West African Resources Ready to Join the Ranks of Leading Gold Producers

• West African Resources produced 290,000 ounces of gold in 2021 and received the "Digger of the Year" award. The company is on track to produce 220,000 ounces at less than $11.75 per ounce this year.
• The company has over a thousand square kilometers of exploration ground and a market capitalization of A$870 million. They ended the recent quarter with nearly $200 million in cash and bullion.
• West African Resources is focused on its operations at San Brado, which has had 10 consecutive quarters of production. The geopolitical situation in West Africa has been challenging, but the company remains committed and optimistic about its operations.
• Over half of the employees are from the local area, and the company has contributed over USD$250 million to Burkina Faso since starting operations in 2020.

West African Resources (ASX: WAF) is an emerging mid-tier gold producer focused on two core assets in Burkina Faso, West Africa. With its successful track record in exploration, development and operation of its flagship Sanbrado gold project, the company is poised for significant production growth as it advances the construction of its second project, Kiaka. Here's a look at why West African Resources may be a compelling investment opportunity.

Rapid Production Growth on Track

• Sanbrado exceeded 2021 production guidance of 300,000 ounces by producing over 290,000 ounces of gold. The company has maintained steady production in 2022, on track to meet 220,000-250,000 ounce guidance for the year.
• Kiaka construction is progressing on schedule and budget, with first gold pour expected in mid-2025. Once online, Kiaka will boost WAF's production profile to over 400,000 ounces per year.
• The combined production from Sanbrado and Kiaka will propel WAF into the ranks of mid-tier gold producers within the next 3 years.

Proven Explorer and Developer in West Africa

• WAF has accumulated an impressive portfolio of over 12 million ounces of gold resources in West Africa, concentrated in Burkina Faso.
• The company has demonstrated consistent exploration success, growing Sanbrado's resources substantially since its initial discovery in 2015.
• WAF also has a strong track record in mine development, delivering the Sanbrado project on time and budget in 2020 despite the challenges of COVID-19.
• This exploration and development expertise provides confidence that current growth projects will be executed successfully.

Strong Financial Position

• As of June 2022, WAF had nearly A$200 million in cash and bullion providing funding for Kiaka construction.
• The company has secured $265 million in additional debt funding on attractive terms from Sprott and Coris Bank to fully fund Kiaka through commissioning.
• With no gold hedging, WAF maintains full exposure to the upside in the gold price. This will boost cash flows further as gold enters its next cyclical bull market.
• Current market valuation does not yet reflect WAF's near-term growth. Once in production, Kiaka's NPV far exceeds the company's entire market capitalization today.

Proactive ESG and Community Engagement

• WAF has prioritized environmental rehabilitation, health, education and community development programs in Burkina Faso.
• The company is focused on maximizing local employment, with over 90% of the Sanbrado workforce from Burkina Faso.
• Tax and royalty payments to the Burkina Faso government have exceeded $250 million since 2020, providing substantial economic benefits.
• This proactive ESG strategy earns WAF its social license to operate and maintain stable production.

Experienced Leadership Team

• Founder and CEO Richard Hyde is a geologist with over 25 years of experience in West Africa. His expertise has been critical in WAF's exploration and development success.
• In 2022, Matt Scully joined as GM of Operations from Perseus Mining, strengthening operational and project development leadership.
• WAF's board includes mining finance experts Peter Warren and Lyndon Hopkins, providing additional depth.

With its rapid production growth, strong financial footing, proven West African operating expertise and experienced leadership team, West African Resources has solid fundamentals underlying a promising investment case as it strives to create significant shareholder value in the years ahead.

The Investment Thesis for West African Resources

Leverage to Rising Gold PricesAs an unhedged gold producer, West African Resources provides direct exposure and leverage to increasing gold prices. With gold expected to be in a new bull cycle driven by inflation and economic uncertainty, WAF offers torque to potentially significant gold price appreciation.

Low-Cost Production - WAF's all-in sustaining costs are guided below $1,100/oz for Sanbrado and $1,000/oz for Kiaka. These low costs will allow the company to generate robust profit margins, even if gold prices decline from current levels. Low costs also make WAF resilient to inflationary pressures.

Scope for Mine Life Extensions - The current mine lives for Sanbrado (10+ years) and Kiaka (16 years) are based only on existing reserves. With substantial resources and exploration upside at both projects, WAF has strong potential to extend mine lives considerably by converting resources to reserves over time.

Takeover Target Appeal - Once Kiaka is in production, WAF will be generating 500,000+ oz of low-cost annual gold production in a jurisdiction where few mid-tier producers operate. This could make the company an appealing takeover target for a major looking to add West African production.

Strong Cash Flow Generation - WAF's growing production profile and low costs support expectations of strong operating cash flow generation, especially if gold prices rise further. This cash flow can fund continued exploration, dividends, debt repayment and growth projects.

WAF offers investors an attractive combination of leveraged gold exposure, low-cost production growth, takeover potential, resource upside and anticipated robust cash flow generation.