Roxgold reports financial results for period ended September 30, 2013

TORONTO, Nov. 25, 2013 /CNW/ - Roxgold Inc. ("Roxgold" or "the Company") (TSXV: ROG) today reported its financial results for the three and nine months ended September 30, 2013. For complete details of the unaudited Condensed Interim Consolidated Financial Statements and associated Management's Discussion and Analysis for the periods ended September 30, 2013, please see the Company's filings on SEDAR (www.sedar.com) or on the Company's website (www.roxgold.com).

FINANCIAL HIGHLIGHTS

• On August 1, 2013, pursuant to a bought deal private placement financing, Roxgold issued 25,625,000 common shares at a price of $0.40 per share and received gross proceeds totalling $10,250,000.
  
  
• At September 30, 2013, Roxgold had $14.4 million in cash and cash equivalents.
  
  
• Expenditures on Roxgold's flagship Yaramoko exploration property totalled $5.5 million during the three months ended September 30, 2013 and $15.8 million during the nine months ended September 30, 2013.
  
  
• Net losses for the three and nine months ended September 30, 2013 were $1,765,476 and $3,622,827, respectively.
  
  
• The Company mandated Cutfield, Freeman & Co as its independent financial advisor to arrange project financing as Roxgold moves forward with the development of the high-grade Yaramoko Gold Project ("YGP").

THIRD QUARTER CORPORATE AND OPERATING HIGHLIGHTS

• Roxgold has delivered on the first two goals of its three-point strategy with the release of a resource update and the completion of its Preliminary Economic Assessment ("PEA") on Yaramoko's 55 Zone.
• On August 27, 2013, Roxgold announced an updated resource estimate totalling 850,000 gold ("Au") ounces in the indicated category at a 3.0 gram per tonne ("gpt") cut-off grade representing a 143% increase in indicated ounces compared to the maiden resource estimate dated August 7, 2012 while the inferred category included 273,000 inferred ounces.
  
  
• On September 16, 2013, Roxgold released the results of the PEA. Assuming a price of gold of $1,300 per ounce sold, highlights include:
  
• Pre-tax IRR of 59.2% with a 1.2 year payback on initial pre-production capital of $93.8 million
• After-tax IRR of 47.7% with a 1.4 year payback on initial capital
• Pre-tax NPV5% of $250 million
• After-tax NPV5% of $192 million
• Estimated average annual gold production of 98,300 ounces for the first five years
• Current study mine life of 10 years
• Average metallurgical recoveries of 96% gold
• Average total cash costs of $455/oz (including royalties) for the first 5 years of production
• Average total cash costs of $530/oz (including royalties) for Life of Mine ("LOM")
• Estimated all-in sustaining costs of $681/oz for first 5 years
• Although no production decision has been reached for the Yaramoko Gold Project ("YGP"), Roxgold believes that the conceptual economic case presented in the PEA coupled with the straightforward nature of the project in terms of geology, ore body geometry, mining methodology and processing merit the advancement of the project directly to a Feasibility Study level.
  
  
• The Company commenced work on the Feasibility Study ("FS") at the end of the third quarter of 2013. SRK (Toronto) and Mintrex (Perth) were appointed to lead the study which is planned for completion in the second quarter of 2014. In addition, critical path field works such as geotechnical and hydrology drilling were commenced on site in September 2013.
  
  
• The Company's regional exploration continued during the quarter during which time a 1,600 metre diamond drilling program on the Bagassi South target commenced. In addition, the Company's drill tested targets defined through auger and Induced Polarization ("IP") surveys earlier in the year. These targets included the 55 West Zone the 117 Zone and the 109 Zone.

NEAR FUTURE CORPORATE OBJECTIVES

• The Company will continue to focus on the advancement of the Feasibility Study in the fourth quarter. Geotechnical definition leading into mine design and scheduling as well as metallurgical testwork will be the principal activities evaluated.

• Roxgold expects to complete the Environmental and Social Impact Assessment ('ESIA') in the fourth quarter of 2013 for submission to the Burkina Faso government. This would precede an application for an exploitation permit at the Yaramoko concession.
  
  
• The Company will complete the expansion of the Company's current camp capacity in preparation for further development.
  
  
• In line with advancing the project methodically, the Company has started the preparation of mining contractor tender documentation.
  
  
• Continue diamond drilling on the highly prospective Bagassi South exploration target (see news releases dated July 9 and October 31, 2013).

SELECTED FINANCIAL DATA

As at September 30, 2013, the Company had cash and cash equivalents totalling $14,358,048 and exploration and evaluation assets amounting to $75,898,759. Roxgold's net loss for the three and nine months ended September 30, 2013 was $1,765,476 and $3,622,827 respectively (October 31, 2012: $5,154,265 and $11,197,384 respectively). The net losses for the periods ended September 30, 2013 decreased from the comparative periods in 2012 as a result of one-time costs associated with the contested annual general meeting and severance payments incurred in 2012 resulting from change of control provisions being triggered in employment agreements following the change in the Company's board of directors. Additionally, for the nine-month period ended September 30, 2013, there was a significant reduction of $4,126,669 in share-based compensation compared to the comparative period in 2012. The primary use of cash during the three and nine months ended September 30, 2013 was exploration and evaluation expenditures totaling $3,443,835 and $12,950,879.

QUALIFIED PERSON
Pierre Desautels, P.Geo, of AGP Mining Consultants Inc., a Qualified Person within the meaning of National Instrument 43-101 who is an independent consultant to the company, has verified and approved the technical data disclosed in the press releases included herein by reference. This includes the sampling, analytical and test data underlying the information.

ABOUT ROXGOLD
Roxgold is a gold exploration and development company with its key asset, the high grade, 100% owned Yaramoko exploration permit located in the Houndé greenstone region of Burkina Faso, West Africa. The Company recently announced the results of its Preliminary Economic Assessment as well as an updated resource estimate for the 55 Zone. A Feasibility Study is expected to be released in Q2 2014. Roxgold trades on the TSX Venture Exchange under the symbol ROG.

ON BEHALF OF ROXGOLD INC.

"Natacha Garoute"
Chief Financial Officer and Corporate Secretary

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

This news release contains forward-looking information. Forward looking information contained in this new release includes, but is not limited to, statements with respect to: (i) the estimation of inferred and indicated mineral resources; (ii) the success of exploration activities; (iii) the completion and timing of the environmental assessment process (iv) the results of the PEA including statements the projected IRR, payback period for the 55 Zone on the Yaramoko permit.

These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources, the realization of resource estimate, gold metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Yaramoko project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, the completion of the environmental assessment process, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not commence at the Yaramoko project, risks relating to variations in mineral resources, grade or recovery rates resulting from current exploration and development activities, risks relating to changes in gold prices and the worldwide demand for and supply of gold, risks related to increased competition in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities at the Yaramoko project may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, and environmental risks. This list is not exhaustive of the factors that may affect any of the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking information. The Company does not undertake to update any forward-looking information that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

SOURCE Roxgold Inc.