Guyana Goldfields Inc. Reports Second Quarter 2017 Results and Maintains Production Guidance

TORONTO, July 31, 2017

Q2 2017 Operational Results

• Gold production of 29,700 ounces based on mill throughput of 515,600 tonnes at an average head grade of 2.06 grams per tonne gold (g/t Au) and average recoveries of 86.5%.
  
  
• Operating cash costs¹ for the quarter of $757 per ounce and All In Sustaining Costs ("AISC")¹ of $1,144 per ounce.
  
  
• The Company maintains its 2017 production guidance and expects to come in at the lower end of the guidance range of 160,000 – 180,000 ounces of gold.
  
  
• The Company's balance sheet remains strong with its cash balance of $65.4 million versus a debt balance of $68.8 million. The fair market value of the Company's investment in SolGold plc at quarter end was $52.2 million.
  
  
• The Company continues to have an excellent health, safety and environmental track record with over 3,500,000 employee hours worked without a lost time incident.

Scott Caldwell, President & CEO stated, "The Company experienced a weaker quarter with respect to both production and cost performance. This was primarily attributable to lower than expected grades from stockpiled ore being fed to the mill and a higher strip ratio in the quarter. The Company does not expect these issues to recur in the second half of the year with mill feed ore being sourced predominantly from the higher grade tonalite at Rory's Knoll while the strip ratio is expected to decline significantly in both the third and fourth quarters based on mine sequencing. Looking forward, the Company's 2017 production guidance remains unchanged and July's preliminary cost and operating performance is trending favourably on all metrics and we anticipate a strong third quarter and finish to the year."

Preliminary Q3 Results

• For the month of July 2017, operational and cost performance trended favourably, as expected.
• Gold production from July mining operations totalled approximately 12,100 ounces. Mine and mill performance was above budgeted levels with the mill having processed an average of 6,032 tonnes per day ("tpd") of ore at an average head grade of 2.21 g/t Au with gold recoveries averaging 89.5%.
• Cost efficiency was further achieved at the beginning of the third quarter as the Company commissioned two new drill rigs resulting in only minor reliance on the use of more expensive rental drills. In addition, bulk emulsion explosives were being used for all blasting activities post quarter end after a delay in the delivery of the explosives from the manufacturer resulted in a shift back to more expensive packaged explosives in the second quarter.