Resolute Mining : September Quarterly Activities Report

for the period ended 30 September 2020

22 October 2020

September Quarterly highlights

• Consistent safety performance with Total Recordable Injury Frequency Rate (TRIFR) of 1.12
• Total gold production of 87,303 ounces (oz), a 19% reduction compared to the June quarter principally due to the impact of industrial action at Syama, as previously announced
• Realised gold price for the quarter averaged US$1,694/oz compared to the average spot price of US$1,913/oz
• All-InSustaining Cost (AISC) of US$1,284/oz for the quarter bringing year to date AISC to US$1,095/oz
• Syama Sulphide recovery rate of 79.5%, similar to the prior quarter
• Tabakoroni Pre-Feasibility Study released with a 22% increase in Mineral Resource to 1.04 million ounces (Moz)
• Syama conciliation agreement reached with Union confirms cancellation of further planned strike action
• Mali interim government established and ECOWAS sanctions lifted
• Cash and bullion of US$106 million with net debt of US$234 million at 30 September 2020
• CY20 production is expected at the lower end of the guidance of 400,000oz to 430,000oz and costs are expected at the higher end of guidance of US$980/oz and US$1,080/oz

Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) presents its Quarterly Activities Report for the period ended 30 September 2020.

Resolute's performance during the September quarter reflects the consistent performance of the Mako Gold Mine (Mako) in Senegal and the impact of industrial action at the Syama Gold Mine (Syama) in Mali during the quarter. Extensive negotiations with Resolute site-based employees, the Union and Government Officials has resulted in a conciliation agreement and the cancellation of further planned strike action, as announced on 28 September 2020. This provides a solid basis for Syama operations to progress in line with expectations during the December quarter.

An interim government has now been established in Mali following the Coup on 18 August 2020. This government has the support of ECOWAS which has lifted all previously imposed sanctions on Mali. As a result, supply links into Mali have re-opened and transportation of key consumables to Syama has been re-established.

Resolute's safety performance has remained at consistently commendable levels during this period of COVID-19, industrial and political disruption.

Operations at Mako and Syama are currently performing well and have achieved throughput and recovery at forecast levels during October. In addition, higher grade oxide material from the development of the Cashew open pit will be the primary source of Syama oxide ore in the December quarter. Full year results are therefore expected to meet the Company's guidance, with gold production at the lower end and costs at the upper end of the revised guidance range.

for the period ended 30 September 2020

Operating Performance Snapshot

The consolidation of Resolute's key operational performance measures compared to the previous quarter and prior comparable quarter are set out in the table below:

	Group Level Summary			Units			September			June			Change			September
					2020 Quarter			2020 Quarter					2019 Quarter
	Mining
	Ore Mined			t	1,169,921		1,548,640		(24%)		1,258,581
	Mined Grade			g/t Au	2.32		2.44		(5%)		2.29
	Processing
	Ore Processed			t	1,320,046		1,439,599		(8%)		1,727,638
	Processed Grade			g/t Au	2.24		2.61		(14%)		1.85
	Recovery		%		87.4		88.6		(1%)		87.3
	Gold Recovered			oz	83,206		107,070		(22%)		90,681
	Gold Poured			oz	87,303		107,183		(19%)		103,201
	Sales
	Gold Sold			oz	90,900		110,660		(18%)		127,265
	Average Realised Price			US$/oz	1,694		1,446		17%		1,362
	Cost
	Operating Cost			US$/oz	1,065		849		(25%)		984
	All-In Sustaining Cost (AISC)			US$/oz	1,284		1,033		(24%)		1,202
		Table 1: Resolute Group Operational Performance Summary

Refer to the Appendix for a full summary of Resolute's production and costs in the September quarter and year to date (9 months ended 30 September 2020).

Sustainability

Health and Safety

The Company's Total Recordable Injury Frequency Rate (TRIFR) as at 30 September 2020 was 1.12 relative to 2.09 at 31 December 2019. Resolute continues to maintain effective infection control measures to protect employees and contractors at our sites and offices from the COVID-19 pandemic. Critical Hazard Management Standards have been developed to drive improved mitigation of critical health and safety risks across the Group.

COVID-19

A comprehensive response plan is in place to manage the COVID-19 pandemic at all company locations which includes, in addition to hygiene, PPE, and social distancing measures, testing and mandatory isolation procedures for positive cases amongst the workforce. The implemented protocols prioritise the health and safety of the workforce and have enabled operational continuity with currently no negative impacts on gold production. Further information pertaining to the Company's response is available at https://www.rml.com.au/covid-19/covid-19-update/.

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for the period ended 30 September 2020

Syama, Mali

Overview

Gold production at Syama during the quarter totalled 46,622oz at an AISC of US$1,628/oz. The operational performance for Syama is set out in Table 2 below.

	Period			Ore Mined			Head Grade			Ore Milled			Head			Recovery			Total Gold			Cash Cost			AISC
									Grade					Production
				(t)			(g/t)			(t)			(g/t)			(%)			(oz)			(US$/oz)			(US$/oz)
	Mar Quarter	1,218,949		2.55		829,176		2.89		82.7		57,532		938		1,076
	June Quarter	863,612		2.47		920,458		2.57		86.2		63,705		950		1,113
	Sept Quarter	506,702		2.37		835,487		2.00		83.3		46,622		1,446		1,628
	CY20			2,589,263			2.49			2,585,121			2.49			84.1			167,859			1,084			1,243

Table 2: Syama Operational Performance

Sulphide Operations

				Mining						Processing					Cost
	Period			Ore			Grade			Ore (t)			Grade			Recovery			Gold			Operating			AISC
				(t)			(g/t Au)					(g/t Au)			(%)			Poured (oz)			(US$/oz)			(US$/oz)
	Mar 20 Quarter	519,898		2.61		441,542		2.62		75.2		21,430		1,475			1,629
	Jun 20 Quarter	492,863		2.84		536,791		2.67		80.0		35,249		1,106			1,333
	Sept 20 Quarter	506,702		2.37		495,947		2.38		79.5		31,074		1,545			1,766
	YTD			1,519,463		2.55		1,474,280		2.55			78.3			87,753			1,351			1,559

Table 3: Sulphide Production and Cost Summary

Underground mining tonnages increased by 3% compared to the June quarter despite disruptions from industrial action.

Syama sulphide processing and production performance for the quarter was impacted by the industrial action in September, which resulted in lower mill throughput while head grades were lower as the underground mine encountered lower grade ore zones in establishing the cave on the hangingwall of 1055mRL level, the fourth operating level within the mining sequence.

Plant recovery was stable averaging 79.5%. This reflected a consolidation of improvements made in the June quarter but was also impacted by disruption from the industrial action. Further improvement is expected in the December quarter as higher-grade ore is processed.

Underground sulphide ore stocks at Syama increased from 491,000t to 501,000t at an average grade of 2.36 grams per tonne of gold (g/t Au). The large quantity of run-of-mine stockpiled underground ore at Syama provides significant operational flexibility in managing the mining and processing rates.

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for the period ended 30 September 2020

Oxide Operations

				Mining						Processing					Cost
	Period			Ore			Grade			Ore (t)			Grade			Recovery			Gold			Operating			AISC
				(t)			(g/t Au)					(g/t Au)			(%)			Poured (oz)			(US$/oz)			(US$/oz)
	Mar 20 Quarter	699,053		2.50		387,633		3.21		91.2		36,101		620			747
	Jun 20 Quarter	370,748		1.98		383,667		2.44		95.0		28,457		757			840
	Sept 20 Quarter	-		-		339,540		1.44		89.0		15,548		1,250			1,354
	YTD			1,069,800		2.32		1,110,841		2.41			91.8			80,106			791			899

Table 4: Oxide Production and Cost Summary

Syama oxide operations reflect the processing of low grade stock-piles following the completion of open pit mining activities at Tabakoroni in the June quarter, Syama industrial action and seasonal material handling issues associated with sticky ore.

A new satellite open pit operation at the Cashew prospect commenced late in the September quarter, which will provide higher grade oxide material for processing in the December quarter. Exploration continues to identify opportunities for further satellite open pit operations to augment the existing stockpiles.

Significant stockpiles of 3.0 million tonnes (Mt) of oxide ore at an average grade of 1.29g/t Au have been built and will be processed over 2021 and 2022.

Figure 1: Establishment works at the Cashew mining operation

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