SEMAFO: Mana Underground Development Progress Report

MONTREAL, QUEBEC--(Marketwire - Nov. 7, 2011) - SEMAFO (TSX:SMF)(OMX:SMF) today provided an update on construction and development progress of the underground project at the Mana property in Burkina Faso.

The Corporation has signed a letter of intent ("LOI") with mining contractor Dumas Contracting Ltd ("Dumas"), and an in-house underground technical team has been designated to the project. The LOI outlines the scope of work and responsibilities to be carried out by Dumas in the interim period leading to the execution of a definitive agreement, expected to be signed in the coming months.

Underground development activities completed to date include:

• Elaboration of long hole drilling plans, with various stope-type combinations, to estimate quantities and drilling times in order to commence block sequencing and mine planning
  
  
• Detailed monthly planning of the first two years of mine development
  
  
• Test hole drilling at the portal and ventilation raise to certify rock elevation and quality
  
  
• Procurement of more than $10 million of general equipment and mining materials including: gensets, compressors, surface ventilators, underground support material, ventilation piping, mine rescue equipment, dewatering pumps and others
  
  

Detailed engineering has been finalized for the elaboration of plans for the mine dry, mechanical shop, warehouse and administrative office. A camp expansion of 40 units, to accommodate the underground teams, has been completed and construction of all other on-surface infrastructures is expected to be finalized by the end of the first quarter of 2012.

"We are very pleased with the progress made on the Mana underground project to date," said Patrick Moryoussef, SEMAFO's Vice-President, Mining Operations. "The combination of our exploration and gold mining expertise with Dumas' mastery of hard rock mining and underground mine development makes for a formidable team. The teams' collaborative efforts to optimize the development of the mine and the general approach to the ore bodies contribute significantly to our ability to remain on track in the overall progression of the project."

SEMAFO has secured additional new mining equipment from Dumas under the provisions of the LOI. Equipment for ventilation shaft development is expected onsite for commencement of surface work in January, while all development and production equipment is scheduled to arrive on site in the second quarter of 2012. Dumas, in collaboration with SEMAFO, has commenced the recruitment process for national employees.

As was recently announced in the press release dated October 18, 2011, surface drilling continues on in the Wona SW zone. Core drilling results have added underground depth potential revealing wide and high-grade mineralization. These results continue to demonstrate opportunities to further increase underground reserves from those reported in the underground feasibility study.

All amounts are in US dollars unless otherwise stated.

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.

About Dumas Contracting Ltd.

Dumas is a leading full-service underground mining contractor with over 1,200 employees providing services for clients all over the world. Dumas offers the full range of underground hard rock mining contracting services including mine construction, mine development, production mining, mine services and engineering, and maintains the highest quality equipment fleet to meet clients' needs. Dumas has an unwavering commitment to an industry-leading health and safety program and to the ultimate goal of "Zero Harm." The company's client list includes some of the world's largest and most respected mining companies.

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 "to be", "expected", "remain", "additional", "commencement", "scheduled", "continues", "further", "increase", "committed", "evolve", "become", "focus", "pursuing", "growth" 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 to finalize all other on-surface infrastructures by the end of the first quarter of 2012, the ability to remain on track in the overall progression of the project, the ability for the equipment for ventilation shaft development to arrive onsite for commencement of surface work in January, the ability of all development and production equipment to arrive on site in the second quarter of 2012, the ability of our recently announced surface drilling results in the press release dated October 18, 2011 to demonstrate opportunities to further increase underground reserves from those reported in the underground feasibility study, 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, 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 2010 Annual MD&A and 2010 Annual Information Form, as updated in SEMAFO's 2011 First Quarter MD&A and 2011 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.