West African Resources Ltd.: December 2018 Quarterly Report

• Underground mining contract awarded to Byrnecut
  
• Mill package awarded to Outotec, order placed for 4MW SAG and ball mills
  
• EPCM contract for Sanbrado awarded to Lycopodium
  
• Earthworks, camp and box cut for underground access commenced by WAF construction team
  
• Further Key hires completed for construction, operations and security teams

M1 South Diamond Drilling

• 1km diamond hole intercepted extensive visible gold returning 25m at 15.03 g/t Au
  
• Intercept located 220m vertical beneath existing Probable Ore Reserves, confirms potential to extend M1 South underground mine life past 4.5 years
  
• Parallel high-grade zone at M1 South intercepted 300m below surface, 180m east of main zone 2m at 138.4 g/t Au and 5.5m at 15.5 g/t Au
  
• Infill drilling returns 21.5m at 15.3 g/t and 14.5m at 19.9 g/t Au

Corporate Summary

• West African fully funded through to gold production in 2020 at Sanbrado
  
• US$200 million finance facility secured with Taurus Funds Management Pty Ltd
  
• Fully underwritten institutional Share Placement completed raising A$43.2 million
  
• Share Purchase Plan offer for up to A$5 million enabling retail shareholders to participate in Sanbrado project funding closes January 25, 2019
  
• Updated security protocols and procedures for staff and contractors in Burkina Faso

December 2018 Quarter Summary

• 5,656m drilled
  
• A$7.8m exploration and mine development expenditure
  
• A$4.2m administration costs (including costs associated with project finance raising - debt and equity)
  
• A$66.4m cash at bank at 31 December 2018

March 2019 Quarter Plans

• Completion of feasibility study optimisation and update
  
• Exploration drilling near surface targets in trucking distance to Sanbrado
  
• Award of open pit mining contract
  
• Completion of stage 1 camp (120 rooms), admin building, clinic and temporary power station
  
• Major mechanical and electrical equipment procurement
  
• Structural steel and platework fabrication commencement

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SOURCE: West African Resources Ltd.