SEMAFO Releases Third Quarter 2012 Results Cash Flow from Operating Activities Total $24.9 Million

MONTREAL, QUEBEC -- (Marketwire) -- 11/07/12 -- SEMAFO (TSX: SMF)(OMX: SMF) today reported its financial and operating results for the three-month period ended September 30, 2012. All amounts are in US dollars unless otherwise stated.

Third Quarter 2012 Highlights

--  Gold production of 52,300 ounces, a decrease of 15% compared to the same
    period in 2011
--  Gold sales of $79.4 million, a 22% decrease compared to the same period
    in 2011
--  Operating income of $12.4 million, a decrease of 70% compared to the
    same period in 2011
--  Net income attributable to equity shareholders of $8.0 million or $0.03
    per share compared to $29.7 million or $0.11 per share for the same
    period in 2011
--  Cash flow from operating activities(1) of $24.9 million or $0.09 per
    share compared to $43.1 million or $0.16 per share in the same period in
    2011
--  Discovery of high grade Siou zone at Mana
--  Drilling intersects higher grade mineralization at Yaho
--  Record throughput at Mana following the commissioning of Phase IV of the
    plant expansion
--  Completion of water pipeline at Mana with $4.8 million savings
--  Declaration of a dividend of C$0.02 per share to equity shareholders

A Word from the CEO

Mana's production was less than anticipated due to transient causes such as delays in the Wona push -back and pre- stripping activities at Kona, combined with a particularly intense rainy season. During the quarter, as we were unable to access the higher grade zones as originally planned, our average grade at Mana was 2.04 g/t Au. My short-term priority is to ensure that our fourth quarter results enable us to attain our 2012 production guidance of between 235,000 and 260,000 ounces of gold at a cash operating cost of $700 to $750 per ounce.

The discovery of the new high-grade Siou zone during the quarter demonstrates the continued potential at Mana and validates our decision to concentrate the majority of 2012 exploration on potential targets and geochemical anomalies identified in 2010 and 2011. Our objective is to add the high-grade Siou zone, which is located in proximity to the current processing plant, to resources in 2013.

SEMAFO declared a third dividend of C$0.02 per share payable on January 15, 2013 to shareholders of record as of the close of business on December 31, 2012. As well, for the first time, we paid annual dividends to the Government of Burkina Faso.

Since becoming President and CEO in August, I have conducted a strategic review of the Company in collaboration with the executive team. My top ensuing priority is to build shareholder value by generating future cash flow while continuing to deliver a solid operational performance. This value will mainly be achieved through the disciplined exploration and development of our core asset, Mana. I believe that this is the most effective and economical way to create future cash flow. We will also increase our activities to optimize and improve efficiencies throughout our operations. In addition, we will continue to look for opportunities to develop our project portfolio.

(1 ) Cash flow from operating activities excludes changes in non-cash working capital items.

SEMAFO's Consolidated Financial Statements and Management's Discussion and Analysis and other relevant financial materials are available in the Investor Relations section of the Corporation's website at www.semafo.com. These and other corporate reports are also available on the website maintained by the Canadian Securities regulators at www.sedar.com.

Consolidated Results and Mining Operations

                         Three-month                  Nine-month
                              period                      period
                     ended September             ended September
                                 30,                         30,
                    --------------------------------------------------------
                        2012    2011 Variation      2012    2011 Variation
                    --------------------------------------------------------
Operating Highlights

Gold ounces produced  52,300  61,500       (15%) 173,700 185,300        (6%)
Gold ounces sold      47,700  59,600       (20%) 167,300 182,400        (8%)

(in thousands of
 dollars, except
 amounts per ounce,
 per tonne and per
 share)
Revenues - Gold
 sales                79,419 102,297       (22%) 278,196 282,062        (1%)
Mining operating
 expenses (excluding
 government
 royalties)           40,638  38,555         5%  119,526 110,634         8%
Government royalties   4,115   5,270       (22%)  14,262  13,920         2%
Write-off of
 property, plant and
 equipment                 -       -         -    16,998       -         -
Operating income      12,399  40,756       (70%)  62,681 106,716       (41%)
Loss on sale of
 current investment        -       -         -    24,297       -         -
Income tax expense     4,978   9,006       (45%)  14,227  19,358       (27%)
Net income
 attributable to:
Equity shareholders    7,974  29,682       (73%)  18,552  78,482       (76%)

Cash flow from
 operating
 activities (1)       24,855  43,139       (42%) 106,842 117,383        (9%)
Basic earnings per
 share                  0.03    0.11       (73%)    0.07    0.29       (76%)
Diluted earnings per
 share                  0.03    0.11       (73%)    0.07    0.28       (75%)
Operating cash flow
 per share (2)          0.09    0.16       (44%)    0.39    0.43        (9%)

Adjusted operating
 income (3)           12,399  40,756       (70%)  79,679 106,716       (25%)
Adjusted net income
 attributable to
 equity shareholders
 (3)                   7,974  29,682       (73%)  55,470  78,482       (29%)
Adjusted basic
 earnings per share
 (3)                    0.03    0.11       (73%)    0.20    0.29       (31%)

Average realized
 selling price (per
 ounce)                1,665   1,717        (3%)   1,663   1,546         8%
Cash operating cost
 (per ounce
 produced) (4)           836     637        31%      707     602        17%
Cash operating cost
 (per tonne
 processed) (4)           36      37        (3%)      36      36         -
Total cash cost (per
 ounce sold) (5)         938     733        28%      795     682        17%
Total cash margin
 (per ounce sold)
 (6)                     727     984       (26%)     868     864         -
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(1)  Cash flow from operating activities excludes changes in non-cash
     working capital items.
(2)  Operating cash flow per share is a non-IFRS financial performance
     measure with no standard definition under IFRS. See the "Non-IFRS
     financial performance measures" section of the Corporation's MD&A.
(3)  Adjusted operating income, adjusted net income attributable to equity
     shareholders and adjusted basic earnings per share are non-IFRS
     financial performance measures with no standard definition under IFRS.
     For the nine-month period ended September 30, 2012, the adjusted
     operating income excludes the write-off of property, plant and
     equipment of $16,998,000 related to the underground project, while the
     adjusted net income attributable to equity shareholders and the
     adjusted basic earnings per share also exclude the loss on the sale of
     a current investment totalling $24,297,000, as well as the income tax
     expense and the non-controlling interest impact totalling $4,377,000
     related to these non-recurring transactions.
(4)  Cash operating cost is a non-IFRS financial performance measure with no
     standard definition under IFRS and is calculated using ounces produced
     and tonnes processed. See the "Non-IFRS financial performance measures"
     section of the Corporation's MD&A.
(5)  Total cash cost is a non-IFRS financial performance measure with no
     standard definition under IFRS and represents the mining operation
     expenses and the government royalties per ounce sold.
(6)  Total cash margin is a non-IFRS financial performance measure with no
     standard definition under IFRS and is calculated using the average
     realized selling price and the total cash cost.

SEMAFO's senior management will host a conference call to discuss the results, as well as to provide an update on operations.

Conference Call:    Date:                     Thursday, November 8, 2012
                    Time:                     10:00 AM (EST)
                    Tel. local & overseas:    +1 (416) 981-9037
                    Tel. North America:       1 (800) 757-9216

The conference call will be archived for replay until November 28, 2012. To access the archived conference call, please dial 1 (800) 558-5253 and enter pass code 21607119 followed by the number sign (#).

A live audio webcast of the conference can be accessed through SEMAFO's website at www.semafo.com. The webcast will be available for replay for a period of 90 days.

About SEMAFO

SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. The Corporation currently operates three gold mines: the Mana Mine in Burkina Faso, the Samira Hill Mine in Niger and the Kiniero Mine in Guinea. SEMAFO is committed to evolve in a conscientious manner to become a major player in its geographical area of interest. SEMAFO's strategic focus is to maximize shareholder value by effectively managing its existing assets as well as pursuing organic and strategic growth opportunities.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. Forward-looking statements include words or expressions such as "ensure", "enable", "attain", "guidance", "continued", "potential", "objective", "build", "future", "will", "achieve", "develop", "committed", "evolve", "become", "pursuing", "growth", "opportunities" and other similar words or expressions. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward-looking statements include the ability to attain the 2012 production guidance of between 235,000 and 260,000 ounces of gold at a cash operating cost of $700 to $750 per ounce, the ability to concentrate the majority of 2012 exploration on potential targets and geochemical anomalies identified in 2010 and 2011, the ability to add the high-grade Siou zone to resources in 2013, the ability to build shareholder value by generating future cash flow, the ability to deliver a solid operational performance, the ability to achieve shareholder value through the disciplined exploration and development of Mana, the ability to develop our project portfolio, the ability to execute on our strategic focus, fluctuation in the price of currencies, gold or operating costs, mining industry risks, uncertainty as to calculation of mineral reserves and resources, delays, political and social stability in Africa (including our ability to maintain or renew licenses and permits) and other risks described in SEMAFO's documents filed with Canadian securities regulatory authorities. You can find further information with respect to these and other risks in SEMAFO's 2011 Annual MD&A and 2011 Annual

Information Form, as updated in SEMAFO's 2012 First Quarter MD&A and Second Quarter MD&A, and other filings made with Canadian securities regulatory authorities and available at www.sedar.com. These documents are also available on our website at www.semafo.com. SEMAFO disclaims any obligation to update or revise these forward- looking statements, except as required by applicable law.

The above information has been made public in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act.

Contacts:

SEMAFO

Robert LaValliere

Vice-President, Investor Relations

Cell: +1 (514) 240 2780
robert.lavalliere@semafo.com


Sofia St Laurent

Communications & Investor Relations

Tel. local & overseas: +1 (514) 744 4408

North America Toll-Free: 1 (888) 744 4408
sofia.stlaurent@semafo.com
www.semafo.com


Maria Bang

Brunswick Group Stockholm

+46 (8) 410 32 189
mbang@brunswickgroup.com