Resolute Mining Regulatory News (RSG)

27 April 2023

Quarterly Activities Report For the quarter ending 31 March 2023 ('March quarter' or 'the Quarter')

Highlights

· Total Recordable Injury Frequency Rate (TRIFR) increased to 0.85 from 0.41 in the preceding Quarter

· Quarterly production (gold poured) of 92,259 ounces (oz), the sixth consecutive quarter of increased production

· All-In Sustaining Cost (AISC) of $1,453/oz for the Quarter, a 6% reduction from the December quarter benefiting from a build up of stockpiles at both Syama and Mako

· Quarterly gold sales of 88,151oz at an average realised gold price in line with the average spot price of $1,890/oz compared to 93,326oz at an average realised gold price of $1,817/oz in the previous quarter

· Cash generation of $16.2 million excluding debt, interest payments, working capital and other movements

· $25 million was repaid on the Group's term loan facility, and $5 million was repaid on the Revolving Credit Facility (RCF)

· Net Debt of $19.9 million (down 37% from $31.6 million), including Cash and Bullion of $75.8 million. Available liquidity (Cash, Bullion and undrawn RCF) of $155.8 million

· Ore Reserves and Mineral Resource Statement released on 8 March 2023 indicating a 15% (0.6Moz) increase in Ore Reserves to 4.6Moz and an 18% (1.7Moz) increase in Mineral Resource to 11.2Moz of gold, both net of depletion

· Syama North Mineral Resources increased to 3.2Moz, and Ore Reserves increased to 854koz

· Syama North prefeasibility study (PFS) on track, with expected outcomes to be available mid-2023

· On track for full year guidance for 2023 of 350,000oz at an AISC of $1,480/oz

Note: Unless otherwise stated, all dollar figures are United States dollars ($).

Resolute Mining Limited (Resolute, the Company or the Group) (ASX/LSE: RSG) is pleased to present its Quarterly Activities Report for the period ended 31 March 2023.

Terry Holohan, CEO and Managing Director, commented, "I am pleased to report another solid quarter for Resolute, recording a sixth consecutive increase in production with 92,259 oz of gold poured, underpinned by improved productivity at all three mines (Syama Sulphide, Syama Oxide and Mako). This is a significant achievement especially given the pre-planned seven day downtime for roaster maintenance at the Syama Sulphide operations, towards the end of the Quarter. Costs for the Quarter improved 6% compared to the December quarter, benefiting from stockpile build up, as the Company mined more material than was processed across all sites.

"The Company's focus for the remainder of 2023 at Mako is on the planned pit extension, with mining for the remainder of the year through a lower grade section. The Company expects the June and September quarterly production levels to decrease marginally as the operations move through this section of the pit. Once the extension is complete, operations at Mako will return to the higher grade ore and benefit from lower stripping ratios, thus enabling higher production for the remainder of the mining life, out to 2025.

"At Syama, the emphasis remains on progressing the Syama North PFS, with expected outcomes to be available mid-2023. The Scoping study supports a low capital expansion costing between $40 - $50 million for items that will increase the sulphide processing capacity by up to 60% from a nominal 2.4 million tonnes per annum (Mtpa) capacity up to 4.0Mtpa with an expected lowering of unit operating costs.

"The overall Company focus remains on reducing costs across both operations, whilst maintaining the improved production particularly at Syama, with a number of initiatives already underway across the Group."

Operations Overview

The Company's performance compared to the previous quarter and the prior comparable quarter, is set out below:

Table 1: Resolute Group Operational Performance Summary

Refer to the Appendix for Resolute's production and costs for the March 2023 Quarter.

Environmental Social Governance

Resolute's TRIFR at 31 March 2023 was 0.85, an increase compared to the previous quarter, due to a rise in first aid and medical treatment injuries, especially at Syama. Corporate and Site management teams are monitoring the incidents and working on strategies to raise awareness on behavioural-based safety, which has been the root cause of the majority of those incidents.

Following the award of the International Organization for Standardisation (ISO) certification for ISO:45001:2018 (Occupational Health & Safety) and ISO:14001:2015 (Environmental Management Systems), the Company is focusing its efforts on closing out follow-up actions, in preparation for Year 1 surveillance audits, which are scheduled for later in the year.

Syama, Mali

The Syama sulphide operation produced 41,142oz, a decrease of 5% from the prior quarter. AISC remained in line with the prior quarter at $1,389/oz. The oxide operations had another steady quarter with production of 17,513oz at an AISC of $1,659/oz. Further details of these two operations are set out below.

Syama sulphide

Table 2: Sulphide Production and Cost Summary

The underground mined grade increased to 2.86g/t from 2.74g/t in the prior quarter, this was as per schedule with the current mine sequence and areas mined. Ore volumes mined remained high for the Quarter to allow a build-up of stockpiles to provide a strong position leading into the middle of the year and the coming wet season.

Ore processed was comparable with the previous quarter with the processing grade increasing to 2.99g/t with preferential ore blending delivered from the underground. Gold poured reduced 5% to 41,142oz impacted by a planned seven-day roaster shutdown towards the end of the Quarter to complete minor maintenance work on the fluoseal return leg to the roaster.

AISC of $1,389/oz reduced from the December quarter, with cash costs remaining in line with December and a reduction in gold drawn from the circuit.

Syama oxide

Table 3: Oxide Production and Cost Summary

The majority of the ore mined of 495,293t was sourced from the Tabakoroni pits. Additionally, mining commenced at the Folona pit during the Quarter.

The increased mined grade provided an 11% increase to the processed grade, partially offset by a lower recovery rate due to high organic carbon in the mill feed resulting in gold poured of 17,513oz in line with the December quarter.

Oxide AISC/oz reduced by 3% from the December quarter to $1,659/oz with operational costs increasing due to the increase in volume mined during the Quarter, offset by build-up of ore stockpiles and gold in circuit.

Mako, Senegal

Mako gold production for the Quarter was 33,604oz at an AISC of $1,307/oz. The operational performance for Mako is set out in the table below.

Table 4: Mako Production and Cost Summary

Ore mined at Mako remained in line with the December quarter. Throughput decreased 8%, due to a mill reline during the Quarter. The mill feed grade increased by 18%, reflecting a higher mine grade, resulting in a 10% increase in gold poured of 33,604oz from the prior quarter.

AISC decreased 14% to $1,307/oz, with increased gold poured and reduced sustaining capital spend. Total operational costs remained in line with the prior quarter, with a build-up in stockpiles.

The Company completed the acquisition of the Mako power plant during the Quarter. This purchase will reduce the ongoing operational overheads for power generation at the mine site.

Gold poured at Mako will decrease over the remainder of the year as the focus moves to the Stage 6 pit extension. During this period, the Company will be mining through a lower grade section in the Mako pit.

Exploration

Total exploration spend for the March quarter was $5.2 million, primarily on Syama North.

An updated Mineral Resource estimate for Syama North was announced on 19 January with an increase to 34 million tonnes at 2.9g/t Au for 3.18 million ounces.

The drilling program at Syama North is ongoing and will be extended throughout 2023 with the expectation of increasing the Mineral Resources. The sulphide mineralisation remains open at depth and appears to be contiguous along the entire 6km strike length of the Alpha to A21 deposits.

Infill drilling will continue similarly to the previous period to convert more of the 1.3 million ounces of Inferred resources to indicated in the updated Resource Model.

To date exploration drilling has been restricted to zones within 150m of the surface to concentrate on identifying open pit extractable Mineral Resources. This was increased to 200m below surface at the centre of A21 where the mineralisation widens sufficiently to enable recovery by open pit mining.

It is expected Resolute will be able to provide a further updated Mineral Resource model for Syama North during Q3 2023.

During the Quarter, the Company released its 31 December 2022 Ore Reserves and Mineral Resource Statement. Refer to ASX announcement entitled "Ore Reserves and Mineral Resource Statement" dated 8 March 2023. The Global Mineral Resources increased by 1.7Moz to 11.2Moz (net of depletion), with the Mineral Resource at Syama North increasing to 3.2Moz. Ore Reserves increased to 4.6Moz (net of depletion), with Ore Reserves at Syama North increasing to 854koz, with 10% (85koz) being oxide material.

Syama North prefeasibility study

The Syama North PFS is progressing and is forecast to be completed and presented to the Company board for project stage gate approval in the third quarter of 2023. The maiden reserves for the Syama North Sulphide deposits were published early this year and form the basis for the expanded Sulphide processing capacity.

A Scoping study was completed in the first quarter of 2023, in which lead engineering consultancies investigated several low capital options with various processing capacity rates, along with the corresponding mine schedules. Initial mine schedules confirm that Syama North can deliver the required ore to the modified process plants over the eight years of the project life.

The Scoping study confirmed the robustness and viability of the project, and the most feasible option was selected to progress the PFS, which would see the overall Sulphide processing capacity increase by more than 60% from a nominal 2.4Mtpa to a nominal 4.0Mtpa.

This increase in capacity will be achieved by making modifications to the existing Oxide comminution circuit to enable it to process Sulphide ore and includes modifications to the roasting circuit and Calcine carbon-in-leach circuit to handle the increased throughput as well as expansions to non-process infrastructure. A key design feature of the modified comminution circuit is it will be able to be switched to treat either Oxide ore, or Sulphide ore, both at a throughput rate of 1.6Mtpa. The circuit will be able to switch ore types within one shift. A new flotation circuit will be added downstream from the modified comminution circuit to produce concentrate when the circuit treats Sulphide ore. The concentrate from this modified comminution circuit and the concentrate from the existing Sulphide flotation circuit will be blended and treated in the roasting circuit to produce calcine, which will be leached in the existing calcine carbon-in-leach circuit.

The new comminution and flotation circuits will enable overall concentrate production to be higher than the roasting circuit can process. Excess concentrate will be stored in ponds to be reclaimed and treated while the comminution circuit is treating oxide ores. This flexibility is a key focus of the project, which will allow calcine production at full roaster throughput capacity, taking full advantage of the enhancements made to the roaster in the 2021 shutdown, when the modified comminution circuit is switched to treat Oxide ore, but also provides concentrate inventory to continue calcine production if one of the flotation circuits were not available.

When the modified comminution circuit is switched to treat Oxide ore from Syama North or from future discoveries, the resulting Oxide slurry will be leached in the existing Oxide carbon-in-leach circuit.

Assessments have also been carried out to further increase the roasting circuit throughput with lower capital options than those initially anticipated. The addition of oxygen to manage the next phase of expanded throughput capacity remains an option for the roasting circuit.

The PFS is expected to build on the results from the Scoping study to confirm a robust and executable project, with key activities during the second quarter of 2023 including the following:

· geotechnical drilling within the open pit designs

· advancing regulatory approvals

· infill drilling to increase the Ore Reserves

· further metallurgical test work and PFS-level engineering

· investigation of opportunities to optimise capital and maximise cash flow, preparation of operational and capital cost estimates

· engagement with the Local community to increase their understanding of the project

The delivery of the project is expected to be during the first half of 2025, assuming the results of the PFS support the initial Scoping outcomes.

Corporate

Quarterly Cash and Bullion Movements

*Included in Operating Cash flows are $5.1 million of royalties, $13.0 million of VAT and taxes, and movements in Bullion.

Chart 1: Quarterly Cash and Bullion Movements

The average realised gold price achieved for the Quarter was $1,890/oz in line with the average spot price of $1,890/oz. Debt repayments consisted of $25.0 million on the Term Loan Facility and $5.0 million on the RCF (now fully undrawn). Working capital and other comprises of an inflow of $2.4 million for creditors and consumables movements offset by overdraft movements, government dividends and other taxes for a net outflow of $0.9 million.

Balance sheet

Net debt decreased by $11.7 million to $19.9 million at 31 March 2023. Available liquidity of $155.8 million including cash of $54.0 million, bullion of $21.8 million, and undrawn RCF of $80.0 million. Total borrowings at 31 March 2023 were $95.7 million, comprising $50.0 million on the Term Loan Facility and $35.6 million and $10.1 million on the overdraft facilities in Mali and Senegal, respectively.

Hedging

At 31 March 2023, Resolute's forward sales commitments were:

Table 5: Committed Hedging Forward Sales in US dollars

As well as the above, the Company has in place 12,000oz of zero cost collars maturing in the March 2024 quarter. These comprise of put options at an average strike price of $1,600/oz and call options with an average strike price of $1,873/oz.

Resolute maintains a policy of discretionary hedging in compliance with its funding obligations, requiring a minimum of 30% of the next 12 months of forecast production to be hedged.

Reporting Calendar

25 May 2023 - Annual General Meeting

27 July 2023 - June Quarterly Activities Report

Investor and analyst conference call

Resolute will host a conference call for investors, analysts, and media on Thursday, 27 April 2023, to discuss the Company's Quarterly Activities Report for the period ending 31 March 2023. This call will conclude with a question-and-answer session.

Conference Call (pre-registration required)

Conference Call: 4:30pm (AEST, Sydney) / 7:30am (BST, London)

Pre-Registration Link: https://s1.c-conf.com/diamondpass/10030292-hd94u6.html

Participants will receive a calendar invite with dial-in details once the pre-registration process is complete.

The Conference Call will also be streamed live online at: https://webcast.openbriefing.com/rsg-qtr-2023/

About Resolute

Resolute Mining (ASX/LSE: RSG) is an African gold miner, developer, and explorer with more than 30 years of experience across Australia and Africa. To date the Company has produced over nine million ounces of gold. It currently operates the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal. Resolute's gold production and cost guidance for 2023 is 350,000oz at an AISC of $1,480/oz.

Through all its activities, sustainability is the core value at Resolute. This means that protecting the environment, providing a safe and productive working environment for employees, uplifting host communities, and practicing good corporate governance are non-negotiable priorities. Resolute's commitment to sustainability and good corporate citizenship has been cemented through its adoption of and adherence to the Responsible Gold Mining Principles (RGMPs). This framework, which sets out clear expectations for consumers, investors, and the gold supply chain as to what constitutes responsible gold mining, is an initiative of the World Gold Council of which Resolute has been a full member since 2017. The Company is on track to reach full compliance with these RGMPs in 2023.

Appendix

March 2023 Quarter Production and Costs (unaudited)

Cautionary Statement about Forward-Looking Statements

This announcement contains certain "forward-looking statements" including statements regarding our intent, belief, or current expectations with respect to Resolute's business and operations, market conditions, results of operations and financial condition, and risk management practices. The words "likely", "expect", "aim", "should", "could", "may", "anticipate", "predict", "believe", "plan", "forecast" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings, anticipated production, life of mine and financial position and performance are also forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Resolute's actual results, performance and achievements or industry results to differ materially from any future results, performance or achievements, or industry results, expressed or implied by these forward-looking statements. Relevant factors may include (but are not limited to) changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which Resolute operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward-looking statements are based on Resolute's good faith assumptions as to the financial, market, regulatory and other relevant environments that will exist and affect Resolute's business and operations in the future. Resolute does not give any assurance that the assumptions will prove to be correct. There may be other factors that could cause actual results or events not to be as anticipated, and many events are beyond the reasonable control of Resolute. Readers are cautioned not to place undue reliance on forward-looking statements, particularly in the significantly volatile and uncertain current economic climate. Forward-looking statements in this document speak only at the date of issue. Except as required by applicable laws or regulations, Resolute does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in assumptions on which any such statement is based. Except for statutory liability which cannot be excluded, each of Resolute, its officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in these forward-looking statements and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in forward-looking statements or any error or omission.

Authorised by Mr Terry Holohan, Managing Director and Chief Executive Officer

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