Guyana Goldfields Completes Positive Feasibility Study for its Aurora Gold Project in Guyana

Toronto (ots/PRNewswire) -

Guyana Goldfields Inc. ("GGI" or "the Company") is pleased to
announce positive Feasibility Study results for its 100% owned Aurora
Gold Project in Guyana, South America. The NI 43-101 Feasibility
Study report will be compiled under the supervision of SRK Consulting
(Canada) Inc. ("SRK") with contributions provided by prominent
industry consultants. A conference call will be held today by Guyana
Goldfields management at 11:00 am Eastern Time to further discuss the
results (see details at the end of this release).

The Aurora Gold Project is expected to have a positive impact on
the economy of Guyana by maximizing employment, skills training, and
generating business opportunities for local suppliers and service
providers. The Company is dedicated to becoming a leading corporate
citizen and a productive partner in the future of Guyana's economy.
The Aurora Gold Project is presently the only large-scale licensed
gold mine development project in Guyana and will be the next
producing gold mine in the country in late 2014.

All figures in this release are in US dollars except where noted.
All figures include contingency where applicable.

Highlights of the Feasibility Study

- Base case is calculated using $1,300 per ounce of gold ("oz") and
$100/barrel WTI Crude Oil
- Proven and probable reserves of 4.6 million ounces of contained gold
- 22 full years life of mine ("LOM") for combined open pit ("O/P") and
underground ("U/G") mining scenario
- Mill throughput rate of 8,000 tonnes per day ("tpd") from years 2015 - 2023
and an average of ~4,500 tpd (nominal) from years 2024 to 2035. In year 2019,
production from the underground will commence and will gradually replace open pit feed
- Underground mine access via ramp and shaft (mine depth to 1,320m)
- Average LOM grade of 3.17 grams of gold per tonne ("g/t Au")
- Total gold production is 4.359 million ounces
- Average initial gold production of approximately 256,800 ounces per year for
the first 10 full years (2015 - 2024)
- Average LOM cash operating costs of $522/oz (pre-royalty)
- Pre-tax Net Present Value (NPV) of $644 million at a 5% discount rate
generating a pre-tax Internal Rate of Return (IRR) of 14.9% and a payback period of
6.9 years
- Estimated initial capital costs for surface and open pit is $525 million, with
underground development being funded from cash flow

At a recent spot gold price of $1,775/oz and $100/barrel WTI
Crude Oil, pre-tax NPV increases to $1.7 billion at a 5% discount
rate generating a pre-tax IRR of 28.6% with cash costs of $522/oz
(pre-royalty).

Claude Lemasson, President and COO, stated: "The completion of
the Feasibility Study is a major accomplishment for the Company,
establishing the Aurora Gold Project as Guyana's largest undeveloped
gold reserve in the country's history. The positive results confirm
that the Aurora Gold Project is poised to become a future significant
gold producer in Guyana and in the Guiana Shield. Construction on the
project is expected to commence later this year and will last for
approximately 24 months."

OPPORTUNITIES

An independent third party review of the Feasibility Study was
initiated last month as well as an internal review by Guyana
Goldfields which are both ongoing. The Company has recognized
additional opportunities to improve the project economics. These
opportunities are listed below.

- Alternative Power: Power costs represent over 30% of Cash Costs, with the
Base Case being Heavy Fuel Oil power generation; alternative sources of power have
been identified including hydro and biomass power generation options. Use of hydro
power shows significant savings over the mine life. More work is planned in the coming
months to determine the optimal power generation option.
- Processing Plant design at 8,000 tpd: Although the operating parameters are at
8,000 tpd, the process plant was designed at 9,500 tpd to allow the Underground
Development to be moved forward; a redesign of the processing plant as part of the
post-Feasibility Study design and engineering to 8,000 tpd would potentially reduce
mill capital cost by approximately 10%.
- Various other potential opportunities being explored include:
- Contract Mining for Open Pit
- Timing of Underground Development
- Optimization of Underground Design & Mining Methods
- Used Equipment Purchases
- Review of Grind Size in the Processing Plant
- Drill data cut-off for the current Resource was May 2011; since then, much
drilling was completed in the Golden Square Mile and more drilling will occur in the
next few months; a revised Resource calculation for Aurora is expected to be issued in
late 2012.
- Optimization study work will be completed in the next few months to review and
consider opportunities identified.

ALTERNATIVE CASES

The table below outlines key sensitivities for the NPV and IRR of
the Aurora Gold Project. Fuel costs represent a significant
proportion of all cash costs. It has been observed that the price of
crude oil, which is the base to derive fuel prices, is correlated
with the price of gold. GUY has compiled certain sensitivities to
differing gold prices and used a historical correlation of oil to
gold to recompute power consumption costs. A Gold/Oil Ratio of 16 to
1 was determined based on the 3-year (2009-2011) averages of the Gold
Price and of WTI Crude Oil.

BASE CASE
$1,300/oz $1,775/oz $2,250/oz $1,300/oz
Financials Units gold price gold price gold price gold price
@ 5% Discount Rate
Fuel Price (WTI Crude Oil) US$ 81.25 110.94 140.63 100.00
Average Operating Cash Cost
(LOM) $/oz 495 537 578 522
Average Operating Cash
Cost w/Royalty (LOM) $/oz 599 679 758 626
Pre-Tax NPV $ M 706 1,683 2,660 644
Pre-Tax IRR % 15.7 28.2 39.3 14.9
Payback Years 6.7 3.5 2.4 6.9
After-Tax NPV $ M 476 1,164 1,849 432
After-Tax IRR % 13.4 23.6 32.6 12.7
Payback Years 7.0 4.3 2.8 7.2

AURORA GOLD PROJECT FEASIBILITY STUDY

BASE CASE DETAILS Project Assumptions and Parameters

Assumptions Units
Gold price US$/oz[(1)] 1,300
Fuel Price (WTI Crude Oil) $/barrel 100
Gross Royalty % 8
Effective tax rate % 30
(1) Approximates the 3-year trailing average
Mine Parameters Units
Open pit
Ore milled Mt 18.6
Grade g/t 3.0
Waste mined Mt 168.9
Strip ratio (without pre-stripping) waste:ore 9.1:1
Strip ratio (with pre-stripping) waste:ore 8.6:1
Underground
Ore milled Mt 26.6
Grade g/t 3.28
Open pit & Underground
Total ore milled Mt 45.2
Average gold grade g/t 3.17
Total contained gold oz 4,603,500
Estimated gold recovery % 94.8
Total payable gold oz 4,359,600
Mine life (full) years 22
Average annual gold production (LOM) oz 198,200

Mineral Reserves and Resources

Aurora Gold Project Mineral Reserves at $1,200/oz
February 2012
Contained
Quantity Grade Gold
Reserve Category (Mt) (g/t) (M oz)
Proven
O/P saprolite 0.14 2.98 0.01
O/P fresh ore 5.31 3.16 0.54
U/G - - -
Probable
O/P saprolite 2.42 2.34 0.18
O/P fresh ore 10.74 3.06 1.06
U/G 26.61 3.28 2.81
Total (P&P) 45.22 3.17 4.60

*Mineral Reserves are included in Mineral Resources *UG in-situ
cut-off grade of 1.8 g/t for Rory's Knoll and 2.25 g/t for Satellite
Deposits. *OP fresh ore in-situ cut-off grade of 0.45 g/t for Rory's
Knoll and 0.55 g/t for other deposits * OP saprolite ore in-situ
cut-off of 0.35 g/t for Rory's Knoll and 0.40 g/t for other deposits

Aurora Gold Project Mineral Resources at $1,200/oz

September 2011
Contained
Quantity Grade Gold
Resource Category (Mt) (g/t) (M oz)
Measured & Indicated (M&I)
O/P 20.22 3.34 2.18
U/G 26.82 4.09 3.52
Total M&I 47.04 3.83 5.71
Inferred
O/P 3.48 3.41 0.39
U/G 6.49 3.74 0.78
Total Inferred 9.97 3.63 1.17

*Cut-off grade of 0.40 g/t Au for O/P and 1.80 g/t Au for U/G

The Feasibility Study database considers 291,556 metres of core
drilling in 939 holes drilled by Guyana Goldfields between 2004 - May
2011. The Aurora 3-D mine model can be seen in the following link:
http://files.newswire.ca/826/Aurora_Ore_Model.pdf

Mining and Production

The mine plan contains 45.2 million tonnes of ore grading 3.17
g/t gold. Total gold production over a 22 full year mine life is
estimated to be 4.359 million ounces, averaging 256,800 ounces per
year for the first 10 full years (2015 - 2024). Ore production will
begin from the open pit in 2014 at an average production rate of
8,000 tpd for the first 5 years. In year 2019, production from the
underground will commence and will gradually replace open pit feed.

Summary of the annual mine production plan is outlined below.

O/P O/P U/G Mill
Ore O/P Cont. O/P O/P U/G Ore U/G Cont. Head Mill
Mined Grade gold Waste Strip Mined Grade gold Grade Prod.
Years (kt) (g/t)(koz)(1) (kt) ratio (kt) (g/t) (koz)squared (g/t) (koz)
Pre-production 137 2.96 13 5,165 37.6
1 (2014) 939 2.44 74 16,976 18.1 2.52 74
2 (2015) 2,610 2.90 243 27,151 10.4 2.88 237
3 (2016) 2,755 2.99 265 27,875 10.1 2.97 244
4 (2017) 2,683 3.36 290 27,798 10.4 57 3.45 6 3.40 278
5 (2018) 2,094 3.03 204 25,029 12.0 448 3.82 55 3.14 257
6 (2019) 1,997 2.92 188 16,457 8.2 1,016 3.62 118 3.20 262
7 (2020) 2,576 2.90 240 13,504 5.2 1,327 3.61 154 3.44 281
8 (2021) 1,972 2.85 180 7,122 3.6 1,427 3.34 153 3.15 258
9 (2022) 846 3.57 97 1,805 2.1 1,479 3.14 149 3.22 263
10 (2023) 1,593 3.37 173 3.04 248
11 (2024) 1,587 3.64 186 3.27 240
12 (2025) 1,594 3.72 191 3.72 180
13 (2026) 1,602 3.74 193 3.74 182
14 (2027) 1,602 3.73 192 3.73 182
15 (2028) 1,602 3.41 175 3.41 166
16 (2029) 1,602 3.48 179 3.48 170
17 (2030) 1,602 3.24 167 3.24 158
18 (2031) 1,602 2.86 147 2.86 139
19 (2032) 1,602 2.72 140 2.73 133
20 (2033) 1,602 2.62 135 2.62 128
21 (2034) 1,602 2.63 135 2.63 128
22 (2035) 1,338 2.97 128 2.97 121
23 (2036) 329 3.11 33 3.11 31
Total/ Avg 18,608 3.00 1,794 168,881 9.1 26,614 3.28 2,810 3.17 4,360
¹Open pit contained gold ounces
²Underground contained gold ounces
Total Production from Mill oz 4,359,600
Average Annual Production (10 full years 2015 - 2024) oz 256,800
Average Annual Production (LOM) oz 198,200

Metallurgy, Processing, and Infrastructure

The metallurgy of the Aurora Gold Project deposit shows the ore
to be free-milling allowing a flowsheet using conventional gold
processing techniques. The only metal to be recovered is gold and
when liberated to a grind size of 80% passing (P80) 75 micron
produces excellent recovery. The deposit is predominantly
non-refractory sulphides encompassing 94% of the ore, with the
remaining being saproliteoxides. Grinding will occur through a SAG
and Ball mill combination followed by a gravity circuit. Testwork
results have shown approximately 30% of the gold could be recovered
through gravity. The remaining gold in ore is leached in cyanide
followed by carbon in leach (CIL) gold recovery. After carbon
stripping, the gold in solution is sludged through electro-winning
cells. The gold sludge is smelted and the gold poured into ingots.
The LOM average gold recovery is estimated at 94.8%.

Operating Costs

Operating cash costs over the life of the project are projected to average $522/oz.
Total operating costs (with royalty) are anticipated to average $626/oz.
Operating Costs Units Price of gold $1,300/oz
Open Pit
Mining (incl.waste) $/t 1.49
Diesel $/t 0.64
Total $/t 2.13
Underground
Mining (incl. waste) $/t 25.37
Power $/t 10.49
Diesel $/t 1.70
Total $/t 37.57
Processing
$/t
Processing (excl. power) feed 8.38
$/t
Power feed 6.96
$/t
Total feed 15.34
$/t
General & Administration feed 4.72
Cash Costs
Average Operating Cash Cost (pre-royalty) $/oz 522
Average Operating Cash Cost (with royalty) $/oz 626

Capital Costs Estimates

The Feasibility Study is based on capital pricing as of the first
quarter of 2012. The level of accuracy of the capital costs estimates
is within plus or minus15% for feasibility studies.

Capex Costs Units
Initial O/P Capex (2012 - 2014) $ M 525
O/P Sustaining Capex $ M 116
Initial U/G Capex (2014 - 2019) $ M 465
U/G Sustaining Capex $ M 185

The cost breakdown for pre-production capital expenditures,
assuming an owner operator scenario, is shown below.

Description $M
O/P Mobile Equipment 93
Mine Development 13
Primary Ore Handling 18
Process Plant 107
Off-site Infrastructure 20
On-site Infrastructure 45
Power Plant 53
River Dyke 19
Ancillary Buildings 29
Tailings & Reclaim 25
Construction Indirects 36
EPCM 38
Owner's Cost 22
Total 525
*The average contingency for the capital costs is ~11.4%

Financial Analysis

The financial analysis for the Base Case (at a gold price of
$1,300/oz and $100/barrel WTI Crude Oil), which evaluates an owner's
operation, indicates a pre-tax NPV at a 5% discount rate of $644
million with an IRR of 14.9% and a payback period of 6.9 years. On an
after-tax basis, the NPV at a 5% discount rate is $432 million with
an IRR of 12.7%.

BASE CASE

$1,300/oz gold
Financials @ 5% Discount Rate Units price
Fuel Price (WTI Crude Oil) US$ 100
Average Operating Cash Cost $/oz 521.6
Total Cash Cost (w/Royalty) $/oz 625.6
Pre-Tax NPV $ M 643.8
Pre-Tax IRR % 14.9
Payback Years 6.9
After-Tax NPV $ M 432.0
After-Tax IRR % 12.7
Payback Years 7.2

Independent Qualified Persons

The Feasibility Study was prepared by leading independent
consulting firms. Qualified Persons ("QP") under Canadian Securities
Administrators' National Instrument 43-101 are listed below. The work
was completed with the collaboration of the Aurora Gold Project
technical group and Company staff. The QPs have reviewed and approved
the content of this news release. The following consultants
participated in the study:

- Mineral resource estimation, open pit and underground mine planning, and
the mineral resource and mineral reserve statements were prepared by SRK Consulting
(Canada) Inc. (Toronto) under the direction of Glen Cole, P.Geo. (mineral resources),
Brian Connolly, P. Eng. (open pit reserves), and Ken Reipas, P. Eng. (underground
reserves)
- The design of the underground mine shaft was prepared by DMC Mining Services
"Dynatec" (Toronto), under the direction of Leo HwozdykP.Eng
- The environmental management system was designed by AMEC Environment &
Infrastructure, a Division of AMEC Americas Limited, under the general direction of
PedramMolkAra, M.Sc., M.Eng.,P.Geo. and senior review of David Bleiker, M.A.Sc.,
P.Eng.. Adam Coulson, Ph.D., P.Eng. directed the open pit and underground rock
mechanics study, PrapoteBoonsinsuk, Ph.D., P.Eng. directed the foundation design,
Simon Gautrey, M.Sc., MBA, P.Geo. directed the hydrogeology study and Norman Schwartz,
M.Sc.Eng., P.Eng. directed the hydrological studies
- The design of the Ventilation System was prepared by Bluhm Burton Engineering
(PTY) Ltd. "BBE" (South Africa), under the direction of Frank von Glehn
- The design of the Paste Backfill System was prepared by GolderPasteTec
(Sudbury), under the direction of Chris Lee, P.Eng
- The design of the Processing Facilities was prepared by Ausenco Solutions
Canada Inc., under the direction of David John Brimage , MAusIMM CP
- Environmental design was prepared by Environ Corp. (Washington, DC), under the
direction of Reed Huppman, Principal, and Glenn Mills, Principal Consultant and
Matthew Trout, Associate Consultant
- The design of the Power Systems was prepared by Martin Menard & Associates
(Montreal), under the direction of Martin Menard
- Design of off-site and on-site infrastructure items were the responsibility of
GGI under the direction of Claude Lemasson, P.Eng with review by SRK
- The financial model and economic analysis were prepared by GGI with review by
SRK

A complete Technical Report summarizing the results of the
Feasibility Study will be filed on the Company's website and on SEDAR
within 45 days.

Conference Call

Guyana Goldfields will hold a conference call today at 11:00 AM
EST where senior management will discuss the Feasibility Study and
respond to questions. To join the call:

Conference Call Details:
Date of Call: Friday, February 24, 2012
Time of Call:11:00am EST
Conference ID: 55862903
Dial-In Numbers:
North America Toll-Free: (888)231-8191
International: (647)427-7450

For anyone not able to participate in the conference call, an
audio webcast will be available for 90 days through the following
link: http://www.newswire.ca/en/webcast/detail/926073/989287

About Guyana Goldfields Inc. Guyana Goldfields Inc. is a Canadian
based company, primarily focused on the exploration and development
of gold deposits in Guyana, South America where the Company has
operated since 1996. The Company recently completed its Definitive
Feasibility Study for its Aurora Gold Project and expects to start
the construction of the mine subject to Board approval. The mine plan
contains 45.2 million tonnes of ore grading 3.17 g/t Au with a total
of 4.6 million oz of contained gold. The current measured and
indicated resource is 5.71 million ounces gold (47.04 million tonnes
at a grade of 3.83 g/t).

At the Aranka Properties, the Company has discovered a gold
deposit at Sulphur Rose and other highly prospective targets within a
5-km radius have been identified for drill testing in 2012.

As at the date hereof, the Company has approximately $29 million
in cash and short-term bank guaranteed investment certificates and no
debt; there are approximately 83 million shares issued and
outstanding.

Information Concerning Estimates of Mineral Reserves and
Resources

The mineral reserve and resource estimates reported in this press
release were prepared in accordance with Canadian National Instrument
43-101Standards of Disclosure for Mineral Projects ("NI 43-101"), as
required by Canadian securities regulatory authorities. For United
States reporting purposes, the United States Securities and Exchange
Commission ("SEC") applies different standards in order to classify
mineralization as a reserve. In particular, while the terms
"measured," "indicated" and "inferred" mineral resources are required
pursuant to NI 43-101, the SEC does not recognize such terms.
Canadian standards differ significantly from the requirements of the
SEC. Investors are cautioned not to assume that any part or all of
the mineral deposits in these categories constitute or will ever be
converted into reserves. In addition, "inferred" mineral resources
have a great amount of uncertainty as to their existence and great
uncertainty as to their economic and legal feasibility. It cannot be
assumed that all or any part of an inferred mineral resource will
ever be upgraded to a higher category. Under Canadian securities
laws, issuers must not make any disclosure of results of an economic
analysis that includes inferred mineral resources, except in rare
cases.

Forwarding-Looking Information

This news release contains "forward-looking information" which
may include, but is not limited to, statements with respect to the
estimation of mineral resources. Often, but not always,
forward-looking statements can be identified by the use of words and
phrases such as "plans," "expects," "is expected," "budget,"
"scheduled," "estimates," "forecasts," "intends," "anticipates," or
"believes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
"may," "could," "would," "might" or "will" be taken, occur or be
achieved.

Forward-looking statements are based on the opinions and
estimates of management as of the date such statements are made and
are based on various assumptions.

Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of GGI to be materially different from
any future results, performance or achievements expressed or implied
by the forward-looking statements. Such factors include, among
others, the final findings set forth in the Feasibility Study ,
general business, economic, competitive, political and social
uncertainties; the actual results of exploration activities; changes
in project parameters as plans continue to be refined; accidents,
labour disputes and other risks of the mining industry; political
instability; delays in obtaining governmental approvals or financing
or in the completion of development or construction activities, as
well as those factors discussed in the section entitled "Risk
Factors" in GGI's annual information form. Although GGI has attempted
to identify important factors that could cause actual actions, events
or results to differ materially from those described in forward
looking statements, there may be other factors that cause actions,
events or results to differ from those anticipated, estimated or
intended. Forward-looking statements contained herein are made as of
the date of this news release and GGI disclaims any obligation to
update any forward-looking statements, whether as a result of new
information, future events or results, except as may be required by
applicable securities laws. There can be no assurance that
forward-looking 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.

PDF with caption: "Aurora Ore Model". PDF available at: http://st
ream1.newswire.ca/media/2012/02/24/20120224_C7083_DOC_EN_10409.pdf

For further information:
Guyana Goldfields Inc.
Claude Lemasson
President & COO
Jacqueline Wagenaar
Vice President, Corporate Communications
Tel: +1(416)628-5936 Ext. 2295
Fax: +1(416)628-5935
E-mail: jwagenaar@guygold.com

Website: http://www.guygold.com