West African Resources : WAF completes resource update drilling for Feasibility Study

Press Release

20th December 2016 West African completes resource update drilling for Feasibility Study

Gold developer West African Resources Limited (ASX, TSXV: WAF) is pleased to report further high-grade RC results from the M1 prospect, at its 100%-owned Tanlouka Gold Project, Burkina Faso.

Highlights

• Further high-grade results at M1 South: 3m at 16.5 g/t Au from 32m, 23m at 1.9 g/t Au from 8m and 10m at 2.5 g/t Au from 19m.
• Shallow RC completes resource drilling for current resource update, will upgrade material from Inferred to Indicated category
• New results to be included in resource update in Q1 2017
• Feasibility study on track for Q1 2017
• $18.2m cash at bank and no debt

Managing Director Richard Hyde commented:

"Results for shallow RC drilling have now been received returning a number significant shallow intercepts around historic artisanal workings. Significant results include 3m at 16.5 g/t Au from 32m, 23m at 1.9 g/t Au from 8m and 10m at 2.5 g/t Au from 19m.

"Resource estimation studies are currently in progress and will incorporate these new results. We are on track to deliver the open pit feasibility study for Tanlouka in Q1 2017."

M1 Shallow Resource Drilling

Full results have now been received for shallow resource drilling at M1. Drilling prior to the wet-season encountered difficulties with access due to open stopes and hummocks at surface, resulting in much of the near surface mineralisation and remnant mineralisation being drilled on an irregular wide spaced pattern (see photos 1 and 2). This resulted in much of the shallow portion of the August resource being classified as Inferred. These areas required extensive dozer work to be filled in and flattened, and subsequently tight spaced shallow RC drilling on 25m centres has now been completed. Many of the shallow RC holes encountered open stopes and backfill from surface, however significant results were also returned from remnant zones. Significant results include:

 TAN16-RC236: 5m at 4.98 g/t Au from 47m

 TAN16-RC242: 23m at 1.86 g/t Au from 8m, including 8-16m open stopes and backfill

 TAN16-RC243: 7m at 0.85 g/t Au from 7m, including 3-13m open stopes and backfill, and

- 10m at 2.49 g/t Au from 19m and 6m at 1.62 g/t Au from 35m

 TAN16-RC247: 3m at 16.52 g/t Au from 32m

 TAN16-RC250: 7m at 2.57 g/t Au from 13m, including 24-25m open stope

 TAN16-RC263: 2m at 9.04 g/t Au from 13m and 1m at 16.09 g/t Au from 25m

 TAN16-RC266: 1m at 24.66 g/t Au from 19m, including 15-17m open stopes and backfill

Principal Office: 14 Southbourne Street, Scarborough WA 6019, Western Australia

T: + 61 8 9481 7344 F: + 61 8 9481 7355 E: [e-mail] www.westafricanresources.com ACN: 121 539 375

Before and after photos: M1 South - Sections SE425 to SE475 M1 Drilling at Depth

At the end of November, the Company reported results for TAN16-DD077A which is the deepest result to date and ended in mineralisation at 300m (ASX/TSX: 28/11/16). This hole has since been extended to 399m. The final intercepts returned 11m at 7.43 g/t Au from 279m and 10m at 4.93 g/t Au from 293m.

While not much further significant mineralisation was intercepted, TAN16-DD077A represents a significant discovery, at depth, of new mineralisation within the M1 South system. Follow-up work is planned for early 2017, and new mineralisation will be included in the resource update (in progress).

M3 Shallow Resource Drilling

Further resource drilling has been completed aiming to upgrade shallow oxide mineralisation, currently all contained in the Inferred category, to Indicated category. Significant results for the RC drilling program include:

 TAN16-RC249: 5m at 5.0 g/t Au from 75m

 TAN16-RC255: 3m at 4.33 g/t Au from 22m

 TAN16-RC260: 11m at 2.1 g/t Au from 56m

 TAN16-RC261: 6m at 1.74 g/t Au from 7m and 10m at 5.04 g/t Au from 34m

Results reported in the release represent the data cut-off point for current estimation studies for M1, M3 and M5 feeding into the DFS due for completion in Q1 2017. Resource estimation studies are significantly advanced and will be reported in Q1 2017 along with the DFS for Tanlouka. The timeline for reporting the resource update was pushed back from Q4 2016 to include recently reported mineralisation.

A summary plan and sections for M1 South are presented below. Full results for drilling from M1, M3 and M5 are presented in Table 1 and Table 2.

Figure 1: Tanlouka Gold Project - Mineralised Trends and Prospect Locations Figure 2: M1 South Summary Plan