Avesoro Resources Regulatory News (ASO)

24 January 2018

Avesoro Resources Inc.TSX: ASOAIM: ASO

2018 PRODUCTION GUIDANCE AND EXPLORATION BUDGET

AND UPDATE ON EXPLORATION ACTIVITIES

Avesoro Resources Inc. ("Avesoro" or the "Company"), the TSX and AIM listed West African gold producer, is pleased to announce consolidated annual production guidance for 2018 and to provide an update on initial results from the 2017 exploration activities.

Highlights

· Gold production is expected to be between 220,000 and 240,000 ounces in 2018 representing a 15 to 25% increase on 2017 production from the Company's mines.

· 2018 financial budget extracts:

o Operating cash cost (per ounce produced)1: US$620 to US$660;

o All-in sustaining cost (per ounce sold)1: US$960 to US$1,000;

o Sustaining capital expenditure: US$65 million to US$75 million, including US$35 million of waste stripping;

o Repayment of US$26 million of project finance loans; and

o Exploration allocated US$25 million with eight diamond drill rigs currently active across licence portfolio, increasing to 24 drill rigs for 171,000m 2018 drill programme.

· Significant additional ounces delineated by drilling along strike from current mining operations at the Youga Gold Mine.

Serhan Umurhan, Chief Executive Officer of Avesoro, commented:

"We begin 2018 well positioned to continue to increase gold production levels and to further reduce operating costs at our New Liberty, Youga and Balogo Gold Mines. This year, we look to build upon the operational turnaround achieved at New Liberty and to deliver further growth throughout 2018, with forecast gold production of 220,000 to 240,000 ounces at an operating cash cost of US$620 to US$660 per ounce of gold produced.

I am very encouraged by the exciting exploration results we encountered during our 2017 exploration campaign in Burkina Faso, in particular at Youga, where we have identified significant additional ounces at Gassore along strike from existing pits, and in close proximity to the processing plant. These additional ounces now fall within our mining plan, thereby providing us with the confidence to increase our 2018 gold production guidance at Youga above that forecast in the 2017 published life of mine plan.

Investment in exploration is a key focus of our 2018 growth strategy following the success of last years focused exploration activities, and I am pleased to announce an exploration budget for 2018 of US$25 million that will see 24 diamond drill rigs operating across the Company's licence portfolio by Q3 2018.

I look forward to updating the market on the progress of our comprehensive 2018 drilling campaign and to announcing an updated Mineral Resource statement later this year, which already stands at a healthy 2.3 Moz grading 2.2g/t Au".

2018 Operational Outlook

New Liberty Gold Mine, Liberia ("New Liberty")

· Gold production is expected to increase by 45 to 58% to between 110,000 and 120,000 ounces in 2018 compared to 76,179 ounces in 2017;

· Operating cash costs are expected to decrease to between US$630 and US$670 per ounce produced;

· AISC is expected to decrease to between US$1,020 and US$1,060 per ounce produced; and

· US$45 million to US$50 million of sustaining capital expenditure is planned for 2018 including US$33 million of waste stripping.

Youga and Balogo Gold Mines, Burkina Faso ("Youga" and "Balogo")

· Gold production is expected to be between 110,000 and 120,000 ounces in 2018 compared to 115,894 ounces in 2017;

· Operating cash costs per ounce produced are expected to be between US$540 to US$580;

· AISC is expected to be between US$805 to US$845 per ounce produced; and

· US$20 million to US$25 million of sustaining capital expenditure is planned for 2018.

Exploration

· Board approved exploration budget of US$25 million for 2018 with eight diamond drill rigs currently mobilised across the licence portfolio;

· The Company expects to complete 171,000 metres of diamond drilling during 2018;

· The Company's drilling contractor has placed an order for an additional 16 new diamond drill rigs, of which four are currently enroute to Burkina Faso and expected to be operational by late February 2018;

· The remaining 12 drill rigs will be mobilized during Q2 and Q3 2018 with six rigs being allocated to Liberia and six rigs to Burkina Faso; and

· The drilling contractor, which is a related party to the Company, is able to provide a very attractive drilling rate of between US$40 and US$85 per metre for HQ Diamond drilling.

Update on 2017 Exploration Activities

Liberia

Throughout 2017, the Company's exploration team undertook a comprehensive review of all previously identified exploration targets and conducted additional geological and geochemical work around previously identified gold in soil anomalies.

In Q4 2017, the Company commenced a 14,000 metre on-mine infill drilling programme, with the aim of increasing the confidence in the continuity of the New Liberty ore body and to upgrade the classification of a proportion of Inferred Mineral Resource in the NI 43-101 compliant Technical Report dated November 1, 2017 to an Indicated Mineral Resource. To date, 29 holes for 12,000 metres have been completed, with assay results currently pending. 

Burkina Faso

Throughout H2 2017, the Company conducted drilling campaigns on several targets across the Youga and Balogo licences.

At Youga, a 52,000 metre near-mine diamond drilling campaign was completed in 2017 with particular focus on the Gassore prospect which is located along strike from the existing mine operations. To date, drilling has intersected mineralization over a strike length of 650 metres along a 2.6 km mineralized trend, testing to a vertical depth of 100 metres, with the average width of the mineralization intersected being 1.34 metres (drilled width) at an average grade of 8.40 g/t Au.

Details relating to the latest drilling results are illustrated in the following diagram:

http://avesoro.com/wp-content/uploads/2018/01/Youga_General_v1.2.jpg

Key intercepts from the near-mine drilling programme are reported below:

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Contact Information

Notes:

1 Non-GAAP Financial Measures: The Company has included certain non-GAAP financial measures in this press release, including operating cash costs and all-in sustaining costs ("AISC") per ounce of gold produced. These non-GAAP financial measures do not have any standardised meaning. Accordingly, these financial measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with International Financial Reporting Standards ("IFRS").

Operating cash costs and all-in-sustaining cash costs are a common financial performance measure in the mining industry but have no standard definition under IFRS. Operating cash costs are reflective of the cost of production and include a net-smelter royalty.

AISC include operating cash costs, corporate costs, sustaining capital expenditure, sustaining exploration expenditure and capitalised stripping costs.

About Avesoro Resources Inc.

Avesoro Resources is a West Africa focused gold producer and development company that operates three gold mines across West Africa and is listed on the Toronto Stock Exchange ("TSX") and the AIM market operated by the London Stock Exchange ("AIM"). The Company's assets include the New Liberty Gold Mine in Liberia (the "New Liberty Gold Mine" or "New Liberty") and the Youga and Balogo Gold mines in Burkina Faso ("Youga" and "Balogo").

New Liberty has an estimated proven and probable mineral reserve of 7.4Mt with 717,000 ounces of gold grading 3.03g/t and an estimated measured and indicated mineral resource of 9.6Mt with 985,000 ounces of gold grading 3.2g/t and an estimated inferred mineral resource of 6.4Mt with 620,000 ounces of gold grading 3.0g/t. The foregoing Mineral Reserve and Mineral Resource estimates and additional information in connection therewith is set out in an NI 43-101 compliant Technical Report dated November 1, 2017 and entitled "New Liberty Gold Mine, Bea Mountain Mining Licence Southern Block, Liberia, West Africa" and is available on SEDAR at www.sedar.com.

Youga and Balogo have a combined estimated proven and probable mineral reserve of 9.3Mt with 513,000 ounces of gold grading 1.7g/t and a combined estimated indicated mineral resource of 16.05Mt with 801,600 ounces of gold grading 1.55g/t and a combined inferred mineral resource of 13Mt with 655,000 ounces of gold grading 1.57g/t. The foregoing Mineral Reserve and Mineral Resource estimates and additional information in connection therewith is set out in two NI 43-101 compliant Technical Reports, dated June 16, 2017 entitled "Mineral Resource and Mineral Reserve Update for the Balogo Project" and dated June 19, 2017 and entitled "Mineral Resource and Mineral Reserve Update for the Youga and Ouaré Projects" and are available on SEDAR at www.sedar.com.

For more information, please visit www.avesoro.com

Qualified Persons

The Company's Qualified Person is Mark J. Pryor, who holds a BSc (Hons) in Geology & Mineralogy from Aberdeen University, United Kingdom and is a Fellow of the Geological Society of London, a Fellow of the Society of Economic Geologists and a registered Professional Natural Scientist (Pr.Sci.Nat) of the South African Council for Natural Scientific Professions. Mark Pryor is an independent technical consultant with over 25 years of global experience in exploration, mining and mine development and is a "Qualified Person" as defined in National Instrument 43 -101 "Standards of Disclosure for Mineral Projects" of the Canadian Securities Administrators and has reviewed and approved the scientific and technical disclosures contained in this announcement.

Forward Looking Statements

Certain information contained in this announcement constitutes forward looking information or forward looking statements with the meaning of applicable securities laws. This information or statements may relate to future events, facts, or circumstances or the Company's future financial or operating performance or other future events or circumstances. All information other than historical fact is forward looking information and involves known and unknown risks, uncertainties and other factors which may cause the actual results or performance to be materially different from any future results, performance, events or circumstances expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "would", "project", "should", "believe", "target", "predict" and "potential". No assurance can be given that this information will prove to be correct and such forward looking information included in this announcement should not be unduly relied upon. Forward looking information and statements speaks only as of the date of this announcement.

Forward looking statements or information in this announcement include, among other things, statements regarding 2018 gold production of between 220,000 - 240,000 ounces; statements regarding 2018 operating cash costs (per ounce produced) of between US$620 - US$660 per ounce; statements regarding 2018 all-in sustaining costs (per ounce sold) of between US$960 - US$1,000 per ounce; statements regarding 2018 sustaining capital expenditure of US$65 million - US$75 million, including US$35 million of waste stripping; statements regarding the repayment of US$26 million of the project finance loan facility; and statements regarding the allocation of US$25 million to exploration with eight diamond drill rigs increasing to 24 drill rigs for 171,000m in 2018, and statements regarding each of the foregoing for the Company's New Liberty, Youga and Balogo mines.

In making the forward looking information or statements contained in this announcement, assumptions have been made regarding, among other things: general business, economic and mining industry conditions; interest rates and foreign exchange rates; the availability and reliability of infrastructure and processing facilities; the continuing accuracy of Mineral Resource and Reserve estimates; geological and metallurgical conditions (including with respect to the size, grade and recoverability of Mineral Resources and Reserves) and cost estimates on which the Mineral Resource and Reserve estimates are based; the supply and demand for commodities and precious and base metals and the level and volatility of the prices of gold; market competition; the ability of the Company to raise sufficient funds from capital markets and/or debt to meet its future obligations and planned activities and that unforeseen events do not impact the ability of the Company to use existing funds to fund future plans and projects as currently contemplated; the stability and predictability of the political environments and legal and regulatory frameworks including with respect to, among other things, the ability of the Company to obtain, maintain, renew and/or extend required permits, licences, authorizations and/or approvals from the appropriate regulatory authorities; that contractual counterparties perform as agreed; and the ability of the Company to continue to obtain qualified staff and equipment in a timely and cost-efficient manner to meet its demand.

Actual results could differ materially from those anticipated in the forward looking information or statements contained in this announcement as a result of risks and uncertainties (both foreseen and unforeseen), and should not be read as guarantees of future performance or results, and will not necessarily be accurate indicators of whether or not such results will be achieved. These risks and uncertainties include the risks normally incidental to exploration and development of mineral projects and the conduct of mining operations (including exploration failure, cost overruns or increases, and operational difficulties resulting from plant or equipment failure, among others); the inability of the Company to obtain required financing when needed and/or on acceptable terms or at all; risks related to operating in West Africa, including potentially more limited infrastructure and/or less developed legal and regulatory regimes; health risks associated with the mining workforce in West Africa; risks related to the Company's title to its mineral properties; the risk of adverse changes in commodity prices; the risk that the Company's exploration for and development of mineral deposits may not be successful; the inability of the Company to obtain, maintain, renew and/or extend required licences, permits, authorizations and/or approvals from the appropriate regulatory authorities and other risks relating to the legal and regulatory frameworks in jurisdictions where the Company operates, including adverse or arbitrary changes in applicable laws or regulations or in their enforcement; competitive conditions in the mineral exploration and mining industry; risks related to obtaining insurance or adequate levels of insurance for the Company's operations; that Mineral Resource and Reserve estimates are only estimates and actual metal produced may be less than estimated in a Mineral Resource or Reserve estimate; the risk that the Company will be unable to delineate additional Mineral Resources; risks related to environmental regulations and cost of compliance, as well as costs associated with possible breaches of such regulations; uncertainties in the interpretation of results from drilling; risks related to the tax residency of the Company; the possibility that future exploration, development or mining results will not be consistent with expectations; the risk of delays in construction resulting from, among others, the failure to obtain materials in a timely manner or on a delayed schedule; inflation pressures which may increase the cost of production or of consumables beyond what is estimated in studies and forecasts; changes in exchange and interest rates; risks related to the activities of artisanal miners, whose activities could delay or hinder exploration or mining operations; the risk that third parties to contracts may not perform as contracted or may breach their agreements; the risk that plant, equipment or labour may not be available at a reasonable cost or at all, or cease to be available, or in the case of labour, may undertake strike or other labour actions; the inability to attract and retain key management and personnel; and the risk of political uncertainty, terrorism, civil strife, or war in the jurisdictions in which the Company operates, or in neighbouring jurisdictions which could impact on the Company's exploration, development and operating activities.

This announcement also contains Mineral Resource and Mineral Reserve estimates. Information relating to Mineral Resource and Mineral Reserve contained in this announcement is considered forward looking information in nature, as such estimates are estimates only, and that involve the implied assessment of the amount of minerals that may be economically extracted in a given area based on certain judgments and assumptions made by qualified persons, including the future economic viability of the deposit based on, among other things, future estimates of commodity prices. Such estimates are expressions of judgment and opinion based on the knowledge, mining experience, analysis of drilling results and industry practices of the qualified persons making the estimate. Valid estimates made at a given time may significantly change when new information becomes available, and may have to change as a result of numerous factors, including changes in the prevailing price of gold. By their nature, Mineral Resource and Mineral Reserve estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such Mineral Resource and Mineral Reserve estimates are inaccurate or are reduced in the future (including through changes in grade or tonnage), this could have a material adverse impact on the Company and its operating and financial performance. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration.

Although the forward-looking statements contained in this announcement are based upon what management believes are reasonable assumptions, the Company cannot provide assurance that actual results or performance will be consistent with these forward-looking statements. The forward looking information and statements included in this announcement are expressly qualified by this cautionary statement and are made only as of the date of this announcement. The Company does not undertake any obligation to publicly update or revise any forward looking information except as required by applicable securities laws.

Technical Glossary