LSE:ACA Acacia Mining plc 2017 Interim Results Presentation
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 that such 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 2016 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. 2017 Interim Results Presentation 2
H1 Review Operational delivery continuing despite difficult backdrop Very strong operational performance has been overshadowed by the concentrate ban enforced in early March H1 gold production of 428koz, 4% higher than H1 2016 Q2 gold production of 209koz H1 AISC of US$893 per ounce sold, 5% below H1 2016 If sales matched production, H1 AISC would have been US$800/oz Q2 AISC of US$835 per ounce sold was 10% below Q2 2016 US$175m of revenue not realised in H1 as a result of the concentrate ban Cash balance fell to US$176m at period end, from US$318m Due to buildup in unsold concentrate, together with US$51m VAT outflow As a result of negative cashflow, no interim dividend declared 2017 Interim Results Presentation 3
Update on Tanzania
Metallic Mineral Concentrate Ban Concentrate accounted for 36% of group production in H1 2017 In March 2017, the Tanzanian Ministry of Energy and Minerals announced a ban on the export of metallic mineral concentrates Concentrate accounted for ~45% of Bulyanhulu s and ~64% of Buzwagi s H1 production 127koz of gold, 8.3mlbs of copper and 107koz of silver builtup in unsold concentrate in Tanzania North Mara is not impacted as it only produces doré During Q2, two Presidential Committees announced findings post investigations into mineral content and historic exports of gold/copper concentrates Acacia fully refutes the implausible findings of both committees On 15 th June, Barrick and the Tanzanian Government agreed to enter into discussions to reach a mutually acceptable solution for all stakeholders Discussions to start soon, no agreements have yet been made Image of concentrate container 2017 Interim Results Presentation 5
Tanzanian Legislative Changes Sector-wide legislation to promote local ownership Following publication of Second Presidential Committee s report, three new bills were presented to the Tanzanian Parliament in late June These purport to make a number of changes to the operating environment for Tanzania s extractive industries with respect to Government ownership, royalties, VAT application, local beneficiation and removal of international legal recourse, amongst others In July, all legislation came into force and some terms of the Acts are being applied Expect supplementary regulations to set out the proposed practical implementation We are monitoring the impact of the new legislation in light of our Mineral Development Agreements with the Government To enable sale of doré to continue, we are paying increased royalty rate of 6%, and separate recently imposed 1% clearing fee on exports, under protest, without prejudice to our legal rights under the MDAs In July, Acacia subsidiaries served arbitration notices for Bulyanhulu and Buzwagi A necessary step to protect the Company in light of the ongoing dispute Our preferred outcome remains a negotiated settlement with the Government We expect discussions to be wide ranging and incorporate other issues, such as local ownership legislation 2017 Interim Results Presentation 6
Major Contributor to Tanzania Tanzania continues to receive significant benefits from our mines In H1 2017 we paid US$53 million in taxes and royalties in Tanzania Includes corporate taxes of US$17.3 million Royalties of US$18.6 million Without export ban, would have paid a further US$7 million in royalties Payroll and other taxes of ~US$17.1 million Paid US$1.6 million in local service levies in H1 US$1.3 million more than required under our MDAs Second payment of US$1.2 million due in July 30% lower than if there were no export ban Implemented 6 large-scale social infrastructure projects during H1, with a further 10 underway Projects positively impacting ~40,000 Tanzanians 2017 Interim Results Presentation 7
Operations Review
$ / ounce Production (koz) Grade (g/t) North Mara Q2 Review Continued strong performance TRIFR of 0.23, with 2 Lost Time Injuries in H1 Produced 83koz, 17% below Q2 2016 100% of production is doré Lower grades driven by increased proportion of underground ore from lower grade Gokona West Continued strong cost performance with AISC of US$758/oz 6% higher than in Q2 2016, but with 17% lower production Development rates decreased during the quarter due to work permit issues though the full year plan remains on track Improved relations maintained with community due to investment over past few years, despite difficult operating environment Production & Head Grade 120 113 7 100 96 6 100 91 5.40 83 75 4.80 5 80 4.40 4.60 4.00 4 60 3.50 3 40 2 20 1 0 0 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Production (OP) Production (UG) Head Grade All In Sustaining Cost per Ounce 1,000 850 737 720 717 758 800 655 600 400 200 484 427 364 436 410 476 0 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Cash Cost Sustaining Capital Capitalised Development Other 2017 Interim Results Presentation 9
Gokona Positive Definition Drilling Targeting an increase in ounces to sustain an UG life of mine in excess of 10 years 2 year programme of 75,000 metres underway H1 drilling adjacent to the defined stoping blocks at Gokona East Zone and west of the Gokona Fault to test the faulted extension of the East Zone Successfully extended the wide and high grade gold mineralisation, with intersections including: UGKD_0107-24m @ 12.5g/t Au 1130mRL - Level Plan UGKD_0113-10m @ 10.4 g/t Au UKGC_0262-19.4m @ 64.7g/t Au UKGC_0260-9m @ 59.9g/t Au UGKD_0303-26m @ 40.8g/t Au UGKD_0304-20m @ 10.9g/t Au UKGC_0308-23m @ 42.7g/t Au UGKD_0320-33m @ 38.2 g/t Au UGKD_0321-31m @ 14.7 g/t Au UGKD_0323-24.8m @ 133.5 g/t Au *Note all drill intersections down-hole thickness and uncut 2017 Interim Results Presentation 10
Nyabirama Continued Successful Drilling Extended high grade quartz-vein lode structures to a vertical depth of approximately 950 metres below surface Drilling beneath open pit continuing to intersect high grades from multiple lodes, including: NBD0147-3m @ 5.1 g/t Au from 397m 4m @ 9.1 g/t Au from 428m NBD0149A - 3m @ 66.6 g/t Au from 873m incl. 1m @ 198g/t Au from 874m 5m @ 4.8 g/t Au from 890m NBD0152-6m @ 51.9 g/t Au from 592m incl. 1m @ 280g/t Au from 594m NBD0157-4.0m @ 10.8g/t Au from 264m, 4.0m @ 26.7g/t Au from 325m, and 7.0m @ 9.50g/t Au from 464m NBD0158-11.5m @ 26.5g/t Au from 272m NBD0160-3.0m @ 13.1g/t Au from 230m Initial block model is being developed to allow an assessment of underground potential Targeting smooth transition to underground post completion of the open pit in 2021 2017 Interim Results Presentation 11
$ / ounce Production (koz) Grade (g/t) Bulyanhulu Q2 Review Export ban impacting on productivities TRIFR of 0.73, well below prior year Produced 59koz, 25% lower than Q2 2016 34koz of doré and 25koz of concentrate Underground production of 50koz impacted by lower productivities Led to lower tonnes and lower grades than plan Full year output expectation now 10% lower than previously planned AISC of US$1,558/oz was significantly higher than Q2 16 primarily due to lower sales If sales equaled production AISC would have been US$1,140/oz Continuing to stockpile gold/copper concentrate in containers at site 502 containers stuffed at quarter end* Status quo not sustainable beyond end of Q3 * Includes containers at Dar es Salaam Port Production & Head Grade 90 80 70 60 50 40 30 20 10 0 1,600 1,400 1,200 1,000 800 600 400 200 0 78 79 9 8 53 9 80 9.80 9.60 9.40 9.10 70 70 44 71 54 50 9 63 9 59 9 8.40 8.60 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 16.0 14.0 12.0 10.0 8.0 6.0 Production (UG) Production (Tails) Head Grade (ROM) All In Sustaining Cost per Ounce 983 958 661 662 1,300 1,061 1,229 1,558 808 784 786 813 AISC if sales = production 1,140 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q2 17 Cash Cost Sustaining Capital Capitalised Development Other 2017 Interim Results Presentation 12
$ / ounce Production (koz) Grade (g/t) Buzwagi Q2 Review Delivering against plan TRIFR of 0.18 with no Lost Time Injuries Production of 66koz was 53% above Q2 2016, and 10% ahead of Q1 2017 26koz in doré and 40koz in concentrate Increased production driven by mining higher grade ore from the main ore zone at the bottom of the pit AISC of US$762/oz was 32% lower than Q2 16 Primarily driven by increased production base Production & Head Grade 70 60 1.8 1.9 50 40 1.3 66 30 1.2 1.2 60 1.1 20 43 40 42 10 37 - Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Production Head Grade 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 Move to bulk storing gold/copper concentrate at site towards the end of Q2 816 containers stuffed at quarter end* 1,213 tonnes bulk stored in a protected shed Expect to see production levels maintained during H2 Mining on schedule for completion by the end of 2017, with a further 3 years stockpile processing * Includes containers at Dar es Salaam Port All In Sustaining Cost per Ounce 1,600 1,400 1,246 1,200 1,124 1,076 1,056 1,000 800 773 762 600 1,171 1,052 986 1,035 400 694 705 200 0 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Cash Cost Sustaining Capital Capitalised Development Other 2017 Interim Results Presentation 13
$ / ounce Production (koz) Consolidated H2 2017 Performance Continuing strong operational performance, sales impacted by ban Importantly, even with current uncertainty, focus on safety remains strong TRIFR down 49% from H1 2016 428koz of gold production, 4% above H1 16 Highest production period in company history Gold sales were 116koz lower than production Performance underpinned by planned step up at Buzwagi, good performance at North Mara, offsetting Bulyanhulu performance Continued strong cost performance, with AISC of US$893/oz If all production sold, AISC would have been US$800/oz Less than half the peak AISC 5 years ago Production 450 400 350 300 250 200 150 100 50 0 1,200 1,000 800 600 400 200 142 1,113 1,111 1,090 1,118 183 175 204 118 140 157 132 92 79 80 82 All In Sustaining Cost per Ounce 941 977 892 180 122 126 H1 15 H2 15 H1 16 H2 16 H1 17 Buzwagi Bulyanhulu North Mara 893 952 918 AISC if sales = production 800 0 H1 15 H2 15 H1 16 H2 16 H1 17 AISC AISC ex RSU 2017 Interim Results Presentation 14
Financial Review
Financial Highlights Financial Performance H1 2017 H1 2016 % change Revenue US$m 391.6 504.9 (22)% EBITDA 1 US$m 161.4 184.8 (13)% Adjusted EBITDA 1,2 US$m 166.2 180.5 (8)% Net earnings/ (loss) 2 US$m 62.5 (6.1) nm Basic earnings/ (loss) per share (EPS) (cents) 2 US cents 15.3 (1.5) nm Adjusted net earnings 1,2 US$m 65.9 58.8 13% Adjusted earnings per share (AEPS) (cents) 1,2 US cents 16.1 14.3 13% Dividend per share (cents) US cents 0.0 2.0 nm Cash and cash equivalents US$m 175.9 284.3 (38)% Cash generated from operating activities US$m 1.3 157.0 nm Working capital movement US$m (159.7) (16.3) nm Capital expenditure 3 US$m 92.5 85.2 9% Total borrowings US$m 85.2 113.6 (25)% Cash cost per ounce sold US$/oz 577 640 (10)% AISC per ounce sold US$/oz 893 941 (5)% 1 These are non-ifrs measures. Refer to page 23 for definitions 2 EBITDA, adjusted EBITDA, net (loss)/earnings, (loss)/earnings per share, adjusted net earnings, adjusted earnings per share and cash generated from operating activities include continuing and discontinued operations in 2014 3 Excludes non-cash capital adjustments (reclamation asset adjustments) and includes finance lease purchases and land purchases recognised as long term prepayments. 2017 Interim Results Presentation 16
US$ millions AISC Bridge AISC H1 2017 vs H1 2016 1,000 950 900 850 54 88 46 16 8 800 6 750 700 650 600 941 237 267 893 1,10 0 to 1,175 550 500 AISC H1 2016 Cash cost Share based payments Sustaining capital Investment in inventory Sales ounce impact Co-product revenue Capitalised development Other AISC H1 2017 2017 Interim Results Presentation 17
US$ millions Cash flow impacted by export ban. Cash flow bridge 450 400 17 350 99 300 139 Discretionary spend / non-recurring spend 250 200 150 318 14 247 16 5 4 10 34 1,10 0 to 1,175 176 100 2017 Interim Results Presentation 18
US$ millions With a significant working capital build 450 430 410 Contained in concentrate on hand: Gold: 127 koz Copper: 8.3m lbs Silver: 107 koz 11 5 3 390 86 370 350 437 330 29 310 290 313 1,10 0 to 1,175 270 250 Total working capital Dec 2016 Indirect tax incurred Gold inventory Supplies Receivables Other elements Total working capital June 2017 2017 Interim Results Presentation 19
US$ millions Indirect taxes continuing to build-up 200 180 160 51 17 5 140 120 100 80 165 60 40 136 1,10 0 to 1,175 20 0 Total indirect tax receivable 31 Dec 2016 Indirect tax incurred Indirect tax refunded through offset Revaluation adjustments and write-offs Total indirect tax receivable 30 Jun 2017 2017 Interim Results Presentation 20
US$ millions koz Continued focus on cost management Strict cost discipline Reduction in AISC not just a result of increased production 6% reduction in direct mining costs over the 5 half-year periods, mainly in: Labour Consumables Overheads Direct Mining Costs* vs Production 360 412 418 428 440 420 320 280 321 318 367 365 298 319 303 400 380 360 240 340 320 200 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 300 Direct Mining Costs* Production * Pre capitalisation 2017 Interim Results Presentation 21
US$ millions Deferring non-essential capital spend to preserve liquidity Incurred capital expenditure of US$92 million in H1 2017 US$23 million on sustaining capital Total Liquidity 400 US$64 million on capitalised development/stripping US$6 million on expansionary drilling Full year guidance reduced by 15% to US$180-200 million 350 300 250 150 12 85 Production-critical capital still being spent 200 Deferring sustaining capital projects at Bulyanhulu and North Mara Non-essential water/ electrical projects HME 150 100 176 338 253 Lower capitalised development and stripping expectations 50 0 * 11,000 ounces @ US$1,200/oz net of royalties 2017 Interim Results Presentation 22
Discovery
Greenfields - 2017 Progress & H2 Plans Continued systematic approach to exploration across each of the projects Methodical approach to understanding geology, alteration and structure to develop targets Mapping, surface sampling and rock chip sampling programmes precursor to drilling Focus in H1 on delivering initial resource in Kenya and subsequently increasing its scale Focus in H1 on identifying new targets in West Africa across our portfolio Q3 wet season in West Africa and reduced drilling activity in Kenya reduces H2 spend Currently working on unchanged full year budget of ~US$25million Greenfield Projects H1 2017A Spend H1 2017A Drill Metres H2 2017E Budget H2 2017E Drill Metres 2017E Budget 2017E Drill Metres Kenya US$8.0m 34,020 US$4.8m ~21,000 US$12.8m ~55,000 Burkina Faso US$5.7m 63,010 US$2.4m ~62,000 US$8.1m ~125,000 Mali US$1.5m 7,466 US$0.4m ~2,000 US$1.9m ~9,000 Tanzania US$0.4m - US$0.2m - US$0.7m - Generative US$0.4m - US$0.6m - US$1.0m - Total US$16.0m 104,496 US$8.5m ~85,000 US$24.5m ~190,000 2017 Interim Results Presentation 24
Focus on Liranda Corridor - Kenya Liranda Corridor delivered high grade maiden Inferred resource of 1.31Moz @ 12.1g/t Au with upside potential Maiden Inferred Resource on Acacia Prospect in H1 2017 Targeting resource of up to 2Moz @ ~10g/t Au by year end First step to realising multi-million ounce potential from the corridor Delays in assay turnaround holding back results 8 of 23 holes awaited have VG Scoping study to commence during H2 post resource update First drill testing of potential lodes along strike has intersected visible gold 2017 Interim Results Presentation 25
Focus on West Africa Houndé & SMSZ 2017 shaping up to be an exciting year with new gold zones being identified in all our projects in the Houndé Belt Resource expansion drilling ongoing on Tankoro resource area at the South Houndé JV High Grade intersections at MC Zone (Chewbacca) Phantom and Phantom East offering possible near-surface extensions Regional drilling across 2,700sqkm Houndé Belt land package is yielding positive results Multiple gold corridors confirmed by reconnaissance Aircore and RC drilling of large-scale gold-in-soil anomalies 6 drill rigs active across all Houndé projects at end of June 2017 Mapping and rock chip sampling identifying new targets throughout the Central Houndé project Regional exploration drill programmes testing gold-soil anomalies and artisanal sites along the Senegal-Mali Shear Zone returning positive results High grade intersections of 4m @ 18.7g/t and 4m @ 5.62g/t from reconnaissance lines 1 x RC drill rig testing soil anomalies & IP geophysical targets 2017 Interim Results Presentation 26
Outlook
Outlook Focused on resolution of current dispute and operational delivery Three mines producing and selling gold doré whilst stockpiling gold/copper concentrate 127koz of gold, 8.3mlbs of copper and 107koz of silver stockpiled Production guidance range of 850,000 and 900,000 ounces unchanged Now targeting lower end of range due to lower expected output at Bulyanhulu Still expect a fifth consecutive year of increased production Continue to expect AISC to be between US$880 US$920 per ounce Incorporates increased royalty and clearing fee of 3% of revenues Aided by a reduction in expected capex to US $180-200 million as we defer non-essential spend Continuing to deliver success through the drill bit across Africa Targeting increase in resource in West Kenya to 2Moz by the end of 2017 Remain committed to Tanzania and will work to achieve a negotiated resolution to the dispute which remains the preferable outcome for all parties 2017 Interim Results Presentation 28
Appendix Operating Metrics Exploration & Development Reserves & Resources Aerial Mine site view
H1 2017 Operating Metrics Bulyanhulu* North Mara Buzwagi Group** H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 Key operational information: Ounces produced oz 122,542 157,069 179,578 174,737 126,084 80,219 428,203 412,025 Ounces sold oz 81,214 150,719 178,130 169,840 53,094 80,404 312,438 400,963 Cash cost per ounce sold US$/oz 795 661 441 427 697 1,052 577 640 AISC per ounce sold US$/oz 1,340 970 736 720 770 1,124 893 941 Copper production klbs 2,811 3,527 - - 6,253 4,900 9,065 8,427 Underground: Ore tonnes trammed/hoisted kt 409 479 316 210 - - 725 689 Open Pit: Tonnes mined kt - - 7,750 7,234 9,564 11,423 17,314 18,657 Ore Tonnes mined kt - - 1,536 1,395 4,951 2,605 6,487 4,000 Processing information: Ore milled kt 1,246 1,282 1,419 1,436 2,195 2,182 4,860 4,900 Head grade g/t 8.5 9.7 4.3 4.1 1.8 1.2 3.4 3.2 Mill recovery % 90.7% 89.3% 92.5% 91.4% 96.7% 94.6% 93.2% 92.6% Bulyanhulu mining and processing information represent ROM only Tailings reprocessing statistics are as follows: H1 17 Ore Milled 0.8Mt @ 1.4g/t, recoveries of 47.2% for 17,946 ounces recovered. H1 16 Ore Milled 0.8Mt @ 1.5g/t, recoveries of 45.9% for 16,986 ounces recovered ** Group figures for ore milled, head grade and mill recovery exclude reclaimed tailings in processing information, Group figures for ore mine d exclude TSF material 2017 Interim Results Presentation 30
Appendix Operating Metrics Exploration & Development Reserves & Resources Aerial Mine site view
West Kenya Project Declared maiden high grade inferred resource in February 2017 Acquired current ~1,600sqkm project in 2012 Increased ownership in primary licences to 100% for US$5m in 2016 Declared NI43-101 compliant Inferred Resource 1.31 million ounces of gold at 12.1 grams per tonne in H1 2017 Resource located solely on 1 of 5 prospects (Acacia) in prospective corridor Near term upside from ongoing drilling at the Bushiangala, Shigokho & Shibunane prospects Mineralisation averages ~3 metres wide, dependent on the zone, hosted by a mafic volcanic sequence with recoveries >90% Strike lengths vary between 200m and 600m Resource is currently defined down to a vertical depth of 750m First step in the delineation of a multi-million ounce high-grade gold corridor Tonnes Grade (Au g/t) Ounces Inferred Resource 1 3,461,000 12.1 1,305,700 1 The Mineral Resource has been estimated by Ms C Pitman, P.Geo.(Ontario) of AdiuvareGE. in conformity with the CIM Mineral Resources and Mineral Reserves Estimation Best Practice Guidelines (CIM, 2003) and are classified according to the CIM Standard Definition for Mineral Resources and Mineral Reserves (CIM, 2014). 2017 Interim Results Presentation 32
Liranda Corridor New targets evolving Potential for a multi-million ounce gold camp emerging Primary focus of 2017 drilling Focus of 2016 drilling Potential zones intersected in LCD0181, 183, 184, 185 with varying intensities of shearing, sulphide-carbonate-sericite +/- green mica alteration and VG was observed in LCD0181 all assays pending Potential further upside being tested now 2017 Interim Results Presentation 33
Burkina Faso Houndé Belt progress Four joint venture projects covering ~2,700sqkm of the Houndé Belt across 125km of favourable geology & structure Earning between 70-100% equity through in-ground exploration spend on a large and under-explored land package Focus on increasing scale and grade of existing resource at Tankoro (50% equity) whilst discovering and delineating additional stand alone and satellite ore bodies H1 2017 Highlights: High grade intersections on MC Zone of Tankoro Resource at South Houndé JV Gold anomalism in Aircore drilling confirms prospective 15-20km long Ouangoro Trend on South Houndé JV (see next slide) High grade gold mineralisation in drilling and in rock chip samples on the Central Houndé JV Project Extensive gold anomalism in Aircore drilling along several structural corridors on Pinarello JV Extensive gold-soil anomalies across Frontier JV project on regional soil sampling traverses associated with lithostructual targets H2 2017 Priorities: RC drilling on South Houndé and Central Houndé for a resource extensions and a new discovery(s) Large Aircore drilling programme targeted at confirming and extending mineralised trends and identifying new targets on remainder of the joint venture projects 2017 Interim Results Presentation 34
South Houndé/Pinarello/Frontier JV s New Gold Corridors Emerging MC Zone 6m @ 12.2g/t, 6.8m @ 6.83g/t Pinarello JV 8m @ 0.51g/t Au 20m @ 0.67g/t Au 8m @ 0.86g/t Au 21m @ 0.26g/t Au 18m @ 0.61g/t Au 12m @ 0.25g/t Au 6m @ 0.47g/t Au 2m @ 1.80g/t Au 12m @ 0.27g/t Au 6m @ 1.04g/t Au 4m @ 1.34g/t Au 12m @ 1.73g/t Au 100km 4m @ 0.86 g/t Au from 46m in AC2734 8m @ 1.09 g/t Au in AC2750 4m @ 0.78 g/t Au from 62m in AC2769 14m @ 0.75 g/t Au from 6m in AC2798 incl. 4m @ 1.69 g/t Au from 8m 8m @ 0.42 g/t Au from 10m in AC2828 12m @ 1.73 g/t Au from 42m in AC2901 4m @ 0.63 g/t Au from 68m in AC2902 2m @ 1.11 g/t Au from 2m in AC2896 7km trend Ouangoro Trend 8m @ 1.17 g/t Au from 12m in AC1154 (pre2017) incl. 4m @ 2.1 g/t Au from 4m (pre2017) 4m @ 0.36 g/t Au from 18m in AC2816 2m @ 1.80 g/t Au from 2m in AC2854 24m @ 0.96 g/t Au from 16m in AC2319 Frontier JV 15 new km-scale gold-soil anomalies identified 6m @ 1.04 g/t Au from 78m in AC2956 4m @ 1.34 g/t Au from 30m in AC2957 4m @ 0.35 g/t Au from 50m in AC2969 4km trend 4m @ 0.59 g/t Au from 12m in AC2985 2017 Interim Results Presentation 35
Central Houndé JV progress Several large-scale gold-in-soil anomalies currently being tested with RC drilling; new zones emerging from rock chip sampling High Grade intersections returned from Legue- Bongui Corridor including 2m @ 28.2g/t Au, 6m @ 3.75g/t Au and 2m @ 84g/t Au Broad low grade zones also intersected Drilling to date has only tested a small area of 8km x 3km corridor with multiple structural trends associated with gold mineralisation High Grade rock chips results returned from Legue NW corridor up to 77.4g/t gold Several parallel NW-trending quartz veins and shear zones mapped associated with positive rock chip results Several large gold-in-soil anomalies in northern licences with favourable geology, associated shear zones and quartz veining Legue NW Corridor 21 of 49 Rock chips returned >0.1g/t Au including samples returning grades of 5.95g/t, 19.1g/t, 28.1g/t, 62.8g/t and 77.4g/t gold from quartz veins Legue-Bongui Corridor Encouraging initial RC/DD drill results: 12m @ 1.45g/t Au from 48m 22m @ 1.12g/t Au from 156m 17m @ 1.11g/t Au from 151m 2m @ 28.2g/t Au from 155m 6m @ 3.75g/t Au from 31m 2m @ 84.8g/t Au from 190.8m 2017 Interim Results Presentation 36
Mali Positive drilling on Senegal-Mali Shear Zone Excellent ground position on Senegal-Mali Shear Zone (SMSZ) with regional scale gold anomalies & early positive indications from drilling Known gold prospects, artisanal sites, and large regional gold anomalies along SMSZ Hold five exploration permits covering 191 sqkm 2017 drilling programmes testing several multi-kilometre gold-soil and IP chargeability anomalies on Bane/Tintinba licences with better results of: 4m @ 18.7 Au g/t from 52m 4m @ 5.62 g/t Au from 75m 19m @ 0.55g/t Au from 74m 13m @ 1.11 g/t Au from 29m 25m @ 0.45g/t Au from 6m, inc. 7m @ 1.01g/t Au from 21m 17m @ 0.71g/t Au from 13m Initial RC drilling on Bourdala Project intersects broad low grade mineralisation including 26m @ 0.31g/t and 64m @ 0.23g/t Target generation on new licences and planned 4,000 metres of drilling during H2 2017 Interim Results Presentation 37
Appendix Operating Metrics Exploration & Development Reserves & Resources Aerial Mine site view
Reserves and Resources (Mines) Bulyanhulu- Underground Tonnes (000's) 2016 YE 2015 YE Grade Au Ounce Tonnes Grade Au (g/t) (000's) (000's) (g/t) Ounce (000's) Proven and probable 15,662 9.75 4,910 20,820 8.85 5,925 Mineral Resource 13,904 8.91 3,982 22,158 7.03 5,010 Inferred 24,208 9.75 7,587 19,900 9.23 5,903 Bulyanhulu- Tailings Proven and probable 6,181 1.05 209 6,548 1.07 226 Buzwagi Proven and probable (open pit) 5,993 1.74 336 6,514 1.76 369 North Mara - Nyabirama North Mara - Gokona UG North Mara - Nyabigena UG North Mara - Nyabirama UG Proven and probable (stockpile) 9,067 0.96 279 8,168 0.97 255 Mineral Resource 25,873 1.23 1,024 44,152 1.35 1,911 Inferred 2,058 1.37 91 3,656 1.34 158 Proven and probable (open pit) 16,946 2.04 1,110 16,591 2.19 1,167 Proven and probable (stockpile) 3,452 1.13 125 2,935 1.35 127 Mineral Resource 15,261 2.07 1,018 10,330 2.05 681 Inferred 3,600 0.84 97 193 2.01 12 Proven and probable 3,393 6.01 656 3,455 6.12 680 Mineral Resource 2,270 3.35 244 1,160 5.61 209 Inferred 6,356 3.39 693 4,756 4.71 720 Proven and probable - - - - - - Mineral Resource 1,237 3.19 127 197 6.05 38 Inferred 50 4.20 7 - - - Proven and probable - - - - - - Mineral Resource 1,401 3.19 144 987 4.85 154 Inferred 483 3.16 49 - - - Total Proven and probable 60,694 3.91 7,625 65,030 4.18 8,750 Mineral Resource 59,945 3.39 6,539 78,984 3.15 8,004 Inferred 36,755 7.21 8,523 28,504 7.41 6,794 2017 Interim Results Presentation 39
Reserves and Resources (Exploration) Tankoro (50%) Proven and probable Mineral Resource Inferred Tonnes (000's) 2016 YE 2015 YE Grade Au Ounce Tonnes Grade Au (g/t) (000's) (000's) (g/t) Ounce (000's) - - - - - - - - - - - - 21,500 1.52 1,050 - - - Nyanzaga (90%) Proven and probable - - - - - - (Tusker+Kilimani) Mineral Resource 22,230 3.49 2,495 97,352 1.31 4,102 Inferred 4,590 3.49 515 3,042 0.93 91 Golden Ridge Proven and probable Mineral Resource Inferred - - - - - - 7,944 2.78 710 7,944 2.78 710 1,414 2.27 103 1,414 2.27 103 Total Exploration Proven and probable Mineral Resource Inferred - - - - - 30,174 3.30 3,205 105,296 1.42 4,812 27,504 1.89 1,667 4,456 1.35 194 2017 Interim Results Presentation 40
Appendix Operating Metrics Exploration & Development Reserves & Resources Aerial Mine site view
North Mara: Aerial view Gokona Gokona Gokona O/P & U/G Nyabirama Airstrip Nyabirama Raw water dam Nyabirama O/P Nyabigena (closed O/P) TSF Process Plant 2017 Interim Results Presentation 42
Bulyanhulu: Aerial view Waste Rock Storage Shaft Camp Airstrip Process Plant Tailings Storage 2017 Interim Results Presentation 43
Mine Buzwagi: site Aerial view Water Storage ROM Pad Process plant Water harvest TSF Camp Pit Waste Rock storage 2017 Interim Results Presentation 44