----

----

----

|   |
|--------|
|   | KPMG LLPChartered AccountantsPO Box 10426 777 Dunsmuir StreetVancouver BC V7Y 1K3Canada | Telephone (604) 691-3000Fax              (604) 691-3031Internet       www.kpmg.ca |

----

----

|   |
|--------|
|   | KPMG LLPChartered AccountantsPO Box 10426 777 Dunsmuir StreetVancouver BC V7Y 1K3Canada | Telephone (604) 691-3000Fax              (604) 691-3031Internet       www.kpmg.ca |

----

----

|  Consolidated Statements of Financial Position   |  Expressed in United States Dollars |
|-----------------------------------------------------------------|------------------------------------------|

|                                                          |   | December 31, 2012 |         |   | March 31, 2012 |   |
|---------------------------------------------------------------|--------|------------------------|--------------|--------|---------------------|--------|
| Assets                                                        |   |                   |         |   |                |   |
|                                                          |   |                   |         |   |                |   |
| Current assets:                                               |   |                   |         |   |                |   |
| Cash and cash equivalents                                     |   | $                      | 204,611,912  |   |                | $      | 197,608,106 |   |
| Receivables (note 13 (b))                                     |   |                   | 509,350      |   |                |   | 244,308 |   |
| Prepaid expenses and deposits                                 |   |                   | 384,867      |   |                |   | 648,002 |   |
|                                                          |   |                   | 205,506,129  |   |                |   | 198,500,416 |   |
|                                                          |   |                   |         |   |                |   |   |   |
| Non-current assets:                                           |   |                   |         |   |                |   |   |   |
| Plant and equipment (note 7)                                  |   |                   | 1,784,587    |   |                |   | 1,984,719 |   |
| Investment in associate                                       |   |                   | 627,394      |   |                |   | 627,394 |   |
| Mineral interests and development assets (note 8)             |   |                   | 46,378,464   |   |                |   | 25,822,734 |   |
|                                                          |   |                   | 48,790,445   |   |                |   | 28,434,847 |   |
|                                                          |   |                   |         |   |                |   |   |   |
| Total assets                                                  |   | $                      | 254,296,574  |   |                | $      | 226,935,263 |   |
|                                                          |   |                   |         |   |                |   |   |   |
| Liabilities                                                   |   |                   |         |   |                |   |   |   |
|                                                          |   |                   |         |   |                |   |   |   |
| Current liabilities:                                          |   |                   |         |   |                |   |   |   |
| Accounts payable and accrued liabilities (notes 13(b) and 19) |   | $                      | 3,764,302    |   |                | $      | 4,813,773 |   |
|                                                          |   |                   | 3,764,302    |   |                |   | 4,813,773 |   |
|                                                          |   |                   |         |   |                |   |   |   |
| Non-current liabilities:                                      |   |                   |         |   |                |   |   |   |
| Foreign currency warrant liability (note 19)                  |   |                   | 12,494,674   |   |                |   | - |   |
| Asset retirement provision (note 10)                          |   |                   | 11,089,081   |   |                |   | 8,737,634 |   |
|                                                          |   |                   | 23,583,755   |   |                |   | 8,737,634 |   |
|                                                          |   |                   |         |   |                |   |   |   |
| Total liabilities                                             |   |                   | 27,348,057   |   |                |   | 13,551,407 |   |
|                                                          |   |                   |         |   |                |   |   |   |
| Shareholders’ Equity                                    |   |                   |         |   |                |   |   |   |
|                                                          |   |                   |         |   |                |   |   |   |
| Share capital (note 11)                                       |   |                   | 334,376,490  |   |                |   | 313,198,434 |   |
| Equity reserves (note 12)                                     |   |                   | 33,160,370   |   |                |   | 27,227,563 |   |
| Accumulated deficit                                           |   |                   | (140,588,343 | )      |                |   | (127,042,141 | ) |
| Total shareholders’ equity                              |   |                   | 226,948,517  |   |                |   | 213,383,856 |   |
|                                                          |   |                   |         |   |                |   |   |   |
| Total liabilities and shareholders’ equity              |   | $                      | 254,296,574  |   |                | $      | 226,935,263 |   |

| Approved by the Board of Directors on March 28, 2013 |                                        |
|------------------------------------------------------|---------------------------------------------|
| “Shawn Wallace”Director                  | “Marcel de Groot”Director  |

----

|  Consolidated Statements of Comprehensive Loss   |  Expressed in United States Dollars |
|-----------------------------------------------------------------|------------------------------------------|

|                                                              | Nine months ended |   |       | Year ended     |   |
|-------------------------------------------------------------------|-------------------|--------|------------|----------------|--------|
|                                                              | December 31, 2012 |   |       | March 31, 2012 |   |
|                                                              |              |
| Administration expenses:                                          |              |   |       |           |   |   |
| Consulting fees, directors' fees and wages and benefits (note 13) |              | $      | 3,152,009  |           |   | $ | 4,378,541 |   |
| Depreciation                                                      |              |   | 83,054     |           |   |   | 249,206 |   |
| Office, rent and administration                                   |              |   | 1,107,810  |           |   |   | 1,236,216 |   |
| Professional fees (note 13)                                       |              |   | 445,345    |           |   |   | 851,575 |   |
| Regulatory fees, transfer agent and shareholder information       |              |   | 230,613    |           |   |   | 312,797 |   |
| Share-based compensation (note 12(a))                             |              |   | 4,280,592  |           |   |   | 8,846,973 |   |
| Travel, promotion and investor relations                          |              |   | 1,491,529  |           |   |   | 1,935,879 |   |
|                                                              |              |   | 10,790,952 |           |   |   | 17,811,187 |   |
|                                                              |              |
| Exploration and evaluation expenditures (note 9)                  |              |   | 2,189,414  |           |   |   | 18,414,774 |   |
|                                                              |              |
| Other expenses (income):                                          |              |   |       |           |   |   |   |   |
| Accretion expense (note 10)                                       |              |   | 123,858    |           |   |   | 250,576 |   |
| Bank charges and interest                                         |              |   | 22,389     |           |   |   | 56,646 |   |
| Business development (note 6)                                     |              |   | 423,082    |           |   |   | - |   |
| Change in foreign currency warrant liability                      |              |   | 997,033    |           |   |   | - |   |
| Disposition loss on loss of control of subsidiary                 |              |   | -          |           |   |   | 1,882,184 |   |
| Foreign exchange loss (gain)                                      |              |   | (348,334   | )              |   |   | 1,295,107 |   |
| Interest and other income                                         |              |   | (652,192   | )              |   |   | (1,557,889 | ) |
|                                                              |              |   | 565,836    |           |   |   | 1,926,624 |   |
|                                                              |              |
| Loss and comprehensive loss for the period                        |              | $      | 13,546,202 |           |   | $ | 38,152,585 |   |
|                                                              |              |
|                                                              |              |
|                                                              |              |
| Loss per share - basic and diluted                                |              | $      | 0.17       |           |   | $ | 0.51 |   |
|                                                              |              |
| Weighted average number of shares outstanding (note 17)           |              |   | 77,477,114 |           |   |   | 75,347,941 |   |

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012 |  Expressed in United States Dollars |
|-------------------------------------------------------------------------|------------------------------------------|

|                                         |   | Number    |       |   |          |   |        | Equity   |   |   | Accumulated |   |   | Total  |         |
|----------------------------------------------|--------|-----------|------------|--------|---------------|--------|-------------|----------|--------|--------|-------------|--------|--------|--------|--------------|
|                                         |   | of shares |       |   | Share capital |   |        | reserves |   |   | deficit     |   |   | equity |         |
|                                         |   |
| Balance as at March 31, 2011                 |   |      | 74,884,588 |   |          | $      | 309,345,374 |     |   | $      | 15,864,395  |   |   | $      | (88,889,556  | ) |   | $ | 236,320,213 |   |
|                                         |   |
| Issuance of common shares for:               |   |      |       |   |          |   |        |     |   |   |        |   |   |   |         |   |   |   |   |   |
| Exercise of share-based options (note 11(b)) |   |      | 641,250    |   |          |   | 3,697,051   |     |   |   | (1,365,779  | )      |   |   | -            |   |   |   | 2,331,272 |   |
| Mineral interest (note 8(a))                 |   |      | 20,000     |   |          |   | 156,009     |     |   |   | -           |   |   |   | -            |   |   |   | 156,009 |   |
| Share-based payments (note 12 (a))           |   |      | -          |   |          |   | -           |     |   |   | 12,728,947  |   |   |   | -            |   |   |   | 12,728,947 |   |
| Net loss for the year                        |   |      | -          |   |          |   | -           |     |   |   | -           |   |   |   | (38,152,585  | ) |   |   | (38,152,585 | ) |
| Balance as at March 31, 2012                 |   |      | 75,545,838 |   |          |   | 313,198,434 |     |   |   | 27,227,563  |   |   |   | (127,042,141 | ) |   |   | 213,383,856 |   |
|                                         |   |
|                                         |   |
| Issuance of common shares for:               |   |      |       |   |          |   |        |     |   |   |        |   |   |   |         |   |   |   |   |   |
| Non-brokered private placement (note 11(b))  |   |      | 9,443,500  |   |          |   | 20,958,106  |     |   |   | -           |   |   |   | -            |   |   |   | 20,958,106 |   |
| Exercise of share-based options (note 11(b)) |   |      | 35,000     |   |          |   | 190,934     |     |   |   | (58,304     | )      |   |   | -            |   |   |   | 132,630 |   |
| Mineral interest (note 8(a))                 |   |      | 10,000     |   |          |   | 29,016      |     |   |   | -           |   |   |   | -            |   |   |   | 29,016 |   |
| Share-based payments (note 12(a))            |   |      | -          |   |          |   | -           |     |   |   | 5,991,111   |   |   |   | -            |   |   |   | 5,991,111 |   |
| Net loss for the period                      |   |      | -          |   |          |   | -           |     |   |   | -           |   |   |   | (13,546,202  | ) |   |   | (13,546,202 | ) |
| Balance as at December 31, 2012              |   |      | 85,034,338 |   |          | $      | 334,376,490 |     |   | $      | 33,160,370  |   |   | $      | (140,588,343 | ) |   | $ | 226,948,517 |   |

----

| Nine months ended December 31, 2012 and year ended March 31, 2012 |  Expressed in United States Dollars |
|-------------------------------------------------------------------|------------------------------------------|

|                                                             |   | Nine months ended |        |   | Year ended     |   |
|------------------------------------------------------------------|--------|-------------------|-------------|--------|----------------|--------|
|                                                             |   | December 31, 2012 |        |   | March 31, 2012 |   |
| Cash provided by (used in):                                      |   |              |        |   |           |   |
| Operating activities:                                            |   |              |        |   |           |   |
| Loss for the period                                              |   | $                 | (13,546,202 | )      |           | $      | (38,152,585 | ) |
| Items not involving cash:                                        |   |              |        |   |           |   |   |   |
| Amortization                                                     |   |              | 272,822     |   |           |   | 618,362 |   |
| Accretion expense                                                |   |              | 123,858     |   |           |   | 250,576 |   |
| Disposition loss on loss of control of subsidiary                |   |              | -           |   |           |   | 1,882,184 |   |
| Change in foreign currency warrant liability                     |   |              | 997,033     |   |           |   | - |   |
| Interest income                                                  |   |              | (644,833    | )      |           |   | (1,491,938 | ) |
| Share-based compensation                                         |   |              | 4,280,592   |   |           |   | 8,846,973 |   |
| Share-based compensation included in exploration and             |   |              |        |   |           |   |   |   |
| evaluation expenditures                                          |   |              | 309,251     |   |           |   | 2,379,808 |   |
| Unrealized foreign exchange loss (gain)                          |   |              | (63,738     | )      |           |   | 4,157,306 |   |
| Changes in non-cash working capital:                             |   |              |        |   |           |   |   |   |
| Accounts payable and accrued liabilities                         |   |              | (1,232,066  | )      |           |   | (1,458,976 | ) |
| Prepaid expenses and deposits                                    |   |              | 263,299     |   |           |   | (501,446 | ) |
| Receivables                                                      |   |              | 88,744      |   |           |   | 114,316 |   |
|                                                             |   |              | (9,151,240  | )      |           |   | (23,355,420 | ) |
| Investing activities:                                            |   |              |        |   |           |   |   |   |
| Purchase of plant and equipment                                  |   |              | (122,262    | )      |           |   | (1,721,250 | ) |
| Proceeds on disposal of plant and equipment                      |   |              | 7,371       |   |           |   | 16,013 |   |
| Development costs (note 8)                                       |   |              | (16,185,414 | )      |           |   | (10,620,607 | ) |
| Acquisition of mineral interests (note 8)                        |   |              | (506,868    | )      |           |   | (610,000 | ) |
| Net investment in associate                                      |   |              | -           |   |           |   | (1,923,415 | ) |
| Interest received                                                |   |              | 292,816     |   |           |   | 1,379,300 |   |
|                                                             |   |              | (16,514,357 | )      |           |   | (13,479,959 | ) |
| Financing activities:                                            |   |              |        |   |           |   |   |   |
| Shares issued for cash, net of share issuance costs (note 11(b)) |   |              | 32,588,377  |   |           |   | 2,331,272 |   |
|                                                             |   |
| Impact of foreign exchange on cash and cash equivalents          |   |              | 81,026      |   |           |   | (4,217,239 | ) |
|                                                             |   |
| Increase (decrease) in cash and cash equivalents for the period  |   |              | 7,003,806   |   |           |   | (38,721,346 | ) |
|                                                             |   |
| Cash and cash equivalents, beginning of the period               |   |              | 197,608,106 |   |           |   | 236,329,452 |   |
|                                                             |   |
| Cash and cash equivalents, end of the period                     |   | $                 | 204,611,912 |   |           | $      | 197,608,106 |   |

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| 1. | Nature of operations |
|----|----------------------|

| 2. | Basis of presentation |
|----|-----------------------|

|   | (a) | Statement of compliance |
|--------|-----|-------------------------|

|   | These consolidated financial statements were authorized for issue and approved by the Board of Directors on March 28, 2013. |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Basis of presentation and consolidation |
|--------|-----|-----------------------------------------|

| Subsidiary name                                             | Jurisdiction | Ownership |
|-------------------------------------------------------------|--------------|-----------|
| Keegan Resources Ghana Limited (“Asanko Ghana”) | Ghana        | 90%       |
| Keegan Resources South Africa (PTY) Ltd.                    | South Africa | 100%      |
| Keegan International (Barbados) Inc.                        | Barbados     | 100%      |
| Keegan Ghana (Barbados) Inc.                                | Barbados     | 100%      |

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| 2. | Basis of presentation (continued) |
|----|-----------------------------------|

|   | (b) | Basis of presentation and consolidation (continued) |
|--------|-----|-----------------------------------------------------|

| 3. | Significant accounting policies |
|----|---------------------------------|

|   | (a) | Foreign currency translation |
|--------|-----|------------------------------|

----

| Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------|------------------------------------------|

| ·   | Financial assets classified as fair value through profit or loss are measured at fair value. All gains and losses resulting from changes in their fair value are included in net earnings (loss) in the period in which they arise. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Held-to-maturity investments, and loans and receivables, are initially measured at fair value and subsequently measured at amortized cost. Amortization of premiums or discounts and transaction costs are amortized into net earnings (loss), using the effective interest method less any impairment. Cash and cash equivalents and receivables are classified as loans and receivables. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Available-for-sale financial assets are measured at fair value, with unrealized gains and losses recorded in other comprehensive income until the asset is realized, at which time they will be recorded in net earnings (loss). Other than temporary impairments on available-for-sale financial assets are recorded in net earnings (loss). |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| ·   | Derivatives embedded in other financial instruments or non-financial contracts (the “host instrument”) are treated as separate derivatives with fair value changes recognized in the net earnings (loss) when their economic characteristics and risks are not clearly and closely related to those of the host instrument, and the combined instrument or contract is not held for trading. There were no embedded derivatives identified in a review of the Company’s contracts. Free-standing derivatives that meet the definition of an asset or liability are measured at their fair value and reported in the Company’s financial statements. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | Financial liabilities |
|--------|-----|-----------------------|

|   | Subsequent to initial recognition, the financial liabilities are measured in accordance with the following: |
|--------|-------------------------------------------------------------------------------------------------------------|

| ·   | Financial liabilities classified as other financial liabilities are initially recognized at fair value less transaction costs. After initial recognition, other financial liabilities are subsequently measured at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. The Company’s accounts payable and accrued liabilities are classified as other financial liabilities. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Financial liabilities classified as fair value through profit or loss  include financial liabilities held for trading and financial liabilities designated upon initial recognition as fair value through profit or loss. Fair value changes on financial liabilities classified as fair value through profit or loss  are recognized in net earnings (loss). At December 31, 2012, the Company classified share purchase warrants with an exercise price in Canadian dollars as  financial liabilities at fair value through profit or loss. As these warrants are exercised, the fair value of the recorded warrant liability on date of exercise is included in share capital along with the proceeds from the exercise. If these warrants expire, the related decrease in warrant liability is recognized in net earnings (loss). |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| Asset                   | Basis               | Rate                      |
|-------------------------|---------------------|---------------------------|
| Buildings               | straight-line       | 25 years                  |
| Computers and equipment | declining balance   | 30%                       |
| Leasehold improvements  | straight-line       | shorter of term of lease  |
|                    |                | and estimated useful life |
| Motor vehicles          | straight-line       | 5 years                   |
| Machinery and equipment | straight-line       | 5 – 25 years        |
| Mineral interests       | units of production | n/a                       |

| ·   | the existence of technical data that gives reasonable assurance that the mineralized resource is economically extractable; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | the establishment of a life-of-mine model that provides a basis for concluding there is a significant likelihood of being able to recoup the incremental costs of extraction and production over the project; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the existence of key operating and environmental permits or the existence of programs that layout a timeline and feasibility of attaining such authorizations; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | management’s intent to develop the property through to commercial production; and, |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | existence of sufficient financial resources or evidence that they are clearly attainable to develop the project. |
|--------------------|------------------------------------------------------------------------------------------------------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

|   | (i) | Asset retirement provisions |
|--------|-----|-----------------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

|   | (j) | Comprehensive loss |
|--------|-----|--------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

|   | available against which the asset can be utilized. To the extent that the Company does not consider it probable that a future income tax asset will be recovered, it does not recognize the asset. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| (o) | Use of estimates |
|-----|------------------|

| ·   | Economic recoverability and probability of future economic benefits of mineral interest and capitalized development costs |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | Determination of asset retirement provisions |
|--------------------|----------------------------------------------|

| ·   | Assumptions about the variables used in the calculation of share-based payments and foreign currency warrant liability |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

|   | The Company has applied the amendments to IFRS in respect to the disclosure relating to transfers of financial assets. The amendments required additional disclosure to assist users of financial statements in evaluating the risk exposures in respect to transfers of financial assets that are not derecognized or for which the entity has a continuing involvement.  The amendments had no impact on these consolidated financial statements. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| (a)   | IFRS 9, Financial Instruments (“IFRS 9”) |
|-----------------|------------------------------------------------------|

|   | IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the multiple classification options in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial impairment methods in IAS 39. IFRS 9 is effective for annual periods beginning on or after January 1, 2015, with earlier adoption permitted. The Company is currently evaluating the impact of IFRS 9 on its financial instruments; however, the impact, if any, is not expected to be significant. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In December 2011, the IASB issued new disclosure requirements for financial assets and liabilities that (1) are offset in the statement of financial position; or (2) subject to master netting agreements or similar arrangements. These new disclosure requirements are effective for annual periods beginning on or after January 1, 2013 and are to be applied retrospectively. The Company is currently evaluating the impact of these new disclosure requirements on its financial statement; however, the impact, if any, is not expected to be significant. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | IFRS 10 replaces the consolidation requirements in IAS 27, Consolidated and Separate Financial Statements, and Standing Interpretations Committee (“SIC”) Interpretation 12, Consolidation - Special Purpose Entities. IFRS 10 introduces a single consolidation model for all entities based on control, irrespective of the nature of the investee, and is effective for annual periods beginning on or after January 1, 2013, with earlier application permitted. The Company currently does not anticipate the adoption of IFRS 10 to have a significant impact on its consolidated financial statements. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In May 2011, the IASB issued guidance establishing principles for financial reporting by parties to a joint arrangement. IFRS 11 replaces IAS 31, Interests in Joint Ventures. Under IFRS 11, joint arrangements are classified as joint operations or joint ventures based on the rights and obligations of the parties to the joint arrangements. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (“joint operators”) have rights to the assets, and obligations for the liabilities, relating to the arrangement. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| 6. | Arrangement agreement |
|----|-----------------------|

| 7. | Plant and equipment |
|----|---------------------|

|                     |                    | Administration              | Esaase development project                 | Totals                           |                                                               |
|--------------------------|-------------------------|-----------------------------|--------------------------------------------|----------------------------------|--------------------------------------------------------------------|
|                     |                    |  Office and equipment  |  Buildings                            |  Equipment                  |  Motor vehicles                                               |   |   |
| Cost                     |                    |                        |                                       |                             |                                                               |   |
|                     | As at March 31, 2011    | $    707,019 | $ 408,394                                  | $ 155,333                        | $   687,585                                         | $ 1,958,331 |   |
|                     | Additions               |  638,564               | 339,444                                    | 145,938                          | 597,304                                                            |  1,721,250 |   |
|                     | Dispositions            |  -                     |  -                                    |  -                          |  (49,955)                                                     | (49,955) |   |
|                     | Loss of control of UMS  | (775,197)                   | -                                          | -                                | -                                                                  | (775,197) |   |
|                     | As at March 31, 2012    | 570,386                     | 747,838                                    | 301,271                          | 1,234,934                                                          | 2,854,429 |   |
|                     |                    |                        |                                       |                             |                                                               |   |   |
|                     | Additions               |  22,483                | 10,153                                     | 89,626                           | -                                                                  |  122,262 |   |
|                     | Dispositions            |  -                     |  -                                    |  -                          |  (24,569)                                                     | (24,569) |   |
|                     | As at December 31, 2012 | 592,869                     |  757,991                              | 390,897                          | 1,210,365                                                          | 2,952,122 |   |
|                     |                    |                        |                                       |                             |                                                               |   |
| Accumulated depreciation |                    |                        |                                       |                             |                                                               |   |
|                     | As at March 31, 2011    | $ (199,233)                 | $      (549) | $ (63,603)                       | $ (210,939)                                                        | $  (474,324) |   |
|                     | Depreciation            | (250,719)                   |  -                                    | (46,810)                         | (320,833)                                                          |  (618,362) |   |
|                     | Dispositions            | -                           |  -                                    |  -                          |           33,942 |  33,942 |   |
|                     | Loss of control of UMS  | 189,034                     | -                                          | -                                | -                                                                  | 189,034 |   |
|                     | As at March 31, 2012    | (260,918)                   | (549)                                      | (110,413)                        | (497,830)                                                          | (869,710) |   |
|                     | Depreciation            | (83,054)                    | (97,982)                                   | (61,391)                         | (72,596)                                                           |  (315,023) |   |
|                     | Dispositions            | -                           |  -                                    |  -                          |           17,198 |  17,198 |   |
|                     | As at December 31, 2012 | $ (343,972)                 | $ (98,531)                                 | $  (171,804)           | $ (553,228)                                                        | $(1,167,535) |   |
| Net book value           |                    |                        |                                       |                             |                                                               |   |
|                     | As at March 31, 2012    | $   309,468  | $ 747,289                                  |  $   190,858 |  $   737,104                                   | $  1,984,719 |   |
|                     | As at December 31, 2012 | $   248,897  | $ 659,460                                  |  $   219,093 |  $   657,137                                   | $  1,784,587 |   |

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| 8. | Mineral interests and development assets |
|----|------------------------------------------|

|                                |   |   |       |   | Accumulated  |   |   | Net book |   |
|-------------------------------------|--------|--------|------------|--------|--------------|--------|--------|----------|--------|
| December 31, 2012                   |   | Cost   |       |   | depreciation |   |   | value    |   |
|                                |   |   |       |   |         |   |   |     |   |
| Acquisition costs, Asumura          |   | $      | 170,043    |   |         | $      | -      |     |   | $ | 170,043 |   |
|                                |   |   |       |   |         |   |   |     |   |   |   |   |
| Acquisition costs, Esaase           |   |   | 4,498,392  |   |         |   | -      |     |   |   | 4,498,392 |   |
| Development costs, Esaase           |   |   | 31,022,314 |   |         |   | -      |     |   |   | 31,022,314 |   |
| Asset retirement obligation, Esaase |   |   | 10,687,715 |   |         |   | -      |     |   |   | 10,687,715 |   |
| Esaase development project          |   |   | 46,208,421 |   |         |   | -      |     |   |   | 46,208,421 |   |
|                                |   |   |       |   |         |   |   |     |   |   |   |   |
|                                |   | $      | 46,378,464 |   |         | $      | -      |     |   | $ | 46,378,464 |   |

|                                |   |   |       |   | Accumulated  |   |   | Net book |   |
|-------------------------------------|--------|--------|------------|--------|--------------|--------|--------|----------|--------|
| March 31, 2012                      |   | Cost   |       |   | depreciation |   |   | value    |   |
|                                |   |   |       |   |         |   |   |     |   |
| Acquisition costs, Asumura          |   | $      | 170,043    |   |         | $      | -      |     |   | $ | 170,043 |   |
|                                |   |   |       |   |         |   |   |     |   |   |   |   |
| Acquisition costs, Esaase           |   |   | 3,962,508  |   |         |   | -      |     |   |   | 3,962,508 |   |
| Development costs, Esaase           |   |   | 13,230,057 |   |         |   | -      |     |   |   | 13,230,057 |   |
| Asset retirement obligation, Esaase |   |   | 8,460,126  |   |         |   | -      |     |   |   | 8,460,126 |   |
| Esaase development project          |   |   | 25,652,691 |   |         |   | -      |     |   |   | 25,652,691 |   |
|                                |   |   |       |   |         |   |   |     |   |   |   |   |
|                                |   | $      | 25,822,734 |   |         | $      | -      |     |   | $ | 25,822,734 |   |
|                                |   |   |       |   |         |   |   |     |   |   |   |   |

|                                                                |   | Nine months ended |       |   | Year ended |   |
|---------------------------------------------------------------------|--------|-------------------|------------|--------|-----------------|--------|
|                                                                |   | December 31, 2012 |       |   | March 31, 2012  |   |
|                                                                |   |              |       |   |            |   |
| Opening balance                                                     |   | $                 | 25,822,734 |   |            | $      | 10,581,692 |   |
|                                                                |   |              |       |   |            |   |   |   |
| Additions:                                                          |   |              |       |   |            |   |   |   |
|      Acquisition costs, Esaase             |   |              | 535,884    |   |            |   | 766,009 |   |
|      Development costs, Esaase             |   |              | 17,792,257 |   |            |   | 13,230,057 |   |
|      Asset retirement obligation (note 10) |   |              | 2,227,589  |   |            |   | 1,244,976 |   |
|                                                                |   |              | 20,555,730 |   |            |   | 15,241,042 |   |
|                                                                |   |              |       |   |            |   |   |   |
| Closing balance                                                     |   | $                 | 46,378,464 |   |            | $      | 25,822,734 |   |

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| 8. | Mineral interests and development assets (continued) |
|----|------------------------------------------------------|

|                                                      |   | Nine months endedDecember 31, 2012 |       |   | Year endedMarch 31, 2012 |   |
|-----------------------------------------------------------|--------|------------------------------------|------------|--------|--------------------------|--------|
|                                                      |   |                               |       |   |                     |   |
| Esaase:                                                   |   |                               |       |   |                     |   |
|   Camp operations                               |   | $                                  | 2,017,952  |   |                     | $      | 1,805,286 |   |
|   Development support costs and settlement fees |   |                               | 8,305,494  |   |                     |   | 1,739,940 |   |
|   Feasibility studies and engineering           |   |                               | 3,215,037  |   |                     |   | 5,491,739 |   |
|   Sustainability                                |   |                               | 2,755,749  |   |                     |   | 2,408,183 |   |
|   Share-based payments                          |   |                               | 1,401,268  |   |                     |   | 1,502,166 |   |
|   VAT receivable allowance                      |   |                               | 96,757     |   |                     |   | 282,743 |   |
| Total development costs for the period                    |   | $                                  | 17,792,257 |   |                     | $      | 13,230,057 |   |

|  (a) | Essase Gold project |
|-----------|---------------------|

|   | Asanko Ghana owns a 100% interest in the Esaase Gold property in the southwest part of the Republic of Ghana (“Ghana”), West Africa. The property is subject to an underlying 10% interest and 5% royalty (see note 15(a)) to the Ghanaian government and a 0.5% royalty payable to the Bonte Liquidation Committee. Asanko Ghana was granted the full Esaase Mining Lease by the Ghanaian Minerals Commission and Minister of Mines, Lands and Forestry with no further obligation to any party aside from the royalties and government commitments. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Asanko Ghana owns a 100% interest in the Jeni River Concession mining lease and exploration rights. The Jeni River Concession lies directly to the southwest and contiguous to the Esaase Gold property. The Ghanaian government retains a standard 10% carried interest and 3% royalty based on the existing mining lease and the Bonte Liquidation Committee retains a 0.5% royalty. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| 8. | Mineral interests and development assets (continued) |
|----|------------------------------------------------------|

|  (b) | Asumura Gold project |
|-----------|----------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| 9. | Exploration and evaluation expenditures |
|----|-----------------------------------------|

|                                                                 |   | Nine months endedDecember 31, 2012 |          |   | Year endedMarch 31, 2012 |   |
|----------------------------------------------------------------------|--------|------------------------------------|---------------|--------|--------------------------|--------|
|                                                                 |   |                               |          |   |                     |   |
| Esaase:                                                              |   |                               |          |   |                     |   |
|   Camp operations                                          |   | $                                  | 437,774       |   |                     | $      | 1,091,202 |   |
|   Development support costs                                |   |                               | -             |   |                     |   | 559,643 |   |
|   Equipment and infrastructure                             |   |                               | -             |   |                     |   | 951,673 |   |
|   Engineering studies                                      |   |                               | -             |   |                     |   | 2,989,662 |   |
|   Exploration drilling                                     |   |                               | 529,152       |   |                     |   | 2,933,027 |   |
|   Exploration support costs                                |   |                               | 844,550       |   |                     |   | 1,703,947 |   |
|   Sustainability                                           |   |                               | -             |   |                     |   | 1,102,038 |   |
|   Technical and in-fill drilling                           |   |                               | -             |   |                     |   | 3,570,062 |   |
|   Share-based payments  VAT receivable allowance |   |                               | 309,25165,699 |   |                     |   | 2,379,8081,133,712 |   |
|                                                                 |   |                               | 2,186,426     |   |                     |   | 18,414,774 |   |
|                                                                 |   |                               |          |   |                     |   |   |   |
| Asumura:                                                             |   |                               | 2,988         |   |                     |   | - |   |
|  Total exploration and evaluation expenditures                  |   | $                                  | 2,189,414     |   |                     | $      | 18,414,774 |   |

| 10. | Asset retirement provision |
|-----|----------------------------|

|   | The asset retirement provision relates to current and historical disturbance caused to the mineral concessions within the area of interest of the Esaase Gold project. Management has determined that these areas will be included as part of the project’s life-of-mine rehabilitation program. The present value of this obligation has been recorded as a non-current provision. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Esaase development project |   | Nine months ended |       |   | Year ended     |   |
|----------------------------|--------|-------------------|------------|--------|----------------|--------|
|                       |   | December 31, 2012 |       |   | March 31, 2012 |   |
|                       |   |              |       |   |           |   |
| Opening balance            |   | $                 | 8,737,634  |   |           | $      | 7,242,082 |   |
| Additions (note 8)         |   |              | 2,227,589  |   |           |   | 1,244,976 |   |
| Accretion                  |   |              | 123,858    |   |           |   | 250,576 |   |
| Closing balance            |   | $                 | 11,089,081 |   |           | $      | 8,737,634 |   |

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| 11. | Share capital |
|-----|---------------|

|   | (b) | Issued and outstanding common shares |
|--------|-----|--------------------------------------|

|                                                        |   | Number    |       |   |   |   |
|-------------------------------------------------------------|--------|-----------|------------|--------|--------|--------|
|                                                        |   | of shares |       |   | Amount |   |
| Balance, March 31, 2011                                     |   |      | 74,884,588 |   |   | $      | 309,345,374 |   |
| Issued for cash:                                            |   |      |       |   |   |   |   |   |
| Pursuant to the exercise of options                         |   |      |       |   |   |   |   |   |
| - at C$2.44                                                 |   |      | 305,000    |   |   |   | 749,130 |   |
| - at C$3.31                                                 |   |      | 50,000     |   |   |   | 172,667 |   |
| - at C$3.60                                                 |   |      | 25,000     |   |   |   | 91,764 |   |
| - at C$4.01                                                 |   |      | 96,250     |   |   |   | 398,599 |   |
| - at C$4.20                                                 |   |      | 75,000     |   |   |   | 321,363 |   |
| - at C$6.19                                                 |   |      | 80,000     |   |   |   | 515,487 |   |
| - at C$7.83                                                 |   |      | 10,000     |   |   |   | 82,262 |   |
| Issued pursuant to the SGM agreement (note 8(a))            |   |      | 20,000     |   |   |   | 156,009 |   |
| Transferred from equity reserves on the exercise of options |   |      | -          |   |   |   | 1,365,779 |   |
|                                                        |   |
| Balance, March 31, 2012                                     |   |      | 75,545,838 |   |   | $      | 313,198,434 |   |
| Issued for cash:                                            |   |      |       |   |   |   |   |   |
| Pursuant to a non-brokered private placement                |   |      |       |   |   |   |   |   |
| - at C$3.44                                                 |   |      | 9,443,500  |   |   |   | 32,592,843 |   |
| - share issuance costs, cash                                |   |      | -          |   |   |   | (137,096 | ) |
| - fair value of foreign currency warrants                   |   |      | -          |   |   |   | (11,497,641 | ) |
|                                                        |   |
| Pursuant to the exercise of options                         |   |      |       |   |   |   |   |   |
| - at C$3.74                                                 |   |      | 35,000     |   |   |   | 132,630 |   |
| Issued pursuant to the SGM agreement (note 8(a))            |   |      | 10,000     |   |   |   | 29,016 |   |
| Transferred from equity reserves on the exercise of options |   |      | -          |   |   |   | 58,304 |   |
| Balance, December 31, 2012                                  |   |      | 85,034,338 |   |   | $      | 334,376,490 |   |

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| 11. | Share capital (continued) |
|-----|---------------------------|

|   | (b) | Issued and outstanding common shares (continued) |
|--------|-----|--------------------------------------------------|

|                                 |   | November 5, 2012 |   |
|--------------------------------------|--------|------------------|--------|
|                                 |   |             |   |
| Risk free interest rate              |   |             | 1.08   | % |
| Expected dividend yield              |   |             | 0      | % |
| Share price volatility               |   |             | 59.80  | %  |
| Share price on the date of valuation |   |             | $3.81  |   |
| Expected life of warrants            |   | 2 years          |   |

| 12. | Equity reserves |
|-----|-----------------|

|   | (a) Share-based options |
|--------|-------------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| 12. | Equity reserves (continued) |
|-----|-----------------------------|

|   | (a) Share-based options (continued) |
|--------|-------------------------------------|

| Share-based options movement |   | Number    |       |   | Weighted average |   |
|------------------------------|--------|-----------|------------|--------|------------------|--------|
|                         |   | of shares |       |   | exercise price   |   |
| Balance, March 31, 2011      |   |      | 6,213,750  |   |             |   | C$6.37 |   |
| Granted                      |   |      | 1,952,500  |   |             |   | C$5.17 |   |
| Exercised                    |   |      | (641,250   | )      |             |   | C$3.55 |   |
| Forfeited                    |   |      | (102,500   | )      |             |   | C$7.43 |   |
| Cancelled                    |   |      | (2,475,000 | )      |             |   | C$8.04 |   |
| Balance, March 31, 2012      |   |      | 4,947,500  |   |             |   | C$5.41 |   |
| Granted                      |   |      | 4,187,500  |   |             |   | C$3.77 |   |
| Exercised                    |   |      | (35,000    | )      |             |   | C$3.74 |   |
| Forfeited                    |   |      | (941,250   | )      |             |   | C$6.53 |   |
| Balance, December 31, 2012   |   |      | 8,158,750  |   |             |   | C$4.45 |   |

|                                   | Number outstanding at |              | Number exercisable at |
|----------------------------------------|-----------------------|-------------------|-----------------------|
| Exercise price                         | December 31, 2012     | Expiry date       | December 31, 2012     |
|                                   |
| C$4.20                                 | 345,000               | February 5, 2013  | 345,000               |
| C$1.12                                 | 12,500                | January 15, 2014  | 12,500                |
| C$3.31                                 | 70,000                | June 2, 2014      | 70,000                |
| C$3.10                                 | 225,000               | July 2, 2014      | 225,000               |
| C$3.10                                 | 75,000                | July 17, 2014     | 75,000                |
| C$4.01                                 | 320,000               | October 6, 2014   | 320,000               |
| C$6.50                                 | 50,000                | December 13, 2014 | 50,000                |
| C$6.19                                 | 1,327,500             | May 26, 2015      | 1,327,500             |
| C$8.00                                 | 256,250               | March 17, 2016    | 256,250               |
| C$4.59                                 | 1,375,000             | February 16, 2017 | 859,375               |
| C$3.74                                 | 2,117,500             | June 7, 2017      | 1,058,750             |
| C$3.75                                 | 1,150,000             | October 16, 2017  | 287,500               |
| C$3.90                                 | 835,000               | November 7, 2017  | 208,750               |
|                                   | 8,158,750             |              | 5,095,625             |
| Weighted average contractual life      |                  |              |                  |
| remaining at December 31, 2012 (years) | 3.66                  |              | 3.12                  |

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| 12. | Equity reserves (continued) |
|-----|-----------------------------|

|   | (a) Share-based options (continued) |
|--------|-------------------------------------|

|                     |   | Nine months ended |   |   | Year ended     |   |
|--------------------------|--------|-------------------|--------|--------|----------------|--------|
|                     |   | December 31, 2012 |   |   | March 31, 2012 |   |
|                     |   |
| Risk free interest rate  |   |              | 1.25   | %      |           |   | 1.25 | % |
| Expected dividend yield  |   |              | 0      | %      |           |   | 0 | % |
| Share price volatility   |   |              | 66.28  | %      |           |   | 87.28 | % |
| Forfeiture rate          |   |              | 1.03   | %      |           |   | 1.14 | % |
| Expected life of options |   | 3.51 years        |   |   | 3.56 years     |   |

|   |  (b) | Warrants |
|--------|-----------|----------|

| Exercise price     | Expiry date       | March 31, 2012 | Issued    | Exercised | Expired |   December 31, 2012 |
|--------------------|-------------------|----------------|-----------|-----------|---------|-------------------------------|
|               |              |           |      |      |    |                          |
| C$  7.50 | February 17, 2013 | 284,050        | -         | -         | -       | 284,050                       |
| C$  4.00 | November 5, 2014  | -              | 9,443,500 | -         | -       | 9,443,500                     |
|               |              |           |      |      |    |                          |
|               |              | 284,050        | 9,443,500 | -         | -       | 9,727,550                     |

| Exercise price     | Expiry date       | March 31, 2011 | Issued | Exercised | Expired | March 31, 2012 |
|--------------------|-------------------|----------------|--------|-----------|---------|----------------|
|               |              |           |   |      |    |           |
| C$  7.50 | February 17, 2013 | 284,050        | -      | -         | -       | 284,050        |
|               |              |           |   |      |    |           |
|               |              | 284,050        | -      | -         | -       | 284,050        |

|   | (c) | Shareholder rights plan |
|--------|-----|-------------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

|                  |   | Nine months ended December 31, 2012 |      |   | Year endedMarch 31, 2012 |   |
|-----------------------|--------|-------------------------------------|-----------|--------|--------------------------|--------|
|                  |   |                                |      |   |                     |   |
| Salaries and benefits |   | $                                   | 1,673,761 |   |                     | $      | 2,369,506 |   |
| Share-based payments  |   |                                | 3,031,469 |   |                     |   | 6,115,578 |   |
|                  |   | $                                   | 4,705,230 |   |                     | $      | 8,485,084 |   |

|                                |   | Nine months ended December 31, 2012 |      |   | Year endedMarch 31, 2012 |   |
|-------------------------------------|--------|-------------------------------------|-----------|--------|-------------------------------|--------|
|                                |   |                                |      |   |                          |   |
| Universal Mineral Services Ltd. (i) |   | $                                   | 1,858,360 |   |                          | $      | - |   |
| Rock-on Exploration Ltd. (ii)       |   |                                | 35,000    |   |                          |   | 141,180 |   |
| Other public companies (iii)        |   |                                | -         |   |                          |   | (1,275,881 | ) |
|                                |   | $                                   | 1,893,360 |   |                          | $      | (1,134,701 | ) |

|                                                        |   | December 31, 2012 |     |   | March 31, 2012 |   |
|-------------------------------------------------------------|--------|-------------------|----------|--------|----------------|--------|
|                                                        |   |              |     |   |           |   |
| Universal Mineral Services Ltd. (i)                         |   | $                 | (237,900 | )      |           | $      | - |   |
| Universal Mineral Services Ltd. – prepaid deposit (i) |   |              | 138,201  |   |           |   | - |   |
| Rock-on Exploration Ltd. (ii)                               |   |              | -        |   |           |   | (41,532 | ) |
|                                                        |   | $                 | (99,699  | )      |           | $      | (41,532 | ) |

| (i)   | Universal Mineral Services Ltd. (“UMS”) |
|-----------------|-----------------------------------------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| (ii)   | Rock-on Exploration Ltd. (“Rock-on”) |
|------------------|--------------------------------------------------|

| (iii)   | Other public companies |
|-------------------|------------------------|

|   | (a) | Ghanaian mining royalties and taxes |
|--------|-----|-------------------------------------|

|   | (b) | Esaase option agreement suit |
|--------|-----|------------------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

|   | (c) | Financial guarantee |
|--------|-----|---------------------|

|   | Geographic Information |
|--------|------------------------|

|   | The Company operates in one reportable operating segment, being the exploration and development of resource properties. |
|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | Geographic allocation of non-current assets |
|--------|---------------------------------------------|

| December 31, 2012                       |   | Canada |    |   | Ghana  |   |       | Total  |   |
|-----------------------------------------|--------|--------|---------|--------|--------|--------|------------|--------|--------|
|                                    |   |   |    |   |   |   |       |   |   |
| Plant and equipment                     |   | $      | 148,019 |   |   | $      | 1,636,568  |   |   | $ | 1,784,587 |   |
| Investment in associate                 |   |   | 627,394 |   |   |   | -          |   |   |   | 627,394 |   |
| Mineral interests and development costs |   |   | -       |   |   |   | 46,378,464 |   |   |   | 46,378,464 |   |
|                                    |   | $      | 775,413 |   |   | $      | 48,015,032 |   |   | $ | 48,790,445 |   |

| March 31, 2012                          |   | Canada |    |   | Ghana  |   |       | Total  |   |
|-----------------------------------------|--------|--------|---------|--------|--------|--------|------------|--------|--------|
|                                    |   |   |    |   |   |   |       |   |   |
| Plant and equipment                     |   | $      | 172,393 |   |   | $      | 1,812,326  |   |   | $ | 1,984,719 |   |
| Investment in associate                 |   |   | 627,394 |   |   |   | -          |   |   |   | 627,394 |   |
| Mineral interests and development costs |   |   | -       |   |   |   | 25,822,734 |   |   |   | 25,822,734 |   |
|                                    |   | $      | 799,787 |   |   | $      | 27,635,060 |   |   | $ | 28,434,847 |   |

|                                |   | Canada |       |   | Ghana  |   |       | Total  |   |
|-------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                |   |   |       |   |   |   |       |   |   |
| Nine months ended December 31, 2012 |   | $      | 10,589,382 |   |   | $      | 2,956,820  |   |   | $ | 13,546,202 |   |
| Year ended March 31, 2012           |   | $      | 17,660,306 |   |   | $      | 20,492,279 |   |   | $ | 38,152,585 |   |

| 17. | Loss per share |
|-----|----------------|

|                                       |   | Nine months ended December 31, 2012 |       |   | Year endedMarch 31, 2012 |   |
|--------------------------------------------|--------|-------------------------------------|------------|--------|--------------------------|--------|
|                                       |   |                                |       |   |                     |   |
| Loss attributable to ordinary shareholders |   | $                                   | 13,546,202 |   |                     | $      | 38,152,585 |   |
| Weighted average number of common shares   |   |                                | 77,477,114 |   |                     |   | 75,347,941 |   |
| Basic and diluted loss per share           |   | $                                   | 0.17       |   |                     | $      | 0.51 |   |

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| 17. | Loss per share (continued) |
|-----|----------------------------|

|                                                                                        |   | Nine months ended December 31, 2012 |              |   | Year endedMarch 31, 2012 |   |
|---------------------------------------------------------------------------------------------|--------|-------------------------------------|-------------------|--------|--------------------------|--------|
|                                                                                        |   |                                |              |   |                     |   |
| Issued common shares, beginning of period                                                   |   |                                | 75,545,838        |   |                     |   | 74,884,588 |   |
|  Effect of shares issued in private placement                                          |   |                                | 1,923,040         |   |                     |   | - |   |
|  Effect of shares issued on exercise  of share-based options                 |   |                                |   2,673      |   |                     |   |  461,928 |   |
| Effect of shares issued for  mineral interests (note 8(a))                        |   |                                | 5,563             |   |                     |   | 1,425 |   |
|  Weighted average number ofcommon shares (basic and diluted), end of  period |   |                                |   77,477,114 |   |                     |   |   75,347,941 |   |

|                                                                                    |   | Nine months endedDecember 31, 2012 |        |   | Year endedMarch 31, 2012 |   |
|-----------------------------------------------------------------------------------------|--------|------------------------------------|-------------|--------|--------------------------|--------|
|                                                                                    |   |                               |        |   |                     |   |
|   Income tax paid                                                             |   | $                                  | -           |   |                     | $      | - |   |
| Asset retirement obligations included in mineral interest                               |   |                               | 2,227,589   |   |                     |   | 1,244,976 |   |
| Change in accounts payable related to mineral interests and development costs           |   |                               | 163,372     |   |                     |   | 1,107,283 |   |
| Depreciation included in  exploration and evaluation costs                    |   |                               | 189,768     |   |                     |   | 369,156 |   |
| Depreciation included in mineral   interest and development costs        |   |                               | 42,201      |   |                     |   | - |   |
| Fair value of shares included in mineral interest                                       |   |                               | 29,016      |   |                     |   | 156,009 |   |
| Fair value of foreign currency warrants included in share capital                       |   |                               | (11,497,641 | )      |                     |   | - |   |
| Share-based compensation included in mineral interests and development cost             |   |                               | 1,401,268   |   |                     |   | 1,502,166 |   |
| Reclassification of equity reserves   on exercise of share-based options |   |                               | (58,304     | )      |                     |   | (1,365,779 | ) |

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

|                                                |                                    |                 |   | December 31, 2012 |              |
|-----------------------------------------------------|-----------------------------------------|----------------------|--------|-------------------|-------------------|
|                                                | Category                                | Carrying value       |   | Amount            |              |   | Fair value hierarchy |   |
| Financial assets                                    |                                    |                 |   |              |              |   |   |   |
| Cash and cash equivalents                      | Loans and receivables              | Amortized cost  |   | $            | 204,611,912  |   |   |   | N/A  |   |
| Receivables, excluding  sales taxes refundable | Loans and receivables                   | Amortized cost  |   |              | 349,288      |   |   |   | N/A  |   |
|                                                |                                    |                 |   | $                 | 204,961,200       |   |   |   |   |   |
|                                                |                                    |                 |   |              |              |   |   |   |   |   |
| Financial liabilities                               |                                    |                 |   |              |              |   |   |   |   |   |
| Accounts payable and  accrued liabilities      | Other financial liabilities        | Amortized cost  |   | $            | 3,764,302    |   |   |   | N/A  |   |
| Foreign currency warrant  liability            | Fair-value-through profit and loss | Fair value      |   |              | 12,494,674   |   |   | Level 2  |   |
|                                                |                                    |                 |   | $                 | 16,258,976        |   |   |   |   |   |

|                                                |                             |                 |   | March 31, 2012 |              |
|-----------------------------------------------------|----------------------------------|----------------------|--------|----------------|-------------------|
|                                                |  Category                   |  Carrying value |   | Amount         |              |   | Fair value hierarchy |   |
| Financial assets                                    |                             |                 |   |           |              |   |   |   |
|                                                |                             |                 |   |           |              |   |   |   |
| Cash and cash equivalents                      | Loans and receivables            | Amortized cost  |   | $         | 197,608,106  |   |   |   | N/A  |   |
| Receivables, excluding sales  taxes refundable | Loans and receivables       | Amortized cost  |   |           | 120,463           |   |   |   | N/A |   |
|                                                |                             |                 |   |           |              |   |   |   |   |   |
|                                                |                             |                 |   | $              | 197,728,569       |   |   |   |   |   |
|                                                |                             |                 |   |           |              |   |   |   |   |   |
| Financial liabilities                               |                             |                 |   |           |              |   |   |   |   |   |
|                                                |                             |                 |   |           |              |   |   |   |   |   |
| Accounts payable and accrued  liabilities      | Other financial liabilities | Amortized cost  |   | $         | 4,813,773    |   |   |   | N/A  |   |
|                                                |                             |                 |   |           |              |   |   |   |   |   |
|                                                |                             |                 |   | $              | 4,813,773         |   |   |   |   |   |

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

|   | (a) | Credit risk |
|--------|-----|-------------|

|  (b) | Liquidity risk |
|-----------|----------------|

|   | (c) | Market risk |
|--------|-----|-------------|

|   | (i) | Interest rate risk |
|--------|-----|--------------------|

|   | (ii) | Foreign currency risk |
|--------|------|-----------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

|   | (c) | Market risk (continued) |
|--------|-----|-------------------------|

|   | (ii) | Foreign currency risk (continued) |
|--------|------|-----------------------------------|

|                      |   | December 31, 2012 |       |   | March 31, 2012 |   |
|---------------------------|--------|-------------------|------------|--------|----------------|--------|
|                      |   | CAD               |       |   | Ghana Cedis    |   |   | AUD |   |   | CAD |   |   | Ghana Cedis |   |   | AUD |   |
|                      |   |              |       |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents |   | $                 | 32,497,005 |   |           | $      | 77,540 |   |   | $ | - |   |   | $ | 37,758,640 |   |   | $ | - |   |   | $ | - |   |
| Accounts payable          |   |              | (1,308,118 | )      |           |   | (59,436 | ) |   |   | (87,348 | ) |   |   | (707,148 | ) |   |   | (300,132 | ) |   |   | (669,309 | ) |
| Net exposure              |   | $                 | 31,188,887 |   |           | $      | 18,104 |   |   | $ | (87,348 | ) |   | $ | 37,051,492 |   |   | $ | (300,132 | ) |   | $ | (669,309 | ) |

|   | (iii) | Other price risk |
|--------|-------|------------------|

|   | (d) | Fair values |
|--------|-----|-------------|

|   | The foreign currency share purchase warrants issued in the non-brokered private placement of November 5, 2012 (note 11(b)) have not been listed on an exchange and therefore do not trade on an active market. The fair value at December 31, 2012 of the foreign currency warrant liability associated with the issuance of these warrants was estimated using the Black-Scholes option pricing model with the following assumptions: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | December 31, 2012 |   |   | March 31, 2012 |   |
|--------------------------------------|--------|-------------------|--------|--------|----------------|--------|
| Risk free interest rate              |   |              | 1.14   | %      |           |   | - |   |
| Expected dividend yield              |   |              | 0      | %      |           |   | - |   |
| Share price volatility               |   |              | 63     | %      |           |   | - |   |
| Share price at the date of valuation |   |              | C$3.95 |   |           |   | - |   |
| Expected life of warrants            |   | 1.85 years        |   |   |           | -      |   |

|   | The carrying values of cash and cash equivalents, receivables and accounts payable and accrued liabilities approximate their respective fair values due to the short-term nature of these instruments. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| (e)   | Items of income, expense, gains or losses arising from financial instruments |
|-----------------|------------------------------------------------------------------------------|

|                                      |   |                               |    |
|-------------------------------------------|--------|------------------------------------|---------|
|                                      |   | Nine months endedDecember 31, 2012 |    |   | Year endedMarch 31, 2012 |   |
|                                      |   |                               |    |   |   |   |
| Interest income from loans and receivable |   | $                                  | 652,192 |   |   | $ | 1,557,889 |   |
| Foreign exchange gain (loss)              |   |                               | 348,334 |   |   |   | (1,295,107 | ) |

|                       | December 31, 2012              |    March 31, 2012 |
|----------------------------|--------------------------------|----------------------------------|
|                       |                           |                             |
| Shareholders’ equity | $   226,948,517 | $   213,383,856   |
|                       |                           |                             |

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

|   |   | Ghana  |      |   | Canada |   |       | Total  |   |
|--------|--------|--------|-----------|--------|--------|--------|------------|--------|--------|
|   |   |   |      |   |   |   |       |   |   |
| 2013   |   | $      | 728,279   |   |   | $      | 55,055     |   |   | $ | 783,334 |   |
| 2014   |   |   | 2,567,303 |   |   |   | 371,430    |   |   |   | 2,938,733 |   |
| 2015   |   |   | 1,082,887 |   |   |   | -          |   |   |   | 1,082,887 |   |
| 2016   |   |   | 1,789,167 |   |   |   | -          |   |   |   | 1,789,167 |   |
| 2017   |   |   | 986,989   |   |   |   | -          |   |   |   | 986,989 |   |
| 2025   |   |   | -         |   |   |   | 1,103,724  |   |   |   | 1,103,724 |   |
| 2026   |   |   | -         |   |   |   | 1,413,969  |   |   |   | 1,413,969 |   |
| 2027   |   |   | -         |   |   |   | 2,181,501  |   |   |   | 2,181,501 |   |
| 2028   |   |   | -         |   |   |   | 2,530,349  |   |   |   | 2,530,349 |   |
| 2029   |   |   | -         |   |   |   | 4,401,371  |   |   |   | 4,401,371 |   |
| 2030   |   |   | -         |   |   |   | 7,602,331  |   |   |   | 7,602,331 |   |
| 2031   |   |   | -         |   |   |   | 2,854,030  |   |   |   | 2,854,030 |   |
| 2032   |   |   | -         |   |   |   | 7,783,965  |   |   |   | 7,783,965 |   |
|   |   |   |      |   |   |   |       |   |   |   |   |   |
|   |   | $      | 7,154,625 |   |   | $      | 30,297,726 |   |   | $ | 37,452,351 |   |

|   | (b) Income tax recovery provision |
|--------|-----------------------------------|

|   | A reconciliation of the income tax provision computed at statutory rates to the reported income tax provision is: |
|--------|-------------------------------------------------------------------------------------------------------------------|

|                                                       |   | Nine months endedDecember 31, 2012 |        |   | Year endedMarch 31, 2012 |   |
|------------------------------------------------------------|--------|------------------------------------|-------------|--------|--------------------------|--------|
|                                                       |   |                               |        |   |                     |   |
| Average statutory tax rate                                 |   |                               | 25          | %      |                     |   | 26.13 | % |
|                                                       |   |                               |        |   |                     |   |   |   |
| Loss before income taxes                                   |   | $                                  | (13,546,202 | )      |                     | $      | (38,152,585 | ) |
|                                                       |   |                               |        |   |                     |   |   |   |
| Expected income tax recovery                               |   |                               | (3,386,551  | )      |                     |   | (9,967,363 | ) |
| Increase (decrease) in income tax recovery resulting from: |   |                               |        |   |                     |   |   |   |
| Mineral exploration costs not deductible for tax           |   |                               | 122,635     |   |                     |   | 2,247,080 |   |
| Stock based compensation                                   |   |                               | 1,070,148   |   |                     |   | 2,321,866 |   |
| Other permanent differences                                |   |                               | 296,588     |   |                     |   | 200,923 |   |
| Effect of change in statutory rates                        |   |                               | -           |   |                     |   | (5,012,294 | ) |
| Effect of differences in tax rate in foreign jurisdictions |   |                               | (284,015    | )      |                     |   | (1,274,846 | ) |
| Expiry of loss carryforwards                               |   |                               | 158,062     |   |                     |   | - |   |
| Share issuance costs                                       |   |                               | (34,009     | )      |                     |   | - |   |
| Foreign exchange                                           |   |                               | (93,170     | )      |                     |   | 2,151,699 |   |
| Increase in unrecognized tax assets                        |   |                               | 2,150,312   |   |                     |   | 9,332,935 |   |
|                                                       |   |                               |        |   |                     |   |   |   |
| Income tax recovery                                        |   | $                                  | -           |   |                     | $      | - |   |

----

|  Nine months ended December 31, 2012 and year ended March 31, 2012  |  Expressed in United States Dollars |
|-------------------------------------------------------------------------------|------------------------------------------|

| (c)   | Deferred tax assets and liabilities |
|-----------------|-------------------------------------|

|                               |   | March 31,2012 |        |   | Net income/loss |   |       | Equity |   |   | December 31,2012 |   |
|------------------------------------|--------|---------------|-------------|--------|----------------------|--------|------------|--------|--------|--------|------------------|--------|
| Property and equipment             |   | $             | (491,477    | )      |                 | $      | 2,557      |   |   | $      | -                |   |   | $ | (488,920 | ) |
| Share issuance costs               |   |          | 1,877,814   |   |                 |   | -          |   |   |   | (648,133         | )      |   |   | 1,229,681 |   |
| Investment in associate            |   |          | 454,029     |   |                 |   | 3,918      |   |   |   | -                |   |   |   | 457,947 |   |
| Mineral interests                  |   |          | 15,089,349  |   |                 |   | 548,979    |   |   |   | -                |   |   |   | 15,638,328 |   |
| Unrealized foreign exchange        |   |          | 256,767     |   |                 |   | 153,859    |   |   |   | -                |   |   |   | 410,626 |   |
| Non-capital losses carried forward |   |          | 7,989,418   |   |                 |   | 2,089,132  |   |   |   | -                |   |   |   | 10,078,550 |   |
|                               |   |          | 25,175,900  |   |                 |   | 2,798,445  |   |   |   | (648,133         | )      |   |   | 27,326,212 |   |
|                               |   |          |        |   |                 |   |       |   |   |   |             |   |   |   |   |   |
| Unrecognized deferred tax asset    |   | $             | (25,175,900 | )      |                 | $      | (2,798,445 | )      |   | $      | 648,133          |   |   | $ | (27,326,212 | ) |
| Deferred tax assets                |   | $             | -           |   |                 | $      | -          |   |   | $      | -                |   |   | $ | - |   |
| Deferred tax liabilities           |   | $             | -           |   |                 | $      | -          |   |   | $      | -                |   |   | $ | - |   |
| Net deferred tax balance           |   | $             | -           |   |                 | $      | -          |   |   | $      | -                |   |   | $ | - |   |

|                               |   | March 31,2011 |        |   | Net income/loss |   |        | Equity |   |   | March 31, 2012 |   |
|------------------------------------|--------|---------------|-------------|--------|----------------------|--------|-------------|--------|--------|--------|---------------------|--------|
| Property and equipment             |   | $             | 56,413      |   |                 | $      | (547,890    | )      |   | $      | -                   |   |   | $ | (491,477 | ) |
| Share issuance costs               |   |          | 2,690,339   |   |                 |   | -           |   |   |   | (812,525            | )      |   |   | 1,877,814 |   |
| Investment in associate            |   |          | -           |   |                 |   | 454,029     |   |   |   | -                   |   |   |   | 454,029 |   |
| Mineral interests                  |   |          | 6,472,964   |   |                 |   | 8,616,385   |   |   |   | -                   |   |   |   | 15,089,349 |   |
| Unrealized foreign exchange        |   |          | 316,943     |   |                 |   | (60,176     | )      |   |   | -                   |   |   |   | 256,767 |   |
| Non-capital losses carried forward |   |          | 6,306,306   |   |                 |   | 1,683,112   |   |   |   | -                   |   |   |   | 7,989,418 |   |
|                               |   |          | 15,842,965  |   |                 |   | 10,145,460  |   |   |   | (812,525            | )      |   |   | 25,175,900 |   |
|                               |   |          |        |   |                 |   |        |   |   |   |                |   |   |   |   |   |
| Unrecognized deferred tax asset    |   | $             | (15,842,965 | )      |                 | $      | (10,145,460 | )      |   | $      | 812,525             |   |   | $ | (25,175,900 | ) |
| Deferred tax assets                |   | $             | -           |   |                 | $      | -           |   |   | $      | -                   |   |   | $ | - |   |
| Deferred tax liabilities           |   | $             | -           |   |                 | $      | -           |   |   | $      | -                   |   |   | $ | - |   |
| Net deferred tax balance           |   | $             | -           |   |                 | $      | -           |   |   | $      | -                   |   |   | $ | - |   |

|   | The Company is not recording deferred tax assets as it was determined that under current conditions it is not more like-than-not that these future tax benefits in Canada and Ghana will be realized. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----