Notes to the Mineral Reserve Statement:
(1) The stated Mineral Reserve for Bogoso/Prestea includes Prestea South, Pampe and Mampon.
(2) The stated Mineral Reserve for Wassa/HBB includes the Hwini-Butre property.
(3) The stated Mineral Reserves have been prepared in accordance with Canada's National Instrument 43-101 -- Standards of Disclosure for Mineral Projects and are classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum's "CIM Definition Standards -- For Mineral Resources and Mineral Reserves". Mineral Reserves are equivalent to Proven and Probable Reserves as defined by the SEC Industry Guide 7. Mineral Reserve estimates reflect the Company's reasonable expectation that all necessary permits and approvals will be obtained and maintained. Mining dilution and mining recovery vary by deposit and have been applied in estimating the Mineral Reserves.
(4) The 2011 and 2012 Mineral Reserves were prepared under the supervision of Dr. Martin Raffield, Senior Vice President Technical Services for the Company. Dr. Raffield is a "Qualified Person" as defined by Canada's National Instrument 43-101.
(5) The Mineral Reserves at December 31, 2012 were estimated using a gold price of $1,450 per ounce, which is approximately equal to the three-year average gold price. At December 31, 2011, Mineral Reserves were estimated using a gold price of $1,250 per ounce.
(6) The terms "non-refractory" and "refractory" refer to the metallurgical characteristics of the ore. We plan to process the refractory ore in the Bogoso sulfide bio-oxidation plant and to process the non-refractory ore in the Bogoso and Wassa non-refractory processing plants.
(7) The slope angles of all pit designs are based on geo-technical criteria as established by external consultants. The size and shape of the pit designs are guided by consideration of the results from a pit optimization program. The parameters for the pit optimization program are based on a gold price of $1,450 per ounce, historical and projected operating costs at Bogoso/Prestea, Wassa and Hwini-Butre and Benso. Metallurgical recoveries are based on historical performance or estimated from test work and typically range from 60% to 95% for non-refractory ores and from 70% to 85% for refractory ores. A government royalty of 5% is allowed as are other applicable royalties.
(8) Numbers may not add due to rounding.
Reconciliation of Mineral Reserves
---------------------------------------------------------------------------- Tonnes Contained Ounces Tonnes Ounces (Millions) (Millions) (% of Opening) (% of Opening)----------------------------------------------------------------------------2011 Reserves 58.8 4.14 100% 100%----------------------------------------------------------------------------Gold Price (1 & 6) 3.5 0.75 6% 18%----------------------------------------------------------------------------Exploration Changes 23.6 1.03 40% 25% (2 & 7)----------------------------------------------------------------------------Mine Depletion (3) -6.6 -0.49 -11% -12%----------------------------------------------------------------------------Engineering (4) -12.3 -1.11 -21% -27%----------------------------------------------------------------------------2012 Reserves (5) 67.1 4.31 114% 104%----------------------------------------------------------------------------
