West African Resources Ltd.

Published : May 13th, 2016

March 2016 Quarter Management Discussion & Analysis

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March 2016 Quarter Management Discussion & Analysis

5f69bf01-7ae1-40b5-8eed-6475c036309d.pdf

West African Resources Limited

ABN 70 121 539 375

MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)

for the three months ended 31 March 2016

Registered Office

14 Southbourne Street

Scarborough WA 6019

Australia

Principal place of business

14 Southbourne Street

Scarborough WA 6019 Australia

Ph: +61 (8) 9481 7344

Fax: +61 (8) 9481 7355

Website www.westafricanresources.com Email [email protected]

GENERAL

Presented below is a discussion of the activities, results of operations and financial condition of West African Resources Ltd. ("West African" or the "Company") for the three month period ended 31 March 2016 ('Q316'), compared to the same periods in the preceding year. This management discussion and analysis ("MD&A") was prepared using information available as of 12 May 2016 and should be read in conjunction with the Company's unaudited interim financial statements for the three month period ended 31 March 2016 and notes thereto. These unaudited consolidated interim financial statements (the "Interim Financial Statements") are prepared in accordance with International Financial Reporting Standards ("IFRS") for interim reporting. As a result, this MD&A should also be read in conjunction with the audited financial statements for the year ended 30 June 2015 and notes thereto. The Interim Financial Statements include the accounts of the Company and its subsidiaries. All monetary amounts referred to herein are in Australian dollars unless otherwise stated.

Additional information relating to the Company can be found on the SEDAR website at www.sedar.com, on the Company's website at www.westafricanresources.com.

FORWARD LOOKING STATEMENTS

This MD&A contains certain forward-looking information and forward-looking statements as defined in applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "should", "believe" and similar expressions is intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These statements speak only as of the date of management's discussion and analysis. Inherent in forward-looking statements are risks and uncertainties beyond the Company's ability to predict or control, as described herein. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this management's discussion and analysis. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about general business and economic conditions, interest rates and foreign exchange rates, the timing of the receipt of regulatory and governmental approvals for projects, ability to attract and retain skilled staff, the impact of changes in foreign exchange rates on costs, market competition, the accuracy of resource estimates (including, with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based, tax benefits and tax rates, and ongoing relations with employees and with business partners. The reader is cautioned that the foregoing list of important factors and assumptions is not exhaustive. Events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, these forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise.

TSX-V disclaimer

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CORPORATE OVERVIEW

West African is a mineral exploration company focused on building shareholder value through the identification, acquisition, assessment and development of mineral resource projects. The Company's portfolio includes mineral rights in a gold project in Burkina Faso.

The Company trades on the Australian Securities Exchange ('ASX') and the TSX Venture Exchange ('TSX') (with effect from January 2014) under the symbol "WAF" and warrants trading on the TSX under the symbol "WAF.WT". The Company is a reporting issuer in Canada in the provinces of British Columbia, Alberta, Saskatchewan and Ontario.

West African Resources Limited (ASX: WAF) is pleased to report activities on its 100%-owned and 100%-earning gold and copper-cold projects in Burkina Faso, West Africa, for the quarter ending 31 March 2016.

OPERATIONS HIGHLIGHTS FOR Q316

Tanlouka Gold Project

M1 South Prospect

  • Drilling completed over 350m of strike, open to the north west and at depth

  • Ultra-high grade results from M1 South included:

    • 4m at 86.96g/t Au from 93m including 1m at 343.59g/t gold

    • 11m at 43.44g/t Au from 76m including 1m at 349.15g/t Au, 1m at 113.98g/t Au

    • 12m at 53.11g/t Au, including 1m at 534.45g/t Au

  • Follow-up RC and Diamond core drilling underway at M1 South, further results pending

  • Review of feasibility and development options due to extremely high-grade results from M1 South

  • Definitive Feasibility Study (DFS) commenced based on larger-scale carbon-in-leach (CIL) development

    M1 North Prospect

  • Drilling completed over 300m of strike, open to the north west and at depth

  • Results included:

    • 17m at 4.28g/t Au from 93m, including 2m at 14.5g/t Au and 1m at 28.3g/t Au

    • 20m at 5.78g/t Au from 68m, including 1m at 96.25g/t Au

    • 12m at 5.02g/t Au from 104m, including 6m at 8.21g/t Au

      M3 Prospect

  • Drilling extended mineralisation at the eastern zone to 300m

  • Results included:

    • 16m at 2.3g/t Au including 8m at4.0 g/t Au, from surface

      March 2016 Quarter Summary

  • 9,756m drilled

  • $0.9m Exploration and Development Expenditure

  • $0.4m Administration Costs

  • $1.4m cash at bank at 31 March 2016

  • $12.5m capital raising complete post quarter end

    Corporate

  • Heavily oversubscribed placement completed subsequent to quarter end to raise up to $12.5 million from international and domestic institutional and sophisticated investors, including $4 million from a leading North American institutional precious metals fund

  • Placement to be completed in 2 tranches, tranche 1 completed raising $3.75m, tranche 2 expected to be completed in late May, raising a further $8.75m

  • Proceeds to fund aggressive exploration drilling and resource drill out of M1 discovery and a Tanlouka Project DFS

    June 2016 Quarter Plans

  • Step out and deeper RC and Diamond drilling at M1 North and South

  • Resource definition drilling at M5 deposit

  • Maiden M1 and M3 Mineral Resource estimates

  • Commencement of DFS

MINERAL PROJECTS

Burkina Faso, West Africa

The majority of West African's exploration activities since listing the Company on ASX in 2010 have been focused on Burkina Faso, located in the Sahel region of West Africa. The Sahel is a transition zone between the Sahara Desert to the north and the savannas to the south, and stretching the full width of the continent, having a semi-arid climate.

The area now known as Burkina Faso was ruled by the Mossi kingdoms from medieval times until France claimed the region in 1896 when it became known as Upper Volta. In 1960 the Republic of Upper Volta was granted autonomy by France and in 1987 the name of the country was changed to Burkina Faso.

Most of central Burkina Faso lies on a savanna plateau, 200 to 300 meters above sea level. Some key characteristics of Burkina include:

  • Average annual rainfall: ~100 cm in the south; ~25 cm in the north and northeast.

  • Population: 17.8 million (2013 est.) with a growth rate of approximately 3%.

  • Language: French and Mòoré

  • Average population density: approximately 51.4 people per square kilometer with concentrations in urban areas approximately 80 people per square kilometer.

  • Ethnicity: The country is generally regarded as an ethnically integrated, secular state, its population belonging to two major West African cultural groups - the Voltaic and the Mande. The 60% of Burkinabe are Muslim with 25% Christian but most also adhere to traditional African religions.

  • Education: Compulsory until the age of 16; however, only about 80.3% of Burkina's primary school age children are enrolled in primary school. Of those enrolled, about 41.7% complete primary school.

  • Government: Parliamentary Republic. Gained independence from France in 1960. Follows the French model of civil law based on a constitution adopted in 1991.

  • Economy: GDP per capita (PPP) of $1,400 (2012 est.); Real GDP growth of 8% (2012 est.) (4.2% in 2011); Inflation rate of 3.8% (2012 est.) (2.8% in 2011). Mining and the agricultural sectors (primarily cattle and cotton) are the main sources of growth. Approximately 80% of the population relies on subsistence agriculture, with only a small fraction directly involved in industry and services.

Burkina Faso is working to expand its economy by developing its mineral resources, particularly gold, improving its infrastructure, making its agricultural and livestock sectors more productive and competitive, and stabilizing supplies and prices of food grains. Gold has reportedly become the country's top export commodity with it being the fastest growing gold producer in Africa and the 4th largest gold producer in Africa in 2012. Eight new mines have been commissioned there over the past six years.

In 2011, gold earned Burkina Faso 127 billion CFA (~$267 million), in comparison with 440 billion CFA

(~$926 million) for the four-year period between 2007 and 2011, accounting for 64.7 percent of all exports and 8 percent of GDP. Production rose from 23 tonnes in 2010 to 32 tonnes in 2011.

Read the rest of the article at www.publicnow.com
Data and Statistics for these countries : Burkina Faso | Canada | France | All
Gold and Silver Prices for these countries : Burkina Faso | Canada | France | All

West African Resources Ltd.

EXPLORATION STAGE
CODE : WAF.AX
ISIN : AU000000WAF6
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West African Resources is a exploration company based in Australia.

Its main exploration properties are MARANDET in Niger and BOULSA in Burkina Faso.

West African Resources is listed in Australia. Its market capitalisation is AU$ 484.2 millions as of today (US$ 349.5 millions, € 306.2 millions).

Its stock quote reached its lowest recent point on February 26, 2016 at AU$ 0.05, and its highest recent level on October 16, 2020 at AU$ 1.23.

West African Resources has 484 249 984 shares outstanding.

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In the News and Medias of West African Resources Ltd.
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Project news of West African Resources Ltd.
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8/1/2016(Tanlouka)Upgrades Mineral Resources as at Tanlouka
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8/16/2015New gold zone returns up to 13g/t Au in auger drilling
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2/19/2014Acquires Heap Leach Plant Targeting Gold Production 2015
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Corporate news of West African Resources Ltd.
7/31/2017June 2017 Quarterly Activities and Cashflow Report
8/25/2016West African Resources Repays US$5m Loan Facility
8/1/2016West African Upgrades Mineral Resources as at Tanlouka
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7/17/2016West African hits 1107g/t Au at M1 South
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5/13/2016March 2016 Quarter Management Discussion & Analysis
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12/21/2015Preliminary metallurgical recoveries average 97.5% at M1 and...
12/14/201515m at 1.2g/t Au including 7m at 2.2g/t Au from 4m at M3
9/30/2015Management Discussion & Analysis
9/30/2015Annual Report
9/18/2015Company Update
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7/31/2015June Quarterly Activities Report
6/17/2015West African extends M5 by 1.5km, up to 0.63g/t Au in Auger
10/6/2014West African Resources Limited 72m at 2.2 g/t Au Including 7...
8/19/2014West African Resources Limited 15m at 5.9 g/t Au including 5...
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