Acacia Mining plc 2017 Interim Results Presentation July 2017 - - PowerPoint PPT Presentation

Acacia Mining plc

2017 Interim Results Presentation July 2017

LSE:ACA

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

• 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 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

• 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.

July 2017 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

July 2017 2017 Interim Results Presentation 3

Update on Tanzania

Metallic Mineral Concentrate Ban

• 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 built-

up 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 15th 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

July 2017 2017 Interim Results Presentation 5

Concentrate accounted for 36% of group production in H1 2017 Image of concentrate container

Tanzanian Legislative Changes

• 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

July 2017 2017 Interim Results Presentation 6

Sector-wide legislation to promote local ownership

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

July 2017 2017 Interim Results Presentation 7

Operations Review

North Mara – Q2 Review

Continued strong performance

July 2017 2017 Interim Results Presentation 9

75 100 113 91 96 83 3.50 4.80 5.40 4.40 4.60 4.00 1 2 3 4 5 6 7 20 40 60 80 100 120 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Grade (g/t) Production (koz)

Production & Head Grade

Production (OP) Production (UG) Head Grade

• 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

484 427 364 436 410 476 737 720 655 850 717 758 200 400 600 800 1,000 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 $ / ounce

All In Sustaining Cost per Ounce

Cash Cost Sustaining Capital Capitalised Development Other

Gokona – Positive Definition Drilling

• 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  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

July 2017 2017 Interim Results Presentation 10

Targeting an increase in ounces to sustain an UG life of mine in excess

• f 10 years –2 year programme of 75,000 metres underway

1130mRL - Level Plan

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

July 2017 2017 Interim Results Presentation 11

Bulyanhulu – Q2 Review

Export ban impacting on productivities

July 2017 2017 Interim Results Presentation 12

70 70 44 71 54 50 9 8 9 9 9 9 78 79 53 80 63 59 9.80 9.60 9.40 9.10 8.40 8.60 6.0 8.0 10.0 12.0 14.0 16.0 10 20 30 40 50 60 70 80 90 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Grade (g/t) Production (koz)

Production & Head Grade

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

661 662 808 784 786 813 1,140 983 958 1,300 1,061 1,229 1,558 200 400 600 800 1,000 1,200 1,400 1,600 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q2 17 $ / ounce

All In Sustaining Cost per Ounce

Cash Cost Sustaining Capital Capitalised Development Other

• 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

AISC if sales = production

* Includes containers at Dar es Salaam Port

Buzwagi – Q2 Review

Delivering against plan

July 2017 2017 Interim Results Presentation 13

37 43 40 42 60 66 1.1 1.3 1.2 1.2 1.8 1.9

0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0

• 10

20 30 40 50 60 70 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Grade (g/t) Production (koz)

Production & Head Grade

Production Head Grade 1,171 1,052 986 1,035 694 705 1,246 1,124 1,076 1,056 773 762 200 400 600 800 1,000 1,200 1,400 1,600 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 $ / ounce

All In Sustaining Cost per Ounce

Cash Cost Sustaining Capital Capitalised Development Other

• 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

• 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

Consolidated H2 2017 Performance

• 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

Continuing strong operational performance, sales impacted by ban

July 2017 2017 Interim Results Presentation 14

1,113 1,111 941 977 893

1,090 1,118 892 952 918

200 400 600 800 1,000 1,200 H1 15 H2 15 H1 16 H2 16 H1 17 $ / ounce

All In Sustaining Cost per Ounce

AISC AISC ex RSU

92 79 80 82 126 118 140 157 132 122 142 183 175 204 180 50 100 150 200 250 300 350 400 450 H1 15 H2 15 H1 16 H2 16 H1 17 Production (koz)

Production

Buzwagi Bulyanhulu North Mara

800 AISC if sales = production

Financial Review

Financial Highlights

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.

Financial Performance H1 2017 H1 2016 % change

Revenue US$m 391.6 504.9 (22)% EBITDA1 US$m 161.4 184.8 (13)% Adjusted EBITDA1,2 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 earnings1,2 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 expenditure3 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)%

July 2017 2017 Interim Results Presentation 16

AISC Bridge

1,10 0 to 1,175

941 54 88 6 237 267 46 16 8 893 500 550 600 650 700 750 800 850 900 950 1,000

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

US$ millions

AISC H1 2017 vs H1 2016

July 2017 2017 Interim Results Presentation 17

Cash flow impacted by export ban….

1,10 0 to 1,175

318 99 17 139 14 247 16 5 4 10 34 176 100 150 200 250 300 350 400 450 US$ millions

Cash flow bridge

July 2017 2017 Interim Results Presentation 18

Discretionary spend / non-recurring spend

… With a significant working capital build

1,10 0 to 1,175

313 29 86 11 5 3 437 250 270 290 310 330 350 370 390 410 430 450 Total working capital Dec 2016 Indirect tax incurred Gold inventory Supplies Receivables Other elements Total working capital June 2017 US$ millions

July 2017 2017 Interim Results Presentation 19 Contained in concentrate on hand: Gold: 127 koz Copper: 8.3m lbs Silver: 107 koz

Indirect taxes continuing to build-up…

1,10 0 to 1,175

136 51 17 5 165 20 40 60 80 100 120 140 160 180 200 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 US$ millions

July 2017 2017 Interim Results Presentation 20

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

July 2017 2017 Interim Results Presentation 21

321 318 298 319 303 367 365 412 418 428

300 320 340 360 380 400 420 440 200 240 280 320 360 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 koz US$ millions

Direct Mining Costs* vs Production

Direct Mining Costs* Production

* Pre capitalisation

Deferring non-essential capital spend to preserve liquidity

• Incurred capital expenditure of US$92

million in H1 2017

 US$23 million on sustaining capital  US$64 million on capitalised

development/stripping

 US$6 million on expansionary drilling

• Full year guidance reduced by 15% to

US$180-200 million

• Production-critical capital still being spent

 Deferring sustaining capital projects at

Bulyanhulu and North Mara

 Non-essential water/ electrical projects  HME  Lower capitalised development and stripping

expectations

July 2017 2017 Interim Results Presentation 22 * 11,000 ounces @ US$1,200/oz net of royalties

176 150 12 338 85 253 50 100 150 200 250 300 350 400 US$ millions Total Liquidity

Discovery

Greenfields - 2017 Progress & H2 Plans

2017 Interim Results Presentation July 2017 24

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

• 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

Focus on Liranda Corridor - Kenya

Liranda Corridor delivered high grade maiden Inferred resource of 1.31Moz @ 12.1g/t Au with upside potential

25

• 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

• unce 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

July 2017 2017 Interim Results Presentation

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

26

• 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

July 2017 2017 Interim Results Presentation

Outlook

Outlook

• 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

Focused on resolution of current dispute and operational delivery

July 2017 2017 Interim Results Presentation 28

Appendix

Operating Metrics Exploration & Development Reserves & Resources Aerial Mine site view

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

• z

122,542 157,069 179,578 174,737 126,084 80,219 428,203 412,025 Ounces sold

• z

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%

H1 2017 Operating Metrics

• 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

July 2017 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

32

• 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
• unce high-grade gold corridor

July 2017 2017 Interim Results Presentation

Tonnes Grade (Au g/t) Ounces Inferred Resource1 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).

Liranda Corridor – New targets evolving

July 2017 2017 Interim Results Presentation 33

Potential for a multi-million ounce gold camp emerging

Focus of 2016 drilling

Primary focus of 2017 drilling Potential further upside being tested now

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

• 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

Burkina Faso – Houndé Belt progress

Four joint venture projects covering ~2,700sqkm of the Houndé Belt across 125km of favourable geology & structure

July 2017 2017 Interim Results Presentation 34

South Houndé/Pinarello/Frontier JV’s New Gold Corridors Emerging

July 2017 2017 Interim Results Presentation 35

7km trend

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 @ 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 2m @ 1.11 g/t Au from 2m in AC2896 12m @ 1.73 g/t Au from 42m in AC2901 4m @ 0.63 g/t Au from 68m in AC2902 8m @ 0.42 g/t Au from 10m in AC2828 24m @ 0.96 g/t Au from 16m in AC2319 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 4m @ 0.59 g/t Au from 12m in AC2985

4km trend

100km

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

Frontier JV

15 new km-scale gold-soil anomalies identified

Ouangoro Trend

• 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

Central Houndé JV progress

Several large-scale gold-in-soil anomalies currently being tested with RC drilling; new zones emerging from rock chip sampling

July 2017 2017 Interim Results Presentation 36

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 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

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

July 2017 2017 Interim Results Presentation 37

Appendix

Operating Metrics Exploration & Development Reserves & Resources Aerial Mine site view

Reserves and Resources (Mines)

July 2017

2016 YE 2015 YE

Tonnes (000's) Grade Au (g/t) Ounce (000's) Tonnes (000's) Grade Au (g/t) Ounce (000's) Bulyanhulu- Underground 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 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 North Mara - Nyabirama 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 North Mara - Gokona UG 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 North Mara - Nyabigena UG Proven and probable

• Mineral Resource

1,237 3.19 127 197 6.05 38 Inferred 50 4.20 7

• North Mara -

Nyabirama UG 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)

July 2017

2016 YE 2015 YE Tonnes (000's) Grade Au (g/t) Ounce (000's) Tonnes (000's) Grade Au (g/t) Ounce (000's) Tankoro (50%) Proven and probable

• Mineral Resource
• Inferred

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

7,944 2.78 710 7,944 2.78 710 Inferred 1,414 2.27 103 1,414 2.27 103 Total Exploration Proven and probable

• Mineral Resource

30,174 3.30 3,205 105,296 1.42 4,812 Inferred 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

Airstrip Nyabigena (closed O/P) Gokona O/P & U/G

Gokona

Process Plant Raw water dam TSF Nyabirama O/P

Nyabirama

Gokona

Nyabirama

July 2017 2017 Interim Results Presentation 42

Bulyanhulu: Aerial view

Airstrip Waste Rock Storage Tailings Storage Shaft Process Plant Camp

July 2017 2017 Interim Results Presentation 43

Mine site

Buzwagi: Aerial view

TSF Water Storage ROM Pad Water harvest Pit Waste Rock storage Camp Process plant

July 2017 2017 Interim Results Presentation 44