Name and Location
Asanko gold mine, Ghana.

Client
Asanko Gold acquired the Obotan project during a C$183-million takeover of PMI Gold Corp in February 2014.

Project Description
The Asanko mine was created by combining the Obotan and Esaase projects into one project, which will be developed over two phases.

The Asanko mine has 7.5-million ounces of measured and indicated resources, including 4.8-million ounces of proven and probable reserves.

Phase 1 is based on PMI Gold's definitive feasibility study (DFS) for the Obotan project, published in September 2012.

The project is targeting an estimated 2.33-million ounces of gold production over an 11.5-year life-of-mine (LoM) using an openpit contractor mining operation and a three-million-tonne-a-year carbon-in-leach (CIL) processing plant. The primary source of feed material for the carbon-in-leach plant is the Nkran pit, with satellite pits at Adubiaso, Abore and Asuadai, and the recently discovered Dynamite Hill deposit providing supplemental feed.

Phase 2 anticipates the inclusion of the adjacent Esaase deposit, which is located only 25 km from the plant site. A scoping study is under way to evaluate the optimum ore transport method and the scope of the plant expansion. The study is scheduled for publication in the second quarter of 2015. Phase 1 has incorporated sufficient plant terracing and designed the plant layout and infrastructure having been designed to cater for the potential of Phase 2.

Net Present Value/Internal Rate of Return
Not stated.

Value
The Obotan DFS has estimated capital costs of $296.6-million.

Since acquiring PMI Gold earlier this year, Asanko Gold has updated the capital cost estimate to a higher level of accuracy suitable for use as a project control budget estimate (CBE). The CBE estimates a capital cost for Phase 1 of $295-million, including contingency for estimating inaccuracy and owner's contingency. The capital estimate is generally considered accurate to +/- 5%.

The CBE was designed on a modular basis to cater for the possible inclusion of Phase 2 on the same site.

Duration
Phase 1 construction started in the third quarter of 2014, with first gold targeted in the first quarter of 2016 and steady-state production of 200 000 oz/y of gold expected in the second quarter of 2016.

Latest Developments
Asanko has closed its previously announced bought deal financing of 22.8-million common shares, which include shares issued upon full exercise of the over-allotment option, at C$2.02 per share, for gross proceeds to the company of about C$46 million. The offering was co-led by Cormark Securities Inc and BMO Capital Markets and involved a syndicate that included Clarus Securities Inc, Haywood Securities Inc, Raymond James and RBC Capital Markets.

The board and management of the company, as well as an associated group, Highland Park, acquired an estimated C$3-million of the offering.

The net proceeds of the offering, along with Asanko’s currently available funds, are expected to be used by the company to complete Phase 1 of the Asanko gold mine and for working capital and general corporate purposes, including the completion of a Phase 2 feasibility study.

Key Contracts and Suppliers
DRA (engineering, procurement and construction management contractor) and Knight Piesold (tailings storage facility design contractor).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Asanko Gold investor relations manager Alex Buck, tel +44 7932 740 452 or email alex.buck@asanko.com.
DRA, tel  +27 11 202 8600 or email info@DRAglobal.com.
Knight Piesold, tel +27 11 806 7111 or fax +27 11 806 7100.