Production Report September Quarter

7 October 2019

Resolute Mining Limited

(Resolute or the Company)

September Quarter Production Update

103,201oz of gold poured in September Quarter

Syama sulphide circuit achieves recoveries above 85% target

Syama Automation System Site Acceptance Testing successfully completed

Acquisition and integration of Toro Gold Limited's Mako Gold Mine

Highlights

Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) is pleased to provide a production update for the September 2019 Quarter.

Total quarterly gold production of 103,201 ounces (oz) was 25,069oz higher than the June 2019 Quarter.

Gold production from the Syama Gold Mine (Syama) was 45,804oz comprising 33,074oz from the Syama oxide circuit and 12,730oz from the Syama sulphide circuit. 

A key focus of the September 2019 Quarter was the commissioning of the Syama automated mining system and the successful completion of site acceptance testing. During the quarter, automated loaders successfully collected ore from the bottom of ore passes on the 1055 level and loaded automated trucks via a split-level loading facility. Additionally, automated trucks travelled up the underground decline under laser guidance before transitioning to satellite GPS guidance upon exiting the portal and continuing to dump the ore on the run-of-mine pad. The traffic management system both on surface and in the Syama Underground Mine was also successfully tested. Collectively, these achievements marked a major milestone for Resolute as the Company commissions the world's most advanced automation mining system.

An increasing portion of mill feed sourced from the Syama Underground Mine corresponded with strengthening recoveries from the sulphide circuit during the September 2019 Quarter. Overall, sulphide circuit recoveries averaged approximately 79% for the entire quarter. Most significantly, daily recoveries of over 85% were achieved during periods of the quarter with the maximum daily recovery recorded being 92%. These periods of high recovery, mainly due to an improvement in sulphide flotation recoveries, provide strong confidence in the Company's overall target to achieve consistent recoveries above 85%. The Company continues to fine tune elements of its recovery enhancement project (Project 85), with a focus on improvement of control methodologies in the floatation circuit. Work is also underway to automate the addition of grinding media to the calcine regrind mill and to improve management of reagent addition to the calcine and float tails leach circuits.

Overall output from the Syama sulphide circuit for the September 2019 Quarter was curtailed due to a decision to undertake previously unplanned maintenance to the sulphide crusher apron feeder and complete minor repairs to the roaster refractory lining. As a result of these maintenance works, the sulphide circuit was completely offline for 18 days during the quarter. All sulphide circuit maintenance and repair work was completed during the quarter and the crusher, mills and roaster are now back in service. The sulphide circuit is expected to operate normally during the December 2019 Quarter with a focus on continuing improvements in recovery and consistent operational performance.  

Resolute's newest mine, the Mako Gold Mine (Mako) delivered an excellent production result for the September 2019 Quarter with 44,191oz being produced. Processed tonnages, grades and recoveries at Mako were all ahead of budget and forecast, despite a 4-day planned shutdown in August. Plant throughput is running at an annualised rate of around 2.2 million tonnes per annum (Mtpa), from an original design capacity of 1.8Mtpa, while maintaining excellent recoveries of around 94%.

The Ravenswood Gold Mine (Ravenswood) delivered a consistent production result of 13,206oz of gold. During the September 2019 Quarter, the Company announced that it had commenced the first stage of the Ravenswood Expansion Project (REP) with the recommissioning of a third mill to increase processing capacity to 5Mtpa. The increased processing capacity will allow an expansion of gold production from the processing of low-grade ore stocks. With underground operations at Mt Wright expected to be finalised in the December 2019 Quarter, Resolute continues to progress a strategic review of Ravenswood with a view to delivering approximately 200,000oz of gold production annually from 2022.

Managing Director and CEO, Mr John Welborn, was pleased with the progress made during the September 2019 Quarter in delivering on the Company's objective of becoming a low cost, multi-mine, African-focused gold producer:

"Delivering quarterly gold production in excess of 100,000 ounces is the new normal for Resolute. Achieving major commissioning milestones at our new underground mine at Syama is encouraging as the team ramp up production to full capacity. Project 85 remains a critical focus at Syama and while the unscheduled maintenance and repairs conducted during the quarter limited sulphide circuit quarterly production, we remain confident and committed to achieving our processing objectives. A highlight of the quarter was to successfully complete the highly value accretive acquisition of the Mako Gold Mine, a fabulous addition to our portfolio."   

Resolute's gold production for the first three quarters of the Company's full reporting year to 31 December (FY19) now totals 279,438oz. The Company is pleased to reaffirm guidance for FY19 of 400,000oz at an All-In Sustaining Cost of US$960/oz.

Further detail and commentary on operation performance, production costs and cash flows will be provided in the Company's September 2019 Quarterly Activities Report which is expected to be released on 30 October 2019.

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Contact Information

About Resolute

Resolute is a successful, dividend paying gold miner with 30 years of experience as an explorer, developer and operator of gold mines in Australia and Africa which have produced more than eight million ounces of gold.

Resolute's production and cost guidance for the 12 months to 31 December 2019 has been updated to 400,000 ounces of gold at an All-In Sustaining Cost of US$960 per ounce following the acquisition of Toro Gold Limited.  

Resolute owns four gold mines. Its flagship asset is the world class Syama Gold Mine in Mali (Syama) which can produce more than 300,000 ounces of gold per annum from existing processing infrastructure. Resolute is currently commissioning the world's first fully automated underground mine at Syama which will deliver a low cost, large scale operation with a mine life beyond 2032. The Mako Gold Mine in Senegal is a high quality, low cost asset with average annual production of ~140,000 ounces of gold. The Ravenswood Gold Mine in Australia and the Bibiani Gold Mine in Ghana are existing largescale assets which provide Resolute with significant production growth potential. Resolute has a pathway to annual gold production in excess of 500,000 ounces from a Global Mineral Resource base of more than 18 million ounces of gold.

Resolute trades on the Australian Securities Exchange (ASX) and the London Stock Exchange (LSE) under the ticker RSG.