Guyana Goldfields Inc. Releases Third Quarter 2018 Production Results; Full Third Quarter Results Released October 29, 2018

TORONTO, Oct. 9, 2018 - Guyana Goldfields Inc. (TSX: GUY) ("GGI" or "The Company") announces that gold production from mining operations at its Aurora Gold Mine totalled approximately 40,980 ounces poured (41,247 ounces recovered) for the third quarter ended September 30, 2018. The Company sold 41,200 ounces of gold at an average realized gold price of US$1,200 per ounce, generating gross third quarter revenues of US$49.4 million.

Full third quarter 2018 operational and financial results will be released after-market on Monday, October 29, 2018. A conference call will be held the following morning on Tuesday, October 30, 2018 at 10:00 am ET to discuss the results and details of the call can be found at the end of this release. All amounts are expressed in U.S. dollars unless otherwise stated.

In the third quarter ended September 30, 2018, the mill processed an average of 7,031 tonnes per day ("tpd") of ore at an average head grade of approximately 2.12 grams per tonne gold (g/t Au) with record gold recoveries averaging 93.4% for the quarter. The mill continues to perform exceedingly well following the completion of the first phase of the mill expansion earlier this year achieving record throughput and recovery rates above designed capacity. The fourth quarter is expected to yield the highest production of the year, which is dictated by mine sequencing as gold grades are expected to be strongest as mining refocuses on hard rock diorite ore within the Rory's Knoll pit where grade reconciliation has historically performed very favourably.

The Company's strongest quarterly production to date occurred in the fourth quarter of 2017 producing a total of 48,900 ounces of gold through processing an average of 6,000 tpd of ore at an average head grade of 2.9 g/t Au with gold recoveries of 91.7%. Currently, the mill is operating above designed throughput and recovery rates at +7,000 tpd and +93% respectively, and feed grades are forecasted to be significantly higher at + 3g/t Au in the fourth quarter of 2018.

Underground Mining Development

The Company has awarded the early works contract for underground development to JDS Energy & Mining Inc. and mobilization of personnel and materials began in late September. The early works contract consists of 200 meters of initial decline after portal collaring. GGI's initial underground equipment has already been mobilized to Guyana and is at site. The initial phase of the decline will be completed in 2019 providing access for development drilling and initial production development. The decline is designed to access all principal underground mining areas, including some higher-grade areas that may provide supplemental mill feed during the development period.

The Company's balance sheet remains very strong with a cash balance of $93 million versus a debt position of $45 million as at September 30, 2018. 

Scott A. Caldwell, President & CEO, states, "We are on track to deliver a strong fourth quarter achieving the low end of our revised 2018 annual production guidance of 175,000-185,000 ounces of gold. We are confident we will end the year with our strongest quarter to date. Additionally, the Company is excited to begin underground development work which will provide an ideal platform to potentially upgrade and expand the underground resource, especially at East Walcott where limited historical drilling has produced exceptional results."

Third Quarter 2018 Earnings Conference Call

A conference call will be held on Tuesday, October 30, 2018 at 10:00 am ET to discuss third quarter 2018 operational and financial results.

A webcast will be available on the Company's website for 90 days following the call or through the following link: https://event.on24.com/wcc/r/1851548/87A9393786FEE122347E3D90A0AB1E7B

Conference Call Details:
Date: Tuesday, October 30, 2018
Time: 10:00am EST
Conference ID: 37659308
Dial-In Numbers:
North America Toll-Free: 888-390-0605
International: 416-764-8609

A recorded playback of the call will be available until November 6, 2018 by dialing: 1-888-390-0541 or 416-764-8677 and entering the call back passcode 659308.

About Guyana Goldfields Inc.:

Guyana Goldfields Inc. is a Canadian based mid-tier gold producer primarily focused on the exploration, development and operation of gold deposits in Guyana, South America.

Forwarding-Looking Information

This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the estimation of mineral resources. Often, but not always, forward-looking statements can be identified by the use of words and phrases such as "plans," "expects," "is expected," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are based on various assumptions.

Forward-looking statements involve 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 statements. Such factors include, among others, the receipt of applicable regulatory approvals, the timing of the advance of the funds pursuant to the project loan facility to fund the development and construction of the Aurora Gold Project (the "Facility"), fulfilling all conditions precedent to the advance of funds pursuant to the Facility, general business, economic, competitive, political and social uncertainties; the actual results of exploration activities; changes in project parameters as plans continue to be refined; accidents, labour disputes and other risks of the mining industry; political instability; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in GGI's annual information form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

SOURCE Guyana Goldfields Inc.