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A growing platform for quality West African gold projects INVESTOR - - PowerPoint PPT Presentation

A growing platform for quality West African gold projects INVESTOR PRESENTATION | JULY 2017 CAUTIONARY STATEMENT This Presentation is for information purposes in connection with African Gold Group materially, and a number of factors may cause


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A growing platform for quality West African gold projects

INVESTOR PRESENTATION | JULY 2017

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CAUTIONARY STATEMENT

This Presentation is for information purposes in connection with African Gold Group known as “AGG” or the “Company”(s), preliminary business plan only. While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees, consultants or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability, completeness or suitability of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees, consultants or advisers, take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions

  • r misstatements or for any loss, howsoever arising or out of or in connection with

the use of this Presentation. Each party to whom this Presentation is made available must make its own independent assessment of the Company and the Presentation after making such investigations and taking such advice as may be deemed

  • necessary. Any reliance placed on the Presentation is strictly at the risk of such

person relying on such Presentation. This Presentation may contain forward-looking statements regarding the Company and its subsidiaries. These statements are based on various assumptions made by the Company. Such assumptions are subject to factors which are beyond our control and which involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Forward-looking statements may in some cases be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential”

  • r “continue”, the negative of such terms or other comparable terminology. These

forward looking statements are only predictions. Actual events or results may differ materially, and a number of factors may cause our actual results to differ materially from any such statement. Such factors include among others general market conditions, demand for our products, development in reserves and resources, unpredictable changes in regulations affecting our markets, market acceptance of products and such other factors that may be relevant from time to time. Although we believe that the expectations and assumptions reflected in the statements are reasonable, any person relying on such Information and Presentation are cautioned that we cannot guarantee future results, levels of activity, performance or achievement. In preparing this Presentation and except as required by law, we do not undertake or agree to any obligation or responsibility to provide the recipient with access to any additional information or to update this Presentation or Information or to correct any inaccuracies in, or omission from this Presentation or to update publicly any forward-looking statements for any reason after the date of this Presentation to conform these statements to actual results or to changes in our expectations. This Presentation does not constitute an offer or invitation to sell, or any solicitation

  • f any offer to subscribe for or purchase any securities and nothing contained

herein shall form the basis of any contract or commitment whatsoever. Copies of this Presentation should not be distributed to any affiliates, third parties or indirect recipients in any manner whatsoever. The distribution of this Presentation in or to persons subject to other jurisdiction may be restricted by law and persons into whose possession this Presentation comes should inform themselves about, and

  • bserve any such restrictions. Any failure to comply with these restrictions may

constitute a violation of the laws of the relevant jurisdictions. This Presentation is strictly confidential and may not be reproduced, disseminated

  • r used without the express and written consent of the Company. The Information

in this Presentation concerning the business and its affairs, shareholders, directors,

  • fficers, agents, employees, consultants or advisers or any other matter must be

kept confidential at all times. If the Company suffers loss, damage or liability of any kind in connection with your breach of the restriction on reproduction or use, you will indemnify the Company from and against such loss, damage or liability.

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AFRICAN GOLD GROUP - VISION & STRATEGY

Our vision is to build a leading West African gold company that will consolidate and develop of high quality gold assets in the region.

A New Platform for Growth in West Africa.

Madougou Project | Burkina Faso

  • Large land package, 30km from Endeavour’s Karma Mine
  • Exploration stage; several highly prospective targets identified
  • Excellent mineral growth and development potential

Current Portfolio of Projects: Kobada Gold Project | Mali

  • Near-term production
  • Objective to be a +50koz/yr Au producer
  • Advanced stage of permitting
  • “Shovel ready” following Feasibility Study

update and project financing

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AFRICAN GOLD GROUP - TRACK-RECORD OF VALUE CREATION

New team has extensive experience and illustrated past successes in West African mine project discovery, development, financing and operation.

Discovery Development Production

Prospecting, Exploration work, Drilling Assessment, PEA, BFS, Permitting Approvals, Construction, Production

Mine Development Pipeline / Value Creation Next Project Madougou Project Kobada Gold Project

The new team is uniquely positioned to identify and develop quality projects in West Africa. New Management & Board since March 2017

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SENIOR MANAGEMENT TEAM

Stephan Theron - CEO

  • +18 years of senior management, capital project

development and M&A experience within the mining industry.

  • Current CEO of Trigon Metals. Former CEO of Forbes Coal

(Buffalo Coal), and director of True Gold Mining.

  • He has structured numerous mining focused investments

and has worked on mining projects throughout Africa.

Sékou Konate – Country Manager

  • +22 years as a civil servant working for the Malian Ministry
  • f Public Works and Transportation.
  • + 20 years of experience facilitating exploration and mining

activities in Mali; former experience with Golden Shamrock , SEMAFO , OREZONE, Golden Rim and African Gold Group.

  • Former management experience at Direction Nationale des

Travaux Publics, Chief Division of Supply Fuel at Petrostock State Company.

Brett A. Richards - President and COO

  • + 30 years of expertise in mining and metals, with a focus on

M&A, mine development and senior level operations.

  • Current President of Richards Enterprises Inc., a mining

consulting firm, and formerly held senior executive roles in West Africa, including CEO of Octéa Ltd, the transition CEO of Roxgold and the CEO of Avocet Mining. He also held other senior management positions at Katanga Mining Ltd, Kinross Gold and Co-Steel Inc.

  • Fellow of the Institute of Directors in London; a member of

Ontario Association of Certified Engineering Technologists and (O.A.C.E.T.T. - Mechanical Engineering); a member of the Prospectors and Developers Association of Canada (P.D.A.C).

Ryan Ptolemy - CFO

  • CPA, CGA, and CFA holder with +15 years of experience in the

public and private sectors.

  • He has served as CFO to a number of companies in the mining

sector, particularly exploration and development stage companies

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BOARD OF DIRECTORS

Stan Bharti, P. Eng, M. Eng. - Chairman

  • Professional mining engineer, business consultant,

international financier, and seasoned entrepreneur.

  • + 30 years of professional experience in business, finance,

markets, and operations.

Bruce Humphrey - Director

  • + 35 years experience working in senior management

roles with both junior and senior mining companies.

  • Formerly served as Chairman of Consolidated Thompson

Iron Mines, President and CEO of Desert Sun Mining, and Senior Vice President and COO of Goldcorp.

John Begeman - Director

  • +35 years of experience as a professional mining

engineer.

  • Current Executive Chairman of Premier Gold Mines,

director of Yamana Gold Inc. and Aberdeen International.

  • Former President and CEO of Avion Gold, President, CEO

and director of Valencia Ventures, COO of Zinifex Canada, VP Western Operations for Goldcorp.

Georges Cohen - Director

  • Chairman and CEO of Robex Resources; with significant

corporate and management experience in Cap Gemini Group. Founder of Transiciel and oversaw its integration into Cap Gemini Group. Grenada’s Ambassador to the United Nations.

Marco J. Durante - Director and Founder

  • Substantial past experience with mining companies including

Banro Resource Corp. and Lyndex Exploration; focusing on Investor Relations strategies and financing initiatives.

Declan Franzmann, FAuaIMM - Director

  • Professional mining engineer with +23 years experience
  • Former CEO of African Gold Group.
  • Extensive experience in gold mining, with a track record
  • f successful project development and operations.

Stephan Theron - Director

  • +18 years of extensive management, capital project

development and M&A experience within the mining industry. He has structured numerous mining focused investments and has worked on mining projects throughout Africa

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CORPORATE STRUCTURE OVERVIEW

10 YR. SHARE PRICE (HIGH: $1.90; LOW: $0.04) MAJOR SHAREHOLDERS

* As at last reported quarter, Q4 ending December 31, 2016

New Board & Management

Forbes and Manhattan Companies 18.60% Georges Cohen 10.80% Sentry Investments 4.50% Marco Durante 2.60% Michael Nikiforuk 2.30%

Trading Symbol (TSX.V) AGG Shares Outstanding 392,770,333 Options* 16,300,000 Warrants* 143,681,817 Share Price (06/30/17) $0.06 52 Week Range $0.04 - $0.12

  • Avg. Daily Volume

397,000 Market Cap. $19.6 M Cash (as at June 2017) ~$4.0 M Debt Nil

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THE PROLIFIC GOLD-PRODUCING “BIRIMIAN GREENSTONE BELT”

The Kobada and Madougou projects are located within the prolific “Birimian Greenstone Belt”.

Mali

Kobada Madougou

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KOBADA - PROJECT LOCATION

Randgold Resources 800-850koz.pa. Resolute Mining 175koz.pa. Endeavour Mining 175koz.pa. (800K oz pa. from 5 mines in West Africa) IAMGOLD 75koz.pa. (450K oz.pa. from 3 mines in West Africa) AngloGold Ashanti 75koz.pa.

MALI

Bamako

Kobada Gold Project

  • Located in southern Mali, 3rd largest gold

producer in Africa, after South Africa (1st) and Ghana (2nd)

  • Historical gold production of major miners:
  • +20 mining companies in Mali at various stages of development
  • Active mining culture; experienced and available workforce
  • Favourable fiscal regime; government strongly supportive of mining

(#1 source of GDP in country)

Kobada

NIGER COTE D’IVOIRE BURKINA FASO SENEGAL ALGERIA MAURITIANA

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KOBADA - PROPERTY OUTLINE

Mining Licence: 135.7 km2

  • Issued on July 31, 2015,

“Decret No 2015‐0528/PM‐RM”

Exploration License: 79.3 km2

  • This area forms part of the original

exploration permit which was the amalgamation of several permits under

  • Issued on August 9, 2012,

“Arrete No 2012‐2338/MCMI‐SG”

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KOBADA - PROJECT OVERVIEW

Feasibility Study (Feb 2016) demonstrates technically simple project:

Low cost, scalable, free dig, open pit operation with gravity separation and leach.

Production Expected to Increase

  • Targeting annual gold production of 50,000 oz
  • 8 year mine life; near mine exploration targets expected extend mine life

Strong Economics

  • High early cash flows from starter pits (higher grade, lower strip ratio)
  • Post-Tax IRR of 43%; Post-Tax NPV of $86M; ($1,200/ozAu; 5% disc. rate)
  • Total LOM cash flow: $122 million (90% attributable to AGG)

Low Operating Costs

  • Average LOM cash operating costs of $557 / oz Au (exclusive of royalties)
  • All-in LOM sustaining cash operating costs of $788 / oz Au

Low CAPEX

  • Pre-production capital costs of $45.4M (1.5 yr. payback from start of commercial production; 2.5 yr. overall project payback)
  • Sustaining capital expenditures of $36.7 million

Notes: Key economic assumptions for the Feasibility Study were; $1,200 Au/oz; 35% corporate tax rate; 3% royalty; 90% AGG ownership, 10% Malian Gov.; USD1=XAF612 exchange rate; 5% discount rate.

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KOBADA - DEVELOPMENT STATUS

Development Status  Mining Licence approved on July 31, 2015  Environmental Permit granted June 2, 2015  Community Development Plan completed (permitting process requirement)  Planning permission for road upgrade granted Upcoming Catalysts & Development Milestones

  • Feasibility Study (Feb 2016) is currently being reviewed and optimized
  • Negotiation and discussions with Malian Government on government participation on-going
  • Assess Phase 2 development potential – deeper hard rock CIL study
  • Potential diamond core drill program at depth of Kobada Central/South and potentially Kobada North and Foroko North
  • Additional metallurgical testing on sulphides
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KOBADA - FEASIBILITY STUDY RESULTS

Mining Method & Production

Open pit mining; 50koz/year Au; throughput of 1.6Mt per annum; 3.3 LOM strip ratio Contract mined, 40t haul trucks, wheel loaders and excavators

  • Avg. Grade

1.26 g/t Au (1.4 g/t Au first 2 years)

Mining Costs

Mining: $2.35/tonne Processing: $6.55/tonne processed G&A: $3.54/tonne processed

Material

Soft, free dig. 94% saprolite ore present to 120m below surface (~56% of mineral resource is oxide)

Metallurgy

Highly amenable to gravity separation

  • Should reject 70% of ore feed with 94% recovery prior to crush and leach
  • 82% avg. overall recovery (84-85% first 2 years) of oxide ore

Topography & Climate

Flat topography, rolling laterite plains Dry tropic climate

Power Needs

Low power requirements, electricity will be generated via diesel generators

Water Needs

Tailings facility will hold excess water from wet season. River adjacent to site if makeup water is required.

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KOBADA - PROJECT ECONOMICS

Project Sensitivity to Gold Price Movements

$1,000/oz Au $1,100/oz Au $1,200/oz Au $1,300/oz Au $1,400/oz Au

Post-Tax Cash Flow (US$)

$68M $95M $121M $148M $174M

Post-Tax NPV, 5% (US$)

$45M $66M $86M $106M $126M

Post-Tax IRR

28% 36% 43% 49% 55%

Payback Period

3.4 years 2.8 years 2.6 years 2.4 years 2.3 years

Note: Undiscounted cash flow, NPV5%, IRR and payback period are all calculated on the Project’s free cash flow after taxation at each stated gold price.

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KOBADA - PRODUCTION

Front-end loaded production profile underpinned by 94% free dig material Production Profile Ore Distribution by Type

6%

Drill & Blast (Laterite)

94%

Free Dig (Saprolite)

  • Highest avg. grade, LOM: 1.39 g/t
  • Lowest avg. cash costs, LOM: $506/oz
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KOBADA - PROPOSED SITE PLAN

Accommodation Camp ROM Pad Process Facility North/Central Pits Waste Dumps Tailings Storage Facility

General Arrangement of the Process Facility:

Processing Method: Gravity concentration and intensive leaching

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KOBADA – CAPEX

CAPEX Summary Key CAPEX Items

Pre-production Sustaining Processing Plant $35.8M $2.2M Tailings Storage $3.3M $9.6M Infrastructure $2.9M

  • Owners Costs

$3.0M

  • Capitalized waste mining
  • $21.0M

Closure

  • $4.0M

Contingency $4.5M

  • $49.5M

$36.8M Process, Plant & Eqmt. $22.4M Waste Stripping $21.0M Tailings $12.9M Plant Construction $5.8M Closure Costs $4.0M EP & Project Mgmt $3.1M Access Infrastructure $2.9M Plant Commissioning $2.0M Plant Transport & Ship $1.6M Camp & Accommodations $1.4M Earthworks, Civil & Fencing $1.3M Miscellaneous $3.4M Contingency $4.5M $86.3M

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KOBADA - PROJECT ECONOMICS

Strong IRR at $1,000/oz Au minimizes risk in a volatile gold price environment Economics ($1,200/oz Au base case) Free Cash Flow Profile ($1,200/oz Au)

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KOBADA - SIGNIFICANTLY UNDERVALUED

AVK Avnel Gold Mining DNA Dalradian Res. HUM Hummingbird Res. ORE Orezone Gold WAF West African Res. BSX Belo Sun Mining CNL Continental Gold GOR Gold Road Res. LUG Lundin Gold LYD Lydian International NCA NewCastle Gold SBB Sabina Gold & Silver VIT Victoria Gold

Peer Comparable – P/NAV & EV/MI&I

Bubbles size represents total MI&I resources

*Data obtained from available public information, as at May 30, 2017

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KOBADA - MINERAL RESOURCES & RESERVES

Large scale and relatively homogeneous ore body.

Tonnage (Mt) Grade (g/t Au) Contained Gold (kozs)

Measured (0.3 g/t cut-off) 11.0 1.1 380 Indicated (0.3 g/t cut-off) 24.4 1.1 835 Total M&I 35.4 1.1 1,215 Inferred (0.3 g/t cut-off) 32.8 1.0 1,024

Mineral Resources (Nov. 2015)

Tonnage (Mt) Grade (g/t Au) Contained Gold (kozs)

Proven (0.53 g/t cut-off) 5.7 1.22 225 Probable (0.53 g/t cut-off) 7.0 1.27 286 Total P&P 12.7 1.25 511

Mineral Reserves (Feb. 2016)

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KOBADA - SECTION 2300S

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Significant mineral growth opportunities

  • n the mining and exploration licences.

Current resources (4 km strike) only cover 33% of total mineral strike length identified on the property

  • Mineralization associated with narrow

irregular, high-angle quartz veins with disseminated sulphides Exploration Targets

Improve Resource Confidence Along Strike

  • Inferred mineral resources of 290,000 oz Au

@0.90 g/t to the immediate North and South

  • f the Reserve pits
  • Target shallow resources to extend initial

years of low waste stripping requirements At Depth

  • Follow-up on existing mineralized intercepts of:
  • 26.4m of 1.55 g/t Au at 241 m
  • 38.5m of 1.58 g/t Au at 218 m

KOBADA - MINERAL GROWTH POTENTIAL

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KOBADA - HISTORICAL DRILLING

Company Drill Holes Metres Diamond RC Air Core BRGM (1988) La Source (1996) Cominor (2002-04) IAMGold (2009) AGG (2005-12) AGG (2015) 7 50 132 2 904 13 913 4,825 10,113 200 108,886 1,398 913

  • 200

26,901 1,398

  • 4,825

8,377

  • 81,985
  • 1,736
  • Total

1,108 126,335 29,412 95,187 1,736

1,108 drill holes totalling 126,335 meters

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MADOUGOU - PROJECT LOCATION

Mining in Burkina Faso

  • Burkina Faso is Africa’s 4th biggest

producer of gold (*2012)

  • +15 international mining companies

are active in the region

Madougou

BURKINA FASO

Ouagadougou

Madougou

NIGER COTE D’IVOIRE MALI GHANA TOGO BENIN

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MADOUGOU - HISTORY

1990’s

Exploration licence was relinquished in 2002 due to lack of market support and corporate problems.

2005

Madougou exploration licence granted to Temfor, Burkina Faso junior company, who signed a JV agreement with Ampella Mining Ltd.

2010

Ampella signs a JV with Carbine Resources for the exploration of the licence.

2014

Due to low commodity prices and other financial reasons, Ampella was acquired by Centamin and the Madougou exploration licence was returned to Temfor. Temfor renewed the exploration licence for the next 3 years (until 20XX) Madougou exploration licence overlain on geophysical data showing various targets generated by Carbine/Ampella JV

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MADOUGOU - PROJECT OVERVIEW

Exploration stage project; exceptional drill intercepts from many targets Excellent development potential.

Excellent Location

  • Madougou is located in north-central Burkina Faso, near the city of Ouahigouya
  • 30 kilometers from Endeavour Mining’s Karma Mine (first gold production in April 2016)

Mineral Resource Potential

  • Potential for a “cluster-type” gold deposit (similar to Karma deposit)
  • Several targets already defined
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MADOUGOU - REGIONAL GEOLOGY

Endeavour Mining

Madougou Project

Property located 30km from Endeavour Mining’s Karma Mine

30km

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MADOUGOU - MAIN TARGETS & KEY DRILL INTERCEPTS

Nimbo/Dagbenan Nazala Doré

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MADOUGOU - HISTORICAL EXPLORATION WORK (DATE RANGE?)

Geochemical Sampling

Soil Regional: Nazala Target: Nimbo Target: Wagande Target: Wagande South: 500mx500m 100mx50m 200mx100m 100mx25m 100mx25m Rock Regional: Grab samples over artisanal diggings Doré Artisanal Workings: Dump sampling, 20mx20m grid

Trenching

Trenches 6 trenches totalling 245m

Geophysics

Airborne Surveys Magnetics, Radiometric & VLF 2,700 line km 100mx100m lines spacing Ground Surveys Nimbo Target IP: 21 line km at 100mx20m Dagabenen Target IP: 10.5 line km at 100mx20m Doré Target IP: 50mx5m Doré Target Magnetics

Drilling

RC Doré Target: Goussirdou Target: Nazala Target: Nimbo Target: Dagabenen Target: Wagande Target: 49 holes, 6,158m 33 holes, 4,392m 86 holes, 7,827m 26 holes, 3,142m 18 holes, 1,782m 5 holes, 774m

217 drill holes totalling 24,075 meters

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NIMBO & DAGBENAN - GEOCHEMICAL ANOMALIES

Carbine, 2011

Dagbenan Target

(1.5km strike length)

Dagbenan South Target

(1.25km strike length)

Nimbo Target

(1.75km strike length)

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MADOUGOU - NIMBO TARGET

Nimbo Target

1.6 km long X 1 km wide Gold mineralization occurs in 3 sub-parallel lodes:

1. Main zone associated with shearing and quartz- carbonate-pyrite alteration along the contact between a granodiorite and sediment. Potential for volume and size. 2. Quarts veins within upper sediment and mafic

  • volcaniclastic. These vains can

be very high grade (ex: 2m @ 73.2 g/t Au) but are generally narrow (2-3 m wide). 3. In shear (quartz veining) within the granodiorite

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MADOUGOU - NIMBO DRILL INTERCEPTS

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MADOUGOU - DAGBENAN TARGET

Dagbenan Target

2 km long (NS) X 0.7 km wide

  • Three north-northeast trending

sub parallel quartz veins with extensive stringers

  • Associated sulphides including

pyrite, chalcopyrite, covellite and galena

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MADOUGOU - DORE TARGET

Doré Target

Artisanal workings cover an area of 800m (NS) by 300m (NE), but widespread in all directions

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MADOUGOU - DORE DRILL INTERCEPTS

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MADOUGOU - GOUSSIDROU DRILL INTERCEPTS

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MADOUGOU - NEZALA DRILL INTERCEPTS

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AFRICAN GOLD GROUP - EXPECTED TIMELINE

2017 2018 2019 2020

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Kobada Feasibility Study Update Kobada Construction Decision Kobada Construction (14-18 months) Kobada Commissioning Kobada Commercial Production Madougou Earn-in: 1st Option Madougou Earn-in: 2nd Option Madougou Earn-in: 3rd Option Madougou Earn-in: 4th Option

Ongoing evaluation of new West African opportunities:

  • Quality pre-production assets to add to existing project pipeline
  • Strategic producing assets that may be acquired for value
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Contact Information

Brett A. Richards, President & CEO 800-65 Queen Street West Toronto, Ontario, M5H 2M5, Canada +1 905-449-1500 | info@africangoldgroup.com

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APPENDIX

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KOBADA - PROCESS FLOW DIAGRAM

1. Pre-concentration 2. Gravity concentration 3. Grinding and leaching of concentrates 4. Recovery of gold from cyanide solution 5. Cyanide destruction of leached tailing

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KOBADA - OPERATING COST BREAKDOWN

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KOBADA - PROJECT ECONOMICS

Project Production Summary Income Statement

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KOBADA - PROJECT ECONOMICS

Cash Flow

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KOBADA - PHOTO GALLERY

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MADOUGOU - OPTION AGREEMENT

Option 1

  • $130,000 in consideration.

$50,000 in cash on signing of the Definitive Agreement for 6 months of exclusivity for due diligence and initial exploration on the Project. Additional $80,000 in cash at the end of the 6 months for a 10% earn-in of Temfor (Madougou) should AcquireCo decide to continue exploring the Project.

Option 2

  • $300,000 in consideration.

$150,000 in cash after commencement of Phase 2 for an exclusive 12 months of exploration activity on the Project. Additional $150,000 at the end of the 12 months should AcquireCo decide to continue exploring the Project. Upon achievement of Inferred Resource, AcquireCo shall earn a 51% interest in Temfor (Madougou).

Option 3

  • $300,000 in consideration.

$150,000 in cash after commencement of Phase 3 for an exclusive 12 months of exploration activity on the Project (Drilling of 1 target to Indicated category, advanced met test work, and PEA). Additional $150,000 in cash at the end

  • f the 12 months should AcquireCo decide to continue exploring the Project. Upon achievement of Indicated

Resource, AcquireCo shall earn a 75% interest in Temfor (Madougou).

Option 4

  • $500,000 in consideration.

$500,000 in cash to be paid upon achievement of a positive Feasibility Study to acquire a 100% interest in Temfor (Madougou). If AGG exercises the 4th Option and acquires a 100% interest in in the Madougou Project, AGG shall grant to TEMFOR a 1% net smelter returns royalty (NSR) over production from the Madougou Project for the life-of-mine.