Guyana Goldfields Inc. Reports First Quarter 2017 Results; Sold 40,700 oz Au Generating US$22.4M in Operating Cash Flow and Net Earnings of $0.06 Per Share

TORONTO, May 1, 2017

Q1 2017 Highlights

• The Company continues to maintain an excellent health and safety record and, as the date of this release, has accumulated more than 3 million man hours worked without a lost time injury.
• Strong cash flow generation with $22.4 million of operating cash flow before changes in working capital.
• The Aurora Gold Mine had a strong start to 2017 producing 40,900 ounces of gold in the first quarter, in-line with 2017 production guidance of 160,000 – 180,000 ounces.
• Both cost of sales (including royalty and depreciation) of $827 per ounce and cash costs (before royalty)¹ of $516 per ounce were within their respective guidance ranges set at the beginning of the year. All-in sustaining costs¹ ("AISC") of $861 per ounce was above the guidance range of $775 - $825 per ounce, as expected, due to the timing of significant capital investments at the start of the year.
• Net earnings of $9.9 million or $0.06 cents per diluted share.
• The Company's balance sheet remains strong with its cash balance of $75.4 million exceeding its debt balance of $73.6 million. 
• The fair market value of the Company's investment in SolGold at quarter end was $55.8 million.

Scott Caldwell, President & CEO stated, "The mill continues to perform strongly with throughput levels in the first quarter averaging 6,700 tonnes per day ("tpd"), materially above the budgeted throughput rate of 5,600 tpd and included a new monthly record of 7,100 tpd in March. Exploration work has kicked off and we are awaiting assay results from drilling completed at northwest Aleck Hill while the advancement of greenfield targets is ongoing through the course of the year."

¹ This is a non-IFRS measure.  Refer to Non-IFRS Performance Measures section in the Mar 31, 2017 MD&A.

Aurora Gold Mine Operational Statistics