Trans Siberian Gold : Q2 2018 Production Update

Trans-Siberian Gold plc

('TSG' or the 'Company')

Q2 Production Update

Trans-Siberian Gold plc (TSG.LN) announces its production update at the Asacha Gold Mine for the three months to 30 June 2018 ('Q2' or the 'Period') and the first six months of 2018 ('H1').

Q2 Highlights

· 14.3% increase in gold dore production of 9,260oz (Q1 2018: 8,100oz)

· Average gold grade: 6.3g/t (Q1 2018: 6.1g/t)

· Estimated average selling price of $1,300/oz generating revenue of approximately $12m* (Q1 2018: $15.6m)

· 19% reduction in mine development due to high underground water levels but mitigating works on schedule

H1 Highlights

· Record H1 revenue generation of approximately $27.6m* (H1 2017: $18.9m)

· 25% increase in gold dore produced of 17,361oz (H1 2017: 13,897oz)

· Average gold grade: 6.2g/t (H1 2017: 5.1g/t)

· Estimated average selling price of $1,324/oz (H1 2017: $1,237/oz)

Alexander Dorogov, Chief Executive Officer of TSG, commented:

'We are pleased with our overall performance in the first half of the year with strong revenue generation of approximately $27.6m*. We are successfully addressing the challenge of high levels of underground water. This effort has been reinforced by senior operational management changes. Our production guidance remains unchanged. We expect the enhanced underground pumping facilities to be complete next month and continue to watch costs closely and seek efficiencies where possible'.

Production Summary

Mining and production data for Q2 2018 and H1 2018 at the Asacha Gold Mine is shown in the following table:

	Q2	Q1	Q-on-Q	Q2	Y-on-Y	H1	H1	Y-on-Y
Metric	2018	2018	% Change	2017	% Change	2018	2017	% Change
Mine development, m	1,253	1,549	-19.1%	1,362	-8.0%	2,802	2,625	6.7%
Ore extracted, tonnes	48,437	47,081	2.9%	47,539	1.9%	95,518	93,693	1.9%
Ore processed, tonnes	47,822	44,395	7.7%	45,857	4.3%	92,217	90,177	2.3%
Grade, gold, g/t	6.3	6.1	3.9%	4.8	32.4%	6.2	5.1	22.6%
Grade, silver, g/t	22.4	15.4	45.7%	8.9	151.0%	19.0	9.0	112.4%
Recovery, gold, %	94.5	94.4	0.1%	93.9	0.6%	94.4	94.1	0.4%
Recovery, silver, %	76.6	75.9	0.9%	75.9	1.0%	76.4	76.3	0.1%
Gold in dore (oz)	9,260	8,100	14.3%	6,651	39.2%	17,361	13,897	24.9%
Silver in dore (oz)	26,456	15,662	68.9%	9,930	166.4%	42,118	20,078	109.8%
Gold refined (oz)	9,355	11,343	-17.5%	7,363	27.0%	20,698	15,007	37.9%
Silver refined (oz)	25,025	21,127	18.4%	9,856	153.9%	46,152	22,212	107.8%
Gold sold (oz)	9,161	11,311	-19.0%	7,309	25.3%	20,472	14,954	36.9%
Silver sold (oz)	5,444	25,345	-78.5%	9,271	-41.3%	30,790	21,845	40.9%
Gold price, $/oz	1,300	1,343	-3.2%	1,251	3.8%	1,324	1,237	7.0%
Silver price, $/oz	16.4	17.0	-3.7%	16.4	-0.2%	16.9	16.5	2.4%
Gold revenue, $000*	11,906	15,191	-21.6%	9,147	30.2%	27,096	18,503	46.4%
Silver revenue, $000*	89	431	-79.3%	152	-41.4%	521	361	44.3%
Total revenue, $000*	11,995	15,622	-23.2%	9,299	29.0%	27,617	18,864	46.4%

* Note: Unaudited figure

Commentary

During the Period, and as expected, mine development has reduced due to snow melt and the construction of the main underground pumping station with larger cross cuts. The works to address water levels are on schedule and the enhanced underground pumping facilities are due to be completed in August 2018 with the main pumping station expected to be fully operational by the end of 2018. We continue to blend higher grade stoping ore with lower grade stock piled ore to ensure our processing capacity is fully utilized. The average grade for Q2 was 6.3 g/t.

Gold production in H2 2018 is expected to improve as the effects of the installation of additional pumping equipment are felt. Accordingly, the Company's total gold production guidance range of 36,000-40,000oz for 2018 remains unchanged. The upper end of the range represents a year-on-year increase of approximately 9% in total gold production.

TSG intends to provide a production update for Q3 2018 in October 2018.

Unaudited interim financial results for H1 2018 will be published by the end of September 2018.

Contacts TSG
Stewart Dickson	[phone]
Cantor Fitzgerald Europe	[phone]
David Porter

About TSG

TSG is focused on low cost, high grade mining operations and stable gold production from its 100% owned Asacha Gold Mine in Far East Russia.

Additional information is available from the Company's website:www.trans-siberiangold.com

Market Abuse Regulations

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

Abbreviations

g/t grammes per tonne

oz ounce

m metre

Disclaimer

This announcement contains 'forward-looking statements' - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks,' 'should' or 'will.' Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets, fluctuations in interest and/or exchange rates and metal prices; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements.