2016 Payments to Governments Report MAINTAINING OPEN AND TRANSPARENT DISCLOSURES

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1 2016 Payments to Governments Report MAINTAINING OPEN AND TRANSPARENT DISCLOSURES

WEST AFRICA Building a portfolio of exciting exploration properties in the Houndé Belt in Burkina Faso and the Senegal-Mali Shear Zone in Mali.

2 ABOUT US Acacia Mining ( Acacia ) 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, and a portfolio of exploration projects across Africa. WEST AFRICA Building a portfolio of exciting exploration properties in the Houndé Belt in Burkina Faso and the Senegal-Mali Shear Zone in Mali. PRODUCING MINES BULYANHULU 289koz 2016 gold production BUZWAGI 162koz 2016 gold production NORTH MARA 378koz 2016 gold production EXPLORATION NEAR-MINE/BROWNFIELD North Mara Gokona Underground mine life extensions Nyabirama underground resource extensions GREENFIELD West Kenya Project Houndé Belt JVs 2016 SPEND ON OUR EXPLORATION PROJECTS US$24m (2015: US$20m) Kenieba JVs Nyanzaga JV EAST AFRICA Our mines are located in Tanzania, the fourth largest gold producing country in Africa. We are also exploring in Kenya which has a nascent mining industry but highly prospective geology.

INTRODUCTION FROM THE CHIEF FINANCIAL OFFICER This report, the second we have produced of its kind, enables us to demonstrate not only how governments, but also local regions benefit from our

All of the payments disclosed in accordance with the Accounting Directive have been made to National Governments, either directly or through a Ministry or Department of the National Government or

3 INTRODUCTION FROM THE CHIEF FINANCIAL OFFICER This report, the second we have produced of its kind, enables us to demonstrate not only how governments, but also local regions benefit from our operations. All of the payments disclosed in accordance with the Accounting Directive 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. This report, the second we have produced of its kind, enables us to demonstrate not only how governments, but also local regions benefit from our operations. Andrew Wray Chief Financial Officer Introduction We are committed to running our business in an ethical and transparent manner for the benefit of all of our stakeholders and are pleased to continue to enhance our communications of what we contribute to our host countries through the publication of our payments to Governments following the current UK Regulations governing the reporting of payments made by the extractive industry to Governments. This report is the second time that we have split out our overall contribution by country, mine and by project and enables us to demonstrate how not only central Government benefits from our operations, but also the level of regional benefit. As you will see from this report, our overall contribution amounted to US$184 million. This is different to the economic contributions reported in our 2016 Annual Report primarily due to the fact that the Annual Report referred to contributions to the Tanzanian Government only, the exclusion of refundable indirect taxes and US$15 million of corporate taxes that were incurred and accrued in 2016, but not paid during the year. This US$15 million of corporate tax will be paid in 2017 following the finalisation of the tax return and assessment process. As the home to our three operating mines, Tanzania receives the majority of our contribution to Governments and we invest around 80% of our revenues back into the country. However, 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. Due to the structure of our exploration projects in Burkina Faso and Mali, our contribution during 2016 was made through our joint venture partners who either operate the joint venture or hold the relevant project licences in their name. Consequently there were no payments that should be reported in these countries for the purposes of this report. Whilst our contribution to these countries today 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 It is important to understand the regulations governing this report. The Reports on Payments to Governments Regulations ( UK Regulations ) came into effect on 1 December 2014 and apply to reporting periods from 1 January 2015 onwards. These regulations require UK companies in the extractive sector to publicly disclose payments made to governments in the countries where they undertake extractive operations. The regulations implement Chapter 10 of EU Accounting Directive (2013/34/EU) (Accounting Directive). In this report, our disclosure is in line with the Accounting Directive and UK Regulations and we have 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. Summary As a major contributor to the Tanzanian economy we were pleased to be able to increase our fiscal contribution during This was a result of the strong performance at North Mara and included our agreement to pre-pay US$20 million of cash corporate taxes. Together with the increase in royalties and the other taxes we pay our contribution increased by 39% year on year and this demonstrates Acacia s commitment to Tanzania and to reinforce our relationships with all of our stakeholders, something which is reflective of how we look to run our business. Andrew Wray Chief Financial Officer Highlights REVENUE (US$ MILLION) US$1,054m 2015: US$868m 2016 TOTAL CONTRIBUTION TO GOVERNMENTS (US$ MILLION) US$184m 2015: US$132m TOTAL COMMUNITY RELATED SPEND (US$ MILLION) US$10.7m Amount spent in 2016 ACACIA MINING PLC 2016 PAYMENTS TO GOVERNMENTS REPORT 1

4 PAYMENTS TO GOVERNMENTS Acacia s 2016 payments to governments in line with chapter 10 of the Accounting Directive, the EU Regulations and certain related industry disclosures. For the year ended 31 December 2016 Production entitlements gold oz Income taxes Royalties Dividends Bonus payment Tanzania Operating projects Bulyanhulu gold mine 14,537 North Mara gold mine 40,878 23,698 Buzwagi gold mine 9,003 Exploration Nyanzaga project Golden Ridge project Exploration administrative Non-core exploration projects Corporate Dar es Salaam corporate office Total Tanzania 40,878 47,238 Kenya West Kenya Project West Kenya JV Advance Kenya administrative Total Kenya South Africa Johannesburg corporate office Total South Africa London corporate office Total Total 40,878 47,238 2 ACACIA MINING PLC 2016 PAYMENTS TO GOVERNMENTS REPORT

5 UK Regulations Voluntary Licence fees Infrastructure improvement projects Net Indirect Taxes Witholding Tax Payroll related taxes Import duties Local government levies Total ,268 3,275 15,721 3,210 1,003 53, (6,997) 2,886 11,677 1,553 1,307 75, ,803 1,879 5,540 1, , ,285 6, ,074 8,087 39,871 6,223 2, , ,318 1, ,318 1, ,796 16, ,796 16, ,375 8,087 58,149 6,223 2, ,842 ACACIA MINING PLC 2016 PAYMENTS TO GOVERNMENTS REPORT 3

6 GLOSSARY OF TERMS Bonus payments These are payments for bonuses. Such payments are more common to the oil and gas industry whereby bonuses may be paid to a government upon signing an agreement or a contract, or when a commercial discovery is declared, or production has commenced or reached a milestone. Dividends These comprise dividend payments other than dividends paid to a government as an ordinary shareholder of an entity unless paid in lieu of production entitlements or royalties. Import duties These comprise all customs/excise/import and export duties. Typically, these taxes tend to become payable and are paid to governments at the point where goods are imported and exported from territories. These taxes form part of our operating and capital incurred costs. Income taxes This comprises any tax on the business calculated on the basis of its profits, income or capital gains. Typically, these taxes would be reflected in corporate income tax returns made to governments. Infrastructure improvement projects These are payments which relate to the construction of infrastructure (road, bridge or rail) not substantially dedicated for the use of extractive activities. Payments which are of a social investment in nature, for example building of a school or hospital, are excluded. Licence fees These include fees and other sums paid as consideration for acquiring a licence to gain access to an area where extractive activities are performed. Administrative government fees that are not specifically related to the extractive sector, or to access to extractive resources, are excluded. Also excluded are payments made in return for services provided by a government. Local government levies This comprises regional services levies paid to local government as outlined in the introduction to this report. Payroll related taxes These include PAYE, NSSF and PPF payments. PAYE represents payroll and employer taxes payable as a result of a company s capacity as an employer. Typically, these taxes would be reflected in payroll tax returns made to governments and tend to be payable, and are paid, on a regular basis (often monthly) throughout the year shortly after the submission of the return. These taxes form part of our operating costs. NSSF and PPF reflect social security and pension contributions we make to state run funds. Production entitlements These include a host government s share of production in the reporting period derived from projects we operate. This includes the government s share as a sovereign entity or through its participation as an equity or interest holder in projects within its home country. In certain contractual arrangements, for example production sharing contracts which are more common to the oil and gas industry, a government through its participation interest may contribute funding of capital and operating expenditure to projects, from which it derives production entitlement to cover funding costs. Royalties These comprise payments made to governments in the form of royalties. Typically these tend to become payable, and are paid, in the year to which they relate. These taxes form part of our operating costs. Net indirect taxes These comprise value added tax and other fuel levies or equivalent payments on goods and services we use within our operations (both domestic and international), less any refunds we may receive. Withholding tax These comprise taxes that are required to be withheld in advance on payments made to suppliers. Typically, these taxes would be reflected in income tax returns made to governments and tend to be payable, and are paid, on a regular basis (often monthly) throughout the year shortly after the submission of the return. 4 ACACIA MINING PLC 2016 PAYMENTS TO GOVERNMENTS REPORT

MORE INFORMATION We produce a number of documents as

All reports can be found on our website: www.

7 MORE INFORMATION We produce a number of documents as part of our corporate communications. To find out more about Acacia please see one of the reports listed below. All reports can be found on our website: Annual Report & Accounts Corporate Brochure 2016 Sustainability Report

8 Acacia Mining plc 5th Floor No. 1 Cavendish Place London W1G 0QF Registered number: Investor Relations Giles Blackham Investor Relations Manager Phone: +44 (0) gblackham@acaciamining.com Registrars Computershare Investor Services PLC The Pavilions Bridgwater Road Bristol BS99 6ZZ Corporate Brokers J.P. Morgan Securities Ltd. 25 Bank Street Canary Wharf London E14 5JP RBC Capital Markets Thames Court 1 Queenhithe London EC4V 3DQ Auditors PricewaterhouseCoopers LLP 1 Embankment Place London WC2N 6RH Additional information regarding Acacia can be found on our website:

Committed to Transparency ACACIA MINING PLC 2017 PAYMENTS TO GOVERNMENTS REPORT

Committed to Transparency ACACIA MINING PLC 2017 PAYMENTS TO GOVERNMENTS REPORT ABOUT US Acacia is one of the largest gold producers in Africa. We have three mines, all located in North-West Tanzania,