Name and Location
Otjikoto gold project, Namibia.

Client
B2Gold.

Project Description
A feasibility study on the Otjikoto project, located about 300 km north of Windhoek, Namibia’s capital, has demonstrated the robust economics of the project.

The mine plan is based on probable mineral reserves of 29.4-million tonnes, grading 1.42 g/t for 1.341-million ounces of gold at a stripping ratio of 5.59:1, to be mined over an initial 12-year period.

Average yearly production for the first five years is estimated at 141 000 oz/y of gold.

The gold project will be developed as an openpit mine, with run-of-mine ore trucked to the plant, where it will be crushed and then treated in a grinding circuit using conventional semiautogenous grinding and ball mills, and a carbon-in-leach recovery process.

Net Present Value/Internal Rate of Return
The project has a pretax net present value at a discounted rate of 5% of $402-million generating an after-tax internal rate of return of 23.6%.

Value
The total preproduction capital costs are estimated at $244.2-million.

Duration
Construction started in January 2013 and will continue into the fourth quarter of 2014. It is expected that gold will be produced during the fourth quarter of 2014, with a ramp-up to full production in early 2015.

Latest Developments
B2Gold announced the first gold pour at Otjikoto in December 2014, ahead of schedule.

The mine is only the second Namibian gold mine and has made history as one of the fastest-moving mine construction projects in the country.

Otjikoto is expected to produce between 140 000 oz and 150 000 oz of gold at a cash operating cost of about $500/oz and all in sustaining costs of about $700/oz in 2015.

Once the planned mill expansion is completed in the third quarter of 2015, the B2Gold expects yearly gold production to increase to about 200 000 oz in 2016 and 2017.

Otjikoto’s gold production will also be enhanced by the development of its Wolfshag zone, located adjacent to the main Otjikoto pit. B2Gold announced an initial inferred resource estimate for the Wolfshag zone of 6.8-million tonnes at 3.2 g/t of gold, containing 703 000 oz of gold in January 2014.

The company expects to complete an updated indicated resource study in the first quarter of
2015 along with an updated mine plan by the end of 2015, which will evaluate openpit and underground mining at Wolfshag.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
The Otjikoto mine construction is on budget and on schedule to start production in the fourth quarter of 2014.

Contact Details for Project Information
B2Gold, tel +1 604 681 8371, fax +1 604 681 6209 or email investor@b2gold.com.