• H1 2011 Group EBITDA: US$11.1m (158% increase over US$4.3m in H2 2010; H1 2010: US$18.4m)
  • Kalsaka production in H1 2011 of 31,518oz at US$842/oz (H2 2010: 33,242oz at US$943/oz; H1 2010: 40,831oz at US$672/oz)
  • Strong start to H2 at Kalsaka, with 16,000oz production in July and August 2011 as grades strengthen - the Company remains on track to meet 2011 target of 70,000oz production
  • Cash and cash equivalents of US$17.7m as at 30 June 2011 (31 December 2010: US$20.9m; 30 June 2010: US$8.1m)
  • Exploration expenditure increased to US$10.2m (H2 2010: US$3.0m; H1 2010: US$3.1m) as the Company accelerates activity at Baomahun and Kalsaka, supported by strong operating cash flow from Kalsaka
  • Leaching recommenced at Angovia, with resumption of full operations targeted for Q1 2012

  • Algy Cluff appointed Non-Executive Chairman
  • Peter Brown appointed Group Exploration Manager, with over 25 years of exploration experience across Africa and South America

Peter Spivey, Chief Executive of Cluff Gold, commented:

"We are pleased to report our interim results for the Company. We remain on track to deliver our production target of 70,000 ounces for the year at Kalsaka and are very encouraged by the production levels achieved in recent months, with 16,000 ounces produced in July and August 2011. We anticipate our H2 production levels and cash generation to be ahead of that seen in H1 2011.
Our strong balance sheet and significant operating cash flow ensure that we have the resources to fulfil our vastly accelerated exploration plans across all assets. The addition of Peter Brown further strengthens our experienced management team and is another important step towards realising our new exploration goals.

The Company's efforts remain focused on developing Baomahun and we look forward to reporting our definitive feasibility study during Q4 2011. We also believe in the long term sulphide potential of the Angovia asset, where the commencement of diamond drilling is as important as the resumption of processing in H2 2011, with full operational production targeted for Q1 2012.

I echo our Non-Executive Chairman's belief that the Company has the potential to be a 250,000 ounce per annum producer by 2013, which is within eight years of the foundation of the Company."

Chairman's Statement
I referred in my last interim statement to 'the perils consonant with the mining business' and we have endured our share
of them this year. In Cote d'Ivoire, we were obliged to close the Angovia Mine due to the political unrest resulting
from President Gbagbo's refusal to cede power despite losing the Presidential election; and in Burkina Faso, in common
with most other mining companies, we experienced an illegal withdrawal of labour as a direct consequence of the distress
caused to the workers by food price inflation. However in Sierra Leone we made solid progress as evidenced in last
week's publication of a Mineral Resource Statement for Baomahun which will be complemented by the release of the
detailed definitive feasibility study during Q4 this year.

The impact of the strike at Kalsaka and the closure of Angovia are evident from these interim figures which they
unfavourably distort. However, I am pleased to report that notwithstanding the issues at Kalsaka, and having concluded a
favourable resolution with the workforce, the mine is operating strongly and we remain on our budgeted target to produce
70,000 ounces this year. Indeed we produced 16,000 ounces in July and August 2012, which included a record weekly smelt
of 3,730 ounces. I am also pleased to report that we have begun recovering gold from Angovia again by stacking a 40,000
tonne stockpile of ore. We have also commenced a short drilling programme which we expect will herald the full
resumption of mining (away from the previously mined areas) in Q1 next year.

I should point out that the strong cash flow which we currently enjoy from Kalsaka has enabled us to apply part of our
healthy cash balance to sustained exploration programmes. Our recently appointed Group Exploration Manager, Dr Peter
Brown, is charged with managing these programmes with various objectives, which in particular are to extend the oxide
life of the Kalsaka Mine and the Angovia Mine and to determine the sulphide potential for much larger operations; to
explore the wider Baomahun licence area following the interpretation of the VTEM survey (drilling has begun and the
results are now being received); and to inaugurate exploration activity at our new licences in Burkina Faso and Mali.

Of crucial importance to the Company when reviewing this period is undoubtedly the advance in our knowledge of the
potential for production at Baomahun. The economics of this deposit will be apparent when we announce the definitive
feasibility study shortly and I believe it is not imprudent to reflect that your Company has the potential to be a
250,000 ounce per annum producer by 2013, which is within eight years of the foundation of the Company.

When I wrote last year's interim statement I was the Chairman and Chief Executive. This is a very demanding business
and, at the age of 71, I consider it is not appropriate to continue to hold an executive role and I have accordingly,
last month, assumed the Non-Executive Chairmanship. I am confident that your executive team has the capability to
deliver on the manifold challenges I have outlined above.

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