SEMAFO Inc.said April 4 that it has entered into an agreement with a syndicate of underwritersco-led by BMO Capital Markets and Clarus Securities Inc., in which the underwritersagreed to buy on a bought deal basis 17,250,000 of the company's common shares atC$4.35 each for gross proceeds of C$75 million.

The underwriters have the option, exercisable within 30 daysfollowing the closing of the offering, to purchase up to an additional 15% of theoffering to cover overallotments, if any.

The offering is expected to close on or about April 22 and issubject to the receipt of regulatory approvals.

Net proceeds will be used for exploration at the Mana and gold properties inBurkina Faso, to further enhance financial flexibility with respect to Natougouand for working capital and general corporate purposes.