SEMAFO: Cash Flow from Operations of $37.4 Million in

Adjusted Net Income Attributable to Equity Shareholders of $15.0 Million

Montreal, Quebec, August 10, 2016 – SEMAFO Inc. (TSX, OMX: SMF) today reported its financial and operational results for the three-month period ended June 30, 2016.  All amounts are in US dollars unless otherwise stated.

Second Quarter 2016 - in Review

• Gold production of 61,300 ounces compared to 66,000 ounces for the same period in 2015
• Gold sales of $76.6 million compared to $81.1 million for the same period in 2015
• Total cash cost ¹ of $547 per ounce sold and all-in-sustaining cost ¹ of $742 per ounce sold compared to $471 and $604, respectively, for the same period in 2015
• Adjusted operating income ¹ of $19.6 million compared to $23.4 million for the same period in 2015
• Adjusted net income attributable to equity shareholders ¹ of $15.0 million or $0.05 per share ¹ compared to $16.1 million or $0.05 per share ¹ for the same period in 2015
• Cash flows from operating activities ² of $37.4 million or $0.12 per share ¹ compared to $40.7 million or $0.14 per share ¹ for the same period in 2015
• Completion of a bought deal offering of common shares for aggregate gross proceeds of $90.8 million (C$115.1 million)
• Recipient of grand prize for Corporate Social Responsibility of Mining Companies in Burkina Faso (RSE 2016)

Natougou Development:

• Permitting in line for receipt by year-end 2016
• Procurement of long-lead comminution equipment secured for site delivery in H2 2017
• Development on time and on budget
• Detailed design and engineering 17% complete

1. Total cash cost, all-in sustaining cost, adjusted operating income, adjusted net income attributable to equity shareholders, adjusted basic earnings per share and operating cash flows per share are non-IFRS financial performance measures with no standard definition under IFRS. See the “Non-IFRS financial performance measures” section of the Corporation’s MD&A, note 16.
2. Cash flows from operating activities exclude changes in non-cash working capital items.

Mana, Burkina Faso

Mining Operations

¹     Cash operating cost, total cash cost and all-in sustaining cost are non-IFRS financial performance measures with no standard definition under IFRS. See the “Non-IFRS financial performance measures” section of the Corporation’s MD&A, note 16.

²     Depreciation per ounce sold is a non-IFRS financial performance measure with no standard definition under IFRS and represents the depreciation expense per ounce sold.

During the second quarter of 2016, the decrease in head grade compared to the same period in 2015, is due to the mine plan. The decrease in gold ounces produced is a direct result of the lower head grade. The year-over-year decrease in head grade in the first six months of 2016 is due to the mine plan and increased throughput from low-grade stockpiles. The increase in throughput in the first six months of 2016 compared to the same period in 2015 is due to the processing of ore through the secondary ball mill during the five-week shutdown of the SAG mill at the beginning of 2015.

In the second quarter in 2016, the 6% decrease in gold sales is caused by lower gold ounces sold, partially offset by an increase in the average realized selling price. The decrease in operating income compared to the same period in 2015 is mainly due to higher share-based compensation expense as a result of the increase in the fair value of our share price and lower revenue.

As expected, our cash operating cost per tonne reached $49 in the second quarter of 2016 compared to $46 in the second quarter of 2015. The cost difference mainly reflects higher transportation costs due to mining solely from the Siou and Fofina pits, higher fleet maintenance costs and the negative impact of exchange rates. The 23% increase in all-in sustaining cost in the quarter was anticipated and was mainly driven by an increase in the capitalized stripping expenditure, lower ounces sold and higher total cash cost.

Exploration

Mana Project, Burkina Faso

Year to date, 24,400 meters of RC drilling have been carried out on the Mana Project, of which 16,000 meters on Yama, 5,400 meters on BN2 and 3,000 meters on Kona Blé. More than half of the budgeted 60,000-meter auger program has now been effected, primarily on the BN2, Bissa, Wona Southwest, Yama and Mouni areas.

Yama Mineral Reserves Estimate

As at June 30, 2016, the open pit probable mineral reserves estimate for the Yama deposit totals 662,300 tonnes averaging 1.81 g/t Au for 38,500 ounces of contained gold. The mineral reserves were estimated based on a gold price of $1,100 per ounce. The Yama deposit will have a total strip ratio of 11:1 and an average mill recovery rate of 93%. The Corporation will begin the process for an extension of the Mana mining permit in the second half of 2016.

The mineral reserves statement has been completed by Michel Crevier, P.Geo MScA, Vice-President Exploration and Mine Geology, who is SEMAFO's Qualified Person and has reviewed this press release for accuracy and compliance with National Instrument 43-101.

Natougou Project

Geological mapping of the Tapoa permit is progressing well , and our understanding of the property will be further enhanced by a recently conducted Phase II airborne magnetic survey that completed coverage of the property.

The 2016 auger program planned for the Natougou (Tapoa) Project is now complete, with a total of 62,000 meters drilled to date. Results from the program, coupled with those from the geophysical survey, will allow us to identify follow-up RC drill targets for the second half of the year.

About half of the auger drill campaign was realised on Trend 045, a regional structure that crosses the property to the south of the Natougou deposit along a northeast direction. Mapping, trenching, soil sampling, and auger drilling have been ongoing throughout the year , and results to date confirm the presence of key favourable features such as wide hydrothermal alterations along a strong deformation corridor associated with significant results such as 1.40 g/t Au over 7 meters in trenching. Soil sampling anomalies have also been noted locally along the corridor over a distance of more than 40 kilometers.

To maximise our understanding of the geological structure of Trend 045, the geological mapping campaign was prioritised over a follow-up RC program in the second quarter. The 5-000 meter RC program will now be conducted on the trend after the rainy season with results expected in the fourth quarter of 2016.

West Sector

An RC drill program is ongoing on the footwall zone of the Boungou Shear Zone and on the sector west of the deposit.  Significant results are included below and in Figure 1.

Highlights West Zone

*Drilling was realised at an almost vertical dip.

Holes TPA0670, TPA0674 and TPA0675 represent in-fill results from the known portion of the zone, whereas TPA0676 extends a little to the west and the TPA0680 offers a northern extension. The latter two merit additional drilling .

Highlights Boungou Footwall Zone

In the quarter, RC drilling was carried out on the Boungou Footwall Zone as shown in Figure 1.

*Drilling was realised at an almost vertical dip.

The RC program was designed to investigate potential footwall-type mineralization outside the one known area. While drilling on the eastern portion of the future open pit was unsuccessful, some good results such as BODD438, TPA0550 and BODD078 will be further investigated .

Figure 1: See attachment

Natougou Development

In the second quarter, the Corporation continued to advance the Natougou Project towards construction start-up by year-end 2016. The Natougou Project has progressed as follows:

• Development on time and budget, with $4.3 million spent as at June 30, 2016
• Detailed design and engineering 17% complete
• Procurement of long-lead comminution equipment secured for site delivery in H2 2017

-   Package comprises SAG mill, tower mill, jaw crusher, cone crusher, vibrating screen and apron feeders

-    Tower mill is already in stock

• Issue of requests for quotation for the power plant, fuel depot, mining contractor and 14 other packages
• Hiring of key personnel for the construction phase is ongoing

Natougou Permitting

• Permitting is in line for receipt by year-end 2016
• Two out of the three steps completed: public hearings and meetings with the Technical Committee on Environmental Evaluations “COTEVE”
• Final milestone involves review of the application by the National Mining Commission, followed by grant of a permit

SEMAFO’s Management’s Discussion and Analysis, Consolidated Financial Statements and related 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 www.sedar.com .

Second Quarter Conference Call

A conference call will be held today, Wednesday, August 10, 2016 at 10:00 EDT to discuss this press release. Interested parties are invited to call the following telephone numbers to participate in the conference:

Tel. local & overseas:  +1 (647) 788 4922   Tel. North America: 1 (877) 223 4471 Webcast: www.semafo.com Replay number: 1 (800) 585 8367 or +1 (416) 621 4642   Replay pass code: 56308431 Replay expiration: August 31, 2016

About SEMAFO

SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa.  The Corporation operates the Mana Mine in Burkina Faso, which includes the high-grade satellite deposits of Siou and Fofina, and is developing the advanced gold deposit of Natougou. 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 “in line”, “will”, “further”, “expected”, “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 receive the Natougou permit by year-end 2016, the ability to obtain site delivery of long-lead comminution equipment in H2 2017, the ability to achieve Yama’s total strip ratio of 11:1  and average mill recovery rate of 93%, the ability of the Phase II airborne magnetic survey to further enhance our understanding of the Tapoa permit, the ability to release Trend 045 exploration results in the fourth quarter of 2016, 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 2015 Annual MD&A, as updated in SEMAFO’s 2016 First Quarter MD&A and 2016 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 information in this release is subject to the disclosure requirements of SEMAFO under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act . This information was publicly communicated on August 10, 2016 at 7:00 a.m., Eastern Daylight Time.

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Consolidated Results and Mining Operations

Financial and Operating Highlights

¹    Adjusted operating income, adjusted net income attributable to equity shareholders, adjusted basic earnings per share and operating cash flows per share are non-IFRS financial performance measures with no standard definition under IFRS. See the “Non-IFRS financial measures” section of the Corporation's MD&A, note 16.

²    Cash flows from operating activities exclude changes in non-cash working capital items.