ACA.L Regulatory News (ACA)

ACACIA MINING PLC - Market Update

PR Newswire

London, June 1

02 June 2017

Acacia Mining plc

LSE:ACA

(“Acacia” or the “Company”)

Market Update

Acacia would like to provide an update on the current situation in Tanzania with respect to the export of our gold/copper concentrates. As we have previously communicated, the findings of the first Presidential Committee’s investigation into the export of gold/copper concentrates were announced on 24 May and we provided detailed comments on these on 26 May. Since then, Acacia has continued to co-operate with the second Presidential Committee, which was set up to examine economic and legal issues associated with historic exports of gold/copper concentrates. We have provided extensive information to this committee and have provided access to each of our mine sites.

We believe that the second Committee is close to completing its work, following which we would welcome the opportunity to discuss the findings directly with the Government. We remain hopeful that we will be able to reach a resolution to the current situation with the Government so that we can continue to deliver strong performance from our mines for the benefit of all stakeholders.

Our mines continue to operate as normal, producing and selling gold doré whilst stockpiling gold/copper concentrate. As of 31 May, we have approximately 85,000 ounces of gold, 4 million pounds of copper and 50,000 ounces of silver contained within unsold concentrate. In light of the increased levels of uncertainty, we have seen some impact on productivity levels, but at this stage we are not making any changes to full year guidance and continue to take steps to minimise further cash outflows from the business.

Over the past two months, Acacia has paid the final dividend of US$34 million to shareholders, declared prior to the introduction of the concentrate ban in early March. We have also refunded US$22 million of advanced payments for concentrate produced prior to the export ban, which is held up in the Dar es Salaam port. This amount is now being recognised as a receivable. As a result of these payments, together with the deferral of sales, a US$10 million North Mara tax payment related to historic corporate tax assessments, and a continuing lack of VAT refunds, our cash balance at the end of May was approximately US$165 million, with approximately 15,000 ounces of unsold doré on hand. In the absence of the resumption of the sale of concentrates, the combined operating cash outflow going forward at the affected assets is in the region of US$15 million per month, while North Mara remains unaffected.

Acacia will host a conference call today at 13:00 UK time for investors and analysts with access details below. A recording will be made available on the Company’s website, after the call.

ENQUIRIES

For further information, please visit our website: http://www.acaciamining.com/ or contact:

Giles Blackham, Investor Relations Manager

Lorna Cobbett

About Acacia Mining plc

Acacia Mining plc (LSE:ACA) is Tanzania’s largest gold miner and one of the largest producers of gold in Africa. We have three producing mines, all located in north-west Tanzania: North Mara, Bulyanhulu and Buzwagi and a portfolio of exploration projects in Tanzania, Kenya, Burkina Faso and Mali.

Our approach is focused on strengthening our three core pillars; our business, our people and our relationships, whilst continuing to invest in our future. Our name change from African Barrick Gold to Acacia in November 2014 reflected a new approach to mining, and an ambition to create a leading African Company.

Acacia is a UK public company headquartered in London. We are listed on the Main Market of the London Stock Exchange with a secondary listing on the Dar es Salaam Stock Exchange. Barrick Gold Corporation is our majority shareholder. Acacia reports in US dollars and in accordance with IFRS as adopted by the European Union, unless otherwise stated in this announcement.

Disclaimer and forward-looking statements

This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of Acacia in any jurisdiction.

This announcement includes “forward-looking statements” that express or imply expectations of future events or results as opposed to historical facts. These statements include, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, projects, and statements regarding future performance. Forward-looking statements are generally identified by the words “plans,” “expects,” “anticipates,” “believes,” “intends,” “estimates” and other similar expressions.

All forward-looking statements involve a number of risks, uncertainties and other factors, many of which are beyond the control of Acacia, which could cause actual results and developments to differ materially from those expressed in, or implied by, the forward-looking statements contained herein. Factors that could cause or contribute to differences between the actual results, performance and achievements of Acacia include, but are not limited to, changes or developments in political, economic or business conditions or national or local legislation or regulation in countries in which Acacia conducts - or may in the future conduct - business, industry trends, competition, fluctuations in the spot and forward price of gold or certain other commodity prices (such as copper and diesel), currency fluctuations (including the US dollar, South African rand, Kenyan shilling and Tanzanian shilling exchange rates), Acacia’s ability to successfully integrate acquisitions, Acacia’s ability to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves, and to process its mineral reserves successfully and in a timely manner, Acacia’s ability to complete land acquisitions required to support its mining activities, operational or technical difficulties which may occur in the context of mining activities, delays and technical challenges associated with the completion of projects, risk of trespass, theft and vandalism, changes in Acacia’s business strategy and ongoing implementation of operational reviews, as well as risks and hazards associated with the business of mineral exploration, development, mining and production and risks and factors affecting the gold mining industry in general. Although Acacia’s management believes that the expectations reflected in such forward-looking statements are reasonable, Acacia cannot give assurances that such statements will prove to be correct. Accordingly, investors should not place reliance on forward-looking statements contained in this announcement.

Any forward-looking statements in this announcement only reflect information available at the time of preparation. Subject to the requirements of the Disclosure and Transparency Rules and the Listing Rules or applicable law, Acacia explicitly disclaims any obligation or undertaking publicly to update or revise any forward-looking statements in this announcement, whether as a result of new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast or estimate.