Acacia Mining plc 20 17 Prelim inary Results Presentation February - - PowerPoint PPT Presentation

Acacia Mining plc

20 17 Prelim inary Results Presentation February 2018

LSE:ACA

Im portant 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

• ther 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

• f 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 2017 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

• r 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.

February 2018 20 17 Prelim inary Results Presentation 2

Full Year Review

Resilience in the face of challenges

• Total Recordable Injury Frequency Rate (TRIFR) of 0 .45, 39 % lower than 20 16
• 20 17 production of 768 koz, 7% lower than 20 16 , with gold sales of 593koz

 Sold 573koz of gold in doré, in line with doré production; and  Sold 20koz of gold in concentrate, 10% of total concentrate production, driven by impact of export ban

• 20 17 AISC of US$8 75/ oz , 9 % lower than 20 16 and below full year guidance

 If sales matched production, AISC would have been US$798/ oz

• Cash balance fell from US$318 m illion to US$8 1 m illion at 31 Decem ber 20 17

 Concentrate inventory valued at US$286 million(1) at year end pricing currently stockpiled in Tanzania

• Incurred post-tax im pairm ent of US$644 m illion which im pacted earnings

February 2018 20 17 Prelim inary Results Presentation 3

(1) Gross value at year-end, net value of approxim ately US$240 m illion

Taken Decisive Action

Effectively m anaging changes in the operating environm ent

• 20 17 was im pacted by events beyond our control
• Took decisive action to stabilise our business during the year

 Brought forward bypassing flotation circuit at Buzwagi to Q3 2017 to stop production of concentrate  Bulyanhulu moved to reduced operation state in Q4 2017  Sale of non-core royalty relating to Houndé project in Burkina Faso generated US$45 million  In Q3 bought options to provide a floor price of US$1,300/ oz for 210,000 ounces

• New highly experienced m anagem ent continuing to drive positive actions

 Appointment of Asa Mwaipopo as Managing Director, Tanzania  Consolidation of Bulyanhulu and Buzwagi Management team under Benedict Busunzu  Combined management team comprises five Tanzanians and one international employee  Extension of option arrangements to cover majority of H1 2018 doré production

February 2018 20 17 Prelim inary Results Presentation 4

Update on Tanzania

Overview of Governm ent Situation and the Concentrate Ban

February 2018 20 17 Prelim inary Results Presentation 6

During Q2, two Presidential Committees announced findings post investigations into mineral content and historic exports of gold/ copper concentrates − Acacia fully refuted the implausible findings of both committees In March 2017, the Tanzanian Ministry of Energy and Minerals announced a ban on the export of metallic mineral concentrates In July, Acacia received adjusted tax assessments totaling US$190bn for alleged unpaid taxes and penalties. In the same month Bulyanhulu Gold Mine Limited and Pangea Minerals Limited (Buzwagi) commenced international arbitration to protect

• ur position

In June, Barrick and the Tanzanian Government entered into discussions to reach a resolution to the dispute

Unsold concentrate containing 18 5,8 0 0 ounces of gold, 12.1 m illion pounds of copper and 158 ,90 0

• unces of silver currently stockpiled in Tanzania

Q1 20 17 Q2 20 17 Q3 20 17 Q4 20 17 In September 2017, Acacia announced intention to move to reduced operations at Bulyanhulu and made processing changes at Buzwagi to solely produce doré going forward In October, Barrick and GoT announced they had agreed a Framework for the resolution of the disputes − Detailed proposal not yet presented to Acacia − Barrick targeting a final proposal in H1 2018 − Any settlement will need Acacia approval

Tanzanian Legislative Changes

• Following publication of Second Presidential Com m ittee’s findings three new bills were

presented to the Tanzanian Parliam ent in late June

 These made 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 20 17, all legislation cam e into force and som e term s of the Acts are being applied
• We are m onitoring the im pact of the new legislation in light of our Mineral

Developm ent Agreem ents with the Governm ent

 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 20 17, 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

• In January 20 18 , regulations underpinning the new laws were issued

 The impact of these are still being analysed

February 2018 20 17 Prelim inary Results Presentation 7

Sector-wide legislation introduced during 20 17

Overview of the Fram ework

• In October 20 17, Barrick and the GoT announced they had agreed a fram ework for a

proposed new partnership between Acacia and the GoT

• As announced by Barrick, the key term s of the proposal included that:

 Economic benefits from the mines would be shared between Acacia and the GoT on a 50/ 50 basis

going forward

 To be delivered in the form of royalties, taxes and a 16% free carry interest in the operating mines;  Establishment of a new Tanzanian operating company to manage the mining operations;  A number of social licence to operate projects and commitments;  Further work with the GoT to advance concepts for increasing in-country beneficiation of gold;  Acacia would make a US$300 million payment, staged over time, in respect of outstanding tax claims

• Since October, Barrick and the GoT have continued discussions aim ed at agreeing and

docum enting the details of the proposed fram ework

 Barrick has announced that they are targeting completion in H1 2018.

• Acacia continues to support Barrick in its discussions with the Tanzanian Governm ent,

and pending a com prehensive settlem ent continues to reserve its rights

• Acacia is not directly involved in the ongoing discussions, and awaits a detailed proposal

and docum ented final agreem ents, which will be reviewed by an Independent Com m ittee of the Com pany’s Directors

February 2018 20 17 Prelim inary Results Presentation 8

Current discussion between Barrick and Governm ent of Tanzania

Contribution to Tanzania

9 20 17 Prelim inary Results Presentation February 2018

• In 20 17 we paid US$14 3 m illion in taxes and royalties in Tanzania

 Includes corporate taxes of ~US$34.6 million  Royalties of ~US$44.9 million  Payroll related taxes of ~US$46.1 million  Withholding tax, import duties and other taxes of ~US$17.5 million

• Acacia, and its predecessor com panies, have contributed over US$1 billion in taxes since

we started operating in Tanzania

 We have also spent over US$3 billion with local businesses since 2010

• In 20 17, our sustainable com m unities projects positively im pacted over 6 0 ,0 0 0 people

We continue to be a significant part of the Tanzanian econom y

Last 10 Years Annual Contributions to Tanzania ($m ) (1)

• 1. Includes royalties, corporate tax, payroll tax, w ithholding tax, im port duties, and fuel and local levies

44 63 70 92 122 114 117 111 168 143

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Operations Review

North Mara

• Produced 324koz at AISC of US$8 0 3 per
• unce sold

 Gokona U/ G tonnage continued to ramp up

although grades below 2016’s bonanza levels

 Focus on the lower grade West Zone  Nyabirama Stage 3 open pit completed with all

future open pit mining taking place in the Stage 4 pit

• Expect 20 18 production to be in line with

20 17 with AISC approxim ately 5% higher

• Continuing to invest in expansionary

drilling program m es at Gokona

 Doubled underground Reserve in 2017

• Beginning to unlock the long term

potential of the m ine through drilling program m es

• Targeting keeping production above

30 0 koz for next 10 years

Continuing strong perform ance and prim ary driver of free cash flow

February 2018 20 17 Prelim inary Results Presentation 11

659 623 590 410 498 1,227 947 915 733 803 200 400 600 800 1,000 1,200 1,400 1,600 2013 2014 2015 2016 2017 $ / ounce

All In Sustaining Cost per Ounce

Cash Cost Sustaining Capital Capitalised Development Other

257 274 287 378 324 3.48 3.48 3.57 4.52 3.85 – 1 2 3 4 5 6 7 100 200 300 400 2013 2014 2015 2016 2017 Grade (g/ t) Production (koz)

Production & Head Grade

Production (OP) Production (UG) Head Grade

Excellent initial results with ongoing reserve life extension and strong high grade results

20 17 Drilling Success Underground Operational Journey

• Converted Stage 3 of the Gokona open pit

into an underground operation in 20 15

 Already exceeded LOM production envisaged in

feasibility study

• Drilling program m es are targeting adding

significant resource additions at Gokona

• ver the com ing years
• Further potential along strike at Nyabigena

Gokona Underground – Overview

February 2018 20 17 Prelim inary Results Presentation 12

• 20 17 drilling successfully extended the wide and

high grade gold m ineralisation in the Gokona East Zone, with intersections including:

 UGKD_0107 - 24 m @ 12.5g/ t Au  UGKD_0113 - 10 m @ 10 .4 g/ t Au  UKGC_0262 - 19.4 m @ 64.7g/ t Au  UKGC_0260 - 9m @ 59.9g/ t Au  UGKD_0303 - 26m @ 40 .8 g/ t Au  UGKD_0304 - 20 m @ 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 - 24.8 m @ 133.5 g/ t Au

*Note – all drill intersections are dow n-hole thickness and uncut

516 6 8 0 6 56 1,34 0 8 34 9 29 9 37 50 4 6 8 28 9 4 72 2014 2015 2016 2017

Resource Progression (koz)

Reserve Resource Mined Material

Unclassified Mineralisation

• Planning to undertake 73,0 0 0

m eters of additional infill and extensional drilling in 20 18 and 20 19

 Drilled 33,000 metres in 2017

• Doubled reserve from 0 .6Moz to

1.3Moz during 20 17

• Significant infill potential across

the deposit

• Yet to test below 9 0 0 m RL from

underground drill platform s with historical surface drilling identifying potential upside

February 2018 20 17 Prelim inary Results Presentation

Gokona U/ G – Significant Extension Potential

Legend:

Measured Resources Indicated Resources Inferred Resources

27

February 2018 20 17 Prelim inary Results Presentation

Proposed Footwall Exploration Decline

• Underground definition drill program m es designed

to be drilled from initial exploration decline

• ~ 41km infill and extensional drilling designed from

exploration decline

• Initial block m odel produced for conceptual

underground m ine design

• Perm itting process underway for exploration

decline

29

Nyabiram a Underground – Long Term Plan

20 17 Surface Drilling Success

• Drilling beneath open pit continuing to

intersect high grades from m ultiple 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

*Note – all drill intersections are dow n-hole thickness and uncut

Bulyanhulu

• Produced 175koz at AISC of US$1,373/ oz in

20 17

 Production impacted by uncertainty from

concentrate ban and moved to reduced operations (“ROP”) in Q4 2017

• Sales of 10 8 koz trailed production by 39 %

due to the concentrate ban

• Incurred US$20 m illion of ROP costs in Q4 ,

together with AP outflow of US$30 m illion

 Further US$5m of cost and US$5m of AP outflow

due in Q1 2018

• In 20 18 expect production of ~ 30 koz at AISC
• f US$1,0 0 0 / oz from re-claim ed tailings

 Assuming resolution of concentrate ban, U/ G

expected to see phased restart in 2019

• Undertaking optim isation study to assess

best restart option

Transition to reduced operations successfully com pleted

February 2018 20 17 Prelim inary Results Presentation 15

198 222 240 255 153 – 12 34 35 22 198 235 274 289 175 7.80 8.70 8.58 9.28 8.60 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 50 100 150 200 250 300 350 2013 2014 2015 2016 2017 Grade (g/ t) Production (koz)

Production & Head Grade

Production (UG) Production (Tails) Head Grade (ROM)

889 812 797 722 840 1,344 1,266 1,253 1,058 1,373 200 400 600 800 1,000 1,200 1,400 1,600 2013 2014 2015 2016 2017 $ / ounce

All In Sustaining Cost per Ounce

Cash Cost Sustaining Capital Capitalised Development Other

Potential Re-start Options

16

Optim isation Study Underway to de-risk the m ine

February 2018 20 17 Prelim inary Results Presentation

• Study work currently underway to assess whether there are alternative restart options for the

underground m ine that add value and de-risk the m ining operations

• The initial trade-off studies and evaluation work (Phases 1 and 2) have been com pleted and the Study

has m oved into Phase 3 (Optim isation Study) which is expected to be com pleted in H2 20 18

• The Optim isation Study aim s to:

 Evaluate multiple underground restart options for mining, processing and general operations  Benchmark historical performance (productivity and cost) against zero base estimates  Evaluate potential impact of any negotiated settlement with the Government of Tanzania on any operating scenario

• The Optim isation Study will consider:

 Mining method, sequence and productivity  Ore haulage and hoisting optimisation  Pastefill and Mining Services optimisation  Site water quality and quantity management  Surface infrastructure optimisation and requirements including Logistics, Personnel and Security optimisation  Future capital requirements

• Produced 269 koz in 20 16

 15,000 ounces above plan

• Due to concentrate ban were only able to sell

160 koz during the year

 In September brought forward planned change to

process flowsheet to solely produce doré

• AISC of US$6 67 per ounce was driven by

higher production

 Inventory adjustment largely offsets lack of sales

• In 20 18 , expect step down in production to

~ 10 0 koz as the m ine processes lower grade stockpiles

• AISC expected to increase to ~ US$1,10 0 / oz,

im pacted by lower production and release of non-cash high cost inventory am ounting to US$20 0 / oz

Buzwagi

Open pit m ining effectively com plete, m oving to stockpile treatm ent

February 2018 20 17 Prelim inary Results Presentation 17

945 791 1,046 1,031 594

1,507 1,055 1,187 1,095 667 – 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2013 2014 2015 2016 2017 $/ ounce

All In Sustaining Cost per Ounce

Cash Cost Sustaining Capital Capitalised Development Other

182 210 171 162 269 1.46 1.73 1.39 1.21 2.10

0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2

• 50

100 150 200 250 300 2013 2014 2015 2016 2017 Grade (g/ t) Production (koz)

Production & Head Grade

Production (OP) Head Grade

Financial Review

Financial Highlights

1 These are non-IFRS measures. 2 Excludes non-cash capital adjustments (reclamation asset adjustments) and includes finance lease purchases and land purchases recognised as long term prepayments.

Financial Perform ance 20 17 20 16 % change

Revenue US$m 751,515 1,053,532 (29)% EBITDA1 US$m 257,18 0 415,388 (38)% Adjusted EBITDA1,2 US$m 310 ,527 409,903 (24)% Net earnings/ (loss) US$m (70 7,39 4 ) 94,944 nm Basic earnings/ (loss) per share (EPS) (cents) US cents (172.5) 23.2 nm Adjusted net earnings1,2 US$m 14 6 ,218 161,021 (9)% Adjusted earnings per share (AEPS) (cents)1 US cents 35.7 39.2 (9)% Full Year dividend per share (cents) US cents 0 .0 10.4 nm Cash and cash equivalents US$m 8 0 ,513 317,791 (75)% Cash generated from operating activities US$m (22,9 72) 317,976 nm Working capital movement US$m (313,10 0 ) (58,500) nm Capital expenditure2 US$m 14 9 ,376 195,898 (24)% Total borrowings US$m 71,0 0 0 99,400 (29)%

February 2018 20 17 Prelim inary Results Presentation 19

AISC Bridge

1,10 0 to 1,175

9 58 14 1 6 4 6 4 28 20 7 36 2 16 5 8 75 350 450 550 650 750 850 950 1,050

AISC 2016 Cash cost Share based payments Capitalised development Sustaining capital Investment in inventory Sales ounce impact Co-product revenue Other AISC 2017

US$ m illions

AISC 20 17 vs 20 16

February 2018 20 17 Prelim inary Results Presentation 20

Cash flow im pacted by export ban….

1,10 0 to 1,175

318 171 37 258 28 16 6 25 11 4 10 34 8 1 100 200 300 400 500 600 US$ m illions

Cash flow bridge

February 2018 20 17 Prelim inary Results Presentation 21

Discretionary spend / non-recurring spend

… With a significant working capital build

1,10 0 to 1,175

30 2 52 16 8 5 33 4 8 512 250 300 350 400 450 500 550 600 Total working capital Dec 2016 Net indirect tax incurred Gold inventory Other Payables Non-cash adjustments Total working capital Dec 2017 US$ m illions

February 2018 20 17 Prelim inary Results Presentation 22 Contained in concentrate on hand: Gold: 18 6koz Copper: 12.1m lbs Silver: 159 koz

1Non-cash working capital adjustments relate to impairments allocated to supplies inventory ($30M), discounting of indirect taxes ($13.3M) and foreign exchange revaluation

differences ($5M).

Indirect taxes continuing to build-up…

1,10 0 to 1,175

136 9 1 38 13 5 170 50 100 150 200 250 Total indirect tax receivable 31 Dec 2016 Indirect tax incurred Indirect tax refunded through offset Discounting adjustment Revaluation adjustments and write-offs Total indirect tax receivable 31 Dec 2017 US$ m illions

February 2018 20 17 Prelim inary Results Presentation 23

Adjusted Net Earnings Bridge

February 2018 20 17 Prelim inary Results Presentation 24

(70 7) 14 6 (16 ) 6 4 4 172 8 13 5 27 (800) (700) (600) (500) (400) (300) (200) (100)

• 100

200 300 Net loss Net impairment charges Provision for uncertain tax positions Restructuring cost Discounting of indirect taxes One-off legal settlements Buly exit costs Tax impact of adjustments Adjusted net earnings US$'m

Im pairm ent Analysis

• Carrying value calculations m ade in accordance with

applicable accounting standards by reference to the key term s of the Fram ework announcem ents by Barrick and the GoT in October 20 17

 Additional discounting to reflect uncertainties around the final

terms of any comprehensive settlement

• No conclusions can be m ade as to whether any particular

term s of settlem ent would be approved by Acacia based

• n the review
• Dem onstrated a potential reduction in value at all three

assets

 Buzwagi and North Mara have sufficient headroom above their

current carrying values.

• Due to the long life of Bulyanhulu and im pact of ROP

recorded a net im pairm ent charge US$6 32m

 Includes a pre-tax write-down of US$122m for goodwill

• Further im pairm ent charge of US$12m at Nyanzaga
• Additional tax provision of US$172m bringing total for

uncertain tax positions to US$30 0 m

25

Carrying Value Review undertaken at year-end

February 2018 20 17 Prelim inary Results Presentation

US$’0 0 0 Bulyanhulu Nyanzaga

Total Impairment Allocated to: Goodwill 121,546

• Intangible assets
• 12,261

Supplies inventory 30,000

• Plant, Property and

Equipment 686,735

• Deferred tax impact

(208,913)

• Total allocated

6 32,0 0 9 12,26 1

Discovery

An Exciting Pan African portfolio

Mali

• 5 permits across 191 sq km

Senegal Mali Shear Zone

• SMSZ host to 50+Moz
• Over 25 targets identified
• 2017 spend – US$1.7 million
• 2018 budget - US$1.6 million

Kenya

• 2,200 sq km land package
• First mover advantage
• Declared 1.2Moz @ 12.6g/ t

Inferred Resource in 2017

• 2017 spend – US$12.0 million
• 2018 budget – US$6.4 million

Burkina Faso

• 4 JVs over 2,700 sq km
• Houndé Belt host to 10Moz+
• 2.1Moz @ 1.5 g/ t inferred

resource on South Houndé JV

• +65 targets across portfolio
• 2017 spend – US$9.5 million
• 2018 budget – US$5.7 million

Continuing to invest, targeting future discoveries

27

Tanzania

• Nyanzaga Project in joint

venture with OreCorp

• As part of a FS OreCorp

reported an updated Mineral Resource Estimate with an M&I Resource of 2.7 million

• unces @ 4.06g/ t

Proterozoic-Archean volcano-sedimentary belts

Outlook

• Production guidance range of 4 35,0 0 0 and 4 75,0 0 0 ounces

 Step-down from 2017 due to Bulyanhulu ROP and Buzwagi movement to stockpile treatment  All gold produced in 2018 will be in saleable doré form

• Expect AISC of between US$9 35 – US$9 8 5 per ounce

 Impacted by US$200/ oz non-cash inventory cost at Buzwagi (US$50/ oz on a group basis)  Incorporates increased royalty and clearing fee of 3% of revenues

• Capital expenditure of US$10 0 m illion

 Primarily at North Mara  Taking opportunity of ROP at Bulyanhulu being to progress essential capital spend on plant of

~US$10 million

• Continuing to invest in exploration success across Africa

 Expansionary drilling at Gokona Underground of US$5 million  US$15 million greenfield exploration budget

Believe our operations are now well placed to deliver in 20 18

February 2018 20 17 Prelim inary Results Presentation 29

Outlook

• Taken decisive action to stabilise the business over last 12 m onths
• Experienced new m anagem ent team in place
• Our Tanzanian assets are increasingly being led and operated by Tanzanian em ployees
• Significant upside at North Mara being unlocked through the drill bit
• Supporting Barrick in its discussions with the Tanzanian Governm ent
• Returning the business to free cash generation and delivering value for all of our

stakeholders

Managing a challenging situation effectively

February 2018 20 17 Prelim inary Results Presentation 30

Conclusion

Appendix

Operating Metrics Exploration & Development Reserves & Resources

Bulyanhulu* North Mara Buzwagi Group** 20 17 20 16 20 17 20 16 20 17 20 16 20 17 20 16 Key operational inform ation: Ounces produced

• z

175,491 289,432 323,607 378,443 268,785 161,830 767,883 829,705 Ounces sold

• z

107,855 279,286 324,455 376,255 160,552 161,202 592,861 816,743 Cash cost per ounce sold US$/ oz 840 722 498 410 594 1,031 587 640 AISC per ounce sold US$/ oz 1,373 1,058 803 733 667 1,095 875 958 Copper production klbs 3,906 6,391

• 8,991

9,847 12,897 16,239 Underground: Ore tonnes trammed/ hoisted kt 596 909 654 440

• 1,250

1,349 Open Pit: Tonnes mined kt

• 15,299

15,556 15,368 21,585 30,667 37,141 Ore Tonnes mined kt

• 3,147

2,752 9,309 5,317 12,456 8,067 Processing inform ation: Ore milled kt 612 933 2,841 2,830 4,256 4,404 7,709 8,167 Head grade g/ t 8.6 9.3 3.9 4.5 2.1 1.2 3.3 3.3 Mill recovery % 90.1 91.4 92.0% 92.0% 94.3% 94.5% 92.4% 92.3%

FY 20 17 Operating Metrics

• Bulyanhulu mining and processing information represent ROM only – Tailings reprocessing statistics are as follows: 2017– Ore Milled 1.0Mt @ 1.4g/ t, recoveries of 48.0%

for 22,212 ounces recovered. 2016– Ore Milled 1.7Mt @ 1.4g/ t, recoveries of 45.8% for 34,880ounces 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

February 2018 20 17 Prelim inary Results Presentation 32

Appendix

Operating Metrics Exploration & Developm ent Reserves & Resources

West Kenya Project

Declared m aiden high grade inferred resource in 20 17

34

• Updated initial Resource from Feb 20 17 post

drilling program m e

• Drilling increased confidence but saw a

m arginal decrease in ounces to 1.2Moz @ 12.6 g/ t

 Resource located on 2 of 5 prospects in prospective

corridor

 Near term upside from drilling at the Isulu SE

target

 Mineralisation averages ~3 metres wide, dependent

• n 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

• A scoping study is in progress

Tonnes Grade (Au g/ t) Ounces Isulu Inferred Resource 1 2,500,000 12.9 1.004 Moz Bushiangala Inferred Resource 1 374,600 10.5 126,000

1 The Mineral Resource has been estim ated by Ms C Pitm an, P.Geo.(Ontario) of AdiuvareGE. in conform ity w ith the CIM Mineral Resources and Mineral Reserves Estim ation

Best Practice Guidelines (CIM, 2003) and are classified according to the CIM Standard Definition for Mineral Resources and Mineral Reserves (CIM, 2014).

Liranda Corridor – New targets evolving

35

Potential for a m ulti-m illion ounce gold cam p em erging

Focus of 20 18 drilling

Prim ary focus of 20 17 drilling

• Earning between 70 -10 0 % 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

• 20 17 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

Burkina Faso – Houndé Belt progress

Four joint venture projects covering ~ 2,70 0 sqkm of the Houndé Belt across 125km of favourable geology & structure

36

Tankoro Corridor Extension targets

37

Djimbake Ben emerging trend Djim bake

• Tankoro SW extension
• Previous AC drilling showed

highly anom alous result

 10m @ 1.73g/ t Au  8m @ 2.57g/ t Au  8m @ 4.25g/ t Au  6m @ 1.33g/ t Au  6m @ 1.99g/ t Au

• 20 18 planned follow-up with

infill and step-out AC traverses as well as som e RC and diam ond drilling

Ben em erging trend

• Patchy soil anom alies

possibly due to transported

• verburden
• 20 18 follow up IP survey infill

+ phased AC drilling

• High Grade intersections returned from Legue-

Bongui Corridor including 2m @ 28 .2g/ t Au, 6 m @ 3.75g/ t Au and 2m @ 8 4 g/ 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 77.4 g/ t gold

Several parallel NW-trending quartz veins and shear

zones mapped associated with positive rock chip results

• Several large gold-in-soil anom alies in northern

licences with favourable geology, associated shear zones and quartz veining

Central Houndé JV progress

Several large-scale gold-in-soil anom alies currently being tested with RC drilling; new zones em erging from rock chip sam pling

38

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 6 m @ 3.75g/ t Au from 31m 2m @ 8 4 .8 g/ t Au from 19 0 .8 m 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

Mali – Positive drilling on Senegal-Mali Shear Zone

• Known gold prospects, artisanal sites, and large

regional gold anom alies along SMSZ

• Hold five exploration perm its covering 19 1 sqkm
• 20 17 drilling program m es tested several m ulti-

kilom etre gold-soil and IP chargeability anom alies on Bane/ Tintinba licenses 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, incl. 7m @ 1.01g/ t Au

from 21m

 17m @ 0.71g/ t Au from 13m

• Detailed field follow up with further drill testing

planned for H1 20 18

39

Excellent ground position on Senegal-Mali Shear Zone (SMSZ) with regional scale gold anom alies & early positive indications from drilling

Appendix

Operating Metrics Exploration & Development Reserves & Resources

1,891 2,330 100 913 352 223

• 500

1,000 1,500 2,000 2,500 End 2016 Depletion COG and Reconciliation Design Change Model Change End 2017 Ounces (koz)

North Mara – YoY Change in Reserves

February 2018 4 1

North Mara 20 17 Reserves & Resources

20 17 Prelim inary Results Presentation

Reserves increased, as depletion offset by drilling

YELLOW: REEF 1 UPPER EAST 458koz @ 7.41g/t 6% of reserve PURPLE: REEF 2 952koz @ 9.84g/t 18% of reserve

Sum m ary Reserves and Resources 1 (Dec 20 17)

Ore Grade Au Contained Au (Mt) (g/ t) (Moz) Surface and Stockpiles Proven 6.2 1.23 0.25 Probable 13.6 1.7 0.75 Reserves 19.8 1.55 1.0 0 Measured 1.7 2.28 0.13 Indicated 4.9 1.83 0.29 Inferred 0.5 1.20 0.02 Total R&R 26.9 1.65 1.4 3 Underground Proven 2.1 5.86 0.39 Probable 4.5 6.44 0.95 Reserves 6.6 6.26 1.34 Measured 0.3 4.99 0.04 Indicated 5.3 3.64 0.62 Inferred 6.0 4.36 0.84 Total U/ G R&R 18 .2 4 .8 5 2.8 4 Total Mine R&R

4 5.1 2.9 4 4 .27

• 1. Resources are exclusive of reserves
• Increased reserves by 23% during the year despite

depletion of ~ 350 koz

 Increase of 680koz from Gokona U/ G  Grade remained flat from both surface & U/ G

• Im proved understanding geology structures in

Gokona led to the discovery of “Golden Banana 2”

• Geology block m odel im proved to where it

reconciles well with actual production

• Open pit design for Cut 4 was im proved adding

10 0 koz of Reserves at Nyabiram a

• Rem aining resource at Nyabiram a below Cut 4

was converted to an underground Resource

• Reconciliation factors at Nyabiram a open pit were

adjusted to m ore accurately reflect actual production

5,119 4,697 151 223 302 48

• 1,000

2,000 3,000 4,000 5,000 6,000 End 2016 Depletion CCF Additions Design Change Model Change End 2017 Ounces (koz)

Bulyanhulu – YoY Change in Reserves

Bulyanhulu 20 17 Reserves and Resources

February 2018 20 17 Prelim inary Results Presentation 4 2

Prim ary changes due to depletion and design changes

PURPLE: REEF 2 952koz @ 9.84g/t 18% of reserve

Sum m ary Reserves and Resources 1 (Dec 20 17)

• 1. Resources are exclusive of reserves

Ore Grade Au Contained Au (Mt) (g/ t) (Moz) Underground Proven 2.9 10.66 1.00 Probable 11.6 9.46 3.52 Reserves 14 .5 9.70 4 .52 Measured 1.4 10.77 0.49 Indicated 13.6 8.46 3.70 Inferred 24.2 9.75 7.59 Total R&R 53.7 9.4 16.30 Tailings Proven

• Probable

5.2 1.05 0.18 Reserves 5.2 1.0 5 0 .18

• Underground Reserves of 4 .5Moz at a grade of

9.7g/ t

 2016 U/ G Reserve of 4.9Moz @ 9.8g/ t  Ounces reduced primarily due to depletion and

adjustment of short range designs that were not economic

• Tailings reserves of 0 .2Moz m arginally lower

due to depletion and m odel changes

• M&I Resources increased to 4 .2Moz at

decreased grade of 8 .7g/ t

 2016 M&I of 4.0Moz @ 8.9 g/ t

• Inferred Resources rem ained approxim ately

the sam e

February 2018 4 3

YELLOW: REEF 1 UPPER EAST Hosts [ 6%] of reserve ounces

20 17 Prelim inary Results Presentation

Reserves decreased due to depletion

PURPLE: REEF 2 952koz @ 9.84g/t 18% of reserve YELLOW: REEF 1 UPPER EAST 458koz @ 7.41g/t 6% of reserve

Sum m ary Reserves and Resources 1 (Dec 20 17)

Ore Grade Au Contained Au (Mt) (g/ t) (Moz) Proven 0.1 1.71 0.01 Stockpiles 14.2 0.91 0.41 Reserves 14 .3 0 .92 0 .4 2 Measured 0.0 0.0 0.0 Indicated 4.5 1.04 0.15 Inferred 49.9 0.77 1.24 Total R&R 68 .7 0 .8 2 1.8 1

• The m ajority of m ining is com pleted with only

bench cuts and the goodbye cut rem aining

• Reserves fell by 0 .2Moz due to depletion,

partially offset by m odel changes

• Approxim ately 5Mt added to stockpile during

20 17 at m arginally lower grade

 48% increase in ounces on stockpile provides 3 years of

mill feed

 Stockpile modelling on-going to optimise stockpile

processing

• Revised m odelling practices m oved m ost of the

Indicated Resource to Inferred Resource

• 1. Resources are exclusive of reserves

Buzwagi - 20 17 Reserves and Resources

615 421 17 74 285

• 100

200 300 400 500 600 700 End 2016 Depletion Design Change Model Change End 2017 Ounces (koz)

Buzwagi – YoY Change in Reserves