KINIERO MINE UPDATE
Montreal, Quebec, October 24, 2007 - SEMAFO (TSX-SMF) is pleased to provide an update on operations at the Kiniero mine.
Following a full geological review initiated and directed by Semafo's qualified person, Michel Crevier, a series of initiatives were implemented in order to restore the mine to satisfactory economic production during the fourth quarter of 2007. Principal aspects of these initiatives included:
. Mill shutdown / maintenance work originally scheduled for December took place in September in order to ensure ongoing availability and satisfactory throughput.
. A shift in mining planning from the Northeast Gobele D and Gobele C pits to the West Balan pit.
. Pit stripping of West Balan was completed in late September, access road is also completed.
. We are awaiting imminently the mining permit.
. Semafo's Mining Operations Manager since 2004, Patrick Moryoussef, mining engineer, has relocated to Guinea as an expatriate and has assumed the position of Mine Manager, Kiniero Mine.
"Kiniero's gold production of 20,400 oz. for the first three quarters of 2007 and particularly that of the third quarter has been inadequate to say the least," said Benoit Desormeaux, Chief Operating Officer, Semafo. "We are confident, however, that we have taken the necessary steps to rectify the situation and look forward to stable production for the remainder of 2007 and into 2008."
In light of the situation, the 2007 Kiniero production forecast has been revised to 28,000-30,000 ounces with an outlook of 40,000 oz. for 2008
Semafo is a Canadian-based mining company conducting exploration, development and production activities in West Africa. The Company currently operates two gold mines, the Kiniero mine in Guinea and the Samira Hill mine in Niger. A third mine, the Mana gold project in Burkina Faso, is under construction with plant commissioning scheduled for December 2007. 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 value.
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 resour
ces, 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.
For more information contact :
BENOIT LA SALLE,
PRESIDENT & CEO
TEL :&NBSP; (514) 744-4408
E-MAIL :&NBSP; BLASALLE@SEMAFO.COM
RENMARK FINANCIAL COMMUNICATIONS
TINA CAMERON : TCAMERON@RENMARKFINANCIAL.COM
ERIC ST-PIERRE :&NBSP; ESTPIERRE@RENMARKFINANCIAL.COM
TEL :&NBSP; (514) 939-3989
FAX : (514) 939-3717