Name and Location
Otjikoto gold project, Namibia.

Client
B2Gold.

Project Description
A feasibility study on the Otjikoto project, located about 300 km north of Windhoek, Namibia’s capital, has demonstrated the robust economics of the project.

The mine plan is based on probable mineral reserves of 29.4-million tonnes, grading 1.42 g/t for 1.341-million ounces of gold at a stripping ratio of 5.59:1, to be mined over an initial 12-year period.

Average yearly production for the first five years is estimated at 141 000 oz/y of gold.

The gold project will be developed as an openpit mine, with run-of-mine ore trucked to the plant, where it will be crushed and then treated in a grinding circuit using conventional semiautogenous grinding and ball mills, and a carbon-in-leach recovery process.

Net Present Value/Internal Rate of Return
The project has a pretax net present value at a discounted rate of 5%, of $402-million, generating an after-tax internal rate of return of 23.6%.

Value
The total preproduction capital costs are estimated at $244.2-million.

Duration
The project will ramp-up to full production in 2015.

Latest Developments
Otjikoto had its first month of commercial production in March this year.

The company declared the start of commercial production based on the performance of the mill and company having met the commercial production criteria of 30 consecutive days of mill throughput at 65% of nameplate capacity by February 28.

All ore will come from the existing Otjikoto pit this year. Once the planned mill expansion is completed in the third quarter of 2015, B2Gold expects that yearly gold production from the main Otjikoto pit will increase significantly to about 200 000 oz/y in 2016 and 2017.

Otjikoto’s gold production will also be enhanced by the development of its Wolfshag zone, adjacent to the main Otjikoto pit.

Meanwhile, expansion of the Otjikoto mill from 2.5-million tonnes a year to 3-million tonnes a year continues on schedule. Two leach tanks have been delivered to site and the pebble crusher has been ordered.

It is expected that this work will be completed by August 31.

This expansion will support additional throughput, initially from the Otjikoto mine and subsequently from the fully permitted Wolfshag deposit.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
The Otjikoto mine construction is on budget and on schedule to start production in the fourth quarter of 2014.

Contact Details for Project Information
B2Gold, tel +1 604 681 8371, fax +1 604 681 6209 or email investor@b2gold.com.