SEMAFO Inc.
TSX : SMF

SEMAFO Inc.

May 14, 2008 17:04 ET

Semafo reports net earnings of $12.5 million for the first quarter 2008

MONTREAL, May 14 - SEMAFO (TSX: SMF) today reported its
financial and operational results for the three-month period ended March 31,
2008. All amounts are in US dollars unless otherwise stated.



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Highlights:

- Gold production of 28,700 ounces at a cash operating cost of $528 per
ounce for the first quarter of 2008, an 8% increase over the fourth
quarter of 2007.

- Record gold sales of $25,540,000 at an average selling price of
$906 per ounce for the first quarter of 2008, representing a 37%
increase over the same period last year. Previous quarter gold sales
totalled $21,044,000 at an average price of $819 per ounce.

- Operating income of $2,801,000 compared to $70,000 for the
corresponding period in 2007.

- Disposal of a subsidiary, resulting in a non-cash gain of $17,849,000.

- Net earnings of $12,502,000, or $0.06 per share, for the first quarter
of this year, including an unrealized loss of $7,807,000 resulting from
the change in fair value of derivative financial instruments.

- Operating cash flows of $6,143,000 for the first quarter of 2008,
representing a 60% increase over the same period last year.

- Start-up of the Mana mine in Burkina Faso and first gold pour.

- Kiniero is back to profitability in the first quarter of 2008, with
production of 12,400 ounces at a cash operating cost of $451 per ounce,
compared with an average cash operating cost of $707 per ounce in 2007.
The average cash operating cost for the fourth quarter of 2007 was
$882 per ounce.
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A Word from the CEO

We are pleased with the organization's performance during this first
quarter of 2008 and proud of the work and individual contributions of the
entire Semafo team. The continuous improvement of our overall performance is
part of our ongoing commitment.

The first gold pour at our Mana mine in Burkina Faso took place on March
31, 2008. This gold pour marks the third time the Company has successfully
brought a West African gold project into production.

Our objective for the first quarter of 2008 was to produce 24,500 ounces
of gold from the Kiniero and Samira Hill mines. We exceeded this target with a
total production of 28,700 ounces.

We are committed to the continuous improvement of our overall performance
and have taken measures to streamline all areas of operations in order to
maximize opportunities. This diligent approach resulted in an operating income
of $2,801,000 for the first quarter of 2008, compared to $70,000 for the
corresponding period in 2007, reflecting an increase in the average realized
selling price, which was higher than the increase in operating costs. In the
current strong-growth market, controlling costs, increasing production and
minimizing the negative effects of our hedging contracts are all part of our
commitment to continuous improvement.

We appreciate that the Company's performance is a direct result of the
ongoing dedicated efforts of our employees and remain committed to being a
best practice company and an employer of choice. Leveraging skills, respect,
integrity, the search for excellence, competence and teamwork motivate us all
to excel. Semafo is a mining company committed to sustainable development in
the communities in which we operate, while increasing shareholder value.



Highlights of operations and consolidated financial results

Three-month periods
ending March 31
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2008 2007
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Gold ounces produced 28,700 29,000
Gold ounces sold 28,200 28,100

(In thousands of dollars, except amounts
per ounce, per tonne and per share)
Revenues - Gold sales 25,540 18,576
Operating costs 17,129 13,479
Operating income 2,801 70
Net income (loss) 12,502 (3,233)
Basic and diluted net income (loss) per share 0.06 (0.02)
Cash flows from operating activities (1) 6,143 3,871

Average selling price (per ounce) 906 661
Cash operating cost (per tonne processed) 27 23
Cash operating cost (per ounce produced) 528 450
Total cash cost (per ounce sold) 607 480

(1) Cash flow from operating activities excludes changes in non-cash
working capital items and settlement of liabilities related to asset
retirement obligations for property, plant and equipment.


Outlook

During the month of April, we produced 4,300 ounces at Mana, 7,000 ounces
at Samira Hill and 6,300 ounces at Kiniero, for a total production of
17,600 ounces of gold.

We are pleased with production to date and are confident that we will
reach our targets, despite the fast-approaching rainy season. We are also
satisfied with the diligent management of our operating costs per tonne, which
remain below budget.

The 4,000 tonne-per-day ball mill has arrived at the Mana site, with
commissioning scheduled for the third quarter. We therefore maintain our
previously announced production target of between 165,000 and 185,000 ounces
for 2008.

A conference call will be held at 10:00 a.m. on May 15, 2008 to discuss
the quarterly results. Details to access the call can be found on the home
page of the Company's website at www.semafo.com. Semafo's consolidated
financial statements together with Management's Discussion and Analysis are
available on its website or at www.sedar.com.

About SEMAFO

Semafo is a Canadian-based mining company with gold production and
exploration activities in West Africa. The Company currently operates three
gold mines in Burkina Faso, Niger and Guinea. Semafo is committed to evolve in
a conscientious manner to become a major player in its geographical area of
interest, while maintaining principles and strengthening relationships to
increase shareholder value.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These
forward-looking statements include, but are not limited to, statements
regarding expectations of the Company as to the market price of gold,
strategic plans, future commercial production, production targets, timetables,
mining operating expenses, capital expenditures, and mineral reserve and
resource estimates. Forward-looking statements involve known and unknown risks
and uncertainties and accordingly, actual results and future events could
differ materially from those anticipated in such statements. Factors that
could cause future results or events to differ materially from current
expectations expressed or implied by the forward-looking statements include,
but are not limited to, fluctuations in the market price of precious metals,
mining industry risks, uncertainty as to calculation of mineral reserves and
resources, risks related to hedging strategies, risks of delays in
construction, requirements of additional financing and other risks described
in the Company's documents filed from time to time with Canadian securities
regulatory authorities. Although the Company is of the opinion that these
forward-looking statements are based on reasonable assumptions, those
assumptions may prove to be incorrect. Accordingly, readers should not place
undue reliance on forward-looking statements. Readers can find further
information with respect to risks in the Annual Information Form of the
Company and other filings of the Company with Canadian securities regulatory
authorities available at www.sedar.com. The Company disclaims any obligation
to update or revise these forward-looking statements, except as required by
applicable law.

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