Nord Gold : Q4 and FY 2016 Operating Results

Nord Gold SE operating results for the fourth quarter and 12 months ended 31 December 2016

London, United Kingdom, 26 January 2017

Nord Gold SE ('Nordgold' or the 'Company', LSE: NORD), the internationally diversified gold producer, announces its operating results for the fourth quarter and 12 months ended 31 December 2016

Highlights	Q4 2016	Q4 2015	Change, YoY	Q3 2016	Change, QoQ	2016	2015	Change, YoY
LTIFR	0.96	1.30	(26%)	1.47	(35%)	1.47	1.60	(8%)
Refined gold production, koz	235.1	241.9	(3%)	211.1	11%	868.8	950.0	(9%)
Gold doré production, koz	242.7	227.9	6%	207.8	17%	870.4	924.1	(6%)
Average realised gold price per ounce sold, US$/oz	1,198	1,096	9%	1,335	(10%)	1,246	1,161	7%
Revenue, US$m	281.5	264.0	7%	281.1	0%	1,083.0	1,129.3	(4%)

· 2016 refined gold production of 868.8 thousand gold equivalent ounces ('koz'), in line with the full year ('FY') production guidance range of 840-880 koz.

· 2016 gold doré production was 870.4 koz, down 6% compared with 924.1 koz in 2015, mainly due to the discontinuation of production at Aprelkovo, and limited access in H2 2016 to flooded higher grade ore blocks in the West African open pit mines after an unusually long wet season.

· Q4 2016 refined gold output increased by 11% quarter-on-quarter ('QoQ') to 235.1 koz driven by higher production at Bissa, Bouly, Taparko, Lefa, Berezitovy and Suzdal mines. Doré production increased by 17% QoQ to 242.7 koz in Q4 2016.

· The new Bouly mine, launched in September 2016 on schedule and under budget, has exceeded forecasts, reaching full capacity in November 2016 and producing 31.4 koz of gold doré in 2016, ahead of 2016 production guidance of 20 koz.

· 2016 AISC is expected to be in line with 2016 guidance of US$900/oz - US$950/oz.

· FY 2017 production expected to be in the range of 900-950 koz.

· 2017 AISC guidance of US$900/oz - US$950/oz.

· In 2016, the LTIFR improved to 1.47 compared with 1.60 in 2015.

· Average realised gold price in 2016 increased by 7% to US$1,246 per oz. Average realised gold price in Q4 2016 was US$1,198/oz, up 9% YoY and down 10% QoQ.

· FY 2016 revenue decreased by 4% YoY to US$1,083 million mainly due to the lower sales volumes, which were partially offset by higher gold price. Revenue in Q4 2016 increased by 7% YoY to US$281.5 million.

· Unaudited net debt at 31 December 2016 decreased to approximately US$506.9 million compared with US$559.7 million as at 30 September 2016 and US$584.0 million as at 31 December 2015.

'I am pleased to report another solid quarter of production for Nordgold. In particular I am delighted with the performance of our new Bouly mine in Burkina Faso which has delivered ahead of our expectations. Bouly once again demonstrates our strong track record in developing outstanding mining assets from the ground up, following the big success of our flagship Bissa mine in 2013. Our low cost development pipeline is progressing well. Construction of our new Gross mine in Russia is ongoing and we expect to launch the mine in 2018 as planned. Looking ahead, to 2017, the investments and improvements we have made across our asset portfolio in 2016, combined with the positive outlook for Bouly, give us confidence in expecting a rise in production this year.'

Nikolai Zelenski, Chief Executive Officer, Nordgold

For the full report, please follow the link:

http://www.rns-pdf.londonstockexchange.com/rns/1792V_-2017-1-26.pdf

Enquiries

For further information on Nordgold please visit the Company's website -www.nordgold.com

About Nordgold

Nordgold (LSE: NORD) is an internationally diversified gold producer established in 2007 and publicly traded on the London Stock Exchange. Nordgold has a proven track record of operational excellence and benefits from a significant international development pipeline. The Company is relentlessly focused on shareholder value, committed to running safe, efficient, profitable operations, which enable it to generate strong cashflows and in turn, continue to invest in its pipeline of new growth opportunities while generating returns for investors. In 2016, Nordgold produced 869koz of gold.

Nordgold operates 9 mines (4 in Russia, 3 in Burkina Faso and one each in Guinea and Kazakhstan). It has one project in construction phase (Gross in Russia), several prospective projects in feasibility study, preliminary economic assessment and advanced exploration phase and a diverse portfolio of early-stage exploration projects and licences in Burkina Faso, Russia, French Guiana and Canada. Nordgold employs over 8,000 people.

Cautionary Note Regarding Forward-Looking Statements

The accompanying document has been prepared by Nord Gold SE, a company existing under the laws of the United Kingdom (the 'Company' or 'Nordgold' and, together with its subsidiaries, the 'Group'), and is for informational purposes only. While information in this document is obtained from sources believed by the Company to be reliable, the Company has not undertaken an independent verification of such information, and no assurance can be provided as to the accuracy or completeness of any such information.

Certain statements in this document are not historical facts and constitute 'forward-looking' statements regarding future events or the future financial performance of the Group, including within the meaning of Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the United States Securities Exchange Act of 1934, as amended. Such forward looking statements may be identified by terms such as 'expect', 'believe', 'estimate', 'anticipate', 'intend', 'will', 'could', 'may', or 'might', the negative of such terms or other similar expressions. These forward-looking statements include matters that are not historical facts and statements regarding the Group's intentions, beliefs or current expectations concerning, among other things, the Group's results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Group operates. By their nature, forward-looking statements involve risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance, and the Groups' actual results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Group operates may differ materially from those described in or suggested by the forward-looking statements contained in these materials. In addition, even if the Group's results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Group operates are consistent with the forward-looking statements contained in these materials, those results or developments may not be indicative of results or developments in future periods. Any such statements speak as of the date on which they are made, and the Company does not undertake any obligation to update any such statements to reflect information, events, results or circumstances after the date on which it is made or to reflect the occurrence of unanticipated events, except as may be required by applicable law. Many factors could cause the actual results to differ materially from those contained in forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in the states where the Group operates, changes in the world gold market, as well as many other risks specifically related to the Group and its operations. Many of these assumptions are based on factors and events that are not within the control of Nordgold and there is no assurance that they will prove correct. New risks and uncertainties emerge from time to time, and it is not possible for management to predict all of such risk factors and to assess in advance the impact of each such factor on Nordgold's business or the extent to which any factor, or combination of factors, may cause actual realities to differ materially from those contained in any forward-looking information. Actual performance or achievement could differ materially from that expressed in, or implied by, any forward-looking information in this document and, accordingly, investors should not place undue reliance on any such forward-looking information.

The information in these materials is provided as at the date hereof, and is subject to verification, completion and change. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its shareholders, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in these materials, and no reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. None of the Company or any of its shareholders, directors, officers or any other person accepts any liability whatsoever for any loss howsoever arising from any use of the contents of these materials or otherwise arising in connection therewith.