GUY Investor Presentation March 2014

Investor PresentationMarch 2014

www.guygold.com 2

Forward Looking Statement

TSX : GUY

This presentation of Guyana Goldfields Inc. (the "Company") contains statements that constitute "forward‐looking statements." Such forward‐looking statementsinvolve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or developments in our industry, todiffer materially from the anticipated results, performance or achievements expressed or implied by such forward‐looking statements. Forward looking statements arestatements that are not historical facts and are generally, but not always, identified by the words "expects," "aims," "plans," "anticipates," "believes," "intends,""estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Information inferred fromthe interpretation of drilling results and information concerning mineral resource and mineral reserve estimates may also be deemed to be forward looking statements,as such information constitutes a prediction of what might be found to be present when and if a project is actually developed. Forward‐looking statements thisdocument includes are statements regarding: the Company's expectations regarding drilling and exploration activities on properties in which the Company has aninterest; and the Company's statements regarding estimates of reserves and resources on properties in which the Company has an interest. There can be no assurancethat such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers arecautioned not to place undue reliance on these forward‐looking statements that speak only as of their respective dates. Important factors that could cause actualresults to differ materially from the Company's expectations include among others, risks related to fluctuations in mineral prices; uncertainties related to raisingsufficient financing to fund planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or otherfactors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in theestimation of resources and reserves; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operatingcosts may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recoveryrates may not be achieved; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of costoverrun or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from the Company's operations; risks associatedwith title to mineral properties; and other risks and uncertainties discussed appear elsewhere in the Company's documents filed from time to time with the TorontoStock Exchange and Canadian securities regulators. These statements are based on a number of assumptions, including assumptions regarding general marketconditions, the availability of financing for proposed transactions and programs on reasonable terms, and the ability of outside service providers to deliver services in asatisfactory and timely manner. Forward‐looking statements are based on the beliefs, estimates and opinions of the Company's management on the date thestatements are made. Except as expressly required by applicable securities laws, the Corporation undertakes no obligation to update these forward‐looking statementsin the event that management's beliefs, estimates or opinions, or other factors, should change.

This presentation uses the terms "Inferred Resource", "Indicated Resource", “Measured Resource” and "Mineral Resource". The Company advises readers thatalthough these terms are recognized and required by Canadian securities regulations (under National Instrument 43‐101 "Standards of Disclosure for MineralProjects"), the US Securities and Exchange Commission does not recognize these terms. Readers are cautioned not to assume that any part or all of the mineraldeposits in these categories will ever be converted into reserves. In addition, "Inferred Resources" have a great amount of uncertainty as to their existence, andeconomic and legal feasibility. It cannot be assumed that any part of an Indicated or Inferred Mineral Resource will ever be upgraded to a higher category. UnderCanadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre‐feasibility studies, or economic studies except for a PreliminaryAssessment as defined and permitted under National Instrument 43‐101. Readers are cautioned not to assume that part or all of an Inferred Resource exists, or iseconomically or legally mineable. The Mineral Resources stated in this presentation are not Mineral Reserves and, in the absence of a current feasibility study, do notdemonstrate economic viability. The determination of Mineral Reserves can be affected by various factors including environmental, permitting, legal, title, taxation,socio‐political, and marketing issues.

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Corporate SnapshotSymbol: TSX: GUY

Basic Shares Issued 126,143,899

Options 9,631,250

Warrants 0

Fully-diluted shares 135,775,149

52 week: Hi/Lo C$3.39 / C$1.17

Market Cap (at C$ 3.09) C$390 million

Cash Position (Oct 31, 2013) C$109 million

Debt $0

Top 10 Shareholders Shares %

The Baupost Group 24.9M 19.7%

Van Eck 13.4M 10.6%

Franklin Resources (Templeton) 11.6M 9.9%

IFC (World Bank Group) 6.9M 5.5%

Patrick Sheridan Jr. (Founder) 6.5M 5.2%

Jennison 4.2M 3.3%

AMG Analysen 3.0M 2.4%

Fidelity Investments 2.9M 2.3%

Sprott Asset Mgmt 2.3M 1.8%

Fidelity Emerging Markets Fund 2.1M 1.7%

www.guygold.comTSX : GUY

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Executive Summary

Robust Economics

Life of mine production of 3.3Moz at average cash costs of $527/oz (royalty included), in lower quartile range

After‐tax NPV of $735M and IRR of 31% at $1,300/oz gold and 5% DR

Payback of just over 4 years at $1,300/oz gold

Experienced ManagementTeam

New management team focused on advancing Aurora Project to production

Staged ApproachMinimizes Capital

Initial open pit mining at 5,000 tpd mill, with underground development and mill expansion to10,000 tpd funded by operating cash flows.

Simple Mine Plan Infrastructure build is already in progress

Mining & Metallurgy

Open Pit Compact design and low strip ratio

Simple Metallurgy

Free milling gold ore with excellent gold recovery of +94%

Opportunities Examining contract mining for open pit, third party ownership and operation of power plant and fuel supply, and potentially deferring underground expansion

Mining Friendly Jurisdiction Aurora is fully licensed and permitted

Growth Potential Extensive additional mineralization at depth beyond current mine plan and potential expansion of

open pits

Large exploration land package


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Mine PlanFinancials @ 5% Discount Rate Jan 2013

43‐101 Feasibility StudyGold Price Base Case ($/oz) 1,300Mine Life 17 yrsInitial Production Start Date Q1 2015Average Mill Throughput (tpd) 5,000/10,000Mine Depth (metres) 1,037 (970mbsl)Strip Ratio (waste:ore) 4.7:1Average Gold Grade (g/t) 2.74Gold Recovery (%) 97(sap) 94.4(fresh)Total Gold Production (Moz) 3.29Avg Operating Cash Cost w/Royalty LOM ($/oz) 527

Operating Costs Jan 2013 43‐101 Feasibility Study

Open Pit cost per tonne $2.42Open Pit strip ratio (waste : ore) 4.7:1Mining cost per tonne to the mill $13.68Underground cost per tonne $19.28Processing cost per tonne $13.78G&A cost per tonne $3.83


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Capital Costs


Capital Expenditures(Millions of US$)

January 11, 2013Updated Feasibility Study: Capital Required up to Commercial Production

Changes to Capital Costs

Revised Capital Costs to Commercial Production

Process Plant Engineering & Procurement $65 (6) 59Process Plant Construction 60 8 68Integration Management 0 10 10

Lump Sum Fixed Price sub‐ total $125 $12 $137Plant Infrastructure Buildings 3 (1) 2Plant Earthworks and Roads 4 2 6Mine Infrastructure Buildings 3 (2) 1Tailings Dam 7 (1) 6Water Dams and Dykes 3 1 4Site Services Water & Power 5 4 9Logistics 7 1 8

GSJV – sub‐total $157 $16 $173Owner’s Cost Infrastructure 18 2 20Owner’s Costs ‐ Operational Readiness 0 9 9Owner’s Costs – Other 16 9 25Owner’s G&A 14 8 22

Total Capital $205 $44 $249Less Spent to Date (Jan 11/13 to Oct 31/13) ($11)Remaining Capital Costs to Commercial Production $238

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Robust Economics

Financials @ 5% Discount Rate Units$850/ozgold price¹

$1,000/ozgold price¹

$1,150/ozgold price¹

$1,300/oz gold price¹²

Average Operating Cash Cost (LOM) $/oz 423 423 423 423

Average Operating Cash Cost w/Royalty (LOM) $/oz 465 473 527 527

Pre‐Tax NPV $M 236 533 759 1,046

After‐Tax NPV $M 162 374 533 735

After‐Tax IRR % 12 20 25 31

Payback (After‐Tax) Years 6.8 5.6 5.0 4.4

2015 EBITDA (1st year of partial production) US$M 18 26 32 39

2016 EBITDA (1st year of full production) US$M 60 80 95 115

2021 EBITDA (Peak year) US$M 145 192 227 272

Cumulative Cash Flow³ US$M 506 975 1,330 1,784

1. Royalty rate of 5% at a price of gold of US$1,000 per ounce or less, royalty rate of 8% at a price of gold above US$1,000 per ounce2. Base Case3. Cumulative cash flow defined as revenue less operating costs less capital expenditures.


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Sensitivity Analysis

After‐Tax NPV ($M)

After‐Tax IRR (%)


BaseCase

‐20% ‐10% 100% +10% +20% +30% +40%

Gold Price 735 384 560 735 910 1,085 1,260 1,435

Opex 735 857 796 735 674 614 553 492

Capex 735 831 783 735 689 640 593 545


BaseCase

‐20% ‐10% 100% +10% +20% +30% +40%

Gold Price 31 21 26 31% 35 39 43 47

Opex 31 34 32 31% 29 28 26 24

Capex 31 39 35 31% 28 25 22 20


TSX : GUY www.guygold.com 9

Mining Friendly Jurisdiction & Government Aurora is fully licensed and permitted

Guyana is the only English speaking country in South America

British common law and secure tenure - part of the Commonwealth Democratically elected government under parliamentary system

Long history of significant gold production: Gold was the largest export of the country in 2013 with 458,000 oz

Mining License Received and Mineral Agreement Signed (Nov.18/11):

Royalty: 5%: Gold price $1,000/oz or less

8%: Gold price $1,000/oz +

Corporate income tax: 30% with no withholding tax on interest payments


Logistics & Infrastructure

Road Access to Aurora

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Staged Approach Minimizes Capital

TSX : GUY

Capital Expenditures (US$M)Initial Capital (2013 – 2014)

Expansion Capital (2015 – 2017)

Sustaining Capital (2018 – 2031)

Total Capital $ 249 $ 153 $ 356Capital required up to Commercial Production

Funded from Cash Flow

Capex to Commercial Production $ 249

Less: Spent to date (01/11/13 – 10/31/13) $ (11)

Total Capital Required $ 238

Corporate G&A, Debt Fees and Exploration to Commercial Production

$ 28

$ 266

Cash on Hand (As of Oct 31, 2013) $(109)

Debt Funding (Completed by Q2 2014) $(165)

Additional Debt Funding $ (25)

Cash Reserve to be maintained $ 33

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0

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2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Prod

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0)

Production Year

Contained GoldUnderground

Open Pit

Saprolite

Stockpile Reclaim (Sap & Fresh)

Evaluation of including known resources outside current mine plan to offset excess milling capacity

3.3 Moz Total Contained Gold with Average Annual Gold Production (LOM) of 194 Kozs

Staged ApproachAverage of 231kozs/yr

Peak at 350koz


Opportunities

Examining opportunities for capital expenditure reductions such as:

Contract mining for the open pit

Third party ownership and operation of the power generation plant and fuel supplyfacilities

Extending open pit production and delaying the commissioning of the undergroundin the initial years of the mine life in order to take advantage of the high gradeopen pit and defer the expansion capital required for the underground. This wouldprovide additional cash flow for funding the underground expansion.

Further updates will be provided as conclusions are reached.

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Growth Potential – Resource Upside

TSX : GUY

Room to grow outside current mine plan:

Below Satellite pits (Aleck Hill, Mad Kiss and Walcott Hill): Indicated: 570,000 oz Au at 3.93 g/t Inferred: 290,000 oz Au at 4.11 g/t

Below ‐970m at Rory’s Knoll: Indicated: 1,120,000 oz Au at 3.87 g/t Inferred: 1,280,000 oz Au at 4.25 g/t

Excess mill and equipment capacity later in the minelife (year 2024 and beyond) allows for throughputflexibility

Portal

Decline

860,000 oz in Indicated & Inferred Categories

Current Mine Plan Depth of ‐970m 2.4M oz in Indicated & Inferred CategoriesResources Found Outside

Current Mine Plan

Rory’s KnollAleck Hill Walcott Hill Mad Kiss

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Proven Underground Mining Method

TSX : GUY

Open Benching and SLR Mines• Finsch Mine, South Africa• Koffiefontein, South Africa• Ekati Mine, NWT• Diavik Mine, NWT

SLC Mines• Stobie Mine, Ontario• Granduc Mine, B.C.• Craigmont Mine, B.C.• Ekati Mine, NWT

Diavik Diamond Mine, NW Territories

Ekati Diamond Mine, NW Territories

Finsch Mine, South Africa

• Kiruna Mine, Finland• Ridgeway Mine, Australia• Telfer Mine, Australia• Perseverance Mine, Australia• Big Bell Mine, Australia• Harmony Mine, Australia• Mt Lyall, Australia• Numerous mines in China

and Russia

www.guygold.com 16

Site Plan

TSX : GUY

Open pit mining begins at ~5,000 tpd in Rory’s Knoll and is completed in two years.

Rory’s Knoll underground follows at ~5,000 tpd while the satellite pits are mined concurrently also at ~5,000 tpd.

Once satellite pits are exhausted, Rory’s Knoll underground continues for an additional 8 years.


Construction Progress

Activity2014

2015 2016 2017 2018 2019Q1 Q2 Q3 Q4

Debt Financing

Enabling Infrastructure (Camp, Wharf, Road, Quarry, Communications)

Bulk Earthworks (Tailings & River Dyke)

Plant Construction

Open Pit Mine Construction

Open Pit Production

Underground Development

Underground Production

Exploration

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Accelerated Timeline to Production

TSX : GUY

News flow for first half of 2014: Securing Debt Financing –by Q2 2014 Updates on construction progress – Ongoing Material exploration results ‐ Ongoing

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Key Risks and Mitigations


Key Risks Mitigations

Logistics Access road is year‐round and operational

Rainfall 2.5m of annual rain fall Site is designed around water management If heavy rainfall, temporary break for no more than a few hours

Country Risk

All permits received Mining friendly jurisdiction and government Stable republic within the British Commonwealth with an elected Head of State Independent since 1966

Cuyuni River / Hydrology

Pit is 225m away from the river Levee designed towards a 10,000 year flood event Detailed hydrogeological and geotechnical studies performed and show minimal surface

subsidence

Underground Costs Too Low Fully engineered Feasibility Study with latest cost estimates Rory’s Knoll sub‐vertical type ore body suitable for SLR, a top‐down method Much lower operating cost –no backfill required

Underground Labour Availability

Lack of U/G mining experience in Guyana Comprehensive training effort planned in pre‐production years Feasibility Study incorporates heavy reliance on expatriate technical staff, supervision and

underground operators

Financing On track to complete debt financing by Q2 2014 Commercial and other high yield debt available as last resort


After tax NPV $735M, IRR of 31%, 4.4 yr payback

Staged approach minimizing capital

6.5M oz M&I and 1.82M oz Inferred @ +3g/t Au

Fully functional road access in place

Fully licensed and permitted

Already progressing

Extensive mineralization beyond current plan

Management

Region

Country (government and community)

Sustainability

Exploration Upside

Focused on advancing project to production

Guiana Shield – known gold region

Pro‐mining, excellent relations

International standards with IFC

Large exploration land package

Aurora Gold Project Robust Economics

Open Pit & Underground Mining

Resource and Grade

Key Infrastructure

Permitting

Development

Growth Potential

Summary

Appendix

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Simple Mine Plan

TSX : GUY

MeasuredIndicatedInferred

Open pit mining begins at ~5,000 tpd in Rory’s Knoll and is completed in two years.

Rory’s Knoll underground follows at ~5,000 tpd while the satellite pits are mined concurrently also at ~5,000 tpd.

Once satellite pits are exhausted, Rory’s Knoll underground continues for an additional 8 years.

[2018‐2023] [2018‐2023]

[O/P: 2015‐2017][U/G: 2018‐2031]

[2018‐2022][2023]

Rory’s Knoll

Walcott HillAleck HillNorth

Aleck Hill Mad Kiss


Simple Metallurgy


Effective Water Management – River Levee2 river levees, 1.5 km length in total

Designed up to 60 metres wide and 9 metres high

Dike is engineered to 10,000 year flood event

River is 225 metres away from the pit

www.guygold.com 29

Mineral Reserves & Resources

TSX : GUY

Gold Price $1,300/oz Quantity (Mt) Grade (g/t) Contained Gold (Moz)

Proven ReservesO/P Saprolite 0.168 2.64 0.014O/P Fresh 2.207 3.07 0.218Total Proven 2.375 3.04 0.232Probable ReservesO/P Saprolite 4.955 1.70 0.270O/P Fresh 6.343 3.03 0.618U/G 25.851 2.84 2.357Total Probable 37.219 2.72 3.245Total P & P Reserves¹ 39.524 2.74 3.477

¹ Mineral reserves included in mineral resources.Underground in-situ cut-off grade of 1.2 g/t for Rory's Knoll. Open pit fresh ore in-situ cut-off grade of 0.5 g/t for all deposits. Open pit saprolite ore in-situ cut-off of 0.3 g/t for all deposits.

Measured & Indicated ResourcesO/P 32.77 2.62 2.76

U/G 30.06 3.91 3.78

Total M&I Resources 62.83 3.24 6.54Inferred ResourceO/P 5.12 1.54 0.25

U/G 11.81 4.12 1.56

Total Inferred Resource 16.93 3.34 1.82


The Region

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Geology

TSX : GUY

Geological Description Rory's Knoll mineralization: disseminated pyrite and gold mineralization associated with intense silica-

fuchsite-sericite-carbonate alteration in tonalite intrusive probably emplaced at the hinge of the folded volcanic rock and metasediments.

Mad Kiss mineralization: disseminated pyrite and gold mineralization associated with intense silica-fuchsite-sericite-carbonate alteration in a quartz feldspar porphyry dyke.

Aleck Hill mineralization: mesothermal gold veins hosted in the shear zones of metavolcanic and metasedimentary rocks; occurs in a zone of pyrite-rich quartz-carbonate veins in volcanic rocks that are enclosed in an alteration envelope which reportedly includes silica-sericite and calcite cement filling fractures.

www.guygold.com 32TSX : GUY

Experienced Management TeamManagement BACKGROUND

Patrick Sheridan Jr.Founder and Executive Chairman

Over 20 years of experience in the mining industry Has actively explored in Guyana since 1996 and is the

founder of Guyana Goldfields and lead the discovery of the Aurora and Sulphur Rose deposits

Scott A. CaldwellPresident & CEO

Mining engineer with 30+ years experience building and operating gold and base metal mines worldwide

Former President, CEO and Director of Allied Nevada Gold Corp. from 2006 ‐ 2013

Peter Lello Galassi(“Lello”)COO

15+ years of international project development and 20 years as a senior officer in the United States Air Force.

Formerly Senior Project Manager for Rio Tinto Iron Ore Simandou Project in Guinea, West Africa.

He is based in Guyana and is responsible for daily operations at the Aurora Gold Project.

Management BACKGROUND

Paul J. MurphyExecutive VP, Finance & CFO

Over 40 years of financial experience and former Head of PricewaterhouseCoopers LLP Western’s World Mining Practice

Dan NooneVP, Exploration

Over 20 years of experience of international mineral exploration and development

Former VP of Peru for Aquiline Resources

Violet SmithCountry Manager

Over 20 years of experience in operations management and has been involved with Guyana Goldfields since its inception

Alexander PoExploration Manager

Mining engineer and exploration geologist with strong management experience with projects in a numbers of different countries

Jacqueline WagenaarVP, IR & Corp. Comm

Significant experience with investor relations programs for several Canadian mining companies with international assets

www.guygold.com 33

Scientific, Technical and Securities Information

TSX : GUY

Scientific and Technical InformationThe qualified person for the mineral resource and reserve estimates and other scientific and technical information herein are as follows: GlenCole, P.Geo. Jarek Jakubek, C.Eng., John Lambert, P.Geo., D Erik Spiller, MMSA and Richard Tocher, P.E, (the “QPs”) who are independent of theCompany and have approved the contents of this presentation. The qualified person for the other scientific and technical information in thispresentation, is Daniel Noone, BApSci (Geo), MBA, and has approved the contents of this presentation.

Technical and scientific information contained herein, including the mineral resource and reserve estimates relating to the Aurora Gold Projectis derived from the “Updated Feasibility Study, Aurora Gold Project, Guyana, South America” dated January 29, 2013 (the “Technical Report”).We have filed the Technical Report under our profile at www.sedar.com. For details of the data verification procedures employed by the QPsand the key assumptions, parameters and methods used to estimate the mineral resource and mineral reserve estimates, please see theTechnical Report. For information about known legal, political, environmental, or other risks that could materially affect the potentialdevelopment of the mineral resources or mineral reserves, please see the Technical Report.

Securities LawsThis presentation does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such wouldbe prohibited. This presentation is not an offer to sell, or a solicitation of an offer to purchase, any securities in the United States. The securitiesreferred to in this presentation will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United Statesexcept pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933 and applicable state securities laws.

The information contained in this presentation does not and is not intended to constitute a "valuation," "formal valuation," "appraisal," "priorvaluation," or a "report, statement or opinion of an expert" for purposes of any securities legislation in Canada or otherwise.

CurrencyUnless otherwise indicated, all dollar values herein are in United States dollars.

GUY Investor Presentation March 2014

Investor Relations

Transcript of GUY Investor Presentation March 2014