SEMAFO and GoviEx Join Forces to Advance
Uranium Exploration and Production in Africa
MONTREAL, CANADA February 14, 2008 - SEMAFO (TSX-SMF) and Govi High-Power Exploration Inc. (GoviEx) announced today that they have entered into a definitive agreement to combine their uranium interests and to create an Africa-focused uranium exploration, development and production company.
As part of the transaction, SEMAFO will exchange all of its shares of SEMAFO Energy Barbados in consideration of the issuance of 10,000,000 common shares of GoviEx. After closing, SEMAFO will hold approximately 12% of GoviEx. The transaction is subject to all necessary regulatory approvals, closing is expected within 30 days.
"We are pleased to be combining our assets with those of SEMAFO," said Govind Friedland, GoviEx's Chief Executive Officer. "SEMAFO has built a world class technical and management team with more than 250 years of combined uranium exploration and operating experience."
GoviEx is a private international resource company expanding its uranium activities in Africa and planning to develop several of its advanced-stage uranium exploration projects in Niger. SEMAFO's Chairman Jean Lamarre, President and Chief Executive Officer Benoit La Salle and SEMAFO Energy's President Patrick de Saint Simon have been invited to join the GoviEx Board of Directors and its subsidiaries, as appropriate, to ensure that all levels of governance at GoviEx benefit from their expertise.
"This transaction combines our exploration permits with GoviEx's principal asset, the Madaouela uranium project in Niger," said Mr. La Salle. "The team will move rapidly to develop a mining operation at Madaouela."
GoviEx is a private mining company focused on exploration, development and production from the high-grade Madaouela uranium deposits (+0.2%-0.3% U308) in the West African nation of Niger. GoviEx's advanced-stage properties are located within 10 kilometres of the Areva mines Somair/Cominak - which currently account for 100% of Niger's uranium production. Niger is the world's fourth-largest uranium producer, accounting for approximately 9% of global production.
Semafo is a Canadian-based mining company with gold production and exploration activities located in West Africa. The Company currently operates two gold mines with a third, the Mana mine in Burkina Faso, entering production. Semafo is committed to evolve in a conscientious manner to become a major player in its geographical area of interest, while maintaining values and strengthening relationships to increase shareholder val
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 t
o 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.
For more information contact :
BENOIT LA SALLE, PRESIDENT & CEO
TEL :&NBSP; (514) 744-4408
E-MAIL :&NBSP; BLASALLE@SEMAFO.COM
MATTHEW HORNOR: (604) 331-9895
ROBERT SAUNDERS : +65.9235.0410&NBSP;
RENMARK FINANCIAL COMMUNICATIONS INC. :
TINA CAMERON: TCAMERON@RENMARKFINANCIAL.COM
ERIC ST-PIERRE : ESTPIERRE@RENMARKFINANCIAL.COM
TEL :&NBSP; (514) 939-3989
FAX : (514) 939-3717