- Construction of the Orosi Mine in Nicaragua is 95% complete and remains on schedule for completion and the commencement of production in late November 2009. Open pit mining has commenced. The Orosi Mine is projected to produce an average of 80,000 to 90,000 ounces of gold per year with an initial mine life of seven years

- With both the Orosi and Limon mines operating, B2Gold's gold production for 2010 is projected to be approximately 120,000 to 130,000 ounces with estimated cash costs of approximately $490 to $500 per ounce at Orosi and approximately $545 to $560 per ounce at Limon. Both mines are debt free and un-hedged

- The Company has signed a commitment letter for a US$20 million secured revolving credit facility with Macquarie Bank Limited ("Macquarie")

- At the Limon Mine in Nicaragua, one of the three labour unions has triggered an illegal strike and shut down production. The Ministry of Labour of the Government of Nicaragua has declared the strike to be illegal. The Company is in discussions to resolve this dispute and expects to recommence production shortly

- Exploration drilling is scheduled to recommence on the Kupol West property's Moroshka west zone, in Far East Russia (the Kupol East and West properties are a joint venture with B2Gold, Kinross Gold Corporation ("Kinross") and the government of Chukotka, Russia)

- B2Gold's exploration team has generated numerous exploration targets around the Limon and Orosi mines and on other joint venture properties in Nicaragua

Orosi Mine

The Orosi mine construction is 95% complete and remains on target for the completion of construction and the commencement of production in late November. The power supply is complete and is connected to the national power grid and the initial tailings storage facility is ready for start-up. Initial capacity of the mill is expected to be 3,500 tonnes of ore per day and will ramp up to 5,500 tonnes of ore per day once the second ball mill is installed in the second quarter of 2010. The Company is projecting gold production of approximately 84,000 ounces from an average grade of 1.81 grams per tonne ("g/t") gold for 2010. Contract open pit mining has commenced with a new mining fleet.

The total construction cost for Orosi is now estimated at approximately US$62 million. This is an increase of approximately $7 million, or 13% from the Company's previous estimate. The primary reasons for the increased construction costs are: higher costs to excavate the tailings dam due to heavier than usual rains in June, July and August; a change in routing of the new power line, due to surface rights access issues; and additional changes to the mill to accommodate the second ball mill which will increase throughput from 3,500 tonnes per day to 5,500 tonnes per day.

B2Gold owns a 100% interest in the Orosi open pit gold mine, which commenced operating as a heap leach mine in 1996. Operations were suspended in the first quarter of 2007 after a re-evaluation of the project indicated that gold recoveries could be improved from approximately 40% from heap leaching to over 90% using a conventional milling operation. Once in commercial production, the Orosi Mine will have an initial seven year mine life and is expected to produce approximately 80,000 to 90,000 ounces of gold annually at an estimated cash cost of approximately $465 per ounce. The Orosi Mine has excellent exploration targets adjacent to the mine over a 20 km belt. Excellent potential exists to increase the reserves, resources and the mine life. The Orosi Mine is 100% un-hedged and debt free.

Limon Mine

B2Gold holds a 95% interest in the Limon Mine, with the remaining 5% being held by Inversiones Mineras S.A., a holding company representing unionized mine workers in Nicaragua. The Limon Mine concession includes numerous epithermal gold-quartz veins and has been in operation as an underground and open pit gold mine since 1941. To date the Limon Mine has produced approximately three million ounces of gold. The current operation is a 1,000 tonne per day underground and open pit mine. The Limon Mine currently has a mine life of 3.5 years with projected average annual production of approximately 43,000 ounces of gold annually at an estimated cash cost of approximately $550 per ounce. B2Gold has identified several exploration targets at the Limon Mine site and the Company expects to continue to add reserves to the Limon Mine increasing the mine life.

Gold production at the Limon Mine was recently halted by an illegal strike, initiated by the Pedro Roque Blandon Union that represents 46% of the unionized workers at Limon. The Limon Mine has a long history of labour disputes, which the Company had expected to cease after signing a collective bargaining agreement on July 3rd, 2009 with all three Limon unions.