20170531 Asanko NR MW Rebuttal QP udate€¦ · 31-05-2017  · Vancouver, British Columbia, May...

PRESSRELEASE

ASANKOGOLDTORELEASEEXPANDEDMINEFEASIBILITYREPORT;REFUTESMUDDYWATERSSHORTREPORT

Vancouver,BritishColumbia,May31,2017–AsankoGoldInc.(“Asanko”orthe“Company”)(TSX,NYSEMKT:AKG)todayreiteratedpriordisclosureregardingthestrengthofitsgoldminingbusinessandpipelineofgrowthprojectsandstronglyadvisedshareholderstodisregardashortreportissuedtoday.Asankoreceivedacopyofthereport,issuedbyshort-sellerMuddyWatersLLC.AsankostatesthatthereisnomerittothenegativeassertionsaboutAsankointhereport.AsankoreaffirmedplansforaJune5,2017releaseofitsExpansionDefinitiveFeasibilityStudythatdetailstheCompany’sorganicgrowthpipelineandconfirmsthestrongcashgeneratingcapabilityofanexpandedAsankoGoldMine.ThestudywaspreparedbyinternationallyrecognizedindependentQualifiedPersonsasrequiredunderCanadiansecuritieslaws.“The Asanko Gold Mine is a robust business and we look forward to showcasing this during our June5thpresentation,”saidPeterBreese,PresidentandCEO.“Thesidewallissuewaspreviouslydisclosedandhasnotmateriallyimpactedourabilitytooperate.Wemaintainourproductionguidanceof230,000-240,000ouncesfor2017,whichwecontinuetoexpectwillgeneratebetweenUS$64-US$77millionincashthisyearassuming$1,200/ozgold.TheshortreporthasnomeritandourupcomingExpansionDefinitiveFeasibilityStudywillbyitselfprovideacompleterebuttaltoMuddyWater’stechnicalclaimsandwillalsomakeotherinformationavailabletorefutethenon-technicalallegations.”Importantly,Asankonotesthefollowing:• AspreviouslydisclosedinourManagementDiscussionandAnalysisdatedMay2,2017,therewasno

impactoneitherproductionorsafetyresultingfromapartialfailureonthewesternwalloftheNkranpit. Asanko has put various mitigation measures in place as part of its original mine plan. Thesemitigationmeasuresincludeadualrampsystem,aslopestabilityradarandanon-surfaceorestockpileinexcessof1.5milliontonnes,allofwhichhavebeeninstrumentalinmaintainingproduction.Thereisnomerittoclaimstothecontrarybytheshortseller.

• AspreviouslydisclosedinourManagementDiscussionandAnalysisdatedMay2,2017,thecurrentpitbottomcontainsaninventoryofpre-developedorereservesof166,000ouncesofgoldbasedonthenewresourcemodelbytheminingconsultantCSAGlobal.ThisinventorywillenableNkrantomeetitsproductionplanthroughtothefirstquarterof2018.DuringthisperiodAsankoiscontinuingwiththeminingofitsscheduledpushbackontheWesternlimbofthepit,whichwillfacilitatecontinuousareasoforesupplyintothefutureinlinewithNkran’slifeofmineplan.Accordingly,thereisnoneedfora$115millionpushbackexpense,asspeculatedbyMuddyWaters.

• Asanko’sPresidentandCEOPeterBreeseandChairmanColinSteynhaveregularlypurchasedAsankosharesandhavenotsoldanyAsankoshares.The2015transactionreferredto intheMuddyWatersreportwasnothingmorethanachangeof indirecttodirectholdingsamongstshareholderswithinaprivatecompany.

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As previously disclosed, Asanko intends to provide a detailed presentation to analysts and investorsimmediately following the disclosure of the Expansion Definitive Feasibility Study. The presentation isscheduledtotakeplaceinTorontoat8:00a.m.onMonday,June5,2017.Therewillalsobeanaccompanyingconferencecallandwebcastsothatallinvestorscanattendinrealtime.Detailsbelow.TorontoPresentationMonday,June5,2017at8:00amEDTBelgraviaRoom,OmniKingEdwardHotelToattend,pleasearriveby7.45amandRSVPtoalex.buck@asanko.comConferenceCall&WebcastDetails:Monday,June5,2017at 8:00amEDTUS/CanadaTollFree: 18882258011UKTollFree: 08004961093International: +13032234384 Webcast:Pleaseclickonthelink:https://cc.callinfo.com/r/183fpsaijbtsj&eomReplayArecordedplaybackwillbeavailableapproximatelytwohoursafterthecalluntilJuly4,2017:US/CanadaTollFree: 18005585253International: +14166264100Passcode: 21852384Enquiries:Forfurtherinformationpleasevisit:www.asanko.com,email:info@asanko.comorcontact: AlexBuck-Manager,InvestorandMediaRelationsToll-Free(N.America):1-855-246-7341Telephone:+44-7932-740-452Email:alex.buck@asanko.comRyanWalchuck,VPCorporateDevelopmentandInvestorRelationsTelephone:+1-778-986-2000Email:ryan.walchuck@asanko.comQualifiedPersonsStatementsFrederikFourie,AsankoSeniorMiningEngineer(Pr.Eng.)whoistheAsankoQualifiedPersonunderNI43-101whoassumesresponsibilityforthetechnicalcontentsofthisnewsrelease.Forward-LookingandotherCautionaryInformationThis release includes certain statements thatmay be deemed "forward-looking statements". All statements in thisrelease,other thanstatementsofhistorical facts, thataddressestimated resourcequantities,gradesandcontainedmetals,possiblefuturemining,explorationanddevelopmentactivities,areforward-lookingstatements.AlthoughtheCompanybelievestheforward-lookingstatementsarebasedonreasonableassumptions,suchstatementsshouldnotbeinanywayconstruedasguaranteesoffutureperformanceandactualresultsordevelopmentsmaydiffermateriallyfromthoseintheforward-lookingstatements.Factorsthatcouldcauseactualresultstodiffermateriallyfromthoseinforward-looking statements include market prices for metals, the conclusions of detailed feasibility and technicalanalyses,thetimelyrenewalofkeypermits,lowerthanexpectedgradesandquantitiesofresources,miningratesandrecoveryratesandthelackofavailabilityofnecessarycapital,whichmaynotbeavailabletotheCompanyontermsacceptabletoitoratall.TheCompanyissubjecttothespecificrisksinherentintheminingbusinessaswellasgeneraleconomicandbusinessconditions.FormoreinformationontheCompany,InvestorsshouldreviewtheCompany'sAnnual

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Form40-F filingwith theUnited States Securities Commission and its home jurisdiction filings that are available atwww.sedar.com.NeitherTorontoStockExchangenortheInvestmentIndustryRegulatoryOrganizationofCanadaacceptsresponsibilityfortheadequacyoraccuracyofthisrelease.