West African Resources : WAF hits 29m at 5.0 g/t Au including 9m at 10.6 g/t Au at M5

Press Release

22nd March 2017 West African hits 29m at 4.96 g/t Au from 128m, including 9m at 10.6 g/t Au at M5

Gold developer West African Resources Limited (ASX, TSXV: WAF) is pleased to report high-grade diamond drilling results from the M5 prospect, at its 100%-owned Sanbrado Gold Project, Burkina Faso.

Highlights

• High-grade results from depth at the south-western end of M5;
  • 29m at 4.96 g/t Au from 128m, including 9m at 10.6 g/t Au and
  • 15m at 5.03 g/t Au from 256m, including 2m at 27.3 g/t Au
  • 20m at 3.34 g/t Au from 170m, including 1m at 14.3 g/t Au and 2m at 16.5 g/t
• Diamond drilling at the north-eastern end of M5 returns better than expected results;
  • 30m at 2.6 g/t Au from 94m, including 1m at 16.1 g/t Au and 2m at 10.3 g/t Au
• New results to be included in resource & reserve update in Q3 2017
• Optimised feasibility study including open-pit and underground mining on track for Q3 2017
• Two contractor rigs currently drilling at M1 South, two company owned rigs at M5
• Well-funded to complete all work programs

Managing Director Richard Hyde commented:

"The WAF field team is busy on site with four rigs drilling high priority targets at M1 and M5. Drilling programs are designed to extend mineralisation at depth and upgrade resources from Inferred to Indicated category. Results are to be included in the optimised feasibility study in Q3 2017.

"Deep drilling testing the south-western end of M5 has returned thick zones of higher grade gold mineralisation beneath the existing reserve pit shells.

"Solid diamond drilling results have also been returned beneath shallow RC drilling in the north-eastern end of the M5 deposit. Mineralisation is open at depth and, given the improved grades, warrants follow- up drilling.

"Gold extensions in both areas will have a positive impact on the resource and reserve update scheduled for Q3 2017."

M5 Resource and Extensional Drilling

Recent drilling programs have been designed to test higher grade mineralisation at the southwestern end of the M5 deposit, close to the base and beneath current reserve pit shells (Figures 1 - 5). Consistent zones of gold mineralisation have been intercepted with results generally higher grade than the surrounding resource block grades. Mineralisation between sections SW800 and SW400 is hosted within

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laminated quartz veins which are typically higher grade. Results for TAN17-DD102 on section SW650 are pending and located 115m down dip of TAN14-DD022 which returned over 70m of gold mineralisation including 14m at 4.5 g/t Au, 15m at 3.1 g/t Au and 14m at 2.05 g/t Au from 240m (Figure 2). Logging of TAN17-DD102 indicates a similar mineralised zone of approximately 70m downhole, with visible gold in a number of zones (most prominently at 370.4m - Photo 1). Significant results from depth at the southwestern end of M5 include:

 TAN17-DD089: 10m at 1.18 g/t Au from 227m

 TAN17-DD091A: 32m at 1.84 g/t Au from 415m, including 1m at 15.6 g/t Au

 TAN17-DD094: 29m at 4.96 g/t Au from 128m, including 9m at 10.6 g/t Au

 TAN17-DD095: 13m at 2.29 g/t Au from 396m, including 1m at 12 g/t Au

 TAN17-DD097A: 15m at 5.03 g/t Au from 256m, including 2m at 27.3 g/t Au

 TAN17-DD100: 20m at 3.34 g/t Au from 170m, including 1m at 14.3 g/t Au and 2m at 16.5 g/t

Au and 22m at 1.53 g/t Au from 210m

Photo 1: TAN17-DD102 - Visible gold at 370.4m, section SW650 at M5 1 cm

Shallow RC and diamond drilling has also been carried-out in the north-eastern end of the M5 deposit. Previous drilling typically focussed on the shallow oxide profile (Figure 1 and 6). Recent drilling has returned results that are generally higher grade than the previous oxide drilling and higher than the corresponding resource block grades. Mineralisation is open at depth and requires follow-up drilling. Significant results from the northeast end of M5 include:

 TAN17-DD088: 18m at 1.49 g/t Au from 80m

 TAN17-DD092: 23m at 1.44 g/t Au from 61m, including 1m at 10.9 g/t Au

 TAN17-DD093: 6m at 3.79 g/t Au from 142m, including 1m at 15.8 g/t Au

 TAN17-DD096: 30m at 2.6 g/t Au from 94m, including 1m at 16.1 g/t Au and 2m at 10.3 g/t Au

 TAN17-DD098: 7m at 4.1 g/t Au from 89m, including 1m at 15.2 g/t Au

 TAN17-DD098: 8m at 1.5 g/t Au from 99m

M1 Drilling at Depth

Currently both contract drill rigs are busy working at M1 South. Drilling was halted at M1 South during January and early February while the open pit feasibility study was finalised and a geological review of drilling up until the end of 2016 was undertaken. Drilling is focussing on the highest grades at the southern end of the M1 South deposit, targeting results open at depth from the 2016 drilling program including 5m at 30.28 g/t Au and 14m at 11.82 g/t from 216m from TAN16-DD063. Drilling has been prioritised to focus on M1 South for the remainder of the field season. Additional contract rigs are being sought to undertake follow-up drilling at M5.

Optimised DFS Update

Work has commenced on the underground study for M1 South. Early indications are that material improvements will be made to the mine schedule with the strip ratio likely to drop from the current level in the open pit study of 36 : 1 to approximately 20 : 1, before underground mining commences. Access to the underground will be from a portal at the base of the open pit. Detail design has been completed for water diversions and sediment control dams. These dams will also provide water prior to the commencement of construction.

Results reported in the release will be included in upcoming resource and reserve studies scheduled for Q3 2017, feeding into the Optimised DFS due for completion in Q3 2017. A summary plan and sections for M5 are presented below. Full results for drilling are presented in Table 1.

Figure 1: Sanbrado Gold Project - Mineralised Trends and Prospect Locations