SEMAFO: Cash Flow from Operations of $34.8 million in Third Quarter 2015 2015 Cost Guidance Lowered

Montreal, Quebec, November 12, 2015 – SEMAFO Inc. (TSX, OMX: SMF) today reported its financial and operational results for the three-month period ended September 30, 2015.  All amounts are in US dollars unless otherwise stated.

Third Quarter 2015 in Review

Driven by our strong third-quarter operational performance, we are lowering our all-in sustaining cost guidance from between $655 and $685 to between $630 and $650 per ounce for the year.

• Gold production of 67,200 ounces, a 4% increase compared to the same period in 2014
• Total cash cost¹ of $485 per ounce sold and all-in sustaining cost¹ of $616 per ounce sold at our Mana Mine, both of which represent year-over-year decreases of 13%
• Gold sales of $72.5 million, a 14% decrease compared to the same period in 2014
• Operating income of $19.5 million compared to $25.5 million for the same period in 2014
• Net income² of $14.5 million compared to $12.7 million for the same period in 2014
• Net income attributable to equity shareholders² of $12.8 million or $0.04 per share compared to $11.2 million or $0.04 per share for the same period in 2014
• Adjusted net income attributable to equity shareholders^1,2 of $13.9 million or $0.05 per share¹ compared to $19.3 million or $0.07 per share¹ for the same period in 2014
• Cash flows from operating activities^2,3 of $34.8 million or $0.12 per share¹ compared to $40.6 million or $0.15 per share¹ for the same period in 2014
• Feasibility study at Natougou 70% complete and on track for completion early in the second quarter of 2016
• Positive metallurgical test work was completed on the Natougou deposit
• Foundation SEMAFO was recipient of an award from Forum Africa for excellence in supporting women’s entrepreneurship in Africa

¹          Total cash cost, all-in sustaining cost, adjusted net income attributable to equity shareholders, adjusted basic earnings per share and operating cash flows per share are non-IFRS financial performance measures with no standard definition under IFRS. See the “Non-IFRS financial performance measures from continuing operations” section of the Corporation’s MD&A, note 16.

²          From continuing operations.

³        Cash flows from operating activities from continuing operations exclude changes in non-cash working capital items.

Mana, Burkina Faso

Mining Operations

¹      Cash operating cost, total cash cost and all-in sustaining cost are a non-IFRS financial performance measure with no standard definition under IFRS. See the “Non-IFRS financial performance measures from continuing operations” section of the Corporation’s MD&A, note 16.

²      Depreciation per ounce sold is a non-IFRS financial performance measure with no standard definition under IFRS and represents the depreciation expense per ounce sold.

For the third quarter in 2015, the decrease in throughput is a direct result of the mine plan sequence.  The increase in head grade in the third quarter of 2015 reflects a greater percentage of high-grade ore processed from the Fofina and Siou pits compared to the same period in 2014.

During the third quarter of 2015, gold sales amounted to $72.5 million compared to $84.5 million for the same period in 2014. The 14% decrease is attributable to a decrease in the average realized selling price and the lower gold ounces sold. The decrease in mining operation expenses reflects lower fuel pricing, coupled with the strength of the US dollar relative to the Euro and lower throughput. Cash flows from operating activities from continuing operations reached $34.8 million in the third quarter of 2015 due to the decrease in operating income.

As a result of the cash flow generated from our operating activities, we held a strong cash and cash equivalents position of $137.8 million as at September 30, 2015 with a subsequent receipt of gold trade receivables of $17.5 million in early October.

Lower 2015 Cost Guidance

Driven by our strong third-quarter operational performance, we are lowering both our total cash cost and all-in sustaining cost guidance for the year. The downward revisions reflect cost containment efforts, lower industry costs and favourable exchange rates.

*Disclosure date in MD&A

The Corporation is on track to achieve the mid-range of its 2015 annual production guidance of between 245,000 and 275,000 ounces of gold.

Update on Natougou Feasibility Study

The feasibility study for Natougou continued to gain traction in the third quarter and is now 70% complete. We continue to target delivery of the feasibility study early in the second quarter of 2016.  At September 30, 2015, $9.9 million of the $12.5 million budget had been expended and our team had achieved the following milestones:

•          Process: 90% completed. This includes the plant and site layout equipment specification and request for quotes. Remaining work items involve establishment of the overall sector variability, test work on tailings ponds and CAPEX/OPEX estimations.

•          Hydrology: 90%. The water balance analysis has been fully carried out.

•          Environmental study: 40% completed.

•          The 56,000 meters of in-fill drilling scheduled for the feasibility study have been carried out.

•          The resource model is complete, and the 3D geological block model is underway.

Positive Metallurgical Test Work on the Natougou Deposit

Testing on the Boungou Shear Zone was conducted using an optimum flow sheet configuration comprising a primary grind size of 63 microns, a gravity recovery circuit, followed by a 36-hour cyanide leach.  A total of 109 drilled core (DC) samples of the mineralized zone ensured both spatial and grade representation, as well as comparison of oxidized and fresh rock characteristics. Each individual sample represents approximately 3 kilograms of drilled core samples. The samples were collected and sent to ALS Metallurgy in Perth, Australia for metallurgical test work. Results show that the recovery is consistent throughout the deposit and trace metal analyses exhibit no refinery concerns. Fresh rock samples indicated a gold recovery rate of over 92%, while oxidized samples yielded a recovery of over 96%.

Exploration - Natougou

Footwall Zone

During the third quarter of 2015, a delineation drilling program and a short hole-extension program were completed to test the continuity of the footwall zone of the Boungou Shear Zone that was originally encountered by hole TPA0556, which had returned 10.23 g/t over 2.69 meters. A total of 20 holes (370 meters) were extended in order to reach the footwall zone. Following reception of the results, a total of 12 additional holes were interpreted to have also crossed the footwall zone.

The results, which returned local high-grade results of up to 31.98 g/t over 2.5 meters, suggest that the width of the footwall zone averages 1.5 meters. It lies subparallel to, and some 5 to 20 meters below, the main Boungou Shear Zone. To date, the zone has been traced over a 300-meter x 90-meter area and remains open in all directions. Further drilling will be carried out.

Regional Exploration - Natougou

Regional airborne geophysical surveying, involving MAG, VTEM and radiometric surveys, commenced in mid-October on the Boungou, Dangou and Pambourou permits. The surveys are being flown at 100-meter line spacing. Field work such as geological mapping, soil geochemistry and RC drill programs will be carried out following review and interpretation of the data.

Third Quarter 2015 Conference Call

SEMAFO’s third quarter 2015 Management’s Discussion and Analysis and Consolidated Financial Statements and related financial materials are available in the “Investor Relations” section of the Corporation's website at www.semafo.com. These and other corporate reports are also available on www.sedar.com.

A conference call will be held today, Thursday, November 12, 2015 at 10:00 EST to discuss the third-quarter results. The webcast will also be accessible on our website at www.semafo.com  for a period of 30 days.

Details

Tel. local & overseas:     +1 (647) 788 4922  
Tel. North America:                 1 (877) 223 4471
Replay number:                      1 (800) 585 8367
Replay pass code:                   45906680

About SEMAFO

SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa.  The Corporation operates the Mana Mine in Burkina Faso, which includes the high-grade satellite deposits of Siou and Fofina, and is developing the advanced gold deposit of Natougou. SEMAFO is committed to evolve in a conscientious manner to become a major player in its geographical area of interest. SEMAFO’s strategic focus is to maximize shareholder value by effectively managing its existing assets as well as pursuing organic and strategic growth opportunities.

Michel Crevier, P.Geo MScA, Vice-President Exploration and Mine Geology, is SEMAFO’s Qualified Person and has reviewed the exploration results contained in this press release for accuracy and compliance with National Instrument 43-101.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. Forward-looking statements include words or expressions such as “on track”, “guidance”, “expect”, “target”, “will”, “committed”, “evolve”, “become”, “pursuing”, “growth”, “opportunities” and other similar words or expressions. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward-looking statements include the ability to complete the Natougou feasibility study early in the second quarter of 2016 within the $12.5 million budget, the ability to achieve the mid-range of our 2015 production guidance of between 245,000 and 275,000 ounces, the ability to achieve our 2015 total cash cost guidance of between $485 and $505 per ounce and our all-in sustaining cost guidance of between $630 and $650 per ounce, the ability to execute on our strategic focus, fluctuation in the price of currencies, gold or operating costs, mining industry risks, uncertainty as to calculation of mineral reserves and resources, delays, political and social stability in Africa (including our ability to maintain or renew licenses and permits) and other risks described in SEMAFO’s documents filed with Canadian securities regulatory authorities. You can find further information with respect to these and other risks in SEMAFO’s 2014 Annual MD&A, as updated in SEMAFO’s 2015 First Quarter MD&A, Second Quarter MD&A and Third Quarter MD&A  and other filings made with Canadian securities regulatory authorities and available at www.sedar.com. These documents are also available on our website at www.semafo.com. SEMAFO disclaims any obligation to update or revise these forward-looking statements, except as required by applicable law.

The information in this release is subject to the disclosure requirements of SEMAFO under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was publicly communicated on November 12, 2015 at 8:00 a.m., Eastern Standard Time.

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Consolidated Results and Mining Operations from Continuing Operations

Operating Highlights from Continuing Operations

¹      Adjusted net income attributable to equity shareholders, adjusted basic earnings per share and operating cash flows per share are non-IFRS financial performance measures with no standard definition under IFRS. See the “Non-IFRS financial measures from continuing operations” section of the Corporation’s MD&A, note 16.

²      Cash flows from operating activities from continuing operations exclude changes in non-cash working capital items.