OceanaGold Commences Milling at Haile Gold Mine

29 December 2016

MEDIA RELEASE

(All financial figures in US Dollars unless otherwise stated)

(MELBOURNE) OceanaGold Corporation (TSX/ASX/NZX: OGC) (the “Company”) is pleased to announce the commencement of milling at the Haile Gold Mine.

Mick Wilkes, President and CEO said, “We are very pleased with the start of milling ore at Haile. This milestone represents a special moment in the history of the Haile Gold Mine as this historic goldfield is re-established with a world-class modern mining operation in Lancaster county, South Carolina. From the start of the year, we established a firm timeline of key milestones that we have achieved throughout the year, culminating in the start of milling ore at year-end as planned.” He went on to say, “We have established a strong team in South Carolina that include technical experts from across our business to carryout commissioning activities and transition to operations. Achieving this important benchmark in just 15 months since taking ownership of Haile is a true testament to the leadership and dedication of our team.”

Figure 1 – Haile Gold Mining Grinding Circuit at Night

In early October, the Company commenced dry commissioning by focusing initially on the crushing circuit and emergency stockpile system. Since then, the grinding, carbon-in-leach (CIL) and tailings circuits have been commissioned to treat oxide and transition ores. Construction of the flotation and fine grinding circuits are now complete and commissioning of these circuits to treat sulphide ore is planned to occur over the next couple of weeks.

The Company currently has approximately 675,000 tonnes of ore stockpiled on surface including 275,000 tonnes grading 2.3 g/t of sulphide ore, 245,000 tonnes grading 0.6 g/t of oxide ore and 155,000 tonnes grading 1.1 g/t of transitional material.

As previously announced, the Company expects to produce 150,000 to 170,000 ounces of gold at Haile in 2017 at sector leading All-In Sustaining Costs between $500 to $550 per ounce. The Company will continue to advance the Haile Expansion study (“optimisation study”) with results expected in the middle of 2017.

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