Cluff Gold plc
Annual Report & Accounts 2011
Evolution and Growth Transition to mid-tier
producer through the
exploration and
development of our 
key assets
Company Overview
01 Our Highlights
02 Our Operations
04 Chairman’s Statement
05 Chairman Elect’s Statement
06 Chief Executive’s Statement
Business Review
08 Kalsaka/Sega, Burkina Faso
12 Baomahun, Sierra Leone
16 Yaoure, Côte d’Ivoire
20 Mamoudouya, Mali
21 Financial Report
22 Corporate Social Responsibility
Governance
24 Board of Directors
26 Directors’ Report
33 Statement of Directors’ Responsibilities
Financial Statements
34 Independent Auditor’s Report
35 Consolidated Statement of Comprehensive Income
36 Consolidated Statement of Financial Position
37 Company Statement of Financial Position
38 Consolidated Statement of Changes in Equity
39 Company Statement of Changes in Equity
40 Consolidated Statement of Cash Flows
41 Company Statement of Cash Flows
42 Summary of Significant Accounting Policies
48 Notes to the Consolidated Financial Statements
64 Company information
IBC References
Cluff Gold plc
Annual Report & Accounts 2011
Company Overview
3
Our Strategy Kalsaka production
71 ,505oz
Cluff Gold plc
Annual Report & Accounts 2011
Company Overview
01
Our Highlights
10 1 1
Group EBITDA (US$m)
22.6
43.5
10 1 1
Group operational cash flow (US$m)
23.4
41.1
10 1 1
Kalsaka cash margin (US$/oz)
424
763
10 1 1
Baomahun: measured and indicated (Moz)
1.4
2.1
+92% +75%
+80% +46%
Group earnings per share (USc/share)
(4.92)
9.40
10 1 1
Closing cash balance (US$m)
20.9
28.9
+14.32 +38%
Group exploration and 
development expenditure
US$21.7m
2012 production target (oz)
60-70,000
10 11 Cluff Gold plc
Annual Report & Accounts 2011
Company Overview
02
Our Operations
West Africa
> Cash flow from the Kalsaka mine underpins Group
exploration expenditure
> Development of Baomahun delivers near-term 
production growth
> Long term resource growth potential at Yaoure
Kalsaka/Sega, Burkina Faso
Kalsaka is Cluff Gold’s primary cash
generator, producing 71,505oz 
in 2011, exceeding its 70,000oz target
for the second consecutive year.
Located in Burkina Faso, the project is
expected to produce 60-70,000oz in
2012. Its production profile was
enhanced by the recent acquisition 
of the neighbouring Sega gold project.
The Group also controls four new
exploration licences in Eastern Burkina
Faso, providing a pipeline of future
projects to the Group.
Baomahun, Sierra Leone
Baomahun is Cluff Gold’s primary
development asset in Sierra Leone.
With a current resource base of 2.1Moz
indicated and 0.9Moz inferred, the
project is advancing towards feasibility
study completion. The project has
potential for operating cost savings
from hydro-electric power, and
considerable scope for further long
term resource and production growth
both along strike and underground. 
Yaoure, Côte d’Ivoire
The Yaoure project in Côte d’Ivoire is in
an ideal location for a low cost CIL/CIP
operation. Local infrastructure includes a
150MW hydroelectric power plant
capable of supplying cheap power to the
mine. With a current sulphide resource
base of 292,000oz and promising results
from the 2011 drilling campaign, the
Company is confident of delivering
significant resource growth in 2012. Cluff Gold plc
Annual Report & Accounts 2011
Company Overview
03
Our Operations
2011 Achievements
Sega resources
450,366oz
indicated
147,344oz
inferred
T argeted average annual production
135,000oz
Kalsaka/Sega, Burkina Faso
> 2011 production: 71,505oz, exceeding its 70,000oz target for the 
second consecutive year
> Record EBITDA of US$51.9m underscores improved operational performance
> Record gold price achieved; average realised gold price US$1,586/oz
> Strong cash margin of US$763/oz
> The addition of the Sega project is expected to provide mine life 
extension with additional exploration potential
Existing measured and indicated 
sulphide resources
292,000oz
Baomahun, Sierra Leone
> Significant resource increase to 2.1Moz indicated category 
(46% increase over the previously announced measured and 
indicated resources), and 0.9Moz of inferred
> Accelerated investment in 2011: increased by over US$10m 
to US$16.3m as the project transitions to construction
> Environmental permit issued 19 April 2012
> Feasibilty study completion expected in H1 2012
Yaoure, Côte d’Ivoire
> Drill results from 2011, announced in early 2012, confirm the potential 
for a large, mineralised, sulphide ore body underlying oxide deposits. 
> Drilling results included 28.35 metres at 3.24 g/t, 31.60 metres 
at 1.97 g/t and 13.25 metres at 4.14 g/t 
> Drilling continues to focus on an extension to the known mineralised zone I founded Cluff Gold in 2003, the fourth in 
a series of natural resource companies
commencing with Cluff Oil in 1972. The others
were acquired by third parties when they had
become established producers of oil or gold.
As Cluff Gold seeks to establish itself as a 
mid-tier producer, I have come to the
conclusion that the Company now requires 
a strengthening of its executive team with an
Executive Chairman based in London, since
our Chief Executive is quite properly based in
West Africa. 
I am pleased to have secured an Executive
Chairman with exceptional technical and
financial knowledge and experience to replace
me. I look forward to working with the entire
executive team as a consultant over the next
12 months during a critical phase of
development across our asset base.
The company has a portfolio of excellent
production, development and exploration
assets distributed through four West African
countries and I, with the considerable help and
support from my fellow directors, have
negotiated the acquisition of these properties
and raised the necessary capital to advance
them. I have put in place a management team
possessed not only of the appropriate
disciplines but also with the collaborative
temperament essential for a good team. I leave
the company with a strong, debt free balance
sheet. I can assure shareholders that our team
of mostly African engineers, mine managers
and geologists is of the highest calibre. I firmly
believe the stage is set for the Company to
add significant value to its entire asset base
over the next few years, and intend to remain
invested to capitalise on that growth.
Over the past thirty five years I have led
teams, which variously have discovered an
offshore oil field in the North Sea; discovered
and brought into production numerous gas
fields in the USA, Canada and Australia;
discovered and developed five gold mines in
Zimbabwe, Ghana, Burkina Faso, Côte d’Ivoire
and Sierra Leone; and discovered what is now
the Geita Mine in Tanzania, the largest gold
discovery in Africa for many years. I now feel
the entrepreneurial urge to continue this
process and look forward to leading another
team at a new natural resource company
charged with making more discoveries. 
I am excited at resuming the entrepreneurial
challenge of building another company, safe 
in the knowledge that I leave Cluff Gold in an
exciting position of future growth with strong
operational hands to manage the next phase
of its development.
JG Cluff
Non-Executive Chairman
27 April 2012
Cluff Gold plc
Annual Report & Accounts 2011
Company Overview
04
Chairman’s Statement
I firmly believe the stage is set for the Company to add
significant value to its entire asset base over the next few years,
and intend to remain invested to capitalise on that growth.
J.G. Cluff 
Non-Executive Chairman Cluff Gold plc
Annual Report & Accounts 2011
Company Overview
05
Chairman Elect’s Statement 
I am delighted to be joining the Cluff Gold team
at this point in the Company’s development.
The Company has secured continued
production at Kalsaka through the acquisition
of Sega, and has the potential for significant
future growth from Baomahun, Yaoure and
other exploration and development targets in
the region. I believe that my background and
experience from within the mining industry as
well as banking complements the skills of the
other executives. T ogether I believe we can
move the Company forward to unlock the
latent value of its people and projects.
Over the past nine years, the Company has
established itself in one of the world’s great
gold regions and has assembled a number 
of quality assets. We are now well placed
financially and regionally to continue to grow
the Company both organically and through
asset acquisition. Adopting a rigorous
approach where we weigh up our portfolio in
light of economic, geological and mining inputs
will ensure that we continue to deliver value to
shareholders. With a strong management team
led by Mr Peter Spivey, whose development
and operational capabilities are well proven, 
I have no doubt we can deliver on our
expansion plans.
The Company is also at a point where its
current cash position and strong cash flow
from producing assets allows it to self-fund its
existing exploration and has the capacity to
grow this further. With this in mind, the
Company is set to strengthen its exploration
team to accelerate progress amongst its
growth projects.
Furthermore, we have an experienced team 
of country managers in West Africa and we 
will continue to focus our efforts in this region,
where I believe there are many world class
gold projects yet to be discovered.
To allow the Company to effectively and
economically exploit its current asset base, 
and to take advantage of opportunities that
may arise as we continue to move through
difficult markets, we have conducted a
thorough review of the Board, its structure and
its effectiveness. As recently announced, a
number of changes have already been made
and, in time, we will be making some further
changes to reflect the Company’s transition to
a mid-tier gold producer.
I would also like to thank Mr Algy Cluff for his
vision and efforts in building the Company,
gathering the assets, and nurturing a team of
people that are ready to take the Company to
the next stage of development. I look forward
to drawing on his knowledge in his capacity 
as a consultant to the Company and wish him
well as he embarks on a new venture in the
natural resources space.
John McGloin
Chairman Elect
27 April 2012
We are now well placed financially and regionally to continue 
to grow the Company both organically and through asset
acquisition. T ogether I believe we can move the Company
forward to unlock the latent value of its people and projects.
John McGloin
Chairman Elect Cluff Gold plc
Annual Report & Accounts 2011
Company Overview
6
Chief Executive’s Statement
Over the past twelve months, my priority as
Chief Executive has been to ensure the
effective implementation of Cluff Gold’s
strategy focused on the successful
development of the Company’s mining assets.
At an operational and corporate level we have
had significant success in progressing our full
asset portfolio, with a number of key
milestones achieved. Additionally Cluff Gold
has delivered a strong set of financial results
for the period, which has strengthened our
financial position and which will contribute to
our development plans looking forward as we
look to take Cluff Gold through to the next
phase of growth. The work undertaken to
implement and strengthen the management
systems, such as the improvement of the
supply chain and inventory management, has
enabled Kalsaka to achieve strong operational
performance over the twelve month period. 
I am also pleased to report that we have
exceeded production guidance for the second
year running. The combination of constrained
cash costs and a robust gold price has
generated a healthy cash margin for the
Company and this is a testament to both the
management team and the work force at all
the operations. 
The acquisition of Sega in January of this year
has assisted us in achieving our objective of
significantly increasing the oxide life at Kalsaka
to deliver and maintain near term production.
The final approval from the government which
completes the Sega transaction is due shortly.
Continuing to deliver significant operational
cashflow at Kalsaka is fundamental as we
further our exploration programme across 
all of our mining operations. 
Our flagship project, Baomahun, continues to
progress well, and is now at a pivotal time in its
development. Indicated resources increased by
46% in September and we look forward to the
updated resource statement due for
completion later this month. Following the
receipt of the environmental permit, we are now
well positioned to complete the environmental
impact assessmentand the feasibility study
remains on track for completion in June 2012.
The work undertaken for the run-of-river hydro-
electric power project has demonstrated that it
could provide substantial savings in operating
costs, in addition to de-coupling the project
economics from the long term oil price.
In Côte d’Ivoire, we have delivered on our
strategy to focus on the sulphide potential at
the Yaoure mine, with extremely encouraging
drilling results. This is a new and exciting
opportunity for the Company and it seems
fitting to distinguish this new project from the
previous small heap leach oxide property,
which is the reason why we have re-named
the project.
Peter Spivey
Chief Executive
I am pleased to report that we have exceeded production
guidance for the second year running. The combination of
constrained cash costs and a robust gold price has generated 
a healthy cash margin for the Company and this is a testament
to both the management team and the work force at all 
the operations.  Going forward, the Company’s focus of
concentrating on assets capable of sustaining
over 100,000 ounces of annual gold
production, rather than smaller heap leach
plants, re-iterates our stated aim for becoming
a mid-tier producer.
In March 2012, the Company successfully
completed a £23 million fundraising. It was
encouraging to see the investor support, which
was oversubscribed, from both existing and
new shareholders. The Company has further
strengthened its balance sheet, which will
assist Cluff Gold in bringing Sega into
production and fully capitalising on the
significant growth opportunities that exist
across our asset portfolio. 
Good assets can only be realised by the right
people. This year we have continued to
strengthen the management team both in
London and in West Africa. Of critical
importance has been the strengthening of our
exploration team. The appointment of Peter
Brown as Group Exploration Manager has
already delivered in terms of the progress we
are seeing in Côte d’Ivoire. We have also
appointed a new country manager for Côte
d’Ivoire, Mr Moussa Serifou, to re-inforce our
commitment to that country. On the project
development side, Mr Richard Quarmby has
joined the Executive Committee as Group
Project Manager. Not only is he taking a
leading role in the Baomahun feasibility study,
we have also relied heavily on his expertise to
complete our understanding of the Sega
project, and have entrusted him to manage 
the plans to bring Sega into production. 
Additionally, we warmly welcome John
McGloin to the Cluff Gold team. 
The appointment of John is a necessary step
for Cluff Gold. The Company has now reached
a stage in its development where it needs an
Executive Chairman who can spend significant
time liaising with shareholders and the wider
financial community in both London and North
America. His role will also be to help to define
the future corporate strategy of the business,
as I continue to focus on building the
operations and identify other business
opportunities in Africa. His technical and
financial experience will be of significant value
to the Board, as we look to maximise returns
for our shareholders and emerge as one of the
leading gold producers in West Africa.
Finally, on behalf of the Board and all our
employees, I would like to thank Algy Cluff, 
as the founder of Cluff Gold, for his invaluable
contribution to the Company. He has secured 
a strong portfolio of assets and built a leading
management team that has enabled the
Company to achieve a strong and stable
platform for significant future growth. We wish
Algy every success for the future, and look
forward to his continued support in his new
role as a consultant.
Peter Spivey
Chief Executive
27 April 2012
Cluff Gold plc
Annual Report & Accounts 2011
Company Overview
7
Chief Executive’s Statement
continued Cluff Gold plc
Annual Report & Accounts 2011
Business Review
8
Review of Operations
Kalsaka/Sega, Burkina Faso
Kalsaka is the Company’s key cash flow generator, having
produced 71,505oz in 2011. The acquisition of the Sega
project provides an opportunity to increase Kalsaka’s
production profile and mine life with limited upfront capital.
Generating record 
EBITDA of US$51.9m 2011 cash cost per ounce
US$823
Cluff Gold plc
Annual Report & Accounts 2011
Business Review
9
Review of Operations
Kalsaka/Sega, Burkina Faso
Key facts
2011 production
71,505oz
2011 EBITDA
US$51.9m Cluff Gold plc
Annual Report & Accounts 2011
Business Review
10
Review of Operations
Kalsaka/Sega, Burkina Faso
2012 drilling programme
120,000m
2012 exploration budget
US$7.9m
Acquired Sega indicated resources
450,366oz
Pit Shell
Oxide-Transition
Sulphide
Grades (g/t Au)
0 - 0.35
0.35 - 0.49
0.49 - 0.7
0.7 - 1.5
1.5 - 2.5
2.5+
The Company’s cash generating asset,
Kalsaka, delivered excellent results in 2011,
exceeding production guidance for the second
consecutive year by pouring over 71,500
ounces of fine gold. This generated EBITDA 
of US$51.9m, an increase of 78% from the
previous year, to fund the Company’s activities.
This significant EBITDA generation was
assisted by the robust gold price, with an
average price of US$1,586 per ounce realised
in 2011, representing a 30% increase on the
previous year. Cash costs were well contained,
at US$823 per ounce, a 4% increase
compared to the prior year. Cash margins were
therefore very strong, at US$763 per ounce for
the year, representing a 78% increase
compared to 2010.
This EBITDA performance reflects a strong
operational performance for the mine during
the year. The mining team delivered a total of
1.90Mt of ore in 2011, a 23% increase
compared to the prior year, at a strip ratio of
6.67. The strip ratio represented an 8%
reduction compared to 2010 reflecting a
natural reduction at depth in the primary mining
zones. A total of 1.65Mt of ore was stacked in
2011, a 6% increase on 2010, reflecting good
ore availability and utilisation of the plant
throughout the year to reduce plant downtime. 
The average reported head grade of 1.45g/t
was slightly lower than achieved in 2010,
reflecting lower grade areas of the mine which
were processed in H1. This variation in grade is
reflected in the comparative performance in H1
and H2, with 56% of production generated in
the second half at a time of higher gold prices.
2012 Expectations
Kalsaka is forecast to produce between 60,000
and 70,000 ounces of gold in 2012, slightly
below the performance in 2011. This is based
on 1.6Mt of ore being processed at an average
head grade of approximately 1.4g/t.
The forecast production range takes into
account the nature of the ore the Company is
expecting to process in 2012. During Q4 2011,
a crushing circuit was successfully installed at
the Kalsaka mine, allowing previously
stockpiled quartz material to be processed
alongside more quartz rich material being
encountered in one of the pits. This quartz
material has a longer leach cycle than the
softer ore with which it is being blended.
Accordingly, we have set out a production
range which will allow for a larger gold lock-up
in working capital at 31 December 2012 than
previously experienced and we expect 2012
production to be stronger in the second half 
of the year.
Sega
The existing known reserves and stockpiles at
Kalsaka are expected to be stacked until Q1
2013. Some mine life extension is expected
from near term exploration targets currently
under evaluation, together with the processing
of transitional ore. However, the Board is
keenly aware of the importance of on-going
operational cash flow during the construction
phase at Baomahun. Accordingly, on 3
February 2012, the Company announced the
legally binding, conditional acquisition of the
Sega project from Orezone Gold Corporation
(“Orezone”). Completion of the acquisition
remains conditional on the approval of the
Government of Burkina Faso, which the
Company expects to receive shortly. The
acquisition will provide an immediate mine life
extension at Kalsaka to ensure that production
continues past 2013. The Sega project has an
area of 313k sq. km across two adjacent
licences, which host an indicated mineral
resource of 450,366 ounces (8.3Mt at 1.7g/t)
and an inferred mineral resource of 147,344
ounces (2.9Mt at 1.6g/t) with additional
exploration potential.
T o optimise the exploitation of the Sega 
ore body, it is intended that the oxide and
transitional resources will be processed
through the existing Kalsaka heap leach 
plant. This will keep capital expenditure to a
minimum, reduce the environmental footprint
and ensure a rapid start to production. Whilst
the total resources at Sega have a similar
grade to the existing Kalsaka operation at
1.7g/t, the deposit actually contains a higher
grade core of mineralisation averaging over
2g/t that is expected to have positive operating
cost implications once production
commences. Detailed metallurgical test work
completed by Orezone has indicated average
heap leach recoveries of 85% for oxide and
transitional ore with favourable agglomeration
properties. Therefore, the cash cost per ounce
from the processing of the Sega ore, including
the costs of haulage, is expected to be lower
than currently incurred at Kalsaka.
Work has commenced on a Preliminary
Economic Assessment to confirm the technical
plans to mine and process the Sega resources,
which is expected to be completed in May
2012. Work is currently underway in respect 
of an environmental and social impact
assessment, under the guidance of Digby
Wells, to ensure that the licencing of the Sega
property can be concluded in good time to
allow a smooth transition for processing from
Kalsaka to Sega ore sources.
Exploration
The Company believes there is a strong
potential to further increase oxide resources
across its combined current and recently
Kalsaka delivered excellent results in 2011, exceeding
production guidance for the second consecutive year by
pouring over 71,505 ounces of fine gold and generating
US$51.9m in EBITDA.
Sega: High grade mineralised core acquired licences, thereby extending the life of
the existing heap leach operations at Kalsaka.
The acquisition of the Sega project does not
diminish the focus on exploration, with the
recent acceleration of activity to be maintained.
Exploration targets will be generated and
prioritised systematically across the various
licences in the vicinity. 
In 2011, a total of 36,546m of RAB and
39,859m of RC drilling was completed across
the Kalsaka and Yako licences. Promising
results were received at the Zoungwa and
Rondo prospects, which are expected to add
to the oxide mine life at Kalsaka. In 2012,
drilling has continued within both the Kalsaka
and Yako licence areas. In addition, Orezone
has completed 10,000m of RC drilling at the
Sega property focusing on a number of new
targets for which results are expected soon.
The Company’s near term strategy at Kalsaka
is to maintain the heap leach operation, which
does not require significant high cost power
consumption usually associated with milling. 
In the longer term, the exploration team are
tasked with demonstrating the sulphide
potential across the region, with a view to
developing a CIL plant once grid power is
available in the region.
Cluff Gold plc
Annual Report & Accounts 2011
Business Review
11
Review of Operations
Kalsaka/Sega, Burkina Faso
Annual Production Statistics
2011 2010 % Change
Ore mined (t) 1,898,711 1,539,557 23%
Waste mined (t) 12,670,996 11,135,933 14%
T otal tonnage mined (t) 14,569,707 12,675,490 15%
Strip ratio (ratio) 6.67 7.23 (8%)
Ore processed (t) 1,646,166 1,550,373 6%
Average ore head grade (g/t) 1.45 1.56 (7%)
Gold production (oz) 71,505 74,073 (3%)
Cash costs excl. royalties (US$/oz) 823 793 4%
Average realised gold price (US$/oz) 1,586 1,221 30%
Kalsaka Reserves and Resources as at 31 December 2011 
1
T onnes (Mt) Grade (g/t Au) Ounces
Resources at 0.5g/t Au cut off
Oxide and Transitional
Measured 0.7 1.6 36,000 
Indicated 4.0 1.4 177,000 
Measured and Indicated 4.7 1.4 213,000 
Inferred 0.8 1.4 36,000 
Sulphide
Measured 0.2 1.6 8,000 
Indicated 1.0 1.7 55,000 
Measured and Indicated 1.2 1.7 63,000 
Inferred 2.3 1.5 111,000 
Reserves at 0.5g/t Au cut off and US$950/oz gold price 
1
Oxide, Transitional and Stockpile
Proven 0.4 1.6 20,300
Probable 1.3 1.5 61,700
Proven & Probable 1.7 1.5 82,000
Sega Resources as at 18 January 2010 
2
T onnes (Mt) Grade (g/t Au) Ounces
Indicated
Oxide and Transitional 4.9 1.6 257,572
Sulphide 3.4 1.8 192,794
T otal indicated 8.3 1.7 450,366
Inferred
Oxide and Transitional 1.2 1.5 56,258
Sulphide 1.7 1.6 91,086
T otal inferred 2.9 1.6 147,344 Cluff Gold plc
Annual Report & Accounts 2011
Business Review
12
Review of Operations
Baomahun, Sierra Leone
Baomahun is the Company’s primary development asset with
2.1Moz in the indicated category and 0.9Moz in the inferred
category. The project is expected to commence construction 
in late 2012 with the first gold pour in 2014. 
Targeting 135,000oz
average annual
production Cluff Gold plc
Annual Report & Accounts 2011
Business Review
13
2011 exploration and 
development expenditure 
US$16.3m
Key facts
Significant resource increase of +46% to
2.1Moz
indicated
HEP Study completed
Q3 2011
Review of Operations
Baomahun, Sierra Leone Cluff Gold plc
Annual Report & Accounts 2011
Business Review
14
Review of Operations
Baomahun, Sierra Leone
Construction commencement planned
Q4 2012
Feasibility study expected
H1 2012
First gold pour expected
2014
100 100m 0
< 1.50 g/t Au
1.50 to 2.50 g/t Au
>= 2.50 g/t Au
Baomahun is the Company’s wholly owned
flagship development project in Sierra Leone,
with 2.1 million ounces of indicated mineral
resources (25.6Mt at 2.5g/t) and a further 
0.9 million ounces of inferred mineral resources
(9.6Mt at 2.8g/t) defined to date. The
Company’s investment at Baomahun has
significantly accelerated in 2011, with the
annual expenditure increasing by over US$10m
to US$16.3m as the project enters a pivotal
stage transitioning to construction.
The Company’s strategy at Baomahun 
is two-fold:
� Progressing towards open-pit production
focused on the currently defined
resources.
� Demonstrating the long term potential for
resource and production growth, both
along strike and underground.
Feasibility Study expected June 2012
A number of milestones were achieved at
Baomahun in 2011, including an updated
resource statement in September 2011 setting
out a 46% increase in indicated resources. 
This resource was optimised into an open pit
by SRK Consulting Limited, demonstrating that
the project is capable of producing at 135,000
ounces per annum for a robust eight year mine
life. In the optimal economic scenario, the
steeply dipping nature of ore body generates a
high strip ratio, estimated at 12.6:1. With nearly
100,000 ounces of inferred resources
contained within this open pit being treated as
waste, the Company believes that there is
good scope for the recently completed in-fill
drilling programme to have reduced this figure
by converting some of the inferred resources
into measured or indicated categories.
Resource modelling is underway and an
updated resource statement is expected to be
completed later in April 2012. This is the next
key milestone for the project.
Baomahun is a straightforward project relative
to other West African mining projects. It has a
clean ore with good recovery from a
conventional CIL plant and no significant
impediments to mine development. Following
the receipt of the environmental permit on 
19 April 2012, the Company is now well
positioned to complete the environmental
impact assessment for Baomahun, one of the
last outstanding parts of the feasibility study
which is due for completion in H1 2012. 
T o allow a smooth transition from the feasibility
study to the construction phase, early
infrastructure investment commenced in 
Q4 2011 and is progressing in 2012. The 17km
access road to site is being upgraded along
with the exploration camp, which will be ready
before the next rainy season commences to
accommodate the construction team.
Following delivery of the feasibility study and
financing, construction is planned to
commence in November 2012 after the rains
ease with an 18 month construction period
expected. The first gold pour is therefore
expected in 2014 with steady state production
anticipated in 2015.
Hydro-electric power
In parallel with the mine feasibility study, 
a separate study has been completed for 
a 24MW run-of-river hydro-electric power
generation project within 40km of Baomahun.
This is estimated to have sufficient capacity to
provide the project’s power needs for 72% of
the year, with a heavy fuel oil power station
required for the height of the dry season.
During the wet season there will be surplus
power available for external sale, and
accordingly the Company plans to utilise an
independent power producer structure to
finance the opportunity without the need for
significant up-front investment from Cluff Gold.
For a conventional CIL plant, the power
requirements for grinding are a significant
element of the total production costs.
Accordingly, hydro-electric power can provide
substantial savings in operating costs
compared to the high cost of power from oil.
The hydro-electric power opportunity will also
de-couple the project economics from the long
term oil price, creating an effective mechanism
to contain cash costs into the future.
Financing
The financing of Baomahun will be a key
milestone for the Company, and there is a
clear appetite for financing this project through
debt funding from a number of institutions that
will help minimise equity dilution. Management
is committed to delivering the most cost
effective means of financing the project in the
interest of shareholders, which could mean a
mixture of debt and equity. Discussions are
on-going with a number of potential financiers,
and the Company intends to announce the
preferred financing solution alongside the
feasibility study.
Long T erm Potential
In addition to the initial open pit, which will 
be the subject of the feasibility study, the
Baomahun project has considerable scope 
for further long term resource and production
growth both along strike and underground.
The Company’s investment at Baomahun has significantly
accelerated in 2011, with the annual expenditure increasing 
by over US$10m to US$16.3m as the project enters a pivotal
stage transitioning to construction.
High grade core in current resource area Cluff Gold plc
Annual Report & Accounts 2011
Business Review
15
Review of Operations
Baomahun, Sierra Leone
Initial analysis shows that the resources at
depth are high grade, suitable for exploitation
via underground mining techniques. The ore
body remains open at depth, with potential for
significant resource growth in high grade
areas. The management team’s preference is
to focus on growth along strike in the near
term as the optimal path to adding value.
However, the Company will also examine the
potential for economic extraction of deeper
higher grade zones post the commissioning of
the project in 2014 to ensure that the full value
of the project is demonstrated to the
satisfaction of all stakeholders.
The Company’s main focus has been on the
potential to delineate gold along strike from the
presently defined resources. In addition to work
in the Baomahun mining lease and Victoria
exploration licence, the recent award of the
Makong South licence, north of the existing
exploration licence, further enhances the
Company’s opportunity for expansion.
A series of high priority drill targets were
originally identified through a geophysical
VTEM survey, which was completed in 2010.
These targets highlighted possible conductors
which had the potential to be caused by
sulphide minerals associated with gold as in
the resource area. An initial drilling campaign 
in 2011 had mixed success. T argets located
1.5km to 3.5km north of the resource area
were shown to be associated with pyrrhotite
and arsenopyrite with some gold
mineralisation, close to banded iron formation-
schist contacts, as seen in the resource area.
However, conductors in areas to the northwest
of the licence were demonstrated to be caused
by pyrite-dominated sulphide mineralisation in
a different geological setting (granite-schist
contacts) and no gold was found. 
Following these initial results, a more detailed
3D inversion technique was used to refine the
geophysical targets to the north of the resource
area. Drill results in the area 300m to 900m
north of the resource area have confirmed the
presence of gold. Multiple intercepts, which
have previously been reported, include 5m at
2.1g/t from 17m, 10m at 1.5g/t from 37m and
8m at 1.5g/t from 118m all within a single drill
hole.
3
Further drilling is continuing as part of
the Company’s initially planned 9,000m
diamond programme in 2012. This is expected
to increase as results dictate.
1 00.5
kilometres
Baomahun
pit outline
Displacement zones
Fault
Local resistivity high or
conductor displacement
Magnetic low
3D conductivity iso-surfaces
from 0.00085 S/m (blue; outside)
to 0.01 S/m (dark grey; inside)
Drill results in the target area 300m to 900m north of the
resource area have confirmed the presence of gold
Feasibility Study – Proposed Initial Operational Parameters 
Mine type Initial open pit based on US$1,150/oz pit shell
T otal LOM Production 1.1Moz
Average grade 2.23g/t
Strip ratio 12.6:1
Average production 135,000oz p.a.
Mine life 8 years
Baomahun Resources as at 5 September 2011 
4
T onnes (Mt) Grade (g/t Au) Content (Oz)
Indicated 25.6 2.5 2,070,000
Inferred 9.6 2.8 860,000 Cluff Gold plc
Annual Report & Accounts 2011
Business Review
16
Review of Operations
Yaoure, Côte d’Ivoire
The Yaoure gold project in Côte d’Ivoire has significant
exploration potential for resource growth. Its close proximity to
existing infrastructure including an abundant water source, and
a nearby hydroelectric dam capable of supplying low cost
power, makes the project one of the best located gold projects
in West Africa.
Significant sulphide
potential in a low cost
CIL/CIP setting Cluff Gold plc
Annual Report & Accounts 2011
Business Review
17
Inferred sulphide mineralisation
25,000oz
Key facts
Measured and indicated 
sulphide mineralisation
292,000oz
2012 exploration budget
US$10.9m
Review of Operations
Yaoure, Côte d’Ivoire Cluff Gold plc
Annual Report & Accounts 2011
Business Review
18
Review of Operations
Yaoure, Côte d’Ivoire
From 31.8m
31.6m @
1.97g/t
From 35.3m
28.4m @
3.24g/t
200 0100
metres
Planned Drillholes
Completed Drillholes - 
Results Received
Completed Drillholes
Results Not Received
NS Structures
EW Structures
Block Model
Pit Outline
As drill results began to emerge this year
confirming the potential for a large, mineralised,
sulphide deposit underlying oxide deposits at
the Angovia property in Côte d’Ivoire, the
project was renamed Yaoure. This was done 
in order to distinguish the previous small heap
leach oxide property from the larger underlying
sulphide target. Whilst sulphide mineralisation
had been identified early on and formed part 
of the resource base, the Company previously
focused on bringing an oxide operation into
production rapidly, ignoring the significant
sulphide potential. There is currently a
measured and indicated sulphide resource
totalling 292,000 ounces at Yaoure (3.4Mt 
at 1.5g/t measured and 2.2Mt at 1.7g/t
indicated).
5
In the Yaoure Central pit, this
resource was based upon RC drilling to a
depth of 100m below the original surface,
extending approximately 60m below the
current pit floor.
The favourable infrastructure in the area
including access via sealed roads from Abidjan
to within a few kilometres of the mine, easy
access to water, and most importantly, cheap
hydro-electric power from the nearby Kossou
barrage, make Yaoure an ideal third operation
in the Cluff Gold portfolio. It provides the
opportunity to establish the Company as a
mid-tier producer from the development of 
its existing assets.
Diamond drilling at Yaoure in 2011 totalled
3,067m in 29 holes, with a further 18 holes
completed in 2012 to date. The focus of this
drilling has been on the northern half of the
existing Yaoure Central pit over a strike length
of 700m down to a depth of 275m. The drilling
targeted both the main shallow-dipping North-
South structure in which gold is mainly
associated with disseminated pyrite in
greenstones and subsidiary East-West
subvertical structures in which visible gold is
more associated with quartz veining. This
drilling has continued to demonstrate the
continuity of a shallow-dipping (25 -35 degrees
to the east) mineralised zone over significant
widths - up to 31m thick. The best results
received to date, as previously announced,
include 28.35m at 3.24g/t gold and 31.60m at
1.97g/t gold, at depths of 25m to 60m below
the current pit.
6
Initial metallurgical testwork
has indicated that the mineralisation is non-
refractory and suitable for treatment in a
conventional CIL/CIP circuit. 
Recent drilling results continue to support our
hypothesis of a low-strip open-pittable target.
We have therefore recently decided to double
the number of diamond drill rigs on site to four,
in order to rapidly test the upside potential,
stepping out along the entire 1.1km length of
the existing pit as well as testing for parallel
ore-bodies. We hope to be in a position to
announce an upgraded resource in the second
half of this year. 
The Yaoure Central pit covers only a third of 
a substantial +200ppb gold in soil anomaly
stretching over 3.0km within the Mount Yaoure
exploitation permit. In addition to the two
diamond drill rigs currently focusing on Yaoure
Central, the Company is continuing exploration
along a separate 2.25km long soil anomaly with
one RAB drilling rig and two RC drilling rigs.
In addition to drilling within the exploitation
permit, an airborne magnetic survey has
recently commenced covering the Company’s
entire 367 square kilometre exploration and
exploitation permits. This, in conjunction with 
a remote sensing imagery interpretation, will be
used to help define exploration targets outside
of the presently identified geochemical
anomalies and ensure that the entire permit
areas are appropriately explored.
Drill results from 2011 confirmed the potential for 
a large, mineralised, sulphide deposit underlying oxide 
deposits at Yaoure. Significant drill results
Drilling plan as at 19 January 2012 Cluff Gold plc
Annual Report & Accounts 2011
Business Review
19
Review of Operations
Yaoure, Côte d’Ivoire
Existing operations
The existing heap leach operations at Yaoure
were placed on care and maintenance in Q1
2011. Stacking of previously mined ore and
spraying of the previously stacked heaps 
re-commenced in Q3 2011. Overall, Yaoure
produced 6,470 ounces of gold in 2011,
providing useful on-going cash flow to 
sustain the operations.
The Company intends to re-commence
operations utilising the existing heap leach
infrastructure in 2012. This will produce a small
amount of gold from near mine lateritic oxide
targets, which are simple to mine and process
and that have been identified close to the
existing operation. A full technical study is
expected to be completed during H1 2012. 
By re-commencing heap leach operations, the
Company will be able to demonstrate its
commitment to the local population and the
government of Cote d’Ivoire. This commitment
will ensure that our existing workforce is
retained and enable the Company to maintain
our operating licences, whilst focusing on
bringing a larger operation to account. 
140m
Second hole 
in Phase 2
First hole in
Phase 2
E
235m
300m
6.48m @ 0.61 g/t
28.37m @ 3.24 g/t
30m @ 3.64 g/t
125m
YDD0021
ARC0024
W
Completed Hole
Block Model
N-S Main Zone
Planned Hole
Yaoure Resources as at 31 December 2011
5
Resources at 0.5g/t cut-off (Mt) (g/t) (Oz)
Laterite
Measured & Indicated 2.4 0.6 46,000
Inferred 0.5 0.5 8,000
Other Oxide and Transitional
Measured & Indicated 4.2 1.4 179,800
Inferred 0.8 1.4 38,000
Sulphide
Measured & Indicated 5.6 1.6 292,000
Inferred 0.5 1.5 25,000
Yaoure’s sulphide potential The Mamoudouya exploration licence in Mali
contains a number of early stage exploration
targets and forms part of our renewed focus on
building a pipeline of assets from early stage
exploration through development to
production. The licence, covering an area of
109 square kilometres, was granted in early
2011 for an initial term of three years.
The licence is situated in the southwest of the
country in the highly prospective Kedougou–
Kenieba inlier; a belt of Birimian greenstones
associated with a regional-scale shear zone
which is host to some of West Africa’s largest
deposits. Regional mapping, trenching and
geochemical sampling of termite mounds
defined a 3.5km by 0.8km gold anomaly in
early 2011. This was followed up by a ground-
based induced polarisation (IP) 
geophysical survey, generating a number of
drill targets, which the Company began to test
with a 10,000m RC drilling program in March
2012. This program is currently on-going.
Whilst our personnel were unaffected by the
recent disturbances in Mali, our drill contractor
did suspend operations. With the imminent
return to constitutional rule in early April, we
expect to recommence drilling shortly and
anticipate releasing results in H2 2012.
Cluff Gold plc
Annual Report & Accounts 2011
Business Review
20
Defined gold anomaly
2.8 sq km
Key facts
Licence area
109 sq km
2012 RC drilling programme
10,000m
1
kilometres
0.5 0
Contour Values (Au ppb)
25
50
100
200
400
1000
RC Drilling Area
Review of Operations
Mamoudouya, Mali
Substantial gold in soil anomaly at Mamoudouya Cluff Gold plc
Annual Report & Accounts 2011
Business Review
21
Financial Report
The year under review has seen the Company capitalise upon the
continued record gold price and the operational performance at the
Kalsaka mine in Burkina Faso to record an annual profit after tax for the
first time. This financial performance has enabled the Company to self-
fund exploration work across its growing asset base, move towards
completion of the feasibility study on Baomahun, and plan and
commence early stage infrastructure construction work at Baomahun. 
Cash generated by the operating mine at Kalsaka provided a year-end
cash balance of US$28.9m. Subsequently, some of this cash was utilised
to complete the acquisition of the Sega gold project in Burkina Faso. 
The placing of 25m shares at 92p in March 2012 has ensured that the
cash element of the acquisition consideration does not constrain the
Company’s strategy going forward.
Financial Highlights
US$000 2011 2010 2009
Revenue 121,684 115,804 39,659
Gross profit 46,978 21,628 4,574
EBITDA 43,544 22,626 4,261
Profit/(loss) before taxation 25,376 (976) (35,495)
Basic EPS (cents per share) 9.40 (4.92) (30.25)
Cash generated from/(used in) 
operating activities 41,104 23,444 (8,816)
Net cash inflow/(outflow) 7,998 18,634 (2,143)
T otal cash 28,905 20,907 2,273
T otal assets 140,698 122,001 113,871
T otal liabilities (28,535) (24,995) (27,564)
Kalsaka’s revenue rose 26% in 2011 from US$90.6m to US$114.2m
from similar production levels to 2010, due to an increase in the average
gold price from c. US$1,200/oz to c. US$1,550/oz. Cash costs per
ounce at Kalsaka rose only marginally to US$823/oz from US$793/oz in
2010 despite inflationary pressures. Increases were evident for fuel
(irrecoverable VAT was charged on fuel for the first time in 2011), labour
and processing reagents. These were countered by operational
efficiencies, with lower stripping ratios for mining and greater plant
throughput off-setting a small decrease in head grade. As a result,
Kalsaka recorded EBITDA totalling US$51.9m in 2011, an increase of
78% on 2010. 
At Yaoure, revenue totalled approximately US$10m from production in
Q1 and leaching operations which resumed in Q3. Overall, the operation
recorded a small loss in the year as a result of the political crisis and
cessation of mining activities.
T otal corporate overheads amounted to US$6.4m in 2011, an increase of
US$0.8m. Other operating overheads relate to costs of administration,
site and country management in Burkina Faso and Cote d’Ivoire which
are not contained within cost of sales as they do not wholly relate to
direct costs of gold production. These costs are included within EBITDA
reported for both the Kalsaka and Yaoure mines. Total other operating
costs rose to US$12.4m from US$11.8m. The US$7.4m total tax charge,
of which US$1m relates to deferred tax, relates wholly to Burkina Faso. 
T otal EBITDA of US$43.5m represents nearly double the 2010 result. 
This improvement is also seen in all other metrics, including a maiden
profit after tax of US$12.4m attributable to equity shareholders of the
Company, equating to 9.4c per share.
Cash flow
The strong operational performance combined with the high gold price
environment ensured excellent cash generation throughout the year. 
T otal operating cash inflow was US$35.9m (net of US$5.2m taxation paid
in Burkina Faso), of which US$24.8m was utilised for capital expenditure
and exploration projects across the asset base. A further US$3.4m was
paid as dividends to minority shareholders of the Kalsaka mine. As a
result, the total increase in cash in the year was US$8.2m before
exchange differences.
Capital expenditure
T otal capital expenditure in the year was US$25.6m, of which US$6.8m
was incurred at Kalsaka and US$16.3m at Baomahun. At Kalsaka,
US$4.1m related to exploration programmes focusing on oxide targets 
to extend the mine life. At Baomahun, expenditure focused on in-fill and
along strike drilling, together with work to complete the feasibility study.
Overall, exploration expenditure increased by 257% compared to 2010,
reflecting the Company’s renews focus on its exploration activities
across all assets.
Property,
Intangible plant and
US$000 assets equipment T otal
Kalsaka 4,140 2,674 6,814
Yaoure 1,617 353 1,970
Baomahun 15,613 736 16,349
Other 325 144 469
21,695 3,907 25,602
Assets and liabilities
In previous years, the Company has faced significant difficulties
recovering VAT from both operational jurisdictions. It has been pleasing
to note that following the resolution of the political unrest in Cote d’Ivoire
we have received a steady stream of repayments. As a result, the
Company has reversed a significant proportion of the provision against
VAT and reallocated US$1.8m of the debt as being due within one year.
Matters in Burkina Faso are now fully resolved and all but a small amount
of VAT is deemed fully recoverable.
The Company remains debt free and subsequent to the year-end raised
a further £21.6m (after expenses) by issuing 25m new ordinary shares.
This fund-raising enables the Company to complete the acquisition of
the Sega gold project in Burkina Faso whilst maintaining a fully funded
exploration programme for the remainder of the year.  Cluff Gold is committed to working with communities in the
countries within which it operates. Our goal is to achieve a socially
responsible business that balances economic prosperity with
environmental stewardship and ethical business practice. T aking this
approach allows Cluff Gold to ensure that a positive and sustainable
legacy is left beyond the lives of our mining operations.
Burkina Faso
In line with the Company’s stated CSR mandate, education and support
for women’s communities remained key focus areas in Burkina Faso in
2011, accounting for over 70% of the annual community expenditure.
Construction of four additional classrooms at the local Kalsaka school
commenced in 2011 which, upon completion in 2012, are expected to
house 240 students. Literacy training was provided for 70 women, who
were selected by the consultative committee across multiple villages. An
additional 33 women received technical training and initial seed funding
for sheep fattening businesses, a programme which has been well
received throughout the community and is a real opportunity to create a
source of income for women. The Company was also a proud sponsor
of the local International Women’s Day celebrations in 2011
commemorating women’s emancipation.
As a result of the regional drought experienced in 2011, there has been an
increased need for food and water supply for the local farmers’ livestock.
T o improve livestock productivity, a water reservoir was constructed at
T apré and ten tons of rice were donated to the local communities.
Healthcare was another key focus for the Company in 2011, following a
government mandate aimed at reducing HIV/AIDS. A medical officer was
provided at the Kalsaka village, and a local awareness campaign was
organized and funded by the Company.
The Company also continued to strengthen its partnership with local
communities by providing support to the local T own Hall, Prefecture and
police and, on a regional scale, the Northern Governorate. Such support
included facility maintenance and operational support, and the ongoing
provision of office equipment and supplies.
In 2012, the Company will continue to work with the local communities
to ensure that their needs are met, building particularly on education,
women’s communities, and healthcare. The Company will also look to
expanding its CSR work to a regional scale following the completion of
the Sega acquisition, with local employment and supply procurement
being a key priority as the Sega project comes into production.
Cluff Gold plc
Annual Report & Accounts 2011
Business Review
22
Corporate Social Responsibility
Our goal is to achieve a socially responsible business that
balances economic prosperity with environmental stewardship
and ethical business practice. Sierra Leone
In Sierra Leone, the Company’s education and youth programmes
continued to focus on the future generations of the local communities in
2011. A classroom block was constructed for the Baomahun Community
School. In continuation of our work in 2010, food and toys were provided
to 2,000 school children in the Bo District. During the year, scholarships
were provided to 125 secondary students in the Bo District who were
selected on the basis of their family circumstances and/or academic
performance, as well as a university scholarship which, in 2011, was
awarded to a blind student from the Valunia Chiefdom. In Freetown,
where youth assistance is a key focus, financial support was also
provided to various youth organisations.
Employment opportunities are one of the key benefits to a country from
industrial development. In 2011, scholarships were provided to seven
Sierra Leonean students to pursue their Master of Mining Engineering
degrees in Ghana. These students were selected by a panel comprising
of representatives from the Office of the Chief of Staff, the Ministry of
Education, the Ministry of Mineral Resources, the Parliament as well as
Cluff Gold; it is anticipated that these students will be employed by the
Company in Sierra Leone upon their graduation. By creating a newly-
skilled generation of Sierra Leoneans capable of taking up employment,
the goal is to create a local workforce to fuel the country’s growing
economy and ensure a legacy of local mining knowledge and 
working experience.
Other community activities in 2011 included the rehabilitation of local
drinking water wells and the construction of a police station at the
Baomahun village. 
In continuation of the educational theme of our work to date, one new
initiative in 2012 is our partnership with Planting Promise to embark on a
community agricultural programme dedicated to the development of
education, whereby the farms owned by the organisation employ local
families who grow and harvest crops to fund the construction and
maintenance of local schools, thereby giving the families the chance to
fund their own futures. 
Other initiatives will also be developed over the course of the year. As
part of the upcoming feasibility study which is targeted for June 2012,
Cluff Gold has appointed AMEC Earth and Environmental in the UK
together with CEMMATS in Sierra Leone to undertake the development
of a framework for Environmental and Social Management Plans. As part
of the framework, a community development plan is being developed in
participation with the communities surrounding the Baomahun project
area. Through understanding the communities’ needs, together with
acquiring knowledge about their contexts, environmental and social, we
will continue to devise a strategy as well as projects that are sustainable,
relevant and locally appropriate. This community development plan will
further build on the initiatives Cluff Gold is supporting in neighbouring
communities as well as contributions made at the chiefdom, regional and
national levels.
Côte d’Ivoire
As a result of the political crisis in early 2011 and the period of insecurity
which followed, the Company’s planned community activities for the year
were put on hold. As peace is gradually restored and operating activities
resume at Yaoure in 2012, the Company will also look to resume the
deferred community and social plans, the most predominant being the
rehabilitation of village roads which have been rendered inaccessible
especially during rainy seasons, namely: 
� Angovia-N’dakoffiyobouekro: 6 km
� Angovia-Bozi: 9 km
� Angovia Kossou Dam: 8 km
� T oumbokro-Kossou: 12 km
It is anticipated that the rehabilitation will develop the Angovia village as a
regional hub by opening up the local infrastructure, thereby improving
business and other community developments.
T o ensure that an ongoing dialogue is maintained amongst all the
stakeholders, an update meeting was recently held with five
neighbouring village chiefs to discuss the villages’ concerns. Issues
discussed included regional security concerns, illegal mining activities
and youth employment, amongst others. As a result of the meeting, the
Company has reviewed the need for a new gendarmes station post at
the Angovia village, particularly following the post-election crisis, and will
look to contribute to its construction. This new gendarmes station post
will cover the five neighbouring villages and the mine site area. Other
community concerns raised will continue to be addressed throughout
2012 and beyond. T o strengthen constructive partnership, local
authorities as well as community and Cluff Gold representatives have
planned regular meetings to follow up on progress the implementation of
mutually agreed initiatives and to address concerns. 
Safety
The Company is committed to the highest standards of safety at each of
its operations. A comprehensive safety system is in place, in accordance
with ISO 18001, at both the Kalsaka and Yaoure mines. Safety has also
been incorporated within the bonus scheme to reinforce the importance of
safe working practices to all staff. Our philosophy is based on the principle
of personal responsibility with regard to safety, focusing on the need for
each individual to practise a high level of safety in the workplace. All
employees are required to undertake safety training prior to commencing
work, with regular ongoing safety training conducted for all staff.
At Kalsaka, we are proud to report that we incurred 3 million man-hours,
or equivalent to 1 year, 9 months and 17 days, worked without a lost
time injury on 29 June 2011. This significant achievement is the result of
our employees and contractors taking personal ownership for their safety
and the safety of their colleagues, and demonstrates the benefits from
Cluff Gold's disciplined approach to implementing strict safety standards.
Cluff Gold plc
Annual Report & Accounts 2011
Business Review
23
Corporate Social Responsibility
3 million man-hours worked at Kalsaka 
without any lost time injury. Algy Cluff
Non-Executive Chairman
Mr Cluff established Cluff Gold plc in
November 2003 following 31 years of
establishing natural resources businesses. 
He formed CCP in 1972 to bid for North Sea oil
licences and subsequently Cluff Oil Limited. He
then founded and was chairman of Cluff
Resources plc which focused on mineral
exploration in Africa and made several
significant discoveries prior to its acquisition by
Ashanti Gold. Mr Cluff co-founded Cluff Mining
Limited (Ridge Mining plc which is now part of
Aquarius Platinum Limited), which was
admitted to AIM in May 2000. In May 2004 he
turned his full attention to the business of Cluff
Gold. Mr Cluff is a governor of the
Commonwealth Institute. Mr Cluff will be
stepping down at the Company's Annual
General Meeting on 28 May 2012 but will
remain available to the Board as a consultant
after the conclusion of the Annual General
Meeting to ensure continuity, specifically in
relation to African politics. 
John McGloin
Executive Director
Mr McGloin joined the Group on 3 April 2012
as an Executive Director, and will be appointed
Executive Chairman at the Company's Annual
General Meeting. A geologist and graduate of
Camborne School of Mines, Mr McGloin
worked for many years in Africa within the
mining industry before moving into
consultancy. Mr McGloin joined Arbuthnot
Banking Group following 4 years at Evolution
Securities as their mining analyst. Over the
years, Mr McGloin has acted for many mining
companies including African Platinum,
Randgold Resources, Avocet Mining, European
Goldfields and Titanium Resources Group. His
most recent position was Head of Mining at
Collins Stewart which he held from July 2010
to the time he joined Cluff Gold. 
Peter Spivey
Chief Executive Officer
Peter Spivey joined the Group on 1 January
2010. An experienced mine developer and
operator with nearly 30 years’ experience, he
was previously Chief Operating Officer of
Mineral Deposits Limited, and was responsible
for developing the Sabodala Gold Mine and
Grande Côte Mineral sands projects in
Senegal. Since 1998 he has held a variety of
senior positions in Indonesia, T anzania and
Senegal. Mr Spivey is based in West Africa,
where he splits his time between the Group’s
three projects; he travels to London regularly.
Pete Gardner
Finance Director 
Pete Gardner joined the Group on 1 October
2009. Previously Chief Finance Officer for
Alexander Mining plc and Corporate Finance
Manager at PKF (UK) LLP , he is a qualified
chartered accountant with a breadth of
experience in financial management and
corporate finance in the natural resources
sector. Since joining the Group, he has
implemented a number of improvements to the
financial reporting systems and procedures.
Based in the London office, he travels to West
Africa regularly.
Catherine Apthorpe
Company Secretary 
Catherine Apthorpe joined the Group on 1 July
2009, having previously worked as an adviser
to the Group since 2005 in her capacity as
senior solicitor at Maclay Murray & Spens,
LLP . Her role at Cluff Gold incorporates in-
house legal counsel, all general commercial
matters and company secretarial matters. 
She is based in the London office and travels
to West Africa regularly.
Cluff Gold plc
Annual Report & Accounts 2011
Governance
24
Board of Directors Nicholas Berry
Non-Executive Deputy Chairman
Mr Berry joined the Group in November 2004;
He is the controlling shareholder and Chairman
of Stancroft Trust Limited, and Intersport
Switzerland, PsC, and a director and founder of
Mintel International Group Limited, a family
business. Mr Berry is also a non-executive
director of The Daily Mail and General Trust plc. 
Bobby Danchin
Non-Executive Director
A geologist and chemist, Mr Danchin joined
the Group in November 2004. He served in
many senior management roles at Anglo
American plc, including CEO of the exploration
and acquisition division. He was also
Exploration Manager of the De Beers
Australian subsidiary, Stockdale Prospecting,
and is currently non-executive chairman of
Mineral Deposits Limited. 
Tim Wadeson
Non-Executive Director
Mr Wadeson joined the Group in November
2004 following an extended career as a mining
engineer, mainly with the Anglo American
Group. He has served as the CEO of Konkola
Copper Mines, Zambia, Group T echnical
Director of Anglo American Corporation, and
the T echnical Director of Minorco SA. He has
also been a non-executive director of Highland
Gold Mining Limited and of Mwana Africa plc. 
Peter Cowley
Non-Executive Director
Peter Cowley joined the Group in January
2008. He is a geologist with 40 years of
international experience in the minerals industry
and has been involved in the discovery and
development of a number of gold mines in
Africa. Mr Cowley is also President and CEO of
Loncor Resources Inc and a Director of Banro
Corporation and was previously Managing
Director of Ashanti Exploration Limited and
Group T echnical Director of Cluff Resources
plc. He holds M.Sc and M.B.A. degrees and is
a Fellow of I.M.M.M. 
Ronald Winston
Non-Executive Director
Mr Winston joined the Group in October 2008
and is the chairman of Baomahun Gold
Limited. He is also the Honorary Chairman of
Harry Winston Diamonds Inc. and has over 30
years’ experience in building and running a
major commercial enterprise, together with a
wide range of experience in Africa, particularly
Sierra Leone.
Geoff Stanley
Non-Executive Director
A Fellow of the AusIMM and SEG, Mr Stanley
joined the Group in October 2008. He has 26
years of international experience in the
minerals industry. He has worked in exploration
in Australia and as a gold analyst with a
number of securities firms before moving to
New Y ork where he worked for S.G. Warburg
J.B. Were Ltd and BMO Capital Markets. He is
a director of Crescent Gold Limited, Riverfield
Capital Limited, Indo Gold Limited and
Bannerman Resources Limited.
Hendrik Faul
Non-Executive Director
Mr Faul joined the Group in May 2012. As the
current Group Head of Mining at Anglo
American, Mr Faul brings over 20 years of
experience in surface and underground mining,
processing, logistics and marketing, both in
Africa and across the world. He has previously
held several senior roles in the mining industry,
including having served as Chief Executive
Officer for Anglo American’s zinc operations
and General Manager for the Lisheen Mine in
Ireland. Mr Faul is a Non-Executive Director of
Palabora Mining Company, and holds a
Bachelor of Mining Engineering from the
University of Pretoria and a South African Mine
Manager's Certificate for metalliferous mines.
He is an Associate Member of the South
African Institute of Mining and Metallurgy, and
is registered with the South African Council for
Project and Construction Management
Professionals as a professional construction
project manager.
Cluff Gold plc
Annual Report & Accounts 2011
Governance
25
Non Executive Directors The Directors present their report and the audited financial statements for the year ended 31 December 2011.
Principal activities 
Cluff Gold is a gold mining and exploration company with assets in West Africa. Further information is included in the Chairman’s Statement, 
Chief Executive’s Statement and Business Review.
Business review and future developments
The Business Review is presented on pages 8 to 23 of this Annual Report. The Business Review contains certain forward-looking statements,
particularly concerning the anticipated production at the Yaoure and Kalsaka mines, the development plans at the Baomahun project as well as
increases in resources anticipated at the Company’s various projects. These statements have been made by the Directors in good faith based on 
the information available at the time of the approval of the Annual Report. 
By their nature, such forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will
or may occur in the future. Actual results may differ from those expressed in such statements depending on a variety of factors such as, inter alia,
increased costs, possible variations in mineral resources, grades or recovery rates, disruption of supplies, failure of equipment or processes to operate
as anticipated, a weaker gold market and changes in exchange rates.
Key performance indicators
The Group’s key performance indicators are monitored on a monthly basis (and more frequently as required) and reported to the Board of Directors.
They focus on production statistics, resource and reserve updates and exploration expenditure; these are set out in the Business Review.
Results and dividends
The Group made a consolidated profit after taxation for the year of US$17.2m (2010: US$4.4 million loss). The Directors do not recommend the
payment of a dividend (2010: nil).
Share capital and share options
Details of the share capital of the Company are set out in note 13 to the financial statements. Details of share options outstanding at 31 December 2011,
together with options granted during the year, are set out in note 19 to the financial statements.
Directors
The Directors of the Company who held office during the year are as follows:
J G Cluff
P Spivey
P Gardner
N Berry
D Chikohora (resigned 24 February 2011)
P Cowley
R Danchin
G Stanley
T Wadeson
R Winston
JG Cluff will step down from the board at the Annual General Meeting (“AGM”) to be held on 28 May 2012. J McGloin was appointed to the 
Board in April 2012 and will be appointed Executive Chairman at the AGM. H Faul was appointed in May 2012 as a Non-Executive Director. 
In compliance with the Company’s articles of association, J McGloin, H Faul, G Stanley and R Winston will retire by rotation at the Company’s 
AGM and, being eligible, all will offer themselves for re-election. 
During the year, directors’ and officers’ liability insurance was maintained for the Directors and other officers of the Company as permitted by the
Companies Act 2006.
Details of Director's interests in the share capital of the Company and outstanding share options are given in the Remuneration Report on pages 31 to 32.
Cluff Gold plc
Annual Report & Accounts 2011
Governance
26
Directors’ Report
The Directors present their report and the audited financial
statements for the year ended 31 December 2011. Cluff Gold plc
Annual Report & Accounts 2011
Governance
27
Directors’ Report
Substantial shareholdings
As at 31 March 2012, the Company was aware of the following holdings of 3 per cent or more in the Company’s issued share capital:
Name Shareholding % 
1
Ingalls and Snyder 17,652,936 11.24
Libra Advisors LLP 13,787,727 8.78
J P Morgan Asset Management 13,503,508 8.60
Mr R Winston 12,442,010 7.92
Macquarie Bank 8,047,210 5.12
BlackRock Investment Management (UK) 6,283,134 4.00
Sprott Asset Management 5,380,500 3.43
1 Based on 157,047,937 shares issued and outstanding as at 31 March 2011.
Creditor payment policy
It is the Group’s policy to settle all amounts due to creditors in accordance with agreed terms and conditions, provided that all trading terms and
conditions have been complied with. The Group’s average creditor payment period at 31 December 2011 was 30 days (2010: 16 days). 
The Company’s average creditor payment period at 31 December 2011 was 16 days, (2010: 20 days).
Financial instruments
The Group’s exposure to financial risks and its policies in relation to the use of financial instruments are explained in note 17 to the financial statements.
Donations
During the year the Group made charitable donations totalling US$17,123 (2010: US$25,439). Further work carried out under the Group’s corporate
social responsibility programme is detailed on page 23.
Post-balance sheet events
Details of post-balance sheet events are set out in note 22 to the financial statements.
Health and safety
The Group remains committed to the highest standards of health and safety. Details are provided in the Corporate Social Responsibility review on page 23.
Corporate governance
A report on corporate governance is provided on pages 28 to 30.
Going concern
After reviewing the Group’s operations, financial position and short and long term cash flow forecasts, the Directors have a reasonable expectation that
the Group has adequate resources to continue in operational existence and meet its financial obligations as they fall due for the foreseeable future.
Accordingly, the Directors continue to adopt the going concern basis for the preparation of these financial statements.
Provision of information to auditor
In the case of each of the Directors who are Directors of the Company at the date when this report is approved:
� So far as they are individually aware, there is no relevant audit information which the Company’s auditor is unaware of; and
� They have taken all the steps that they ought to have taken as a Director to make themselves aware of any relevant audit information and to
establish that the Company’s auditor is aware of that information.
Auditor
PKF (UK) LLP has confirmed its willingness to continue in office, and a resolution for its reappointment will be proposed at the forthcoming AGM. Cluff Gold plc
Annual Report & Accounts 2011
Governance
28
Directors’ Report
Corporate Governance
Corporate Governance
The Board acknowledges the importance of the guidelines set out in the UK Corporate Governance Code (formerly the Combined Code) and the
Quoted Companies Alliance (QCA) published Corporate Governance Guidelines and complies with these so far as is appropriate having regard to 
the size and nature of the Company.
The Company has during the year put in place appropriate guidance, training and implementation of procedures to ensure compliance 
with the UK Bribery Act.
Board of Directors and independence
The Company supports the concept of an effective board leading and controlling the Company. The Board is responsible for approving Company
policy and strategy. It holds monthly board meetings and is supplied with appropriate and timely information in order to discharge its duties. Briefing
papers are distributed to all Directors in advance of board meetings, and all Directors have access to the advice and services of the Company
Secretary, who is responsible for ensuring that board procedures are followed and that applicable rules and regulations are complied with. The articles
of association provide that any Director who was not appointed or re-appointed at one of the preceding two annual general meetings will be subject 
to re-election.
The Board currently comprises ten Directors, three of whom are executive and hold the key operational positions. The seven remaining non-executives
(including the Chairman) bring a breadth of experience and knowledge. Mr J McGloin was appointed an executive director on 2 April 2012.
The UK Corporate Governance Code requires that small companies should have at least two independent non-executive Directors. The Board
considers all non-executive Directors to be independent with the exception of Mr R. Winston due to his significant personal shareholding 
in the Company.
The Chairman of the Board Mr JG Cluff, became non-executive Chairman on 1 August 2011 having previously held the role of executive Chairman. 
On 2 April 2012 it was announced that Mr Cluff will be stepping down as non executive Chairman following completion of the Company's annual
general meeting to be held on 21 May 2012. Mr J McGloin will assume the position of Executive Chairman from this date. 
Board meetings and sub-committees
The full Board met on 11 occasions during the period (including a strategy week), the attendance record of the Directors at the full board and other
committees is shown below.
Full Audit Remuneration
board committee committee
JG Cluff 11 n/a n/a
P Spivey 11 n/a n/a
P Gardner 10 n/a n/a
N Berry 522
P Cowley 1043 
R Danchin 11 n/a 3
G Stanley 10 4 n/a
T Wadeson 11 n/a n/a
R Winston 5 n/a n/a
The Nominations Committee was not required to meet during the year.
The Board has established appropriately constituted Audit, Remuneration, and Nominations Committees with formally delegated responsibilities.
Audit Committee
The Audit Committee is chaired by Mr P Cowley, the other members being Mr N Berry and Mr G Stanley. The Audit Committee may examine any
matters relating to the financial affairs of the Group and the Group’s audits. This includes reviews of the annual financial statements and
announcements, internal control procedures, accounting procedures, accounting policies, the appointment, independence, objectivity, terms of
reference and fees of the external auditor and other related functions as the Board may require. The external auditor has direct access to the members
of the Audit Committee, without the presence of the executive Directors, for independent discussions. Remuneration Committee
The Remuneration Committee is chaired by Mr N Berry, Mr P Cowley and Dr R Danchin being the other members. It determines the terms and
conditions of employment and annual remuneration of the executive and non-executive Directors. It takes into consideration external data and
comparative third party remuneration and has access to professional advice outside the Company. The key policy objectives of the Remuneration
Committee in respect of the Company’s executive Directors and other senior executives are: (a) to ensure that individuals are fairly rewarded for their
personal contribution to the Company’s overall performance, and (b) to ensure that due regard is given to the interests of the Company’s shareholders
and to the financial and commercial health of the Company. Remuneration of executive Directors comprises basic salary, discretionary bonuses,
participation in the Company’s share option schemes or other equity based remuneration schemes, pension plan contributions and other benefits. 
The Company’s remuneration policy with regard to options and other equity based remuneration schemes is to maintain an amount of not more than
10 per cent of the issued share capital in options or other equity incentives for the Company’s management and employees, which may include the
issue of new options or other equity incentives in line with any new share issues. 
Nominations Committee
The Nominations Committee, which leads the process for Board appointments and makes recommendations to the Board, is chaired by Mr JG Cluff,
the other members being Mr N Berry, Mr T Wadeson and Dr R Danchin. 
Service contracts
The Chief Executive Officer and Finance Director are on permanent employment contracts with notice periods of one year and six months respectively.
Non-executive Directors have formal letters of appointment setting out their duties and are three year service contracts terminable at one months notice.
Relations with shareholders
The Company fully values the views of its shareholders and is committed to maintaining the highest standards of disclosure ensuring that all investors
and potential investors have the same access to high quality, relevant information in an accessible and timely manner to assist them in making
informed decisions.
Members of the Board attempt to regularly meet with investors, brokers and other institutions to inform them of short and long term objectives of the
Group. The AGM also enables both institutional and private investors to communicate with the Board and are encouraged to ask questions.
The Company operates and updates its website www.cluffgold.com regularly, uploading recent investor presentations, resource information and
financial reports in a timely manner. The Company is assisted in its public relations strategy by Pelham Bell Pottinger and Farm Street Communications.
Internal control
The Board is responsible for establishing and maintaining a sound system of internal control to safeguard shareholders’ investment and the
Company’s assets. These internal controls are designed to provide reasonable assurance to users and stakeholders regarding the reliability of the
Group financial statements. Inherent limitations in control systems mean that only reasonable, and not absolute, assurance can be provided against
material misstatement or loss.
T aking account of the size and nature of the Group the Board has implemented processes for identifying and evaluating the key operational, financial
and compliance risks facing the Group. Under the direction of the Chief Executive Officer and Finance Director, and with guidance from the non-
executive Directors, this process continues to evolve as the Group grows in size. Where weaknesses are identified appropriate amendments are made
to the control systems.
Details of the key risks that the Group is exposed to are set out overleaf.
Cluff Gold plc
Annual Report & Accounts 2011
Governance
29
Directors’ Report
Corporate Governance Principal risks and uncertainties
Operational risks
Mining operations generally involve a high degree of risk. Unexpected events could result in damage to the Company’s property or otherwise give rise
to financial liability which could affect the ability of the Company to continue to operate profitably.
A violation of health and safety laws or regulations could have a material adverse effect on the Company’s business due to a requirement to implement
new compliance measures, shut down all or a portion of a mine, or the loss of the right to mine.
Mining operations have inherent risks and liabilities associated with environmental laws and regulations, which are constantly evolving. There may be
unforeseen environmental issues under existing or updated legislation which could expose the Company to additional liabilities and have a material
adverse effect on the Company’s operations.
Exploration and development risks
The success of the Company is dependent on the discovery and/or acquisition of mineral reserves and mineral resources and the successful
development of mines therefrom. Significant risk exists within technical, legal and financial aspects of the development of mines, which may have an
adverse effect on the Company’s business.
A note of the risks associated with ore reserve estimates is set out within the Critical Accounting Estimates and Judgements within the accounting policies.
Financing risks
The Group is exposed to commodity price risk as detailed in note 17 to the financial statements. In addition, reserve calculations and life-of-mine plans
using significantly lower gold prices could result in material write downs of the Company’s investments in mining properties.
The Company requires substantial funds for exploration and development of mineral properties (including the proposed development of the Baomahun
project). The Company may also incur major unanticipated liabilities or expenses. The Company’s access to capital is largely determined by its ability
to compete for investor support for its projects. There can be no assurance that the Company will be able to obtain the necessary financing in a timely
manner on acceptable terms to complete its investment strategy.
Political risks
The Company’s activities are subject to various laws and regulations governing the mining industry. Although all activities are currently carried out in
material compliance with all applicable rules and regulations, no assurance can be given that new rules and regulations will not be enacted or that
existing rules and regulations will not be applied in a manner which could limit or curtail the Company’s current activities and development plans and
have a material adverse impact on the Company’s financial position. 
The Company’s activities are focused on West Africa and the success of the Company will be influenced by associated legal and political risks.
Countries in the region have experienced political instability and economic uncertainty in the past. Government policy in the countries in which the
Company operates can be unpredictable, and the institutions of government and market economy may be unstable and subject to rapid change,
which may result in a material adverse effect on the Company’s operations.
The Company currently has in place political risk insurance covering expropriating acts and contingent currency inconvertibility or exchange transfer
embargo with respect to the Yaoure, Kalsaka and Baomahun properties.
Corporate social responsibility
A review of the Group’s corporate and social responsibility values, objectives and actions is set out in the Business Review on page 22.
Cluff Gold plc
Annual Report & Accounts 2011
Governance
30
Directors’ Report
Corporate Governance Cluff Gold plc
Annual Report & Accounts 2011
Governance
31
Directors’ Report
Remuneration report
Remuneration report
Remuneration policy
The Company’s policy is to ensure that the members of the Board are fairly remunerated with regard to responsibilities undertaken and with reference
to comparable pay levels in the UK and in the mining industry. In addition, the Company has a flexible approach to the awarding of discretionary cash
bonuses and share options to ensure that it is able to attract, motivate and retain Directors (and senior management) of the calibre necessary to ensure
that the Company meets its objectives.
The awarding of salary increases, bonuses and share options to Board members is reviewed and confirmed by the Remuneration Committee following
guidance from the Chairman and Chief Executive Officer.
T otal remuneration of Directors serving in the year: 
Aggregate Share based
2011 US$000 Salary Bonus BIK emoluments Pension payment Loss of office T otal
JG Cluff 
1
447 964 29 1,440 45 177 - 1,662
P Spivey 311 40 128 479 26 67 - 572
P Gardner 231 34 3 268 23 83 - 374
N Berry 47 - - 47 - 12 - 59
D Chikohora 
2
14 - 2 16 - 50 - 66
P Cowley 51 - - 51 - 16 - 67
R Danchin 41 - - 41 - 12 - 53
G Stanley 42 - - 42 - 11 - 53
T Wadeson 43 - - 43 - 12 - 55
R Winston 41 - - 41 - 11 - 52
1,268 1,038 162 2,468 94 451 - 3,013
Aggregate Share based
2010 US$000 Salary Bonus BIK emoluments Pension payment Loss of office T otal
JG Cluff 438 252 37 727 44 169 - 940
P Spivey 
3
125 126 152 403 13 52 - 468
P Gardner 
3
106 125 - 231 11 57 - 299
N Berry 50 - - 50 - 27 - 77
D Chikohora 171 - 6 177 47 66 104 394
E Carr 
4
15 - - 15 - 45 156 216
P Cowley 53 - - 53 - 36 - 89
R Danchin 45 - - 45 - 27 - 72
G Stanley 61 - - 61 - 14 - 75
T Wadeson 47 - - 47 - 27 - 74
R Winston 45 - - 45 - 14 - 59
1,156 503 195 1,854 115 534 260 2,763
1 bonus payment made on becoming non-executive Chairman 
2 resigned 24 February 2011, in addition gains of $175,000 on the exercise of share options made in 2010
3 appointed 29 June 2010
4 resigned 31 January 2010 Cluff Gold plc
Annual Report & Accounts 2011
Governance
32
Directors’ Report
Remuneration report
Directors’ shareholdings
The Directors and their beneficial interests in the shares of the Company were as follows:
Ordinary shares of 1p each
At 31 December 2011 At 31 December 2010
J G Cluff 1,872,981 1,870,000
P Spivey 50,000 -
P Gardner 41,180 10,000
N Berry 433,740 426,585
D Chikohora (resigned 24 February 2011) - 539,545
P Cowley 33,775 26,620
R Danchin 58,740 51,585
G Stanley 22,056 14,901
T Wadeson 83,740 76,585
R Winston 12,442,010 12,434,855
As at 31 December 2011 the following Directors held options to subscribe for ordinary shares in the Company: 
Number of Number of
share options share options
Name 31 December 2011 31 December 2010 Exercise price Exercise period
JG Cluff 250,000 250,000 55.00p 30 November 2006 - 29 November 2014
300,000 300,000 74.00p 27 April 2009 - 26 April 2016
300,000 300,000 83.00p 05 June 2011 - 04 June 2018
1,000,000 - 71.75p 05 July 2013 - 04 July 2020
P Gardner 150,000 150,000 69.00p 01 October 2012 - 30 September 2019
350,000 - 71.75p 05 July 2013 - 04 July 2020
P Spivey 300,000 300,000 63.50p 01 January 2013 - 31 December 2020
200,000 - 71.75p 05 July 2013 - 04 July 2020
N Berry 100,000 100,000 55.00p 30 November 2006 - 29 November 2014
75,000 75,000 83.00p 05 June 2011 - 04 June 2018
75,000 75,000 74.00p 27 April 2009 - 26 April 2016
P Cowley 100,000 100,000 83.00p 05 June 2011 - 04 June 2018
R Danchin 75,000 75,000 74.00p 27 April 2009 - 26 April 2016
100,000 100,000 55.00p 30 November 2006 - 29 November 2014
75,000 75,000 83.00p 05 June 2011 - 04 June 2018
G Stanley 100,000 100,000 28.50p 03 October 2011 - 02 October 2018
T Wadeson 75,000 75,000 74.00p 27 April 2009 - 26 April 2016
75,000 75,000 83.00p 05 June 2011 - 04 June 2018
100,000 100,000 55.00p 30 November 2006 - 29 November 2014
R Winston 100,000 100,000 28.50p 03 October 2011 - 02 October 2018
Annual General Meeting (“AGM”)
The notice convening the Company’s AGM, to be held on 28 May 2012, is included with the Annual Report. Full details of the resolutions proposed 
at that meeting may be found in the explanatory notes at the end of the notice. The Board unanimously recommends shareholders to vote in favour 
of the resolutions proposed.
By order of the Board
JG Cluff
Chairman
27 April 2012 The Directors are responsible for preparing the Directors’ report and the financial statements in accordance with applicable law and regulations. 
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have, as required by the AIM
Rules of the London Stock Exchange, elected to prepare the Group financial statements in accordance with International Financial Reporting
Standards as adopted by the European Union and have also elected to prepare the parent company financial statements in accordance with those
standards. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of
the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. 
In preparing these financial statements the Directors are required to:
� select suitable accounting policies and then apply them consistently;
� make judgments and estimates that are reasonable and prudent;
� state whether the financial statements have been prepared in accordance 
with IFRSs as adopted by the European Union; and
� prepare the financial statements on the going concern basis unless it is inappropriate 
to presume that the Company and the Group will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and
disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements
comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking
reasonable steps for the prevention and detection of fraud and other irregularities. 
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website.
Legislation in the United Kingdom governing the preparation and dissemination of the financial statements and other information included in 
annual reports may differ from legislation in other jurisdictions.
Cluff Gold plc
Annual Report & Accounts 2011
Governance
33
Statement of Directors’
Responsibilities We have audited the financial statements of
Cluff Gold plc for the year ended 31 December
2011 which comprise the Consolidated
Statement of Comprehensive Income, the
Consolidated and Company Statements of
Financial Position, the Consolidated and
Company Statements of Changes in Equity,
the Consolidated and Company Statements of
Cash Flows and the related notes. The financial
reporting framework that has been applied in
their preparation is applicable law and
International Financial Reporting Standards
(IFRSs) as adopted by the European Union
and, as regards the parent company financial
statements, as applied in accordance with the
provisions of the Companies Act 2006.  
This report is made solely to the Company’s
members, as a body, in accordance with
Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so
that we might state to the Company’s
members those matters we are required to
state to them in an auditor’s report and for no
other purpose. To the fullest extent permitted
by law, we do not accept or assume
responsibility to anyone other than the
Company and the Company’s members as a
body, for our audit work, for this report, or for
the opinions we have formed.
Respective responsibilities of directors 
and auditor
As explained more fully in the directors’
responsibilities statement, the directors are
responsible for the preparation of the financial
statements and for being satisfied that they
give a true and fair view. Our responsibility is to
audit and express an opinion on the financial
statements in accordance with applicable law
and International Standards on Auditing (UK
and Ireland). Those standards require us to
comply with the Auditing Practices Board's
Ethical Standards for Auditors.
Scope of the audit of the 
financial statements
An audit involves obtaining evidence about 
the amounts and disclosures in the financial
statements sufficient to give reasonable
assurance that the financial statements are free
from material misstatement, whether caused
by fraud or error. This includes an assessment
of: whether the accounting policies are
appropriate to the Group’s and the parent
company’s circumstances and have been
consistently applied and adequately disclosed;
the reasonableness of significant accounting
estimates made by the Directors; and the
overall presentation of the financial statements.
In addition, we read all the financial and non-
financial information in the annual report to
identify material inconsistencies with the
audited financial statements. If we become
aware of any apparent material misstatements
or inconsistencies we consider the implications
for our report.
Opinion on financial statements
In our opinion:
� the financial statements give a true and 
fair view of the state of the Group’s and 
the parent company’s affairs as at 
31 December 2011 and of the Group’s
profit for the year then ended;
� the Group financial statements have been
properly prepared in accordance with
IFRSs as adopted by the European Union;
� the parent company financial statements
have been properly prepared in
accordance with IFRSs as adopted by the
European Union as applied in accordance
with the provisions of the Companies Act
2006; and
� the financial statements have been
prepared in accordance with the
requirements of the Companies Act 2006.
Opinion on other matter prescribed 
by the Companies Act 2006
In our opinion the information given in the
Directors’ report for the financial year for 
which the financial statements are prepared 
is consistent with the financial statements. 
Matters on which we are required 
to report by exception
We have nothing to report in respect of the
following matters where the Companies Act
2006 requires us to report to you if, in our
opinion:
� adequate accounting records have not
been kept by the parent company, or
returns adequate for our audit have not
been received from branches not visited 
by us; or
� the parent company financial statements
are not in agreement with the accounting
records and returns; or
� certain disclosures of Directors’
remuneration specified by law are not
made; or
� we have not received all the information
and explanations we require for our audit.
Jason Homewood (Senior statutory auditor)
for and on behalf of PKF (UK) LLP , 
Statutory auditor
London, UK
27 April 2012
Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
34
Independent Auditor’s Report
to the members of Cluff Gold plc Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
35
Consolidated Statement of 
Comprehensive Income
for the year ended 31 December 2011
2011 2010
Notes US$000 US$000
Continuing operations
Revenue 121,684 115,804
Cost of sales (74,706) (94,176)
Gross profit 46,978 21,628
General and administrative expenses (8,937) (7,684)
Other operating costs (12,543) (12,963)
Exploration expenses - (519)
Loss on disposal of property, plant & equipment - (12)
Operating profit 2 25,498 450
Investment income 4 124 349
Finance costs 5 (246) (1,775)
Profit/(loss) before taxation 25,376 (976)
Income tax 6 (8,164) (3,462)
Profit/(loss) for the year 17,212 (4,438)
Attributable to:
Equity shareholders of the parent company 12,389 (6,072)
Non-controlling interests 14 4,823 1,634
Profit/(loss) for the year 17,212 (4,438)
Other comprehensive income 
Exchange differences on translating foreign operations - (1,309)
Other comprehensive income for the year, net of taxation - (1,309)
Total comprehensive income for the year 17,212 (5,747)
Attributable to:
Equity shareholders of the parent company 12,389 (7,759)
Non-controlling interests 14 4,823 2,012
17,212 (5,747)
Earnings/(loss) per share
Basic (cents per share) 7 9.40 (4.92)
Diluted (cents per share) 7 9.25 (4.92) Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
36
Consolidated Statement of Financial Position
as at 31 December 2011
2011 2010
Notes US$000 US$000
Assets
Non-current assets
Intangible assets 8 68,027 48,351
Property, plant and equipment 9 17,453 27,885
Other receivables 11 1,452 2,324
Deferred tax asset 6 - 693
Total non-current assets 86,932 79,253
Current assets
Inventories 12 18,275 12,767
Other receivables 11 6,586 9,074
Cash and cash equivalents 28,905 20,907
Total current assets 53,766 42,748
Total assets 140,698 122,001
Capital and reserves
Share capital 13 2,375 2,365
Share premium 13 117,823 117,410
Merger reserve 13 15,107 15,107
Share option reserve 13 3,316 2,556
Currency translation reserve 13 987 987
Accumulated losses (30,886) (43,431)
Total equity attributable to the parent 108,722 94,994
Non-controlling interests 3,441 2,012
Total equity 112,163 97,006
Non-current liabilities
Provisions 15 8,578 6,059
Deferred tax liability 6 305 -
Total non-current liabilities 8,883 6,059
Current liabilities
Trade and other payables 16 14,705 15,920
Corporation tax 4,947 3,016
Total current liabilities 19,652 18,936
Total liabilities 28,535 24,995
Total equity and liabilities 140,698 122,001
The financial statements were approved and authorised for issue by the Board of Directors on 27 April 2012 and were signed on its behalf by:
P Gardner
Director
Company number: 4822520 Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
37
Company Statement of Financial Position
as at 31 December 2011
2011 2010
Notes US$000 US$000
Assets
Non-current assets
Property, plant and equipment 9 76 94
Investments in subsidiaries 10 10,323 10,323
Other receivables 11 48,546 31,822
Total non-current assets 58,945 42,239
Current assets
Other receivables 11 8,969 13,731
Cash and cash equivalents 10,674 14,036
Total current assets 19,643 27,767
Total assets 78,588 70,006
Capital and reserves
Share capital 13 2,375 2,365
Share premium 13 117,823 117,410
Merger reserve 13 12,607 12,607
Share option reserve 13 3,316 2,556
Currency translation reserve 13 (16,591) (16,591)
Accumulated losses (41,450) (49,270)
Total equity 78,080 69,077
Current liabilities
Trade and other payables 16 508 929
Total current liabilities 508 929
Total equity and liabilities 78,588 70,006
The financial statements were approved and authorised for issue by the Board of Directors on 27 April 2012 and were signed on its behalf by:
P Gardner
Director
Company number: 4822520 Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
38
Consolidated Statement of Changes in Equity
for the year ended 31 December 2011
Attributable to equity shareholders of the parent
Share Currency Non-
Share Share Merger option translation Accumulated controlling T otal
capital premium reserve reserve reserve losses Sub-total interests equity
US$000 US$000 US$000 US$000 US$000 US$000 US$000 US$000 US$000
Balance at 1 January 2010 2,224 101,993 15,107 3,952 2,674 (39,643) 86,307 - 86,307
Loss for the year ----- (6,072) (6,072) 1,634 (4,438)
Exchange differences on translating 
foreign operations ---- (1,687) - (1,687) 378 (1,309)
Total comprehensive income 
for the year ---- (1,687) (6,072) (7,759) 2,012 (5,747)
Issue of ordinary share capital 141 15,423 ----15,564 -15,564
Share issue costs - (6) ---- (6) - (6)
Share option charge - - 888 - - 888 - 888
Reserve transfer on exercise or lapse 
of share options - - - (2,284) - 2,284 - - -
Balance at 31 December 2010 2,365 117,410 15,107 2,556 987 (43,431) 94,994 2,012 97,006
Profit for the year -----12,38912,389 4,82317,212
Total comprehensive income 
for the year -----12,38912,389 4,82317,212
Issue of ordinary share capital 10 413 ---- 423 - 423
Dividend ------- (3,394) (3,394)
Share option charge - - - 916 - - 916 - 916
Reserve transfer on exercise or lapse 
of share options - - - (156) - 156 - - -
Balance at 31 December 2011 2,375 117,823 15,107 3,316 987 (30,886) 108,722 3,441 112,163 Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
39
Company Statement of Changes in Equity
for the year ended 31 December 2011
Share Currency
Share Share Merger option translation Accumulated Total
capital premium reserve reserve reserve losses equity
US$000 US$000 US$000 US$000 US$000 US$000 US$000
Balance at 1 January 2010 2,224 101,993 12,607 3,952 (13,331) (42,460) 64,985
Loss for the year ----- (9,094) (9,094)
Exchange differences on translation ---- (3,260) - (3,260)
Total comprehensive income 
for the year ---- (3,260) (9,094) (12,354)
Issue of ordinary share capital 141 15,423---- 15,564
Share issue costs - (6) ---- (6)
Share option charge - - - 888 - - 888
Reserve transfer on exercise or lapse 
of share options - - - (2,284) - 2,284 -
Balance at 31 December 2010 2,365 117,410 12,607 2,556 (16,591) (49,270) 69,077
Profit for the year ----- 7,664 7,664
Total comprehensive income 
for the year ----- 7,664 7,664
Issue of ordinary share capital 10 413---- 423
Share option charge - - - 916 - - 916
Reserve transfer on exercise or lapse 
of share options - - - (156) - 156 -
Balance at 31 December 2011 2,375 117,823 12,607 3,316 (16,591) (41,450) 78,080 Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
40
Consolidated Statement of Cash Flows
for the year ended 31 December 2011
2011 2010
US$000 US$000
Cash flows from operating activities
Operating profit for the year 25,498 450
Depreciation and amortisation 14,966 19,858
Decrease/(increase) in other receivables 3,925 (856)
Decrease in trade and other payables (2,295) (1,698)
(Increase)/decrease in inventories (4,444) 2,994
Increase in provisions 2,519 1,481
Share option charge 916 888
Exploration costs written off - 7
Loss on disposal of property, plant & equipment 19 5
Exchange loss - 315
Net cash flows from operating activities 41,104 23,444
Income taxes paid (5,235) -
Cash flows used in investing activities
Interest receivable 124 46
Interest payable (24) (1,775)
Purchase of property, plant and equipment (3,598) (6,317)
Purchase of intangible assets (21,180) (5,718)
Net cash flows used in investing activities (24,678) (13,764)
Cash flows (used in)/from financing activities
Proceeds from the issue of share capital 423 15,564
Issue costs paid - (6)
Dividend (3,394) -
Repayment of borrowings  - (6,000)
Net cash flows (used in)/from financing activities (2,971) 9,558
Net increase in cash and cash equivalents 8,220 19,238
Cash and cash equivalents at start of period 20,907 2,273
Exchange losses on cash and cash equivalents (222) (604)
Cash and cash equivalents at end of year 28,905 20,907
Cash and cash equivalents comprise
Cash at bank 28,905 20,907 Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
41
Company Statement of Cash Flows
for the year ended 31 December 2011
2011 2010
US$000 US$000
Cash flows used in operating activities
Operating loss for the year (4,257) (8,615)
Depreciation 64 42
Decrease/(increase) in trade and other receivables 95 (97)
(Decrease)/increase in trade and other payables (421) 144
Share option charge 916 888
Exploration costs written off - 7
Gain on assignment of inter-company debt - (6,716)
Impairment of amounts due from subsidiaries - 9,811
Exchange gain - (25)
Net cash flows used in operating activities (3,603) (4,561)
Cash flows (used in)/from investing activities
Interest receivable 86 42
Interest paid (6) (1,661)
Purchase of property, plant and equipment (45) (23)
Purchase of intangible assets - (3)
Dividend received 11,294 -
Amounts remitted from subsidiary undertakings 10,500 19,605
Amounts remitted to subsidiary undertakings (21,888) (10,178)
Net flows (used in)/from investing activities (59) 7,782
Cash flows from financing activities
Proceeds from the issue of share capital 423 15,564
Issue costs paid - (6)
Repayment of borrowings  - (6,000)
Net cash flows from financing activities 423 9,558
Net (decrease)/increase in cash and cash equivalents (3,239) 12,779
Cash and cash equivalents at start of period 14,036 1,365
Exchange loss on cash and cash equivalents (123) (108)
Cash and cash equivalents at end of year 10,674 14,036
Cash and cash equivalents comprise
Cash at bank 10,674 14,036 The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been applied
consistently to all the years presented, unless otherwise stated.
Basis of preparation
The consolidated financial statements have been prepared in accordance with applicable International Financial Reporting Standards as adopted by the
European Union and with those parts of the UK Companies Act 2006 applicable to companies reporting under IFRS as adopted by the European Union.
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts in the financial statements. The areas involving a higher degree of judgement or complexity, or areas
where assumptions or estimates are significant to the financial statements are disclosed in the accounting policies below. 
The financial information is presented in US dollars. Following a review of the primary economic environment in which each Group entity operates, 
on 1 January 2011 the US dollar was adopted as the functional currency for Cluff Gold plc (the “Company”) Cluff Gold (UK) Limited and Cluff Gold (SL)
Limited leading to all material entities in the Group using the US dollar as their functional currency. Consequently, there are no exchange differences on
the translation of subsidiaries and the currency translation reserve will remain frozen as at the 31 December 2010 balance.
The Group has chosen to present its financial statements in US dollars as it is the currency most-relevant to our investors given the nature of the
Group’s activities.
A separate statement of comprehensive income for the parent company has not been presented as permitted by section 408 of the Companies Act
2006. The parent company made a profit of US$7,664,000 (2010: US$9,094,000 loss). 
Nature of business and going concern
The Company is a public limited company incorporated and domiciled in England. The address of the registered office is 
15 Carteret Street, London, SW1H 9DJ.
The Group is involved in the acquisition, exploration, development and operation of gold mines and deposits in West Africa. 
The Directors regularly review cashflow forecasts to determine whether the Group has sufficient cash reserves to meet future working capital
requirements, progress its exploration projects and take advantage of business opportunities that may arise. The Group manages its treasury function
to ensure that cash is primarily held in politically stable countries. This minimises the risk of political events preventing the Group from continuing to
make payments required for the Group’s operations to continue.
Further information regarding the Group’s financing arrangements are set out in note 17 to the financial statements.
The Group’s cashflows from mining operations continue to improve and based on this performance and the forecast cash flows, the Directors are
satisfied that the Group has sufficient cash resources to continue its operations and meet its commitments for the foreseeable future. They have
therefore concluded that it is appropriate for the financial statements to be prepared on a going concern basis. The Group does not currently have 
any external borrowings.
Adoption of standards effective in 2011
No material changes to accounting policies arose as a result of new standards applied by the Group from 1 January 2011.
Issued IFRS that are not yet effective
Any standards and interpretations that have been issued but are not yet effective, and that are available for early application, have not been applied by
the Group in these financial statements. Application of these Standards and Interpretations was not deemed to have a material effect on the financial
statements of the Group. 
Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
42
Summary of Significant Accounting Policies
for the year ended 31 December 2011 Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and enterprises controlled by the Company (its subsidiaries)
made up to 31 December each year. The excess of cost of acquisition over the fair values of the Group’s share of identifiable net assets acquired is
recognised as goodwill. Any excess of the fair value of assets acquired over the cost of acquisition is recognised directly in profit or loss. 
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is measured as 
the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired
and liabilities and contingent liabilities assumed in a business combination are initially measured at fair value at acquisition date.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the
effective date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used 
by other members of the Group.
All intra-group transactions, balances, and unrealised gains on transactions between Group companies are eliminated on consolidation. Unrealised
losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Non-controlling interests in subsidiaries are presented separately from the equity attributable to equity owners of the parent company. Non-controlling
shareholders’ interest may initially be measured either at fair value or at the non-controlling interests’ proportionate share of the fair value of the
acquiree’s identifiable net assets. The choice of measurement basis is made on each acquisition individually.
Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the 
non-controlling interests’ share of subsequent changes in equity. Total comprehensive income is attributed to non-controlling interests even 
if this results in the non-controlling interests having a deficit balance.
Foreign currencies
Foreign currency transactions and balances
Transactions in currencies other than the functional currency of the appropriate Group company are translated at the rates of exchange prevailing 
on the dates of the transactions. At the date of each statement of financial position, monetary assets and liabilities that are denominated in foreign
currencies are translated to the functional currency at the rates prevailing on the relevant date. Gains and losses arising on translation are included 
in profit or loss for the year.
Translation of foreign operations
On 1 January 2011 the US dollar was adopted as the functional currency for all material entities in the Group. Consequently, there are no exchange
differences on the translation of subsidiaries and the currency translation reserve will remain frozen as at the 31 December 2010 balance.
On consolidation, the assets and liabilities of subsidiaries that have a functional currency other than US dollars are translated to US dollars as follows:
� Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of 
financial position;
� Income and expenses for each statement of comprehensive income are translated at average exchange rates (unless this average is not a
reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are
translated at the rate on the dates of the transactions); and
� All resulting exchange differences are recognised as a separate component of equity, and released to profit or loss on disposal of the subsidiary.
Net investment in foreign operations
Exchange differences arising from the translation of the net investment in foreign operations are recognised as a separate component of equity 
 and released to profit or loss upon disposal of the foreign operation.
Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
43
Summary of Significant Accounting Policies
for the year ended 31 December 2011 Intangible assets
Deferred exploration and evaluation costs
All costs incurred prior to obtaining the legal right to undertake exploration and evaluation activities on a project are written off as incurred.
All costs associated with mineral exploration and investments are capitalised on a project by project basis, pending determination of the feasibility of
the project. Costs incurred include appropriate technical and administrative expenses. If an exploration project is successful, the related costs will be
transferred to mining assets and amortised over the estimated life of the commercial ore reserves on a unit of production basis. Where a project is
relinquished, abandoned, or is considered to be of no further commercial value to the Group, the related costs are written off. 
The recoverability of deferred exploration costs is dependent upon the discovery of economically recoverable ore reserves, the ability of the Group to
obtain necessary financing to complete the development of the ore reserves and future profitable production or proceeds from the disposal thereof.
Mining and exploration licences
The mining licences were originally measured at the fair value of the shares issued to non-controlling interests in return for the legal rights conferred by
the mining licences, based on the net present value of cash flows expected to arise from the related mining operations. Mining licences are amortised
over the estimated life of the commercial ore reserves on a unit of production basis, or the life of the licence, whichever is shorter. 
The exploration rights relate to the fair value of shares issued in 2008 for the acquisition of 40% of the Baomahun project. On development of the project
these costs will be transferred to mining assets and amortised over the estimated life of the commercial ore reserves on a unit of production basis.
Property, plant and equipment
Mining and development costs
Mining and development costs include appropriate deferred exploration and evaluation costs transferred on development of an exploration property.
Before reclassification, such costs are assessed for impairment, with any impairment loss recognised in profit or loss for the year.
All subsequent development costs are capitalised, including all costs incurred during the commissioning of the project that are directly related to that
operation. Any revenues generated during this period are treated as a contribution against those costs and credited against mining and development
costs. At the end of the commissioning phase, when the mine is capable of substantially operating in the manner intended by management,
capitalisation ceases and the mining assets are amortised over the estimated life of the commercial ore reserves on a unit of production basis. 
Future forecast capital expenditure is included in the unit of production depreciation calculation.
Property, plant and equipment
All property, plant and equipment assets are stated at cost less accumulated depreciation
Depreciation is provided to write off the cost, less residual value, using the straight-line method over their estimated useful life of the assets as follows:
� Office equipment, fixtures and fittings 33%
� Computers 33%
� Motor vehicles 33%
Residual values, remaining useful lives and depreciation methods are reviewed annually and adjusted if appropriate.
Gains or losses on disposal are included in profit or loss for the year.
Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
44
Summary of Significant Accounting Policies
for the year ended 31 December 2011 Impairment of property, plant and equipment and intangible assets
At each balance sheet date, the Group reviews the carrying amounts of its property, plant and equipment and intangible assets to determine whether
there is any indication that those assets have suffered impairment. Where the asset does not generate cash flows that are independent from other
assets, the Group assesses the cash-generating unit to which the asset belongs for impairment. Intangible assets not yet available for use are tested
for impairment annually and whenever there is an indication that the asset may be impaired. 
Impairment reviews for deferred exploration and evaluation costs are carried out on a project by project basis, with each project representing 
a potential single cash generating unit. An impairment review is undertaken when indicators of impairment arise and typically when one of the 
following circumstances apply:
i. unexpected geological occurrences that render the resource uneconomic; 
ii. title to the asset is compromised; 
iii. variations in metal prices that render the project uneconomic; and 
iv. variations in the currency of operation.
If any indication of impairment exists, the recoverable amount of the asset is estimated, being the higher of fair value less costs to sell and value in 
use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have been adjusted. 
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset 
(or cash generating unit) is reduced to its recoverable amount. Such impairment losses are recognised in profit or loss for the year.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of 
its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised in profit or loss 
for the year. 
Inventories
Inventories comprise gold produced, gold in process, ore stockpiles, consumables and spares and are stated at the lower of cost and net realisable
value. The cost of gold produced, gold in process and ore stockpiles is calculated on a first in first out basis and includes all costs directly incurred 
up to the relevant point of the process such as mining costs and processing costs, but exclude other operating costs such as general mine or
administration costs. Net realisable value is determined with reference to current market prices.
Financial instruments
Financial assets and financial liabilities are recognised on the Company’s and Group’s balance sheet when the Company and Group has become 
a party to the contractual provisions of the instrument and are initially measured at fair value.
Other receivables
Other receivables do not carry any interest and are stated at their nominal value as reduced by appropriate provisions for irrecoverable amounts. 
Amounts due from subsidiaries are recorded at amortised cost, less provision for impairment.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, and other short term highly liquid investments with original
maturities of three months or less.
Investments
Investments in subsidiaries are recorded at cost less provisions for impairment.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument
is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.
Financial liabilities include bank loans and overdrafts which are recognised initially at fair value less attributable transaction costs. Subsequent to initial
recognition, interest-bearing borrowings are stated at amortised cost with any difference between cost and redemption value being recognised in the
statement of comprehensive income over the period of the borrowings on an effective interest basis.
Trade payables
Trade payables are stated at amortised cost using the effective interest method.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs. Where equity instruments are issued as
part of an acquisition they are recorded at their fair value on the date of acquisition.
Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
45
Summary of Significant Accounting Policies
for the year ended 31 December 2011 Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event which it is probable will result in an outflow of 
economic benefits that can be reliably estimated.
Provisions for decommissioning and site restoration costs
An obligation to incur decommissioning and site rehabilitation costs occurs when environmental disturbance is caused by the development 
or ongoing production of a mining property. Costs are estimated on the basis of a formal closure plan and are subject to regular formal review.
Such costs arising from the installation of plant and other site preparation work, discounted to their net present value, are provided and capitalised
within mining and development costs at the start of each project, as soon as the obligation to incur such costs arises. These decommissioning costs
are charged against profits over the life of the mine, through depreciation of the asset and unwinding or amortisation of the discount on the provision.
Depreciation is included in operating costs while the unwinding of the discount is included as financing costs. Changes in the measurement of a
liability relating to the decommissioning of plant or other site preparation work are added to, or deducted from, the cost of the related asset in the
current period. 
The costs for restoration of site damage created on an ongoing basis during production are provided for at their net present values and charged
against operating profits as extraction progresses. Changes in the measurement of a liability relating to site damage created during production are
charged against operating profit.
Share-based payments
The fair value of equity settled share based payments are measured at grant date using the Black-Scholes model. The fair value is expensed on 
a straight-line basis over the vesting period, based on the Group’s estimate of shares that will eventually vest. Details of the inputs to the model 
are given in note 19.
Revenue recognition
The Group enters into contracts for the sale of gold. Revenue arising from gold sales under these contracts is recognised when the price is
determinable, the product has been delivered in accordance with the terms of the contract, the significant risks and rewards of ownership have been
transferred to the customer and collection of the sales price is reasonably assured. These criteria are assessed to have occurred once the gold has
been received by the smelter and a sale price has been agreed for the majority of the contained gold.
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. 
All other leases are classified as operating leases. Rentals payable under operating leases are charged to profit or loss on a straight-line basis over 
the term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight line 
basis over the lease term.
T axation
The charge for taxation is based on the profit or loss for the year and takes into account deferred tax. Deferred tax is the tax expected to be payable 
or recoverable on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax
bases used in the computation of taxable profit or loss, and is accounted for using the balance sheet method. 
Deferred tax assets are only recognised to the extent that it is probable that future taxable profit will be available in the foreseeable future against 
which the temporary differences can be utilised.
Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
46
Summary of Significant Accounting Policies
for the year ended 31 December 2011 Critical accounting estimates and judgements
Some of the accounting policies require the application of significant judgment by management in selecting the appropriate assumptions for
calculating financial estimates.
By their nature, these judgments are subject to an inherent degree of uncertainty. Estimates and judgements are continually evaluated and are based
on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within 
the next financial year are discussed below.
Provisions for decommissioning and site restoration costs
Management uses its judgement and experience to provide for and (in the case of capitalised decommissioning costs) amortise the estimated costs
for decommissioning and site rehabilitation over the life of the mine. The ultimate cost of decommissioning and site rehabilitation is uncertain and cost
estimates can vary in response to many factors including changes to relevant legal requirements, the emergence of new restoration techniques or
experience at other mine sites. The expected timing and extent of expenditure can also change, for example in response to changes in ore reserves or
processing levels. As a result, there could be significant adjustments to the provisions established which could affect future financial results.
Ore reserves estimates
The Group reports its estimated ore reserves in accordance with Canadian National Instrument 43-101. Mining assets are amortised over the
estimated life of the commercial ore reserves on a unit of production basis. There are numerous uncertainties inherent in estimating ore reserves, and
assumptions that were valid at the time of estimation may change when new information becomes available. These include assumptions as to grade
estimates and cut-off grades, recovery rates, commodity prices, exchange rates, production costs, capital costs, processing and reclamation costs
and discount rates. The actual volume of ore extracted and any changes in these assumptions could affect prospective depreciation rates and 
carrying values of property, plant and equipment and intangible assets.
Impairment
In undertaking an impairment review for the operating mines or advanced exploration projects a technical economic model is prepared which includes
full details of the mining schedule, head grade, recoverability, strip ratios of waste to ore, consumables used and operating costs. From this information
the amount of gold production is calculated and revenues estimated. Operating costs, including royalties and refining charges are then entered and a
monthly cash flow is produced, which is used to calculate the net present value of the pre-tax free cash flow from the operation. This net present value
is then compared to the carrying value of the operation on the balance sheet and an assessment is made regarding impairment. 
Should any of the key parameters differ from the assumptions contained within the technical economic model, such as tonnes of ore mined, grade of
ore mined, recovery profile or gold price, the net present value will be affected either positively or negatively. If the impact is negative, an impairment
charge may be required that has not been recognised in these financial statements.
In some cases using a technical economic model to provide a value in use calculation is not appropriate or possible. In these situations impairment
reviews are carried out by reference to fair value less cost to sell. This is achieved by reference to reviews on economic value per ounce of resource
against comparable transactions and the market value of other gold companies to assess if the fair value less cost to sell supported the carrying value.
Valuation of mining licences 
The valuation of mining licences included in these financial statements reflect the shares issued to non-controlling interests in exchange for the
licences. The valuation was based on the net present values expected to arise from the related mining assets. These cash flows are subject to
numerous uncertainties which may affect the valuation of the licences. 
Inventories
Valuations of gold in stockpiles and gold in process require estimations of the amount of gold contained in, and recovery rates from, the various work
in progress gold circuits. These estimations are based on analysis of samples and prior experience. Judgement is also required regarding the timing of
utilisation of stockpiles and the gold price to be applied in calculating net realisable value.
Indirect taxes receivable
Given the uncertainties relating to the fiscal regimes, the Group has had to apply judgement in determining the value and timing of amounts that will 
be recovered with respect to indirect taxes owing to the Group in Burkina Faso and Côte d’Ivoire. The amounts reflected in the financial statements 
are the Directors’ best estimate of the recovery of these amounts.
Commissioning of operations
Prior to a mine being considered substantially complete and ready for its intended use, all revenues and direct operating costs relating to the mine are
capitalised within mine development cost. Management consider a number of criteria to determine when this point is reached, including the ability of
the mine to recover and process ore on a sustainable basis at grades consistent with the ongoing mine plan and, as a result, sustain the ongoing
production of gold.
Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
47
Summary of Significant Accounting Policies
for the year ended 31 December 2011 Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
48
Notes to the Consolidated Financial Statements
for the year ended 31 December 2011
1 Segmental reporting
Operating segments have been identified on the basis of internal reports about components of the Group that are regularly reviewed by the Group’s
chief operating decision maker. The Group’s chief operating decision maker is considered by management to be the board of Directors. The operating
segments included in internal reports are determined on the basis of their significance to the Group. In particular, operating mines are reported as
separate segments together with exploration projects that have significant capitalised expenditure. An analysis of the Group’s business segments is
set out below.
All other
Kalsaka Yaoure Baomahun segments T otal
US$000 US$000 US$000 US$000 US$000
Year ended 31 December 2011
External revenue – sale of gold 114,209 9,878 - - 124,087
Direct costs of production (53,349) (8,473) - - (61,822)
Other operating and administrative costs (8,995) (3,356) - (6,370) (18,721)
Segmental result - EBITDA 51,865 (1,951) - (6,370) 43,544
Total assets 53,368 27,508 61,815 11,350 154,041
Capital expenditure 6,814 1,970 16,349 469 25,602
All other 
Kalsaka Yaoure Baomahun segments T otal
US$000 US$000 US$000 US$000 US$000
Year ended 31 December 2010
External revenue – sale of gold 90,643 24,208 - - 114,851
Direct costs of production (53,850) (20,984) - - (74,834)
Other operating and administrative costs (7,687) (4,100) - (5,604) (17,391)
Segmental result - EBITDA 29,106 (876) - (5,604) 22,626
Total assets 48,726 25,636 44,552 14,676 133,590
Capital expenditure 2,642 3,608 6,179 27 12,456
In 2011 the Group had one customer (2010: one).
The segmental result reported represents earnings before interest, tax, depreciation and amortisation (EBITDA) and excludes share option charges,
which is the measure of segmental profit regularly reported to the board of Directors. The accounting policies of the reporting segments are different
from the Group’s accounting policies as follows:
� Pre-commissioning income and expenditure at operating mines is not capitalised in the segmental results.
� Income is accrued for gold bullion on hand at the period end in segmental results and, accordingly, no stock is recognised for this item.
� The depreciation charge against segmental assets is based on a different total asset cost compared to the statutory accounts due, to the fact 
that income and expenditure is not capitalised during the commissioning period. In addition, the total asset cost is depreciated from the
commencement of mining operations.
A reconciliation of segmental revenue to the statutory financial statements is as follows:
2011 2010 
US$000 US$000
Revenue for reportable segments 124,087 114,851
Change in accrued revenue for gold bullion stock at year-end (2,403) 953
Revenue for statutory accounts 121,684 115,804 Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
49
Notes to the Consolidated Financial Statements
for the year ended 31 December 2011
A reconciliation of EBITDA to profit/(loss) before taxation is as follows:
2011 2010
US$000 US$000
EBITDA for reportable segments 43,544 22,626
Depreciation and amortisation (14,966) (19,858)
Share based payments (916) (888)
Net interest received/(payable) 100 (1,729)
Loss on disposal of property, plant and equipment (19) (12)
Change in accrued revenue for gold bullion stock at year-end (1,433) 436
Exploration costs written-off - (520)
Exchange rate variance (742) 303
VAT provided net of direct fees in year (192) (1,334)
Profit/(loss) before taxation 25,376 (976)
A reconciliation of segmental assets to the statutory financial statements is as follows:
2011 2010
US$000 US$000
Total assets for reportable segments 154,041 133,590
EBITDA capitalised during commissioning phase of mining operations 5,962 5,962
Differences in depreciation and amortisation 1,176 4,799
Impairment of non-current assets (21,914) (21,914)
Accrued revenue for gold bullion stock at year-end 1,433 (436)
Total assets 140,698 122,001
A reconciliation of segmental capital expenditure to the statutory financial statements is as follows:
2011 2010
US$000 US$000
Capital expenditure for reportable segments 25,602 12,456
Geographic information
Burkina Faso Côte d’Ivoire Sierra Leone UK Other Total
US$000 US$000 US$000 US$000 US$000 US$000
Year ended 31 December 2011
Revenue 111,806 9,878--- 121,684
Non-current assets 14,947 11,470 60,097 76 342 86,932
Year ended 31 December 2010
Revenue 90,281 25,523--- 115,804
Non-current assets 22,167 12,816 44,173 94 3 79,253 Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
50
Notes to the Consolidated Financial Statements
for the year ended 31 December 2011
2 Operating profit
The operating profit is stated after charging/(crediting):
2011 2010
US$000 US$000
Depreciation of property, plant and equipment 12,947 17,926
Amortisation of intangible assets 2,019 1,932
Operating lease rentals: land and buildings 238 218
Share option charges 916 888
Exploration costs written off - 520
Exchange differences 742 (303)
In addition, US$310,000 (2010: US$61,000) of depreciation relating to subsidiaries has been capitalised within deferred exploration and evaluation
costs and US$1,063,000 (2010: US$1,122,000) of depreciation is included within inventories.
The exploration costs written off relate to projects which the Board consider to be of no further commercial value to the Group.
Auditor’s Remuneration
Amounts payable to PKF (UK) LLP and their associates in respect of both audit and non-audit services:
2011 2010
US$000 US$000
Fees payable to the Company’s auditor for the audit of the Company’s annual accounts 98 167
Fees payable to the Company’s auditor and its associates in respect of:
- The auditing of accounts of associates of the Company pursuant to legislation 
(including that of countries and territories outside the United Kingdom) 129 158
- Other services supplied pursuant to such legislation 39 76
- Other services relating to taxation 112 49
- All other services - 1
378 451
The Board reviews the nature and extent of non-audit services to ensure that auditor’s independence is maintained.
3. Directors’ and employee remuneration and staff numbers
The average monthly number of employees (including Directors) for the year for each of the Group’s principal divisions was as follows:
2011 2010
Group Group
Operations 509 476
Administration 134 114
643 590
The aggregate remuneration of these persons, including the costs of all Directors, was as follows:
2011 2010
Group Group
US$000 US$000
Wages and salaries 12,718 11,394
Social security costs 915 1,040
Share based payment 916 888
14,549 13,322 Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
51
Notes to the Consolidated Financial Statements
for the year ended 31 December 2011
Emoluments paid to Directors
2011 2010
Group Group
US$000 US$000
Aggregate emoluments 2,468 1,854
Contributions to pension schemes 94 115
Share based payment 451 534
Compensation for loss of office - 260
Gains made on the exercise of share options - 175
3,013 2,938
The number of Directors to whom retirement benefits are accruing is 3 (2010: 4).
The highest paid Director received aggregate emoluments totalling US$1,440,000 (2010: US$727,000).
4 Investment income
2011 2010
US$000 US$000
Interest on bank deposits 124 46
Gain on Foreign Exchange - 303
124 349
5 Finance costs
2011 2010
US$000 US$000
Interest payable 24 1,775
Loss on foreign exchange 222 -
246 1,775 Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
52
Notes to the Consolidated Financial Statements
for the year ended 31 December 2011
6 Income tax
2011 2010
US$000 US$000
Tax charge
Current tax 7,166 2,927
Deferred tax charge - foreign 998 535
8,164 3,462
Domestic income tax is calculated at 26.5% (2010: 28 %) of the estimated assessable profit or loss for the year. Taxation for other jurisdictions 
is calculated at the rates prevailing in the respective jurisdictions.
The charge for the year can be reconciled to the profit/(loss) per the statement of comprehensive income as follows:
2011 2010
US$000 US$000
Profit/(loss) before tax 25,376 (976)
Tax at the domestic income tax rate of 26.5% (2010: 28%) 6,725 (273)
Expenses not allowable for tax 673 447
Effect of lower rate overseas (2,733) (1,559)
Share based payments: increase in deferred tax asset not recognised (6) (148)
Depreciation in advance of capital allowances 800 313
Withholding tax on overseas dividends 753 -
Tax losses carried forward 837 4,146
Reversal and origination of temporary differences 1,115 536
Tax charge 8,164 3,462
In respect of the tax losses carried forward US$0.1m (2010: US$2.4m) relates to Yaoure Mining SA, the subsidiary which runs the Yaoure mine. 
The mine is currently on care and maintenance and therefore it is unlikely that any benefit will be received from these losses. 
2011 2010
US$000 US$000
Deferred tax asset
Other timing differences - 693
Deferred tax asset recognised - 693
Unrecognised deferred tax assets
Relating to carried forward tax losses 10,546 8,157
Relating to potential tax deductions in respect of share based payments 149 609
Other timing differences 1,548 -
2011 2010
US$000 US$000
Deferred tax liability
Other timing differences 305 -
Deferred tax assets and liabilities recognised in the financial statements are in respect of the Group’s Kalsaka gold mine in Burkina Faso. 
They represent timing differences between the local tax bases and accounting policies and those present in the Group financial statements 
under IFRS. The main differences being income recognition and depreciation in advance of taxable benefits.
Other deferred tax assets have not been recognised in the financial statements because of the uncertainty as to the incidence and timing 
of future taxable income against which the asset may be recovered. Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
53
Notes to the Consolidated Financial Statements
for the year ended 31 December 2011
7. Earnings/(loss) per share
The calculation of the basic and diluted earnings/(loss) per share is based on the following data:
2011 2010
US$000 US$000
Profit/(losses) for the purposes of earnings/(loss) per share (net profit/(loss) 
for the year attributable to equity holders of the parent) 12,389 (6,072)
Number of shares
Weighted average number of ordinary shares for the year (‘000’s) 131,765 123,415
Effect of share options in issue 2,193 -
Weighted average for the purposes of diluted earnings/(loss) per share (‘000’s) 133,958 123,415
Due to the loss incurred in 2010 the effect of the share options in issue (totalling 7,813,260) is anti-dilutive and consequently not included in the
calculation of diluted earnings/(loss) per share. 
8 Intangible assets
Deferred
Exploration & exploration & 
mining rights evaluation costs Total
Group US$000 US$000 US$000
Cost 
At 1 January 2010 30,223 16,654 46,877
Additions - 6,078 6,078
Exploration costs written off -(7) (7)
Exchange differences - (483) (483)
At 31 December 2010 30,223 22,242 52,465
Additions - 21,695 21,695
At 31 December 2011 30,223 43,937 74,160
Amortisation
At 1 January 2010 2,182 - 2,182
Charge for the year 1,932 - 1,932
At 31 December 2010 4,114 - 4,114
Charge for the year 2,019 - 2,019
At 31 December 2011 6,133 - 6,133
Net book value
At 31 December 2011 24,090 43,937 68,027
At 31 December 2010 26,109 22,242 48,351
At 1 January 2010 28,041 16,654 44,695
Included within Exploration and mining rights is an amount of US$21.8 million in relation to the Baomahun Gold Project. This amount is recoverable
through the exploitation of the project.
In addition, the Group holds two mining exploitation licences relating to the Kalsaka and Yaoure Gold Mines. The value assigned to these licences on issue
amounted to US$6.0 million and US$2.4 million respectively. The licence at Kalsaka is due for renewal in 2024 and Yaoure is due for renewal in 2013. Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
54
Notes to the Consolidated Financial Statements
for the year ended 31 December 2011
8 Intangible assets (continued)
Deferred
exploration &
evaluation costs
Company US$000
Cost and net book value
At 1 January 2010 4
Additions 3
Exploration costs written off (7)
At 31 December 2010 -
Additions -
At 31 December 2011 -
9 Property, plant and equipment
Mining, Motor
development vehicles, office
& associated equipment,
property, plant & fixtures &
equipment costs computers Total
Group US$000 US$000 US$000
Cost
At 1 January 2010 65,047 3,999 69,046
Additions 5,568 810 6,378
Disposals - (60) (60)
Exchange differences (11) (51) (62)
At 31 December 2010 70,604 4,698 75,302
Additions 2,526 1,381 3,907
Transfer 161 (161) -
Disposal (24) - (24)
At 31 December 2011 73,267 5,918 79,185
Depreciation
At 1 January 2010 27,575 1,986 29,561
Charge for the year 16,865 1,093 17,958
Disposals - (55) (55)
Exchange differences (1) (46) (47)
At 31 December 2010 44,439 2,978 47,417
Charge for the year 13,074 1,246 14,320
Transfer 133 (133) -
Disposal (5) - (5)
At 31 December 2011 57,641 4,091 61,732
Net book value
At 31 December 2011 15,626 1,827 17,453
At 31 December 2010 26,165 1,720 27,885
At 1 January 2010 37,472 2,013 39,485 Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
55
Notes to the Consolidated Financial Statements
for the year ended 31 December 2011
Mining, Motor
development vehicles, office
& associated equipment,
property, plant & fixtures &
equipment costs computers Total
Company US$000 US$000 US$000
Cost
At 1 January 2010 123 57 180
Additions -2323
Exchange differences (4) (3) (7)
At 31 December 2010 119 77 196
Additions -4646
At 31 December 2011 119 123 242
Depreciation
At 1 January 2010 11 51 62
Charge for the year 32 11 43
Exchange differences -(3) (3)
At 31 December 2010 43 59 102
Charge for the year 39 25 64
At 31 December 2011 82 84 166
Net book value
At 31 December 2011 37 39 76
At 31 December 2010 76 18 94
At 1 January 2010 112 6 118
10 Investments and subsidiaries
Subsidiary
Undertakings
Company US$000
Cost brought forward at 1 January 2010 10,767
Exchange difference on translation (444)
At 31 December 2010 and 31 December 2011 10,323
Country of Principal Cluff Gold plc’s
Subsidiary undertaking incorporation activity effective interest
2011 2010
Cluff Gold (UK) Limited United Kingdom Head office 100% 100%
Cluff Mining (West Africa) Limited United Kingdom Exploration 100% 100%
Cluff Gold (West Africa) Limited United Kingdom Exploration 100% 100%
Cluff Gold (Mali) Limited United Kingdom Exploration 100% 100%
Cluff Offshore Oil Limited United Kingdom Dormant 100% 100%
Cluff Gold (SL) Limited* Sierra Leone Exploration 100% 100%
Cluff Gold (WA) Côte d’Ivoire SARL* Côte d’Ivoire Exploration 100% 100%
Cluff Mining Burkina SARL* Burkina Faso Exploration 100% 100%
Kalsaka Mining SA* Burkina Faso Mining 78% 78%
Karbasso Joint Venture SARL* Mali Dormant 90% 90%
Baomahun Gold Limited* Sierra Leone Exploration 100% 100%
Yaoure Mining SA* Côte d’Ivoire Mining 90% 90%
Winston Mining Limited BVI Dormant 100% 100%
* Companies owned indirectly. Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
56
Notes to the Consolidated Financial Statements
for the year ended 31 December 2011
11 Other receivables
2011 2010 2011 2010
US$000 US$000 US$000 US$000
Group Group Company Company
Non-current assets
Taxation debtor 1,452 2,324 - -
Amounts due from subsidiaries - - 48,546 31,822
Total non-current assets 1,452 2,324 48,546 31,822
Current assets
Prepayments and accrued income 1,157 649 87 117
Taxation debtor 3,889 6,761 31 108
Other debtors 1,540 1,664 17 6
Amounts due from subsidiaries - - 8,834 13,500
Total current assets 6,586 9,074 8,969 13,731
The taxation debtor relates to indirect taxes recoverable in the UK and West Africa and has been allocated between amounts due within less than one
year and more than one year on the basis of the Directors’ expectations of when these amounts will be received. Further information relating to the
recovery of these amounts is set out in note 17.
Amounts receivable from subsidiary companies have been allocated between amounts due within less than one year and more than one year on the
basis of the Directors’ expectations of when these loans will be repaid from operating cashflow. Details of the terms of these receivables are included
in note 17.
12 Inventories
2011 2010 2011 2010
US$000 US$000 US$000 US$000
Group Group Company Company
Consumable stores 2,358 1,381 - -
Ore stockpiles 6,544 1,668 - -
Gold in process 7,347 8,661 - -
Gold bullion 2,026 1,057 - -
18,275 12,767 - -
Following the commissioning of a crusher circuit at Kalsaka, Burkina Faso, a provision totalling US$1,993,000 made in 2010 in respect of oversize
stockpile ore has been reversed in the year.
13 Share capital and reserves
2011 2010
Share capital US$000 US$000
Authorised
200,000,000 Ordinary shares of 1p each 3,080 3,080
Issued and Fully Paid
131,897,937 Ordinary shares of 1p each (2010: 131,269,331) 2,375 2,365 Shares issued
During 2011, 628,606 ordinary shares were issued as follows: 
On 1 January 2011 182,565 ordinary shares of 1p were issued at 40p, on 17 March 2011 365,130 ordinary shares of 1p were issued at 40p, 
on 8 April 2011 25,000 ordinary shares of 1p were issued at 34p and on 4 August 10,000 ordinary shares of 1p were issued at 51.00p; all in 
respect of the exercise of share options.
On 21 December 2011, the Company issued 45,911 new ordinary shares of 1p being 7,155 new ordinary shares of 1p each to the following non-
executive Directors: N Berry, R Danchin, T Wadeson, P Cowley, R Winston and G Stanley, and 2,981 new ordinary shares of 1p each to J G Cluff 
at a value of 69.88p each in accordance with their letters of appointment.
During 2010, 8,803,736 ordinary shares were issued as follows: 
On 31 March 2010, 300,000 ordinary shares of 1p were issued at 20p, on 31 October 2010, 200,000 ordinary shares of 1p were issued at 55p, 
on 4 November 2010 101,700, 65,565 and 60,855 ordinary shares of 1p were issued at 68p, 88p and 40p respectively; all in respect of the exercise 
of share options.
On 2 November 2010, by way of a placing, 8,047,210 ordinary shares of 1p were issued for cash consideration of 116.5p each.
On 21 December 2010, the Company issued 28,406 new ordinary shares of 1p being 4,545 new ordinary shares of 1p each to the following non-
executive Directors: N Berry, R Danchin, T Wadeson, P Cowley, R Winston and G Stanley, and 1,136 new ordinary shares of 1p each to D Chikohora
at a value of 110p each in accordance with their letters of appointment.
During 2011 the Company has complied with the Companies Act requirements regarding the maintenance of capital.
Share premium
The share premium account represents the excess cash received on the issue of new shares for a premium on the nominal value. Only those costs
specifically associated with those share issues are debited to the account.
Merger reserve
The acquisition by the Company of Cluff Gold (UK) Limited in November 2004 was accounted for in accordance with the merger accounting principles
set out in UK Financial Reporting Standard 6 and the Companies Act 1985, which continue under the Companies Act 2006, whereby the consolidated
financial statements were presented as if the business previously carried out through Cluff Gold (UK) Limited had always been owned and controlled
by the Company. The transitional requirements of IFRS1 allowed prospective application of IFRS3 for all business combinations subsequent to the
transition date (1 January 2006). Accordingly this acquisition was not re-stated in accordance with that standard.
During 2008 the Company acquired Winston Mining Limited. The Company has claimed merger relief in respect of this acquisition and accordingly 
the premium arising on the issue of shares has been credited to the merger reserve.
Translation reserve
The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of operations that do 
not have a US dollars functional currency. Exchange differences arising are classified as equity and transferred to the Group’s translation reserve. 
Such translation differences are recognised in profit or loss in the period in which the operation is disposed of.
On 1 January 2011 the US Dollar was adopted as the functional currency for all entities in the Group. Consequently, there are no exchange 
differences on the translation of subsidiaries and the currency translation reserve will remain frozen as at the 31 December 2010 balance.
Share option reserve
The share option reserve includes an expense based on the fair value of share options issued and remaining in issue at 31 December 2011.
14 Non-controlling interests
The Group has three subsidiaries with minority shareholders: Kalsaka Mining SA, in which the Group owns a 78% effective interest; Yaoure Mining SA,
in which the Group owns a 90% effective interest; and Karbasso Joint Venture SARL, in which the Group owns a 90% effective interest. 
Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
57
Notes to the Consolidated Financial Statements
for the year ended 31 December 2011 Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
58
Notes to the Consolidated Financial Statements
for the year ended 31 December 2011
15 Provisions
Decommissioning, mine closure & 
site restoration provision
Group US$000
At 1 January 2010 4,578
Provision in year 1,481
At 31 December 2010 6,059
Provision in year 2,519
At 31 December 2011 8,578
Decommissioning, mine closure and site restoration costs are estimated based on a formal closure plan and are subject to regular reviews. 
The provision does not allow for additional obligations expected from future developments. These provisions are expected to be utilised at the 
end of each mines life, which is also subject to regular review. 
The timing of the utilisation of the provision is subjective and dependent upon a number of factors around the closure of the mines. Based on current
estimations the provision is expected to be utilised within five to ten years. The discount factor applied does not result in material difference and
consequently has not been included.
16 Trade and other payables
2011 2010 2011 2010
US$000 US$000 US$000 US$000
Group Group Company Company
Trade creditors 2,972 6,104 186 340
Other creditors 3,082 2,557 104 322
Accruals and deferred income 8,651 7,259 218 267
14,705 15,920 508 929
17 Financial instruments and risk management
Categorisation and fair value of financial instruments
The Group’s financial assets comprise cash and cash equivalents and trade and other receivables. In addition the Company’s financial assets include
amounts due from subsidiaries. All of the Group’s and Company’s financial assets are classified as loans and receivables. The Group’s and Company’s
financial liabilities comprise trade and other payables. All of the Group’s and Company’s financial liabilities are measured at amortised cost. 
The taxation debtors as described in note 11 are not financial instruments as defined by IAS 32. These amounts have been included within the
disclosures below in respect of foreign exchange and credit risk as the Directors believe that the exposure of the Group to these financial risks in
respect of these assets is significant.
It is the Directors’ opinion that the carrying value of all of the Group’s and Company’s financial assets and financial liabilities approximates their fair value.
Financial risk management
The Group’s operations expose it to a number of financial risks. A risk management programme has been established to protect the Group against 
the potential adverse effects of these financial risks. There has been no significant change in these financial risks in the year.
The principal financial risks relate to foreign currency risk, commodity price risk, liquidity risk and credit risk.
a) Foreign currency risk
Foreign currency risk refers to the risk that the value of a financial commitment or recognised asset or liability will fluctuate due to changes in foreign
currency rates. The Group is exposed to foreign currency risk due to the following:
(i) Transactional exposure relating to operating costs and capital expenditure incurred in currencies other than the functional currency 
of operations.
(ii) Translation exposures relating to monetary assets and liabilities, including cash and short-term investment balances, held in currencies 
other than the functional currency of operations; and net investments that are not denominated in US Dollars. Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
59
Notes to the Consolidated Financial Statements
for the year ended 31 December 2011
The table below shows the currency profile of cash and cash equivalents:
2011 2010 2011 2010
Group Group Company Company
US$000 US$000 US$000 US$000
US Dollars 19,330 4,093 7,750 351
Sterling 2,544 12,485 2,475 12,458
West African CFA franc 5,946 3,095 - -
Canadian Dollars 447 1,222 447 1,222
Other 638 12 2 5
28,905 20,907 10,674 14,036
From the 1 January 2011 the functional currency adopted by all material Group companies was US Dollars. Prior to 2011 some entities had functional
currencies in Sterling and West African CFA Francs. The Group also enters into transactions denominated in other currencies. The Group’s exposure to
foreign currency arises where a company holds monetary assets and liabilities in a currency different to its functional currency and when different from
the presentational currency of the Group. 
The following table shows a currency analysis of net monetary assets and liabilities by functional currency of the Group:
West African
Sterling US Dollars CFA Franc Total
2011 US$000 US$000 US$000 US$000
Currency of monetary items
Sterling - 2,768 - 2,768
US Dollars - 15,779 - 15,779
West African CFA Franc - (2,590) - (2,590)
Canadian Dollars - 447 - 447
Other - 580 - 580
T otal - 16,984 - 16,984
West African
Sterling US Dollars CFA Franc Total
2010 US$000 US$000 US$000 US$000
Currency of monetary items
Sterling 12,034 (8) - 12,026
US Dollars 88 (3,557) - (3,469)
West African CFA Franc - 3,830 241 4,071
Canadian Dollars 1,222 - - 1,222
Other (301) 227 3 (71)
T otal 13,043 492 244 13,779
The table below shows the impact of changes in exchange rates on the financial position of the Group due to monetary assets and liabilities
denominated in Sterling and West African CFA Francs:
Profit & Loss Equity
2011 2010 2011 2010
US$000 US$000 US$000 US$000
If there was a 20% weakening in the US Dollar/Sterling exchange 
rate with all other variables held constant - increase/(decrease) 568 (638) (137) (40)
If there was a 20% strengthening in the US Dollar/Sterling exchange 
rate with all other variables held constant - increase/(decrease) (682) 766 164 48
If there was a 20% weakening in the US Dollar/West African CFA Franc 
exchange rate with all other variables held constant - increase/(decrease) - - (462) (2,006)
If there was a 20% strengthening in the US Dollar/ West African CFA Franc 
exchange rate with all other variables held constant - increase/(decrease) - - 554 2,407 Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
60
Notes to the Consolidated Financial Statements
for the year ended 31 December 2011
17 Financial instruments and risk management (continued)
A 20% change represents management’s assessment of the reasonable possible exposure given the current level of exchange rates and the volatility
observed both on a historical basis and market expectations for future movement.
In general, the Group does not enter into derivatives to manage these currency risks. Details of the impact on foreign exchange movement in the year
are shown in notes 2, 4 and 5 and the currency translation reserve. The Board frequently reviews the policy on currency translation risk in order to
minimise translation exposure.
The Directors do not consider the Company to be at significant risk from currency fluctuations due to the low level of assets and liabilities held in
currencies other than the functional currency.
b) Commodity price risk
The Group is exposed to commodity price risk as its revenues are derived from a contract with a physical off-take partner at prices determined by
reference to the market price of gold at the delivery date. The Group is also exposed to fluctuations in the price of consumables, such as fuel, cement
and cyanide. The Group does not currently hold any gold future positions as a hedge against gold price volatility, or other derivatives as a hedge
against other commodity price fluctuations. The Board regularly reviews this matter. The Group occasionally makes forward sales on gold poured - this
risk is not deemed to be material as the sales are only at most a week in advance.
c) Capital management and liquidity risk
The Company’s and Group’s objectives when managing capital is to safeguard the Group’s ability to continue as a going concern and have access to
adequate funding for its exploration and development projects, so that it can provide returns for shareholders and benefits for other stakeholders. The
Group manages the capital structure and makes adjustments in the light of changes in economic conditions and risk characteristics of the underlying
assets. In order to maintain or adjust the capital structure the Group may issue new shares, draw down debt, or sell assets to reduce debt.
Management regularly review cashflow forecasts to determine whether the Group has sufficient cash reserves to meet future working capital
requirements and to take advantage of business opportunities. 
The table below sets out the maturity profile of financial liabilities as at 31 December 2011:
2011 2010 2011 2010
Group Group Company Company
US$000 US$000 US$000 US$000
Due in less than one month 10,227 6,925 269 662
Due between one and three months 4,479 8,996 239 267
14,706 15,921 508 929
d) Credit risk
The Group is exposed to credit risk in respect of indirect taxes owing to the Group in West Africa, including indirect taxes recoverable of US$2,279,000
(2010: US$6,946,000) in Burkina Faso and US$4,725,000 (2010: US$5,627,000) in Côte d’Ivoire. Due to the slow moving nature of these amounts the
Directors have included an impairment provision against the taxation debtor in accordance with their best estimate of the recovery of these amounts
totalling US$227,000 (2010: US$303,000) in Burkina Faso and US$1,505,000 (2010: US$3,303,000) in Côte d’Ivoire.
Subsequent to the year-end a total of US$1,300,000 has been recovered in Burkina Faso. Recovery of indirect taxes in Côte d'Ivoire has significantly
improved following the change of government in 2011. US$733,000 was recovered during the year and a further US$708,000 has been recovered
subsequent to the year end. Based on the current recovery profile US$1,800,000 has been treated as due within one year and the balance of
US$1,452,000 remains due after more than one year.
The Group and the Company are also exposed to credit risk on their cash and cash equivalents and trade and other receivables, the total of which
represents the maximum exposure to credit risk. 
The Company is exposed to credit risk in respect of the loans recoverable from other Group companies. Details of these loans, the repayment terms
thereof, and amounts provided against these at 31 December 2011 are set out in note 20. Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
61
Notes to the Consolidated Financial Statements
for the year ended 31 December 2011
18 Commitments
Future commitments for the Group under non-cancellable operating leases are as follows:
Land and buildings
2011 2010
US$000 US$000
Payable in less than one year 149 124
Payable between one and two years 113 72
Payable between two and five years 48 120
310 316
Operating lease payments represent rentals payable by the Group for certain of its office properties. Leases are negotiated for an average term 
of three years at fixed rental rates.
19 Share based payment
The Group operates a share option plan under which employees, consultants and advisers have been granted options to subscribe for ordinary
shares. All options are share settled. The number and weighted average exercise price of share options are as follows:
2011 2010
Weighted Weighted 
Number average Number average
of options exercise price (p) of options exercise price (p)
Outstanding at 1 January 7,813,260 66.2 5,969,050 62.1
Granted during the year 540,000 85.8 2,980,000 71.9
Exercised during the year (582,695) 40.0 (728,120) 44.1
Expired during the year (65,565) - (407,670) -
Outstanding at 31 December 7,705,000 68.6 7,813,260 66.2
Exercisable at 31 December 3,055,000 68.3 2,198,260 58.5
The options outstanding at 31 December 2011 had a weighted average remaining contractual life of 6.5 years (2010: 7.4 years). For options exercised
in 2011, the weighted average share price at the date of exercise was 103.9p (2010: 105.8p).
The fair value of services received in return for share options granted is measured by reference to the fair value of the share options granted. 
This estimate is based on a Black-Scholes model which is considered most appropriate considering the effects of the vesting conditions, expected
exercise period and the payment of dividends by the Company. The inputs into the Black-Scholes model for options granted in the year were 
as follows:
2011 2010
Weighted average share price 88.8p 72.2p
Weighted average exercise price 85.8p 71.3p
Expected volatility 0.48 0.43
Expected life 3.5 4.0
Risk free rate 1% 1%
Expected dividends - -
Fair value per option 31.7p 24.6p
Expected volatility was determined by calculating the historical volatility of the Group’s share price over the previous year. The expected life used 
in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioural
considerations. Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
62
Notes to the Consolidated Financial Statements
for the year ended 31 December 2011
19 Share based payment (continued)
Weighted
average
Exercise period Number exercise price (p)
Exercisable until 2014 675,000 49.8
Exercisable until 2016 920,000 74.2
Exercisable until 2018 1,360,000 74.0
Exercisable until 2020 100,000 61.4
Exercisable at period end 3,055,000 68.3
Exercisable between 2012 and 2019 1,190,000 53.9
Exercisable between 2013 and 2020 2,930,000 71.3
Exercisable between 2014 and 2021 530,000 85.5
7,705,000 68.6
20 Related party transactions
The Group’s investments in subsidiaries have been disclosed in note 10. Transactions between the Company and its subsidiaries during the year 
are disclosed below.
2011 2010
US$000 US$000
Interest receivable 669 1,164
Management charges receivable 1,936 328
Amounts owed by subsidiaries at year end 57,380 45,322
The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received. Loans for which repayment
schedules have been determined are measured at amortised cost using the effective interest rate method. During 2011 a provision of US$nil (2010:
US$7,175,000) has been made for doubtful debts in respect of the amounts owed by Yaoure Mining SA. In addition, an amount of US$nil (2010:
US$2,636,000) has been provided in respect of the amounts owed by Cluff Mining Burkina SARL. The Directors believe that all the other amounts
receivable from Group companies are recoverable.
The repayment terms and interest rates for the amounts receivable from subsidiaries at the year-end are set out below:
2011 2010
Interest rate Repayment terms US$000 US$000
US LIBOR plus 2% Repayable in quarterly instalments 39,977 46,437
US LIBOR plus 4% Overdue from quarterly instalments above 11,590 9,019
GBP LIBOR plus 2% Repayable only once construction commences on applicable project 2,636 2,636
Non-interest bearing loans Repayable only once construction commences on applicable project 36,447 20,500
90,650 78,592
Less: provision for irrecoverable amount (33,270) (33,270)
57,380 45,322
Included within amounts receivable from subsidiary undertakings is US$42.7 million (2010:US$39.2 million) in respect of the Yaoure Gold Mine. 
The performance of the mine has been below budget since commencement of operations and an impairment of US$23.5 million was recognised 
in 2010. An amount totalling US$7.2 million was provided in 2010 following an update of the impairment review. 
An amount totaling US$2.6 million was provided in 2010 in respect of Cluff Mining Burkina SARL, an exploration company situated in Burkina Faso. Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
63
Notes to the Consolidated Financial Statements
for the year ended 31 December 2011
Remuneration of key management personnel
Compensation for key management personnel is as follows:
2011 2010
US$000 US$000
Short term employee benefits (including NI contributions) 3,832 3,283
Post employment benefits 120 148
Share based payments 626 698
Termination benefits - 260
4,578 4,389
21 Contingent liabilities
In February 2011 the Company received a proposal for additional costs sustained by the mining contractor at the Yaoure Mine totalling US$9.2m. 
An updated claim was made in June 2011 totalling a further US$5.4m. Whilst the situation remains unresolved the Company has received external
advice that confirms that the current provision of US$1.0m is, in the opinion of the Directors, the maximum payable under the terms of the contract.
The terms of the contract clearly state that the rates set out therein shall apply regardless of the difficulty in performing the works under the contract,
such that the majority of the additional costs claimed cannot be recovered under the contract. 
22 Post balance sheet events
On 3 February 2012 the Company entered into a legally binding, conditional sale and purchase agreement with Orezone Gold Corporation for the
acquisition of the licences and associated property comprising Orezone’s Sega Gold Project in Burkina Faso. Consideration comprises 11 million 
new ordinary shares in the Company and US$15m cash.
Completion will occur following the approval of the Burkinabe government and other standard closing conditions. 
On 14 March the Company issued 25,000,000 ordinary shares of 1p at a price of 92p raising £21.6m after expenses. Company Secretary 
Catherine Apthorpe
Registered office and head office
15 Carteret Street, London SW1H 9DJ
Company Number 
4822520
Principal Bankers
Adam & Company plc 
22 King Street, London SW1Y 6QY 
Standard Bank plc 
20 Gresham Street, London EC2V 7YE
Nominated Adviser and Broker
Cannacord Genuity Limited
88 Wood Street, London EC2V 7QT
Auditor
PKF (UK) LLP 
Farringdon Place, 20 Farringdon Road, 
London EC1M 3AP 
Registrars
Capita Registrars 
The Registry, 34 Beckenham Road, 
Beckenham, Kent BR3 4TU
PR Advisers
Pelham Bell Pottinger 
5th Floor, Holborn Gate, 330 High Holborn, 
London WC1V 7QD
Farm Street Media 
6 Marylebone Passage, London W1W 8EX 
Legal Adviser
K&L Gates LLP 
1 New Change, London EC4M 9AF
Cluff Gold plc
Annual Report & Accounts 2011
Financial Statements
64
Company Information Peter Brown is a “Qualified Person” within the definition of National
Instrument 43-101 and has reviewed, verified and approved the information
contained within this annual report, including the sampling, analytical and test
data underlying the information contained herein. Mr Brown (MIMMM) is the
Group Exploration Manager.
This report includes certain “forward-looking information” within the meaning
of applicable Canadian securities legislation. All statements other than
statements of historical fact included in this report, including, without
limitation, the positioning of the Company for future success, statements
regarding the exploration, drilling results and potential future production at
Yaoure, Kalsaka, Baomahun and Mamoudouya, the assumptions and
proposed operating parameters used in the feasibility study and the timing of
the feasibility study for Baomahun, and future capital plans and objectives of
Cluff Gold, are forward-looking information that involve various risks and
uncertainties. There can be no assurance that such statements will prove to
be accurate and actual results and future events could differ materially from
those anticipated in such statements. Important factors that could cause
actual results to differ materially from Cluff Gold’s expectations include,
among others, risks related to international operations, the actual results of
current exploration and drilling activities, changes in project parameters as
plans continue to be refined as well as future price of gold. Although Cluff
Gold has attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance that
such 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. Cluff
Gold does not undertake to update any forward-looking statements that are
included herein, except in accordance with applicable securities laws.
Cluff Gold plc is a “Designated Foreign Issuer” in accordance with National
Instrument 71-102 – Continuous Disclosure and Other Exemptions Relating to
Foreign Issuers (“NI 71-102”) in Canada, subject to the foreign regulatory
requirements of a foreign regulatory authority, namely, the AIM market of the
London Stock Exchange.
Resource and reserve data may not compute exactly due to rounding.
Kalsaka/Sega
Detailed geology, descriptions of the various exploration prospects at
Kalsaka, and other exploration information can be found in the Company’s
NI43-101 report “Technical Review of Kalsaka Gold Mine, Burkina Faso”, as
prepared by SRK Consulting, dated October 2008 and available on SEDAR.
Resource estimation has been subsequently updated for production changes.
The RC drilling programme at Kalsaka was undertaken by an independent
drilling contractor. All the drill holes collar positions were pegged using a total
station theodolite and re-surveyed after drilling. The drill collars after survey
were checked by onsite geologist. Each 1.0m RC chipping passing through a
cyclone is collected in a plastic bag and reduced in a multistage splitter to get
a split of between 2kg and 4kg. Sampling was done under the supervision of
the site geologist. Duplicate samples were collected at every 10th sample
point and one blank inserted at every 20th point. Samples were submitted to
the in-house laboratory, dried, crushed and pulverised to 85-90% passing
106ìm and analysed by bulk leach extractable gold assays for twelve hours.
The RAB drilling programme at Kalsaka was undertaken by an independent
drilling contractor. All the drill holes collar positions were pegged using a
Garmin GPS unit and re-surveyed after drilling. The drill collars after survey
were checked by onsite geologist. Each 1.0m RAB chipping passing through
a cyclone is collected in a plastic bag and 2m-composites are reduced in a
multistage splitter to get a split of between 2kg and 4kg. Sampling was done
under the supervision of the site geologist. Duplicate samples were collected
at every 20th sample point and one blank inserted at every 20th point.
Samples were submitted to the in-house laboratory, dried, crushed and
pulverised to 85-90% passing 106ìm and analysed by bulk leach extractable
gold assays for twelve hours.
RAB and RC check assays were also submitted to external commercial
laboratories in Burkina Faso as part of the Company’s quality control
procedures.
1. Resources at 0.5g/t Au cut off and reserves at 0.5g/t Au cut off and
US$950/oz gold price. 
2. A technical report titled “Technical Report on the Mineral Resource of the
Sega Gold Project” and dated January 18, 2010, was previously prepared
by Orezone Gold Corporation and filed in SEDAR.
Baomahun 
Detailed geology and other exploration information can be found in the
Company’s report “Technical Review of the Baomahun Gold Exploration
Project, Sierra Leone” dated 12 August 2010, made available on the
Company’s website and on SEDAR. Resource estimation has been
subsequently updated for exploration changes.
Drill intersections from both the in-fill drill holes and Pujehun South were
calculated using a minimum width of 2m, and a cut-off of 0.5g/t and up to
two metres of internal waste. The intersections set out in Appendix 1 are from
in-fill drill holes within the resource area and do not necessarily represent
extensions to already defined zones of mineralisation. The true thickness of
the mineralisation may vary from 40% to 100% of the intersected widths. Drill
cores for assaying were taken at a maximum of one metre intervals and were
cut with a diamond saw. One half of the core was placed in sealed bags and
sent to the Company's sample preparation facility at Baomahun, Sierra
Leone. The core samples were then crushed to minus 4mm and split, with
1.0kg of sample pulverised down to 95% passing 106 microns.
Approximately 120 grams of the pulverised sample were then shipped to the
SGS Laboratories (which are independent of the Company) in Siguiri, Guinea,
and Tarkwa, Ghana, where the samples were analysed for gold by fire assay
using a 50g charge. As part of the Company's QA/QC procedures,
internationally recognised standards, blanks and duplicate samples were
inserted into the sample batches.
3. As per Company press release titled "Baomahun Exploration Results and
Feasibility Study Update", dated 29 February 2012 and filed on SEDAR
4. As per Company press release titled "Cluff Gold: Significant Resource
Increase at Baomahun", dated 5 September 2011 and filed on SEDAR
Yaoure 
Detailed geology and other exploration information can be found in the
Company’s NI43-101 report “Technical Review of Angovia Gold Mine, Mount
Yaoure, Côte d’Ivoire” as prepared by SRK Consulting, dated October 2008
and available on SEDAR. Resource estimation has been subsequently
updated for production and exploration changes.
The diamond drilling programme at Yaoure was undertaken by an
independent drilling contractor. All holes at the Yaoure Central Pit were drilled
from within the pit and collared at a depth of between 20m and 35m below
the original surface level. All holes were drilled at inclinations of between -50o
and -60o. The 13 holes testing the E-W structures were drilled towards both
the north and south with an average down-hole depth of 64m and a
maximum down-hole depth of 72m. The 10 holes testing the main N-S
structure were all drilled towards the west at an inclination of -60o, with an
average down-hole depth of 113m and a maximum down-hole depth of
136m.
Drill cores for assaying were taken at a maximum of two metre intervals and
were cut with a diamond saw with one-half of the core placed in sealed bags
and sent to the SGS sample preparation facility in Yamoussoukro, Côte
d’Ivoire. The core samples were then crushed down to minus 2 mm, split with
half the sample then being pulverised down to 85% passing 75 microns.
About 200g of the pulverised sample was then shipped to the SGS
Laboratory in Tarkwa, in Ghana, an independent laboratory to the Company,
where the samples were analysed for gold by fire assay using a 50 g sample.
As part of the Company's QA/QC procedures, internationally recognised
standards, duplicates and blanks were inserted and check assays will also be
submitted to other external laboratories.
5. Resources at 0.5g/t Au cut off. 
6. As per Company press release titled "Yaoure Project drilling results”,
dated 19 January 2012 and filed on SEDAR.
Cluff Gold plc
Annual Report & Accounts 2011
References
Designed and produced by effektiv 
+44 (0)20 7324 2668 / www.effektiv.co.uk Cluff Gold plc
15 Carteret Street
London SW1H 9DJ
T el: +44 (0) 20 7340 9790
Fax: +44 (0) 20 7233 4780
www.cluffgold.com