Acacia Mining : 2018 Preliminary Results Presentation – February 2019

LSE:ACA

Acacia Mining plc

2018 Preliminary Results Presentation

February 2019

Important Notice

This presentation 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 on-going 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 thatsuch statements will prove to be correct. Accordingly, investors should not place reliance on forward-looking statements contained in this presentation. Any forward-looking statements in this presentation only reflect information available at the time of preparation. Save as required under the Market Abuse Regulation or otherwise as may be required under applicable law, Acacia explicitly disclaims any obligation or undertaking publicly to update or revise any forward-looking statements in this presentation, whether as a result of new information, future events or otherwise. Nothing in this presentation should be construed as a profit forecast or estimate and no statement made should be interpreted to mean that Acacia's profits or earnings per share for any future period will necessarily match or exceed its historical published profits or earnings per share.

Any mineral reserves and mineral resources estimates contained in this presentation have been calculated as at 31 December 2018 in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definitions were followed for mineral reserves and resources estimates. Any reserves and resources figures stated in this presentation are estimates only. All estimates stated are subject to a variety of unknown factors, risks and considerations, such that no assurances whatsoever can be given that any indicated quantities of metal will be produced. In addition, estimated figures and totals stated may not add up due to rounding.

This presentation is provided for general information purposes only. It does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of Acacia in any jurisdiction. You are reminded that you have received this presentation on the basis that you are a person to whom this presentation may be lawfully made and delivered. You may not and are not authorised to: (i) reproduce or publish this presentation; or (ii) distribute, disclose or pass on this presentation to any other person, in whole or in part, by any medium or in any form, in breach of any applicable securities laws. BY ACCEPTING THIS PRESENTATION, YOU ACKNOWLEDGE AND AGREE TO THE CONTENTS OF THIS DISCLAIMER AND YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS.

Full Year Review

Strong operational performance following stabilisation of the business

•  2018 gold production of 522koz, substantially ahead of initial 2018 guidance range of 435-475koz

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Higher grade ore from Nyabirama open pit at North Mara Favourable performances at Buzwagi and Bulyanhulu

•  2018 AISC of US$905/oz sold, well below 2018 guidance range of US$935-US$985/oz

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Driven by higher production base, lower capital allocation and strong cost discipline

•  Return to free cash flow generation in Q2 2018, sustained throughout rest of year

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Net cash balance rose US$78 million during 2018 to US$88 million

•  Highly encouraging provisional outcomes of the Bulyanhulu optimisation study

  •  Assumes a resolution of disputes with GoT and resumption of concentrate sales

  •  Supports an expected 18 year life of mine

  •  Opportunity to achieve an average steady state production rate of 300koz-350koz per year at an AISC of US$700 to US$750/oz

Update on Tanzania

Update on Tanzania

Discussions between Barrick Gold Corporation and the Government of Tanzania ("GoT") continued during 2018

•  Barrick and the GoT continued their discussions aimed at agreeing and documenting the details of the framework they announced in October 2017

•  Acacia has been providing support to Barrick in its discussions with the GoT, but has not been directly involved in those discussions to date

•  On 24 September 2018 Barrick and Randgold Resources ("Randgold") announced their intention to merge and, following successful shareholder votes, the merger completed on 2 January 2019

•  Acacia has not yet received a detailed proposal agreed in principle between Barrick and the GoT for a comprehensive resolution of Acacia's disputes with the GoT

•  Acacia is engaging with Barrick to understand Barrick's plans for the next steps in its direct discussions with the GoT

•  International arbitration is underway to protect the businesses and continue to be progressed. The GoT is engaging in the process and filed its defence in October 2018

•  In Q4 2018, operating environment became increasingly challenging with criminal charges by the GoT against three local companies and three current Acacia employees and a former employee, three of whom are still being held under non-bailable offences

•  The allegations and charges are denied and being defended