SEMAFO Inc.
TSX : SMF
OMX : SMF

SEMAFO Inc.

October 18, 2012 09:30 ET

SEMAFO Intersects Higher Grade Mineralization at Yaho

Values of Up to 3.75 g/t Au Over 56 Meters

MONTREAL, QUEBEC--(Marketwire - Oct. 18, 2012) - SEMAFO (TSX:SMF)(OMX:SMF) today announced the results of its 2012 step-out and delineation drilling program carried out on the Yaho zone at the Corporation's Mana property in Burkina Faso. Higher grade intersections appear more regularly in the north sector returning values of up to 3.75 g/t Au over 56 meters (MRC12-2007).

The 2012 program at Yaho was designed to better delineate the continuity of the higher grade mineralization, particularly within the northern portion of the 1.7 kilometer long gold-bearing zones. In addition, some drilling was completed to test the north and south limits of the known deposit. A total of 184 reverse-circulation ("RC") holes (22,816 meters) were completed during the current year. In addition, four core holes (945 meters) were completed for metallurgical test sampling. The Corporation is in receipt of all the assay results from the 2012 drill program.

The following highlight table presents selected drill results at Yaho. The sector column refers to the south and north half of the deposit, while Explo. North Sector corresponds to wider-spaced drilling designed to test the north extension of the known deposit (Figure 1).

Yaho Zone Drilling Highlights

DDH No. Section (N) Sector From (m) To (m) Au* / Length**
MRC12-1189 1310200 South 65 84 1.35 g/t / 19 m
MRC12-1189 1310200 South 97 113 2.25 g/t / 16 m
MRC12-1865 1310200 South 35 71 1.17 g/t / 36 m
MRC12-1864 1310200 South 39 47 3.48 g/t / 8 m
MRC12-1168 1310250 South 9 20 1.67 g/t / 11 m
MRC12-1862 1310250 South 23 42 1.57 g/t / 19 m
MRC12-1860 1310250 South 33 37 4.99 g/t / 4 m
(7.19 g/t uncut)
MRC12-1861 1310250 South 34 41 5.21 g/t / 7 m
MRC12-1856 1310300 South 36 47 1.95 g/t / 11 m
MRC12-1213 1310350 South 53 67 1.91 g/t / 14 m
MRC12-1214 1310350 South 3 16 1.35 g/t / 13 m
MRC12-1741 1310400 South 33 53 1.48 g/t / 20 m
MRC12-1119 1310450 South 83 89 2.72 g/t / 6 m
MRC12-1201 1310450 South 26 37 1.48 g/t / 11 m
MRC12-1868 1310600 South 111 122 2.73 g/t / 11 m
(3.09 g/t uncut)
MRC12-1871 1310650 South 58 63 4.86 g/t / 5 m
(6.86 g/t uncut)
MRC12-1871 1310650 South 142 153 2.45 g/t / 11 m
(to end of hole)
MRC12-1130 1311050 North 33 58 1.55 g/t / 25 m
MRC12-1131 1311050 North 36 47 3.07 g/t / 11 m
MRC12-1911 1311100 North 76 117 1.48 g/t / 41 m
(2.21 g/t uncut)
MRC12-1129 1311150 North 76 87 3.40 g/t / 11 m
MRC12-1893 1311300 North 61 70 2.61 g/t / 9 m
MRC12-1126 1311350 North 70 91 2.84 g/t / 21 m
MRC12-1897 1311350 North 29 75 1.33 g/t / 46 m
(to end of hole)
Including 34 58 1.73 g/t / 24 m
MRC12-2000 1311400 North 125 134 2.82 g/t / 9 m
MRC12-2001 1311400 North 78 126 2.30 g/t / 48 m
MRC12-1123 1311450 North 14 18 4.59 g/t / 4 m
MRC12-1123 1311450 North 26 71 2.47 g/t / 45 m
MRC12-2007 1311450 North 78 134 3.75 g/t / 56 m
(to end of hole)
MRC12-2011 1311450 North 86 97 2.21 g/t / 11 m
MRC12-1144 1311550 North 106 120 4.06 g/t / 14 m
MRC12-2006 1311550 North 73 89 3.41 g/t / 16 m
MRC12-2006 1311550 North 122 132 5.36 g/t / 10 m
(5.44 g/t uncut)
MRC12-2008 1311550 North 81 88 3.39 g/t / 7 m
MRC12-1141 1311600 North 66 79 2.11 g/t / 13 m
MRC12-1111 1311650 North 30 48 1.45 g/t / 18 m
MRC12-1923 1311650 North 77 90 2.78 g/t / 13 m
MRC12-2017 1311850 North 88 114 2.19 g/t / 26 m
MRC12-1787 1311900 North 88 96 2.54 g/t / 8 m
MRC12-2021 1312000 North 109 116 2.83 g/t / 7 m
MRC12-2022 1312000 North 106 113 4.20 g/t / 7 m
MRC12-2023 1312000 North 76 88 2.31 g/t / 12 m
MRC12-1222 1312100 Explo. North 72 81 1.94 g/t / 9 m
MRC12-1229 1312300 Explo. North 81 90 2.62 g/t / 9 m
MRC12-2028 1312400 Explo. North 99 108 2.31 g/t / 9 m
*All individual assays are cut at 15 g/t similar to Wona.
**All lengths are measured along the hole axis; which is interpreted to be roughly equivalent to true widths due to dip.

As shown in the above table, higher grade intervals were obtained throughout the deposit, particularly in the north sector (between section 1311350N and 1311550N) where the zones of enrichment reach impressive widths. Results received to date from the Explo. North Sector indicate that the zone remains open towards the north. A few sections were also completed in the southern portion of the south sector, however the host unit appears to pinch considerably and mineralization within is rare and sporadic. The fresh rock (sulphides) horizon is attained at an average of 60 meters vertically or approximately 80 to 90 meters along the hole. Some higher grades are below the oxidized horizon (including MRC12-2007), however many of the reported intersections consist of oxidized mineralization including 2.47 g/t Au across 45 meters (MRC12-1123) and 1.73 g/t Au across 24 meters (MRC12-1897).

"The infill drilling has helped considerably in refining the geological interpretation of the mineralized zones. In addition, recent higher grade results particularly within the north sector should positively affect the overall average grade at Yaho," said Michel Crevier, SEMAFO's Vice-President Exploration and Mine Geology.

Current work underway at Yaho includes block modelling and metallurgical testing. Once completed, pit optimization simulations will be performed in order to establish the economic viability of the deposit.

Michel Crevier, P.Geo, MScA, Vice-President Exploration and Mine Geology, and SEMAFO's Qualified Person has reviewed this press release for accuracy and compliance with National Instrument 43-101.

All individual samples represent approximately one-meter in length of core, which was sawn in half. Half of the core is kept on site for reference and its counterpart is sent for preparation and gold assaying to the ALS Mineral Division laboratories in Ouagadougou, Burkina Faso or to SEMAFO's Mana Mine Lab which uses separate sample preparation equipment exclusive to exploration samples. For RC drilling, all individual samples represent approximately one-meter in length of rock chips homogenized and riffle-split to an approximately two-kilogram subsample, which is sent for preparation and gold assaying to the ALS Mineral Division laboratories in Ouagadougou, Burkina Faso or to SEMAFO's Mana Mine Lab. Each sample (core and RC) is fire-assayed for gold content on a 50-gram subsample. In addition to ALS Mineral Division's own QA/QC (Quality Assurance/Quality Control) program and Mana Lab's own QA/QC program, an internal quality control and quality assurance program is in place throughout the sampling program, using blind duplicates, blanks and recognized industry standards.

About SEMAFO

SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. The Corporation currently operates three gold mines: the Mana Mine in Burkina Faso, the Samira Hill Mine in Niger and the Kiniero Mine in Guinea. SEMAFO is committed to evolve in a conscientious manner to become a major player in its geographical area of interest. SEMAFO's strategic focus is to maximize shareholder value by effectively managing its existing assets as well as pursuing organic and strategic growth opportunities.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. Forward-looking statements include words or expressions such as "should", "will" "committed", "evolve", "become", "pursuing", "growth", "opportunities" and other similar words or expressions. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward-looking statements include the ability of the higher grade results to positively affect the overall average grade at Yaho, the ability of the pit optimization simulations to establish the economic viability of the deposit, the ability to execute on our strategic focus, fluctuation in the price of currencies, gold or operating costs, mining industry risks, uncertainty as to calculation of mineral reserves and resources as well as the metallurgical evaluation of the composition of the sulphide portions of the deposit and of the potential recuperation rate in the sulphides, delays, political and social stability in Africa (including our ability to maintain or renew licenses and permits) and other risks described in SEMAFO's documents filed with Canadian securities regulatory authorities. You can find further information with respect to these and other risks in SEMAFO's 2011 Annual MD&A and 2011 Annual Information Form, as updated in SEMAFO's 2012 First Quarter MD&A and 2012 Second Quarter MD&A, and other filings made with Canadian securities regulatory authorities and available at www.sedar.com. These documents are also available on our website at www.semafo.com. SEMAFO disclaims any obligation to update or revise these forward-looking statements, except as required by applicable law.

The above information has been made public in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act.

A figure is available at the following link: http://media3.marketwire.com/docs/Fig.1_smfa1018.pdf.

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