Mako Project, Eastern Senegal Pre-feasibility Study

Toro Gold Ltd Trafalgar Court Admiral Park Guernsey GY1 3EL News Release: 25 th July 2014, Guernsey Mako Project, Eastern Senegal Pre-feasibility Study Toro Gold Ltd ( Toro Gold or the Company ) is pleased to announce the results of the Mako Project Pre-Feasibility Study ( PFS ) that was completed during May 2014. The PFS demonstrates that a commercial scale gold project can be developed at Mako and that the results warrant the move to the commencement of a Feasibility Study to further define the project. Project Overview: Open pit operation mining 14.7mt of ore at an average LoM grade of 2.1g/t Au for a 990,000 oz Reserve at an average LoM strip ratio of 4.4t (waste) : 1.0t (ore); Mine and milling schedule delivering ore to the mill at an average grade of 2.4g/t Au over the first 8 years of production; An industry standard 1.4mtpa 3 stage crush/ball mill, CIL Process Facility achieving LoM gold recoveries of 91%; Project infrastructure comprising a tailings dam, water storage facility, permanent camp / administration centre and HFO power plant and associated fuel farm; No requirement for physical relocation of impacted persons but limited requirement for livelihood restoration on a like for like basis; Development Capex of US$175m and sustaining Capex of US$37m assuming fully owneroperated mining fleet and power plant; Average LoM Cash Costs of US$699 /oz; and, On a 100% ownership, pre-tax basis and assuming US$1,300/oz gold an NPV (5%) of US$170m and an IRR of 22%. Martin Horgan, CEO of Toro Gold commented: I am pleased to announce the results of the Mako Pre-feasibility Study. Building on the work completed in the 2013 Scoping Study, the PFS demonstrates the potential to develop a commercial scale gold mine at Mako. Benefitting from good grades, a lower stripping ratio, and a conventional open pit mining and processing plant configuration, the project represents a robust development opportunity situated in an excellent jurisdiction. Based on the results of the PFS the Company will now commence a full Feasibility Study in H2 2014 and we look forward to updating you in due course as we continue to develop Mako. Toro Gold Ltd, Trafalgar Court, Admiral Park, Guernsey, GY1 3EL. Registered Number: 50076

Pre-feasibility Study Team The Company has retained a group of consulting firms with relevant West African experience to develop the PFS in line with accepted engineering practices: Consultants Cube Consulting Ltd Pty On the Brinke Mining Consultants Cutback Consulting Pty Ltd SRK Consulting (UK) Ltd Lycopodium Minerals Pty Ltd AMEC (UK) MDM (RSA) Earth Systems Mintrex Resource Estimation Mine Planning and Scheduling Owner-Operating mining cost estimation Contractor mining cost estimation Geotechnical Engineering Mining Cost Estimation Review Hydrogeology and Hydrology Economic Modelling Project Study Co-ordination Metallurgy Testwork Overview and Interpretation Mineral Process Design Tailings Facility, Water Storage, Site Infrastructure Planning Infrastructure / Power Environmental and Social Assessment Project Review / Value Engineering Mineral Resources The PFS was based on the Resource Report completed by Cube Consulting Pty Ltd ( Cube ) of Perth, Australia. The 2014 Mineral Resource is tabulated below, as of 28 February 2014 above a lower cut-off of 0.5 g/t gold. The Mineral Resource was estimated using a local indicator methodology and limited to material with a reasonable expectation of exploitation by open pit methods. Petowal Mineral Resource 28 February 2014 Classification Tonnage (Mt) Gold Grade (g/t) Gold (Oz 000) INFERRED 1.0 0.9 29 INDICATED 24.5 1.76 1,383 The grades are calculated as Mineable and thus include mining dilution no further dilution is applied to the resource model prior to mine planning. Geotechnical Engineering SRK Consulting (UK) Ltd ( SRK ) completed a geotechnical assessment of the Project based on geotechnical data collected systematically during the core logging operations plus the results of 4 dedicated geotechnical holes completed in 2013. The modelling work derived a 2

series of maximum slope angles based on pit slope heights which were used for open pit planning purposes. Mining Operations Reserve Estimate Cube completed open pit optimisation exercises to determine a series of nested pit shells, the analyses of which were used as the basis for final and staged detailed pit designs. Numerous waste dump storage design options were completed together with mining access road designs. Mining production and mill feed schedules were also completed to derive ore and waste material movements that incorporated the use of stockpiling where appropriate. The grades and metal stated in the Ore Reserves Estimate include mining recovery and dilution. The Ore Reserve Estimate is reported within the open pit designs prepared as part of the PFS as set out below: Ore Reserves Estimate for the Mako Gold Project as at 31 March 2014 Category Material Cut-off g/t Mined As Mined Recovered As Mined Recovered Au recovered Mt Au g/t Au g/t Au koz Au koz ROM Ore Weathered 0.7 0.2 1.9 1.8 11 11 Probable Felsic 0.8 11.0 2.2 2.0 760 700 Ore Reserves Basalt 0.8 3.5 1.9 1.7 218 188 Total 14.7 2.1 1.9 990 899 Calculations are rounded to the nearest 100,000 tonnes; 0.1 g/t Au grade and 1,000 ounces Au metal. Errors of rounding may occur. The Ore Reserve estimate is based on the Mineral Resource estimate classified as Indicated after consideration of all mining, metallurgical, social, environmental and financial aspects of the operation. The Probable Ore Reserve has been derived from the Indicated Mineral Resource. Mine Schedule The mining plan is designed to preferentially mine and treat the higher grade material by the use of a stockpiling strategy. The strategy employs a 1.2g/t lower grade limit for direct feed material while medium grade material that is above the full operating cut off but below the stockpile grade is processed at the end of the mining operations. This results in an 8 year mining schedule that delivers 1.4mtpa of ore at an average grade of 2.4g/t to the mill with a final 3 years processing of the medium grade stockpiles. A 3 stage pit design results in total waste mining of 65mt which is emplaced to the immediate east of the open pit. Ore is then hauled via an 800m ex-pit haul to the RoM pad for delivery to the primary crushers. Figure 1 in the Appendix shows the Final Pit Design, Waste Rock Dump and RoM Pad layout. Figure 2 in the Appendix shows a cross section through the Petowal deposit. The mining fleet is comprised of 120t excavators matched to 90t dump trucks with a 3

supporting operational fleet of drills, dozers and graders. Two operating cost models were assessed for the operations including both an owner operating model and the use of contract mining. These cost estimates were performed by On the Brinke Mining Consultants and Cutback Consulting respectively and reviewed by both SRK and the Company before inclusion in the PFS. For the purposes of the PFS, the owner-mining model has been adopted. Metallurgy The metallurgical test work programme and resulting processing plant design has been overseen by Lycopodium Minerals Pty Ltd ( Lycopodium ) of Perth, Australia. The testwork programme generally confirmed the findings of the 2013 Scoping Study that the Mako ore is: generally hard and abrasive with high energy comminution requirements; typically free-milling with a high gold recovery by gravity and carbon in leach; and, non - preg robbing. Based on the results of the testwork programme, a 1.4mtpa process plant has been designed and is configured as follows: Three stage crushing with open circuit primary crushing and closed circuit secondary and tertiary crushing to produce a crushed product size of 100% passing (P 100 ) 12.0 mm. Fine ore bin with 24 hours live capacity. Ball mill in closed circuit with hydrocyclones using process water to produce a P 80 grind size of 106 µm. Gravity concentration and removal of coarse gold from the milling circuit recirculating load and treatment of gravity concentrate by intensive cyanidation and electrowinning to recover gold to doré. Pre-leach thickener to increase the slurry density to the carbon in leach (CIL) circuit to minimise CIL tankage, improve slurry mixing characteristics and reduce overall reagent consumption. CIL circuit incorporating six stages with 24 hours residence time with carbon in all stages for gold adsorption. 5 tonne split AARL elution circuit, electrowinning and gold smelting to recover gold from the loaded carbon to produce doré. Tailings cyanide destruction circuit using the air / SO 2 process. Tailings pumping to the tailings management facility (TMF). The metallurgical testwork indicates a LoM average gold recovery of 91% across the blended ore types and based on the RoM feed grade to the mill. Figure 3 in the Appendix shows the Process Plant Layout. 4

Power Generation Given the lack of grid power in eastern Senegal, the PFS has assumed that power will be generated via the use of an HFO fuelled power plant. HFO is available in Senegal and offers operating cost benefits over diesel powered generation. The current design envisages a 12MW power plant being developed to provide a base load of 9MW for steady state operations. Site Infrastructure The project site infrastructure comprises a permanent accommodation camp for some 270 people, offices and site administration buildings, workshops, fuel farm, raw water storage dam, site wide access roads and a Tailings Management Facility ( TMF ). Building on the work completed in the 2013 Scoping Study, AMEC (UK) reviewed and revised their design for the TMF. The location remains in the Wayako Valley, some 4km from the process plant, and is designed to store some 15mt of tailings material at a rate of 1.4mtpa with the TMF embankment designed to be raised on a bi-annual basis. A dedicated water storage dam will be located below the waste rock dump with a total storage capacity of some 875,000m 3 capacity. Recharge of the raw water storage will be completed via a combination of rainwater catchment and abstraction from the Gambia river for a 3 4 month period each year during the wet season. Figure 4 in the Appendix shows the Mako Project Site Layout Plan. Environment and Permitting An environmental and social baseline study commenced in 2012, continued through 2013 and 2014, and has enabled the PFS to incorporate key values into the design philosophy and layout plans for the PFS. The baseline study has informed the preparation of a preliminary environmental and social risk assessment and design criteria, which have been incorporated into the PFS infrastructure design. The Company has aimed to avoid sensitive sites and receptors where possible through prefeasibility design, in preference to subsequent impact mitigation measures. 5

Cost Estimate The capital and operating cost estimates have been based on a range of sources including vendor quotes, estimates derived from first principles and from the engineering groups proprietary databases of similar operations across West Africa. Contingencies and P&Gs have been applied with specific reference to the underlying cost centre and are included in the cost estimates. All costs are based on prices and market conditions current in Q1 2014. The construction capital estimate is based on an EPCM model with an owners team overseeing development and is summarised as follows: Project Capital Direct Cost + P&G + EPCM (USD 000) Contingency (USD 000) Total Cost (USD 000) Contingency (%) Mining Prestrip & Fleet 21,724-21,724 0.0% Processing 78,844 11,826 90,670 15.0% TSF/WSD/Access Roads 18,302 2,112 20,414 11.5% Infrastructure 25,900 5,724 31,624 22.1% Owners Team 10,329-10,329 0.0% Grand Total 155,099 19,662 174,761 12.7% The operating costs are estimated as follows: Mining Costs Ore & Waste LoM Ave Process Costs LoM Ave G&A Costs in steady state mining US$3.17/tonne 1 US$21.37/tonne 2 US$4.27/tonne 1: Excluding capitalised pre-strip mining costs. 2: Including TSF costs. (excluding G&A for Mining & Processing Departments) Project Valuation Based on the above parameters the Mako Project delivers the following Net Present Values for 100% of the project on a pre-tax basis: Project Valuation NPV Valuation (US$ million) IRR Gold Price / Discount Rate 5% 10% US$1,250/oz 138 71 19% US$1,300/oz 170 96 22% US$1,350/oz 203 121 25% 6

PFS Project Review As part of the PFS process the Company retained Mintrex of Perth, Australia, to complete a risks and opportunities review of the project to identify potential areas in the PFS that could be improved as part of a Feasibility Study. Additional opportunities have also been identified by the Company and the PFS study team. The opportunities identified by both Mintrex and Toro that have the potential to enhance the project at the feasibility study stage are summarised as follows: Use of a second northern waste dump for improved mining costs; Review of Grind Size and ability to coarsen milled material to 150 microns P (80); Revision of process plant layout to improve capex and opex performance; Tailings Management Facility and associated Water Storage Dam design can be rationalised to reduce both the construction cost and technical operating risk; Use of operating lease model for the mining fleet and power plant to reduce the capital construction cost; and Construction Strategy EPCM vs EPC strategy and the ability to self perform certain development elements to reduce the capital costs. Given the identified areas above and the results of the infill drilling campaign received in May and June 2014, management believe good opportunities exist to further optimise the Mako project to deliver both a reduction in technical risk and enhance the project economics during the Feasibility Study. Conclusion The PFS confirms the potential of the Mako Project to host a mining operation based on industry standard operations. The Study highlights a high grade open pit operation targeting a 990,000 ounce gold reserve over an 11 year operation at a stripping ratio of 4.4 (waste) to 1.0 (ore) producing on average 97,000 oz pa for the first 8 years of operation. Based on the results of the PFS the Company is now commencing a Feasibility Study for the Mako Project with work slated to start in Q3 2014. This press release has been reviewed by the in-house qualified person Howard Bills who is a Fellow of the Geological Society and Chartered and European Geologist. Cautionary Note Regarding Forward Looking Statements This Press Release may contain statements which constitute forward-looking, including statements regarding the plans, intentions, beliefs and current expectations of the Company, and its directors, or officers with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions or the negative thereof, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company s future business activities may differ materially from those in the forward-looking statements as a result of various factors. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. These forward-looking statements speak only as at the date of this press release. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. 7

APPENDIX Figure 1: Final Pit Design, Waste Rock Dump, RoM Pad layout 8

Figure 2: Illustrative Cross Section through Petowal Deposit Section Line 2480mN Final Pit Outline Figure 3: Process Plant Layout 9

Figure 4: Mako Project Site Layout Plan 10