Nevsun 2013 Outlook and Production Guidance

Nevsun 2013 Outlook and Production Guidance 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/23/13 -- Nevsun
Resources Ltd. (TSX:NSU)(NYSE MKT:NSU) -  

--  Maintain top quartile safety performance at Bisha operations 
--  Execute on social and environmental commitments 
--  Complete successful transition to copper production in mid-2013 
--  Deliver copper expansion on budget 
--  H1 2013 - Produce 80,000 to 90,000 ounces of gold 
--  H2 2013 - Produce 60 to 80 million pounds of copper (for 2014 see below)
--  Obtain expanded exploration rights and commence generative exploration 
--  Publish resource estimate for Northwest Zone and drill Hambok deposit 
--  Continue paying peer leading dividends

Nevsun Resources Ltd. today announces its 2013 outlook for planned
gold and copper production from the Bisha mine in Eritrea. The Bisha
mine, operated by Nevsun's 60 percent owned subsidiary Bisha Share
Mining Company (BMSC), is one of the highest grade open pit base
metal deposits in the world and has a mine life in excess of 12
Cliff Davis, Nevsun CEO commented, "Following a very successful 2012,
Nevsun looks forward to starting up a world class copper concentrate
production operation and continued expansion of its resources
portfolio through generative exploration programs. Nevsun will also
continue to actively evaluate potential acquisition opportunities." 
Corporate Social Responsibility 
Nevsun expects that BMSC will maintain top quartile safety
performance at Bisha operations and work towards maintaining lost
time injury rates that are less than North American mining industry
average. The Bisha training school, scheduled to be completed in
March 2013, will enhance the skill sets and future job advancement
opportunities for the Eritrean workforce. During 2013 BMSC is
scheduled to complete ecological/biodiversity and reptile and
amphibian assessment studies and Nevsun will publish the 2012
Corporate Social Responsibility Report, Nevsun expects that BMSC will
continue to enhance CSR program initiatives to reflect evolving
international standards. 
Copper Expansion Project 
Nevsun expects that BMSC will complete copper expansion project
construction on time and on budget. As of the date of this news
release, approximately 80% of the forecasted project expenditures of
$125M had been spent, ordered or arranged. 
Copper Guidance 
On cessation of gold production in mid-2013, BMSC will commence
copper concentrate production and optimization of the new facilities.
During ramp up, BMSC plans to produce 60 to 80 million pounds of
copper in concentrate in H2 2013 through processing nearly 900,000
tonnes of ore from Bisha Main pit averaging 5.2% copper feed grade.
Based on the mine plan, the copper will be contained in 100,000 to
120,000 tonnes of concentrate exceeding 30 percent copper grades. 
2014 will be a full year of copper production and is expected to be
in the order of 200 million pounds of copper. 
Gold Guidance 
As previously disclosed, BMSC will conclude gold production during
the first half of 2013 as reserves will be depleted. Prior to
conclusion BMSC plans to produce 80,000 to 90,000 ounces of gold
during the first half of 2013 through processing 800,000 tonnes of
remaining oxide ores from Harena and Bisha Main pits at a combined
3.7 grams per tonne. 
Nevsun expects cash costs per gold ounce will increase significantly
compared with the first half of 2012 as a result of lower feed
grades, longer haul distances, more mined material and more drill and
blast consumables. 
After the conclusion of gold production BMSC will de-commission and
retain the carbon-in-leach plant so it can be put back into operation
should Nevsun's regional exploration efforts yield more oxide
Exploration Plans 
Nevsun has expanded its exploration drilling program at the Northwest
Zone as mineralization continues along strike to the northeast. The
objective is to complete drilling and release an initial NI 43-101
resource in the second half of 2013. At the recently acquired Hambok
deposit on the Mogoraib exploration license, Nevsun plans to commence
drilling to confirm the historic resource, while updating the
geological and resource models. 
Nevsun will also drill test already identified high priority targets
on the Mogoraib exploration license and new targets on the Bisha
mining license. The new targets include mineralized extensions and
potential separate clusters of volcanogenic massive sulfide (VMS)
deposit on the existing Bisha mining license. Nevsun will continue
efforts to expand the licensed exploration areas beyond the existing
143.9 km2. 
Forward-Looking Statements 
This news release contains forward-looking statements regarding
future gold and copper production and grade, copper phase expansion,
mine performance, completing construction on time, drilling plans and
programs, growing resources, exploration programs, expanding
exploration licenses, dividend plans and possible acquisition
activity. Forward-looking statements are frequently, but not always,
identified by words such as "expects", "anticipates", "believes",
"intends", "estimated", "potential", "possible" and similar
expressions, or statements that events, conditions or results "will",
"may", "could" or "should" occur or be achieved. Forward-looking
statements are statements about the future and are inherently
uncertain, and actual achievements of the Company or other future
events or conditions may differ materially from those reflected in
the forward-looking statements due to a variety of risks,
uncertainties and other factors, including, without limitation, the
risks that (i) any of the assumptions in the historical resource
estimates turn out to be incorrect, incomplete, or flawed in any
respect; (ii) the methodologies and models used to prepare the
resource and reserve estimates either underestimate or overestimate
the resources or reserves due to hidden or unknown conditions, (iii)
the mine operations are disrupted or suspended due to acts of god,
internal conflicts in the country of Eritrea, unforeseen government
actions or other events; (iv) the Company experiences the loss of key
personnel; (v) the mine operations are adversely affected by other
political or military, or terrorist activities; (vi) the Company
becomes involved in any material disputes with any of its key
business partners, lenders, suppliers or customers; (vii) the Company
is subjected to any hostile takeover or other unsolicited attempts to
acquire control of the Company; (viii) the Company is subject to any
adverse ruling in any of the pending litigation to which it is a
party; or (ix) the Company incurs unanticipated costs as a result of
the transition from the oxide phase of the Bisha mining operations to
the copper phase in 2013. Other risks are more fully described in the
Company's most recent Management Discussion and Analysis, which is
incorporated herein by reference. The Company's forward-looking
statements are based on the beliefs, expectations and opinions of
management on the date the statements are made and the Company
assumes no obligation to update such forward-looking statements in
the future, except as required by law. For the reasons set forth
above, investors should not place undue reliance on forward-looking
Please see the Company's Annual Information Form for the fiscal year
ended December 31, 2011 and the Company's Management Discussion and
Analysis for the quarter ended September 30, 2012 for a more complete
discussion of
 the risk factors associated with our business. 
About Nevsun Resources Ltd. 
Nevsun Resources Ltd. is a Vancouver-based mining company with an
operating mine in Eritrea. Nevsun's 60%-owned Bisha Mine commenced
gold production in February 2011 and is scheduled to transition to
copper/gold production in 2013. Management expects the Bisha Mine
will rank as one of the highest grade open pit base metal deposits in
the world. 
Cliff T. Davis, President & Chief Executive Officer
Kin Communications
604-684-6730 or Toll Free: 1-866-684-6730
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