• Discovery of new near-surface gold mineralisation between the current Cluff Gold pit to the west and the previously operated Compagnie Minière d’Afrique (“CMA”) pits to the east.
• This discovery indicates that there is gold mineralisation for an across-strike distance of 650m from west of the current Yaoure Central pit to east of the CMA North pit.
• The number of diamond drill rigs on site is being increased from three to four, in order to rapidly test the upside potential, stepping out along the entire 1.9km length of the pit area as well as testing for parallel ore bodies.
• Results provide further confidence that existing sulphide resources can be significantly increased during 2012.
• Metallurgical testing of two composite samples of sulphide ore returned positive results, with high gold recoveries of up to 97%. Importantly testing has also confirmed that the ore is non-refractory.
• Significant diamond core drilling results in this new zone of shallow mineralisation, include:

  • 26.50m at 1.53 g/t Au from 28.50m in hole YDD0031

  • 22.06m at 2.54 g/t Au from 31.44m in hole YDD0033

  • 18.40m at 1.45 g/t Au from 24.67m in hole YDD0039

  • 10.13m at 7.15 g/t Au from 57.77m in hole YDD0048

• Significant intercepts in holes targeting the down-dip extension to the east of known mineralisation in the pit include:

  • 4.93m at 21.82 g/t Au from 170.4m in hole YDD0036

  • 2.28m at 20.49 g/t Au from 34.34m in hole YDD0037

  • 20.25m at 3.55 g/t Au from 186.97m in hole YDD0041

  • 6.10m at 3.62 g/t from 200.10m and 2.00m at 24.14 g/t Au from 227.84m in hole YDD0045

  • 26.07m at 2.23 g/t from 188.64m and 5.65m at 4.41 g/t Au from 222.41m in hole YDD0047

Peter Spivey, Chief Executive of Cluff Gold, commented:

“These results reinforce our continued confidence in the Yaoure gold project. The location of the project, situated close to existing infrastructure, means that the cost base for development is much lower than other projects located in West Africa. Yaoure is fast becoming a major component in delivering our stated strategy for becoming a mid-tier gold producer.”

Yaoure gold deposit

Yaoure is a typical mesothermal, quartz-carbonate vein-style gold deposit hosted by Early Proterozoic (Birimian) basaltic metavolcanics and granodiorite intrusions, at lower greenschist facies metamorphic grade. Ore in the two moderately east-dipping main shear zones is significantly enhanced by an array of structurally-controlled, auriferous quartz veins⁽¹⁾.

The Yaoure Central pit covers only a third of a substantial +200ppb gold in soil anomaly stretching over 3.0km within the Mount Yaoure exploitation permit. In addition to the three diamond drill rigs currently focusing on Yaoure Central, the Company is continuing exploration along a separate NW-trending 2.2km long soil anomaly, from Angovia 2 to Kongonza, with one RAB drilling rig and one RC drilling rig. The current measured and indicated resources for the Kongonza prospect total 78,000 oz⁽¹⁾. An upgrade of this resource is planned for Q3 based on an additional 5000m of RC drilling and 1100m of diamond core drilling (6 holes).

The favourable infrastructure in the area including access via sealed roads from Abidjan to within a few kilometres of the mine, easy access to water, and most importantly, cheap hydro-electric power from the nearby Kossou barrage, make Yaoure an ideal third operation in the Cluff Gold portfolio. It provides the opportunity to establish the Company as a mid-tier producer from the development of its existing assets.

Drilling strategy

The drilling results announced today focus on the sulphide potential of Yaoure Central, where the current sulphide measured and indicated resources total 292,000 ounces (5.6Mt at 1.6g/t)⁽²⁾. This mineral resource estimate is based on previous RC drilling typically extending down to about 100m below the original surface (60m below the current pit floor).

The first phase of diamond drilling at Yaoure Central totalled 1,967m over 23 drill holes collared within the existing Yaoure Central pit: 13 holes testing steep NNE (N50-70E) structures of which 11 results were previously reported; and 10 holes testing the main north-south trending structures, dipping at 30 degrees to the east, of which 2 results were previously reported. These two previously announced results on the north-south trending structures confirmed the width and grade of the main mineralised zone (the Main Zone) reported from historic RC results (30m at 3.64g/t), the aggregate composite results being 28.37m at 3.24 g/t from 35.30m in YDD0021 and 31.60m at 1.57 g/t from 36.80m in YDD0014. These results are updated in Appendix 1 to include Metallic Screen Fire Assays. The remaining results for the 10 holes from phase 1 are reported today in Appendix 2.

Subsequently, an additional 23 holes totalling 6,442m were drilled in phase 2, mainly testing the continuity of the north-south trending structures, which dip to the east at between 25 and 45 degrees, over a 900m strike length and up to 340m across strike. The second phase of holes were all drilled to the west from the east of the current pit, with a typical spacing of 100m and stepping back between about 100m and 340m. The results from 18 of the 23 phase 2 holes are reported in Appendix 3; results have not yet been received for the remaining 5 holes (holes YDD00040, 43, 46, 49 and 51).

A 20 hole, 8000m programme (Phase 3), mainly on a 200m grid spacing, was recently started with the objective of outlining the extent of the open-pittable sulphide resources in the Yaoure Central area, over an area of 1.9 km in a N-S direction by up to 0.9 km in an E-W direction. This will also encompass the Compagnie Minière d’Afrique (CMA) pits to the east. CMA reportedly extracted some 1.9 million tonnes (Mt) of oxide ore from 1999 to 2003 with a mean plant feed grade of 3.9 g/t from a series of three open pits which extended to a maximum depth of 40m below surface. The first four deep holes of the phase 3 programme, totalling 2043m and testing underneath the CMA pits, have been completed and assays are awaited.

A map showing the location of the Yaoure project and the various prospects thereon, together with a drilling map and section, is set out on the Company’s website at www.cluffgold.com.

Results

The highlight of the Phase 2 results is the discovery of significant new near-surface mineralisation in the 200-250m gap between the Cluff Gold pit to the west and the CMA North pit to the east. Hence mineralisation extends over a width on surface of at least 650m in an east-west direction.

New near-surface mineralisation in the gap has been discovered in holes 30, 31, 33, 39 and 48. Significant composite intersections, including aggregated composite intersections without internal dilution restrictions where considered appropriate, are:

Significant intercepts in holes targeting known mineralisation in the pit at depth to the east include:

Logging of oriented core indicates that mineralisation occurs in an array of veins and structures – with a wide range of attitudes in addition to the two trends expected (structures striking N-S and dipping at moderate (25-45) degrees to the east and steep structures striking N50-70E). A detailed structural interpretation is in progress to obtain a better understanding of the mineralisation and to assist the Company in optimising its drill programme.

Hole YDD0035, collared at the north end of the current pit, is important in that it discovered mineralisation at depth to the west of the pit, including: 10.99m at 0.91 g/t Au from 197.13m. Further drilling will test this new extension to the north.

The other results reported here are for the remaining first phase holes drilled from within the Yaoure Central North pit and include two holes (YDD0012 and YDD0013) on the E-W structures and eight holes (YDD0022 to YDD0029) on the main N-S structure.

This drilling confirms the presence of gold in multiple intersections in both the E-W and N-S structures. Of significance is the intersection of a Lower Zone in hole YDD0022: an aggregate intersection of 36.68m at 1.32 g/t Au from 99.41m. Results for the main N-S structure indicate a more complex structure, both down-dip and along strike, than previously indicated.

Metallurgy

Metallurgical testing has been carried out on two composite samples from holes YDD0014 and 21, considered to be representative of mineralisation seen to date. The sulphide ore leached easily with high gold recoveries (95-97%) and without high reagent consumptions. Physical characteristics are for the most part also attractive in terms of milling power requirement. The fact that there is a significant gravity-recoverable portion will serve to further enhance processing parameters.

Outlook

These results continue to confirm the potential for a large sulphide deposit underlying the oxide deposits at Yaoure. The Company has therefore recently decided to increase the number of diamond drill rigs on site to from three to four, in order to more rapidly test the upside potential, stepping out along the entire 1.9km strike length of the target area as well as testing up to 0.9 km across strike for parallel ore bodies. A further 19,000m of diamond core drilling is budgeted for the remainder of 2012 utilising up to four diamond drill rigs. The strategy is to define an inferred resource during 2012 which can be upgraded to measured and indicated through subsequent in-fill drilling.

An airborne magnetic survey has recently been completed covering the Company’s entire 367 square kilometre exploration and exploitation permits. This, in conjunction with a remote sensing imagery interpretation, will be used to help define exploration targets outside of the presently identified area of geochemical anomalies and ensure that the entire permit areas are appropriately explored.

About Cluff Gold

Cluff Gold is a gold developer-producer with assets in West Africa. The Company generates significant cash flow through its Kalsaka gold mine in Burkina Faso, where the production profile has been enhanced by the recent acquisition of the neighbouring Sega project. The Company remains focused on its objective of becoming a mid-tier producer through the development of its wholly-owned Baomahun project in Sierra Leone, which is expected to contribute an additional 135,000oz of gold per annum, with significant exploration potential along strike. In addition, the Company is also exploring the significant sulphide potential at its Yaoure project in Côte d’Ivoire. With its experience of bringing new mines into production and a project pipeline spanning Burkina Faso, Côte d’Ivoire and Mali, the Company aims to further increase its production profile with its highly prospective exploration work across all assets. For more information, please visit www.cluffgold.com.

This report includes certain “forward-looking information” within the meaning of applicable Canadian securities legislation.

All statements other than statements of historical fact included in this report, including, without limitation, the positioning of the Company for future success, statements regarding exploration, drilling results, resource calculations and potential future production at Yaoure, and future capital plans and objectives of Cluff Gold, are forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Cluff Gold’s expectations include, among others, the Company’s ability to delineate sufficient sulphide resources for the development of a CIL/CIP operation, risks related to international operations, the actual results of current exploration and drilling activities, changes in project parameters as plans continue to be refined as well as future price of gold. Although Cluff Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Cluff Gold does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.

The diamond drilling programme at Yaoure was undertaken by an independent drilling contractor. Drill cores for assaying were taken at a maximum of two metre intervals and were cut with a diamond saw with one-half of the core placed in sealed bags and sent to the SGS sample preparation facility in Yamoussoukro, Côte d’Ivoire. The core samples were then crushed down to minus 2 mm, split with half the sample then being pulverised down to 85% passing 75 microns. About 200g of the pulverised sample was then shipped to the SGS Laboratory in Tarkwa, in Ghana, an independent laboratory to the Company, where the samples were analysed for gold by fire assay using a 50 g sample. Two holes were analysed at Intertek Minerals Ltd in Accra, Ghana, using the same sample protocol. As part of the Company’s QA/QC procedures, internationally recognised standards, duplicates and blanks were inserted and check assays were submitted to Intertek in Ghana.

Peter Brown is a “Qualified Person” within the definition of National Instrument 43-101 and has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained herein, and reviewed and approved the information contained within this announcement. Mr Brown (MIMMM) is the Group Exploration Manager.

References

Appendix 1: Phase 1 Results (previously released but now updated with Metallic Screen Fire Assay where available)

Appendix 2: Remaining Phase 1 Results which have previously not been released

Appendix 3: Phase 2 Results

As at 11 June, assays were outstanding for 5 holes – YDD0040, 43, 46, 49 and 51. It is not anticipated that results from these outstanding 10 holes (2 testing the E-W structures and 8 testing the N-S structure) will differ significantly from those announced herein.