Roxgold Announces a Significant Increase in Mineral Resources at the Séguéla Gold Project

Roxgold Inc. (“Roxgold” or the “Company”) (TSX: ROXG) (OTC: ROGFF) is pleased to report an updated Mineral Resource Estimate for the Séguéla Gold Project located in Côte d’Ivoire. Total Indicated Mineral Resources increased 7% to 529,000 ounces (“oz”) and Inferred Mineral Resources increased 1,286% to 471,000 oz since Roxgold’s maiden March 19, 2019 Mineral Resource estimate.

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Highlights:

• The updated NI 43-101 Mineral Resource Estimate includes 18,693 m of Reverse Circulation (“RC”) and diamond core (“DD”) drilling since the completion of the Séguéla acquisition in April 2019. The drill program prioritized the delineation and definition of maiden resource estimates at the Ancien, Agouti, and Boulder satellite deposits; and infilling of the Antenna deposit.
  • Updated Indicated Mineral Resource at Antenna of 529,000 ounces (“oz”) at 2.3 grams per tonne (“g/t’) and an Inferred Mineral Resource of 64,000 oz at 2.2 g/t
  • Maiden Inferred Mineral Resource of 224,000 oz at 6.6 g/t for the Ancien deposit
  • Maiden Inferred Mineral Resource of 110,000 oz at 2.6 g/t for the Agouti deposit
  • Maiden Inferred Mineral Resource of 72,000 oz at 1.2 g/t for the Boulder deposit
• Drilling at Ancien has returned numerous high grade intersections across significant widths while showing indications of down-plunge potential as mineralization remains open at depth. The drill program is ongoing at Ancien with two rigs focused on extensionary drilling to the south and at depth of the deposit.
• At Agouti and Boulder, an additional two rigs are continuing to drill focused on infilling selected areas and testing the strike limits of the deposits.
• Roxgold has identified an additional 22 highly prospective targets at Séguéla that have seen little to no historic drilling.

“I would like to congratulate our exploration team for achieving this important milestone,” stated John Dorward, President and Chief Executive Officer. “The Séguéla Project has become a substantial value accretive project for Roxgold, and we believe that this updated resource underscores the potential for this project to stand alongside our current operations to build the foundation for Roxgold and its future. Our next priority will be the completion of the PEA in the second quarter of this year. I am very excited by Séguéla’s significant potential, notably at the Ancien deposit which remains open at depth and along strike, as well as the potential within the Boulder-Agouti corridor and the additional 22 highly prospective targets that have been identified. We continue to have all hands on deck at Séguéla, with four rigs turning, and we are eagerly anticipating further results over the coming months.”

“The accelerated exploration activities at Séguéla during 2019 has allowed us to fast-track the maiden NI 43-101 Mineral Resource Estimates for Agouti, Ancien and Boulder, while also increasing the Antenna Indicated Resource, resulting in a significant increase in the total project resource estimate,” commented Paul Weedon, Vice President – Exploration. “With four rigs still working on additional infill and extension drilling at Ancien and Agouti, we remain confident in the potential to grow the current resource base. We look forward to see future results from Ancien, as it remains open at depth and has returned remarkable consistency in the high grade intercepts to date; in addition, the exploration teams are advancing work on several of the remaining 22 targets where early results highlight the potential for additional satellite prospects”.

Please see Table 1 for the January 29, 2020 Séguéla Mineral Resource summary table and Table 2 for the change in the total Séguéla Mineral Resource. This Mineral Resource update includes the following deposits at the Séguéla gold project: Antenna, Ancien, Agouti and Boulder (Figure 1).

Séguéla Mineral Resource

Table 1 – Séguéla Mineral Resource Statement Summary

_{Notes:
(1) Mineral Resources are reported in accordance with NI 43-101 with an effective date of January 29, 2020, for Séguéla.
(2) The Séguéla Mineral Resources are reported on a 100% basis at a gold grade cut-off of 0.3 g/t Au for Antenna and 0.5 g/t Au for the satellite deposits, based on a gold price of US$1,550/ounce and constrained to MII preliminary pit shells.
(3) The identified Mineral Resources in the block model are classified according to the “CIM” definitions for the Measured, Indicated, and Inferred categories. The Mineral Resources are reported in situ without modifying factors applied.
(4) The Séguéla Mineral Resource Statement was prepared under the supervision of Mr. Hans Andersen, Senior Resource Geologist at Roxgold Inc. Mr. Andersen is a Qualified Person as defined in NI 43-101.
(5) All figures have been rounded to reflect the relative accuracy of the estimates and totals may not add due to rounding.
(6) Mineral Resources that are not Mineral Reserves do not necessarily demonstrate economic viability.}

The Mineral Resource estimate incorporates data from all drilling (RC and DD) to date comprising 49,723 metres (“m”) in 336 drill holes targeting Antenna, Ancien, Agouti, and Boulder. Roxgold completed 18,693 m of RC and DD drilling since the acquisition of the Séguéla Project in April 2019.

The estimated Indicated Mineral Resource for the Antenna deposit increased by 7% to 529,000 oz Au from 496,000 oz Au as per the March 19, 2019 estimate. The increase can be primarily attributed to the inclusion of an additional 4,166 m of RC and DD drilling.

The estimated Inferred Mineral Resource increased by 1,286% from 34,000 oz Au as at March 19, 2019 to 471,000 oz Au as of January 29, 2020, with the change mainly the result of the Maiden Inferred Resource estimates at the Ancien, Agouti and Boulder deposits, and additional drilling at the Antenna deposit.

Figure 1. Séguéla Satellite Prospects

Table 2 – Séguéla Mineral Resource Evolution^1,2

_{Notes:
(1) Mineral Resources are reported in accordance with NI 43-101.
(2) All figures have been rounded to reflect the relative accuracy of the estimates and totals may not add due to rounding.
(3) Please refer to the technical report entitled “NI 43-101 Technical Report, Séguéla Project, Worodougou Region, Côte d’Ivoire” effective March 19, 2019 which is available on sedar at www.sedar.com for further details.}

Mineral Resource Modeling and Estimation

The Mineral Resources reported herein have been estimated using a geostatistical block modelling approach informed from gold assay data collected in core borehole samples. Technical work for the construction of the Séguéla Mineral Resource, including wireframing, statistical and geostatistical analysis, and Mineral Resource estimation was conducted, and/or supervised by Mr. Hans Andersen of Roxgold (MAIG #5746) and reviewed by Paul Weedon, VP of Exploration for Roxgold (MAIG #6001).

A total of 185 RC and DD drill holes (30,231 m) define the Antenna deposit on a drill hole spacing that ranges from 20 m to 100 m apart along a strike extent of 1,700 m (see Figure 2). A total of 26 RC and DD drill holes (3,273 m) define the Ancien deposit on a drill hole spacing that ranges from 25 m to 50 m apart along a strike extent of 250 m, which remains open along strike to the south and at depth (see Figure 3 and Figure 4). The Agouti deposit covers three main zones defined by a total of 68 RC and DD holes (8,174 m) on a drill hole spacing that ranges from 25 m to 50 m apart along a strike extent of 525 m (see Figure 5). The Boulder deposit is defined by a total of 57 RC and DD holes (7,955 m) on a drill hole spacing that ranges from 25 m to 50 m apart along a strike extent of 1,000 m (see Figure 6). Both the Boulder and Agouti deposits remain open along strike and depth.

Figure 2. Antenna Mineral Resource

Figure 3. Ancien Mineral Resource

Figure 4. Ancien Mineral Resource Long-section View Looking West

Figure 5. Agouti Mineral Resource

Figure 6. Boulder Mineral Resource

The Ancien, Agouti and Boulder Mineral Resource models were developed using Leapfrog Geo and Micromine software. Antenna’s Mineral Resource model was developed using Geovia’s Surpac software. All gold assays from drill holes were composited to 1.0-meter intervals within the mineralised wireframes at Antenna, Agouti and Ancien; while a combination of 1.0 and 3.0 metre intervals was utilised for the Boulder estimation. Top-cuts were applied to individual domains based on the analysis of gold grade outliers within the statistical data populations and ranged between 1.5 g/t to 70.0 g/t Au.

Geostatistical exploratory data analysis (“EDA”), variogram modelling and Mineral Resource model validation was conducted using Snowden Supervisor software.

The Mineral Resource model gold grades were estimated using a combination of Ordinary Kriging and Inverse Distance methods using a multiple pass approach to inform the resource model. The grade estimates are validated visually by sectional comparison and through statistical approaches that encompass traditional validation methods, such as Swath plots comparing composite and block model values for each deposit.

Density values were assigned to the Mineral Resource model on the basis of ascribed oxidisation state and lithological unit, with mineralisation being assigned the density of its predominant host. A density of 1.8 t/m³ was assigned to transported and alluvial sediments, with a range of 1.9 to 2.2 t/m³ assigned to the oxidised weathered profile and a range of 2.70 to 3.20 t/m³ assigned to fresh rock lithologies.

Resource models and drill hole data at the Séguéla gold project utilise the WGS84 (Zone 29N) coordinate system.

The Mineral Resource models are classified into Indicated and Inferred categories based on analysis of the following criteria; number of samples informing the estimate, sample spacing, average sample distance, kriging efficiency and slope of regression outputs, drill hole and sample QAQC thresholds and geological confidence in modelled interpretations, grade continuity and level of geological understanding at each deposit.

The Séguéla Mineral Resources were reported constrained by preliminary pit optimisations generated in Micromine to satisfy the definition of Mineral Resources having reasonable prospects for eventual economic extraction (“RPEEE”), and are based on the following parameters:

• Gold price of US$1,550/oz
• Mining recovery of 93.5%
• Processing recovery of 93.5%
• Zero mining dilution
• Overall slope angle of 53°
• Mining costs of US$3.00 per tonne
• Total processing costs (including G&A) of US$19.10 per tonne
• Total selling costs (includes state and third-party royalties) of US$111.02/oz

The supporting updated Technical Report for Séguéla’s NI 43-101 Mineral Resource Estimates will be published to SEDAR at www.sedar.com in the coming weeks.

Cumulative drill results from all prospects within the Séguéla Gold Project are available here.

2020 Séguéla Exploration and Development Outlook

Activities are progressing at Séguéla with the key initiative being to work towards the completion of a preliminary economic assessment (“PEA”) study, which is advancing well. Mine planning, metallurgical testwork, plant design and infrastructure pricing activities are underway. The mine plan and infrastructure sizing will be based upon the updated Mineral Resource and anticipated extensions, delineated by ongoing drilling at Antenna as well as satellite deposits such as Ancien, Agouti and Boulder, all of which are within 7 km of the proposed plant site. The Company anticipates being in a position to release a PEA on this basis in Q2 2020.

Similarly, environmental baseline works and permitting activities are progressing. Consultants are advancing the baseline assessments and community engagement scopes at site with the intent of incorporating these baseline studies with the completed PEA to progress the environment and mining approvals in Cote d’Ivoire,

Exploration activities at Séguéla will continue with RC and DD drilling at the Ancien, Agouti and Boulder deposits, infilling selected areas and testing the strike limits of the new resources. Additionally, exploration will be continuing to systematically test the remaining 22 targets, as well as further exploration work to identify and delineate additional targets with the permit.

Upcoming Catalysts

¹ The Séguéla Feasibility Study will be contingent on results of Preliminary Economic Assessment; the Construction decision will be contingent on the results of the Feasibility Study.

Qualified Persons

Paul Weedon, MAIG, Vice-President, Exploration for Roxgold Inc., a Qualified Person within the meaning of National Instrument 43-101, has reviewed, verified and approved the scientific and technical disclosure contained in this news release. This includes the QA/QC, sampling, analytical and test data underlying this information. No limits were imposed on Mr. Weedon’s verification process.

The scientific and technical information contained in this document relating to Séguéla’s Mineral Resource is based on, and fairly represents, information compiled by Mr. Hans Andersen. Mr. Hans Andersen, MAIG, is a Member of the Australian Institute of Geoscientists. Mr. Andersen is a full-time employee of Roxgold Inc. and is not “independent” within the meaning of NI 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). Mr. Andersen has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a “Qualified Person” under NI 43-101. Mr. Andersen has consented to and approved the inclusion in this document of the matters based on his compiled information in the form and context in which it appears in this document.

Roxgold’s disclosure of Mineral Reserve and Mineral Resource information is governed by NI 43-101 under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM (“CIM Standards”). There can be no assurance that those portions of Mineral Resources that are not Mineral Reserves will ultimately be converted into Mineral Reserves.

Quality Assurance/Quality Control

Séguéla

All drilling data completed by Newcrest Mining Ltd. prior to the acquisition by Roxgold Ltd, and subsequently by Roxgold Ltd, have utilized the following procedures and methodologies. All drilling was carried out under the supervision of Newcrest or Roxgold personnel.

RC drilling used a 5.25-inch face sampling pneumatic hammer with samples collected into 60 litre plastic bags. Samples were kept dry by maintaining enough air pressure to exclude ground water inflow. If water ingress exceeded the air pressure, RC drilling was stopped, and drilling converted to diamond core tails. Once collected, RC samples were riffle split through a three-tier splitter to yield a 12.5% representative sample for submission to the analytical laboratory. The residual 87.5% sample were stored at the drill site until assay results were received and validated. Coarse reject samples for all mineralized samples corresponding to significant intervals are retained and stored on site at the Company controlled core yard.

Diamond drill holes were drilled with HQ or NQ2 sized diamond drill bits. The core was logged, marked up for sampling using standard lengths of one metre. Samples were then cut into equal halves using a diamond saw. One half of the core was left in the original core box and stored in a secure location at the Company core yard at Séguéla. The other half was sampled, catalogued and placed into sealed bags and securely stored at the site until shipment.

All RC and diamond core samples were shipped to ALS Laboratories preparation laboratory in Yamassoukro for preparation. Samples were dried and crushed by the Lab and a 250-gram split prepared from the coarse crushed material, prior to pulverization and preparation of a 200g sample. Samples are then shipped via commercial courier to ALS’s analytical facility in Ouagadougou, Burkina Faso or Kumasi, Ghana where routine gold analysis using a 50-gram charge and fire assay with an atomic absorption finish was completed. Quality control procedures included the systematic insertion of blanks, duplicates and sample standards into the sample stream. In addition, the Lab inserted its own quality control samples.

About Roxgold

Roxgold is a Canadian-based gold mining company with assets located in West Africa. The Company owns and operates the high-grade Yaramoko Gold Mine located on the Houndé greenstone belt in Burkina Faso and is also advancing the development and exploration of the Séguéla Gold Project located in Côte d’Ivoire. Roxgold trades on the TSX under the symbol ROXG and as ROGFF on OTC.

This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws (“forward-looking statements”). Such forward-looking statements include, without limitation: statements with respect to Mineral Reserves and Mineral Resource estimates (including proposals for the potential growth, extension, update and/or upgrade thereof, the anticipated timing thereof and any future economic benefits which may be derived therefrom), the timing and delivery of any future updated resource models, the PEA and other economic studies, and the expected timing thereof (including with respect to the delivery of ore and future stoping and other mining operations), proposed exploration plans and the timing and costs thereof, and sufficiency of future funding. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the estimation of Mineral Resources and Mineral Reserves, the realization of resource estimates and reserve estimates, gold metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Séguéla Gold Project in the short and long-term, the progress of exploration and development activities as currently proposed and anticipated, the receipt of necessary regulatory approvals and permits, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters, as well as assumptions set forth in the Company’s technical report entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” and “Séguéla Project, Worodougou Region, Cote d’Ivoire” dated 19 March 2019, and available on the Company’s website at www.roxgold.com and SEDAR at www.sedar.com. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include: changes in market conditions, unsuccessful exploration results, possibility of project cost overruns or unanticipated costs and expenses, changes in the costs and timing of the development of new deposits, inaccurate reserve and resource estimates, changes in the price of gold, unanticipated changes in key management personnel, failure to obtain permits as anticipated or at all, failure of exploration and/or development activities to progress as currently anticipated or at all, and general economic conditions. Mining exploration and development is an inherently risky business. Accordingly, actual events may differ materially from those projected in the forward-looking statements. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

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Graeme Jennings, CFA
Vice President Investor Relations
416-203-6401
gjennings@roxgold.com