Acacia Mining : 2018 Payments to Governments Report

1. stronger future together

ACACIA MINING PLC

2018 PAYMENTS TO GOVERNMENTS

Acacia Mining plc

Where we operate		Gold Doré Production 2018
			North Mara
			336,055oz
			Buzwagi
FASO	Houndé Belt JVs		145,440oz
MALI
BURKINA	Kenieba JVs
			Bulyanhulu
	West Kenya Project	KENYA	40,485oz
	Bulyanhulu		North
		Mara
	Buzwagi	TANZANIA
		Concentrate Stockpile
			185,800oz
			of gold	Valued at
			12.1mlbs
			US$247m
			of copper	at average 2018 spot
			158,900oz	metal prices
			of silver

Exploration

Mali

--5 permits across 191 sq km in Senegal Mali Shear Zone ("SMSZ")

--SMSZ host to 50+Moz --Over 25 targets identified --2019 budget - US$3 million

Kenya

--1,587 sq km land package --First mover advantage --Declared 1.2Moz @ 12.6g/t --Scoping study in progress

--Review of economics looking at different mining methods to extract the resource

Burkina Faso

--4 JVs over 2,700 sq km --Houndé Belt host to 10Moz+ --Numerous targets across portfolio

--Agreement to divest South Houndé JV to partner Sarama Resources for US$4m, 1-2% NSR and 5m warrants exercisable for 5 years (subject to final documentation)

--2019 budget - US$5 million --2.1Moz @ 1.5 g/t inferred resource

FINANCIAL REVIEW

This report, the fourth we have produced of its kind, enables us to demonstrate not only how governments, but also local regions benefit from our operations.

Jaco Maritz

Chief Financial Officer

Introduction

We are delighted to publish our fourth Payments to Governments report as part of our commitment to running our business transparently and demonstrating the economic benefits that our host countries and stakeholders receive from our operations.

This report includes all payments that Acacia and its subsidiaries make to Governments and is in line with the current UK Regulations governing the reporting of payments made by the extractive industry to Governments. Within the report we have broken out our overall contribution by country, mine and by project which enables each of our local stakeholders to see the benefits that both the regions around our operations receive as well as the central Government. In 2018, our overall contribution decreased by 26% to US$149 million, primarily as a result of lower production and lower sales revenues, following the transition of Bulyanhulu mine to reduced operations in the fourth quarter of 2017 and Buzwagi mine to a low grade stockpile processing operation.

Excluding the impact of the indirect taxes,

we saw contributions to our host Governments fall by 9%, primarily due to lower production and lower sales revenues, following the transition of Bulyanhulu mine to reduced operations

and Buzwagi mine to a low grade stockpile processing operation which meant that our overall production fell by 32% year on year.

Over the past few years we have also expanded our business beyond Tanzania, with active exploration programmes now taking place across Kenya, Burkina Faso and Mali.

At our exploration projects in Burkina Faso and Mali, we are pleased to be able to show an element of our contribution to those countries. However, the majority of our contribution continues to be made through joint ventures, where our partner holds the relevant project licences in their name and as such we are unable to report on their behalf. While our contribution to the countries where we are exploring remains small, it is our hope that our interests in these projects will grow and progress over time, with resulting benefits

to these countries in years to come.

Structure of Regulations

In this report, our disclosure is in line with the Reports on Payments to Governments Regulations which came into effect on

1 December 2014 and implemented Chapter 10 of EU Accounting Directive (2013/34/EU). We have also provided additional voluntary disclosure on a corporate level for indirect taxes, withholding tax, payroll related taxes, import duties and local government levies. The payments disclosed are based on where the obligation for the payment arose.

Payments raised at a project level have been disclosed at a project level and payments raised at a corporate level have been disclosed on that basis. Payments made as a single payment, or as a related series of payments, that do not exceed £86,000 are not required to be disclosed, nevertheless we have elected to disclose these at a corporate level.

All of the payments disclosed in the report have been made to National Governments, either directly or through a Ministry or Department of the National Government or alternatively through payments made to regional Government Departments.

Jaco Maritz

Chief Financial Officer

ACACIA MINING PLC 2018 PAYMENTS TO GOVERNMENTS

1

PAYMENTS TO GOVERNMENTS

Acacia's 2018 payments to governments in line with chapter 10 of the Accounting Directive, the EU Regulations and certain related industry disclosures.

	Production
	entitlements
	- gold	Income taxes	Royalties	Dividends	Bonus payment
For the year ended 31 December 2018	oz	US$ '000	US$ '000	US$ '000	US$ '000
Tanzania
Operating projects
Bulyanhulu gold mine	-	-	3,712	-	-
North Mara gold mine	-	42,417	34,043	-	-
Buzwagi gold mine	-	-	13,059	-	-
Exploration
Nyanzaga project	-	-	-	-	-
Exploration administrative	-	-	-	-	-
Non-core exploration projects	-	-	-	-	-
Corporate
Dar es Salaam corporate office	-	-	-	-	-
Total Tanzania	-	42,417	50,814	-	-
Kenya
West Kenya Project	-	-	-	-	-
West Kenya JV - Advance	-	-	-	-	-
Kenya administrative	-	-	-	-	-
Total Kenya	-	-	-	-	-
West Africa
Burkina Faso	-	-	-	-	-
Mali	-	-	-	-	-
Total West Africa	-	-	-	-	-
South Africa
Johannesburg corporate office	-	-	-	-	-
Total South Africa	-	-	-	-	-
United Kingdom
London corporate office	-	-	-	-	-
Total United Kingdom	-	-	-	-	-
Total	-	42,417	50,814	-	-

2 ACACIA MINING PLC 2018 PAYMENTS TO GOVERNMENTS

UK Regulations						Voluntary
	Infrastructure
	improvement						Local
Licence fees	projects		Net Indirect	Witholding	Payroll related	Import	government
US$ '000	US$ '000		Taxes	Tax	taxes	duties	levies		Total
216	-	3,648	1,132	3,624	182	280	12,794
217	-	(3,328)	3,028	10,752	884	1,644	89,657
177	-	16,244	1,189	3,859	433	454	35,415
3	-		-	-	-	-	-	3
-	-		-	2	42	-	-	44
5	-		-	-	-	-	-	5
-	-		-	-	5,552	-	-	5,552
618	-	16,564	5,351	23,829	1,499	2,378	143,470
94	-		-	-	-	-	-	94
-	-		-	-	-	-	-		-
-	-		-		467	-	-	467
94	-		-	-	467	-	-	561
479	-		-	-	263	-	-	742
-	-		-	-	102	-	-	102
479	-		-	-	365	-	-	844
-	-	69	-	1,248	-	-	1,317
-	-	69	-	1,248	-	-	1,317
-	-		-	-	2,641	-	-	2,641
-	-		-	-	2,641	-	-	2,641
1,191	-	16,633	5,351	28,550	1,499	2,378	148,833

ACACIA MINING PLC 2018 PAYMENTS TO GOVERNMENTS

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