SEMAFO Enters Into an Agreement with Sonabel to Connect the Mana Mine to the National Power Grid Potential Cash Operating Cost Reduction of Up to $40 per Ounce

MONTREAL, QUEBEC -- (Marketwire) -- 10/03/11 -- SEMAFO (TSX: SMF) today announced that the Corporation has entered into an agreement with National Electricity Company Sonabel for the construction of a 73-kilometer high-voltage transmission line to deliver power to its Mana mine in Burkina Faso.

The 26-megawatt transmission line will be connected directly to the national power grid and should provide sufficient energy to power the mine.

'Under this new power delivery agreement and in today's economy, we would be paying $0.18 per kilowatt-hour,' said Benoit Desormeaux, SEMAFO's Executive Vice-President and Chief Operating Officer. 'Based on current fuel and consumables costs and compared to our current cost of $0.31 per kilowatt-hour, this could represent potential savings of approximately three dollars per tonne processed and up to $40 per ounce of gold produced.'

SEMAFO will advance $9.5 million to the project. This amount is to be reimbursed to the Corporation by Sonabel over an eight-year period following commissioning, which is scheduled for the second half of 2013. The total cost of the project is estimated at $19 million.

All amounts are in US dollars unless otherwise stated.

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 'deliver', 'will', 'should', 'could', 'potential', 'committed', 'evolve', 'become', 'pursuing', 'growth' 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 build the transmission on time and on budget, the ability to deliver sufficient energy to the transmission line to power the mine, the ability to pay $0.18 per kilowatt-hour, the ability to realize potential savings of approximately three dollars per tonne processed and up to $40 per ounce of gold produced, the ability to be reimbursed over an eight-year period following commissioning, 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 2010 Annual MD&A and 2010 Annual Information Form, as updated in SEMAFO's 2011 First Quarter MD&A and 2011 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.

Contacts:

SEMAFO

Benoit La Salle, FCA

President & CEO

514-744-4408

Toll-Free:1-888-744-4408
blasalle@semafo.com


Sofia St Laurent

Communications

514-744-4408

Toll-Free:1-888-744-4408
sstlaurent@semafo.com