations in Guyana as well as corporate social responsibility. He will also provide assistance on key in-country management issues as needed. Mr. Holloway was a career diplomat with more than 30 years of international experience in Latin America and the Caribbean, having most recently served as U.S. ambassador to Guyana and the Caribbean community.

Commitment to Guyanese work force and Guyanese business

The recently promoted 60 Guyanese nationals are taking on critical positions in management, senior operations leadership, technical, administrative and exploration. This demonstrates the company's commitment to develop its Guyanese work force through the continuing transfer of skills and technology, while reducing the use of foreign nationals in the operation of the mine, mill and support services.

Guyana Goldfields remains strongly committed to Guyanese businesses and social responsibility. As part of this commitment, the company purchases goods and services from more than 250 companies and individuals in Guyana and maintains parts of two major interior roads leading to the mine site that are also used by the local miners, loggers and others for personal and business activities.

Exploration refocused

During the second half of 2018, management made a strategic decision to refocus exploration efforts on the high quality near-mine brownfield targets that will potentially provide the greatest opportunities for near term growth. This resulted in the net reduction in the total exploration team of 45 employees (of which seven were expatriate geologists), as the company temporarily closed distant field camps at Iroma, Wynamu and Arangoy, which have been placed on care and maintenance. The company intends to resume its greenfield exploration in the first half of 2019.

As part of the restructuring efforts to focus on brownfield exploration, the seven expatriate geologists were replaced with two new expatriate hires. The remaining 32 members of the exploration team are Guyanese nationals (94 per cent) in keeping with the company's commitment to source skilled local employment. The team consists of seven geologists, one data technician, 12 core technicians and 14 drill contractors. For the 2019 campaign, the company expects to hire an additional three geologists, six technicians and two data clerks.

Further, the company has appointed a Guyanese national, Boaz Wade, as exploration leader, effective Jan. 1, 2019. Under Mr. Wade's direction, the company has already made considerable advances in the appreciation of the geology and gold mineralization at the Aurora gold mine.

Four-point strategic plan

Guyana Goldfields continues to execute its four-point strategic plan for Aurora, which includes: (1) health, safety, security and environment; (2) licence to operate; (3) engaged people; and (4) operational efficiency and optimization. The company expects that this new, focused strategy developed in the fourth quarter of 2018, and the restructuring announced today, will deliver significant benefit for Guyana Goldfields, its shareholders and the people of Guyana.

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