Kossanto East Project

Highlights:

- Kossanto East is located along the Mali-Senegal border within the highly gold-endowed West Mali Gold Belt

- The project lies near the intersection of two major shear zones associated with numerous multi-million ounce gold deposits

- 40M ounces of gold has been discovered in this area over the past 20 years; 8 new mines have been constructed in the area as a result

- 65% earn-in option with Alecto Minerals PLC, an AIM listed company

Overview:

Ashanti Gold has signed a formal option agreement with Alecto Minerals, an AIM-listed public company, to earn an interest in the Kossanto East Gold Project in western Mali.

The Kossanto East Project is a 66.41 km2 concession in the prolific Kedougou - Kenieba Inlier, the northwestern most exposure of Birimian rocks in West Africa. The Property hosts two principle drill-tested targets, Gourbassi East (“GE”) and Gourbassi West (“GW”) and several surface anomalies. Geochemical anomalies identified by previous explorers and Alecto led to drill testing, successful intersection of gold mineralization, and production by Alecto of an initial Inferred Resource1 estimate of 121,000 oz gold for GW and a 126,000 oz gold for GE. Gold has been intersected in drill holes over a ~1 km strike length at GW and over a ~900m strike length at GE. Both areas remain open along strike and down dip and include some notable drill intercepts. One of the other target areas (Berola) has been tested with shallow Rotary Airblast Drilling (RAB) and returned positive, first-pass intercepts.

Ashanti plans to commence field work before the end of the year. This work is aimed at advancing mapping of the GW and GE targets, key rock types, and structure which localizes mineralization. This work will help the Company plan the next phase of drilling that is anticipated to commence late in Q1 2017.

1 Inferred Mineral Resource

“An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. An Inferred Mineral Resource is based on limited information and sampling gathered through appropriate sampling techniques from locations such as outcrops, trenches, pits, workings and drill holes. Inferred Mineral Resources must not be included in the economic analysis, production schedules, or estimated mine life in publicly disclosed Pre-Feasibility or Feasibility Studies, or in the Life of Mine plans and cash flow models of developed mines. Inferred Mineral Resources can only be used in economic studies as provided under NI 43-101.

Earn-in option:

Ashanti has the right to earn 65% of Alecto’s interest (after including the Mali State carried interest of 10%, Ashanti ownership of the property upon completion of the earn-in agreement will be 58.5%) in the Kossanto East Project by completing a Preliminary Feasibility Study (“PFS”) within 36 months following the date of TSXV approval (the “Option Period”). Ashanti has the right to extend the Option Period to complete the PFS by an additional 12 months for a cash payment of US$280,000 (payable in 6 month tranches of US$140,000 each). Additionally, Ashanti may elect to pay in cash US$4.0M to Alecto within 90 days following the end of the Option Period in lieu of producing a PFS. Ashanti will be the operator of the exploration and development programs during the Option Period.

Upon completion of its earn in rights, Ashanti and Alecto will form a joint venture whereby each party will contribute proportionally to the Project’s continuing exploration and development with standard dilution clauses regarding Project funding. If either party’s interest is reduced to 10% or less (not including the Mali State interest), that interest will be converted into a 1.5% net smelter return royalty (the “NSR”) which the other party will have the right for one year to purchase by paying US$100,000 for each 0.1% of the NSR.


Select Drill Intervals from Alecto Drill Data

Hole # From (m) To (m) Interval (m) Au (g/t)

Gourbassi East
CGM_GRC01 60 75 15 2.18
CGM_GRC05 9 14 5 2.24
CGM_TF07 92 99 7 3.10
CGM_TF11 42 55 13 2.07
GDD01 0 80.5 80.5 0.80
incl 0 14.8 14.8 3.10
GRC14 24 53 29 2.70
incl 28 34 6 7.94
GRC-15 7 60 53 1.51
incl 7 12 5 4.36
incl 19 31 12 2.55
GRC16 0 75 75 2.04
incl 3 8 5 11.28
incl 17 35 13 3.88
GRC17 29 75 46 2.16
incl 32 49 17 3.86
GRC18 47 51 4 3.72
GRC19 34 65 31 1.31
incl 35 48 13 2.29
GRC25 56 65 9 1.99
incl 56 60 4 3.25
GRC31 72 75 3 5.22
GRC32 113 119 6 4.18
incl 114 118 4 5.88
GRC33 51 75 24 1.73
incl 52 62 10 2.91

69 74 5 2.10
GRC34 73 81 8 2.55
and 90 96 6 1.21
GRC35 64 70 6 1.90
GR37 12 16 4 7.96
GRD04 248 252 4 3.98
TF22 28 30 4 4.63
TF34 0 18 18 2.98
incl 0 7 7 5.72
and 23 27 4 3.53





Gourbassi West
GRABL7/11 0 34 34 1.55
incl 6 12 6 5.89
GRABL27/9 6 36 30 1.28
incl 12 21 9 2.95
GRABL32/3 6 15 9 2.18
GRABL5/11 21 33 12 1.82
GRC43 37 58 21 1.80
incl 45 54 9 3.46
GRC46 47 55 8 1.31
GRC48 82 88 6 2.27
GRC49 2 9 7 1.77
GRC68 36 40 4 2.29
GRC69 26 39 13 4.36
GRC70 96 101 5 1.96
GRC76 24 141 117 0.97
GRC78 5 9 4 3.51
GRC79 14 35 21 1.24
incl 17 23 6 2.56
GRC80 3 14 11 1.04
and 43 46 3 2.95
and 114 120 6 1.81
and 150 152 2 5.73
GRC81 19 52 33 1.36
incl 33 40 7 2.40
ML02 10 27 17 2.05
incl 21 27 6 3.81
ML_07 144 147 3 3.10

Berola
FRABL1/3 0 12 12 0.65
FRABL1/4 0 9 9 0.83
FRABL4/6 0 15 15 1.18
FRABL4/7 0 18 18 0.73