Cluff Gold – 2011 Kalsaka Production Update

Cluff Gold the dual AIM/TSX-listed West African focused gold mining company, is pleased to announce an update on its Kalsaka project.

HIGHLIGHTS

• Kalsaka delivered excellent operational results in 2011, with production totalling 71,505oz, exceeding the production guidance of 70,000oz
• Promising oxide exploration results received for extension of existing mine life with longer term sulphide potential demonstrated by deeper drilling
• Strong cash generation: year-end closing cash balance of US$28.9m for the Group (31 December 2010: US$20.9m) with an additional 2,489oz of gold bullion in hand at 31 December 2011 (31 December 2010: 1,258oz)
• 2012 production guidance at Kalsaka: 60-70,000oz

Peter Spivey, Chief Executive of Cluff Gold, commented: “I believe that 2012 will be a defining year for Cluff Gold, and I am looking forward to fulfilling the many opportunities that exist within our portfolio of assets.

“We are pleased to begin the New Year by announcing that we have exceeded our full-year production target for 2011. Kalsaka has delivered strong operational results in 2011 and we are confident that this will continue in 2012.

“The management team is now working towards extending the mine life at Kalsaka and we are already achieving promising exploration results in the oxide zone. We are also pursuing the possibility of developing a long-term sulphide operation following the receipt of encouraging exploration results from deeper drilling.

With Baomahun progressing towards feasibility study and positive drilling results from Angovia’s drill programme, we seek to leverage our strong balance sheet and on-going production to allow us to maximise our asset base and fulfil our goals for 2012.”