LSE:ACA Bulyanhulu Investor Site Tour 04.02.16 Unearthing Africa’s Potential
Important Notice This presentation includes “forward - looking statements” that express or imply Although Acacia’s management believes that the expectations reflected in such expectations of future events or results as opposed to historical facts. These forward-looking statements are reasonable, Acacia cannot give assurances that statements include, financial projections and estimates and their underlying such statements will prove to be correct. Accordingly, investors should not place assumptions, statements regarding plans, objectives and expectations with reliance on forward-looking statements contained in this presentation. respect to future production, operations, costs, projects, and statements Any forward-looking statements in this presentation only reflect information regarding future performance. Forward-looking statements are generally available at the time of preparation. Subject to the requirements of the Disclosure identified by the words “plans,” “expects,” “anticipates,” “believes,” “intends,” and Transparency Rules and the Listing Rules or applicable law, Acacia explicitly “estimates” and other similar expressions . disclaims any obligation or undertaking publicly to update or revise any forward- All forward-looking statements involve a number of risks, uncertainties and looking statements in this presentation, whether as a result of new information, other factors, many of which are beyond the control of Acacia, which could cause future events or otherwise. Nothing in this presentation should be construed as a actual results and developments to differ materially from those expressed in, or profit forecast or estimate and no statement made should be interpreted to mean implied by, the forward-looking statements contained herein. Factors that could that Acacia’s profits or earnings per share for any future period will necessarily cause or contribute to differences between the actual results, performance and match or exceed its historical published profits or earnings per share. Mineral achievements of Acacia include, but are not limited to, changes or developments reserves and mineral resources estimates contained in this presentation have in political, economic or business conditions or national or local legislation or been calculated as at 31 December 2014 in accordance with National Instrument regulation in countries in which Acacia conducts - or may in the future conduct - 43-101 as required by Canadian securities regulatory authorities. Canadian business, industry trends, competition, fluctuations in the spot and forward price Institute of Mining, Metallurgy and Petroleum (CIM) definitions were followed of gold or certain other commodity prices (such as copper and diesel), currency for mineral reserves and resources. The reserves and resources figures stated are fluctuations (including the US dollar, South African rand, Kenyan shilling and estimates. No assurances whatsoever can be given that the indicated quantities of Tanzanian shilling exchange rates), Acacia’s ability to successfully integrate metal will be produced and totals stated may not add up due to rounding. For acquisitions, Acacia’s ability to recover its reserves or develop new reserves, more information regarding the nature of reserves and resources estimates and including its ability to convert its resources into reserves and its mineral relevant CIM definitions, please see page 90 of African Barrick Gold plc’s 2013 potential into resources or reserves, and to process its mineral reserves Annual Report and Accounts. successfully and in a timely manner, Acacia’s ability to complete land You are reminded that you have received this presentation on the basis that you acquisitions required to support its mining activities, operational or technical are a person to whom this presentation may be lawfully made and delivered. You difficulties which may occur in the context of mining activities, delays and may not and are not authorised to: (i) reproduce or publish this presentation; or technical challenges associated with the completion of projects, risk of trespass, (ii) distribute, disclose or pass on this presentation to any other person, in whole theft and vandalism, changes in Acacia’s business strategy and ongoing or in part, by any medium or in any form, in breach of any applicable securities implementation of operational reviews, as well as risks and hazards associated laws. BY ACCEPTING THIS PRESENTATION, YOU ACKNOWLEDGE AND with the business of mineral exploration, development, mining and production AGREE TO THE CONTENTS OF THIS DISCLAIMER AND YOU AGREE TO BE and risks and factors affecting the gold mining industry in general. BOUND BY THE FOREGOING LIMITATIONS. Investor Site Tour 2 04.02.2016
Introduction
Overview A leading asset amongst our peers Bulyanhulu Our Location World class – high grade narrow vein deposit Geological endowment of over 20 million ounces* West Kenya JV Kenya Located in a mining friendly and stable country However, history of under-delivery and lack of free cash generation North Mara Tintinba Project Tanzania Mali Undertaking fundamental re-engineering Hounde Belt JVs Bulyanhulu Burkina Faso of the mine to ensure delivers to its Tanzania geologic potential Buzwagi Tanzania Producing mines Exploration properties * Including produced ounces Investor Site Tour 4 04.02.2016
Setting the scene In 2013 we started the process of fundamentally re-designing Bulyanhulu Past Present LOM focused on labour intensive Converted to mechanised mining mining methods methods 50% increase in development metres Lack of investment in development due to bringing in contractor Poor maintenance practices, limited Over 80% of maintenance is planned planned maintenance Sustaining capital spend has more Over capitalised (too much equipment than halved, whilst production has on site) increased Setting achievable targets, in tandem Optimistic planning led to culture of with a dedicated cultural change failure programme 50% reduction in total workforce, Too many people, both local and expat with expats down by 55% We’ve made great progress, but still more to do to achieve our goals Investor Site Tour 5 04.02.2016
Safety Incident frequency rates 2006 - 2014 3.50 3.00 2.50 2.00 Rate 1.50 1.00 0.50 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 TRIFR LTIFR Investor Site Tour 6 04.02.2016
Geology
Geology Schematic Cross Section A A ’ Investor Site Tour 8 04.02.2016
Geological Units Facing Pillow Basalts Gabbro X Y Mineralized Qtz vn Argillite Investor Site Tour 9 04.02.2016
Mining
Life of Mine: Options Review Fundamental redesign of LOM plan Moved away from CCF (handheld Breakdown of Mining Method (tonnes) methods) towards modern mechanised mining 100 9 Previous plan saw mine sourcing over 75% of 25 26 13 tonnes coming from hand held 80 42 Percentage (%) Significantly improved safety profile 21 60 31 Investment in development to increase flexibility in mine plan 25 40 78 Driving mining accuracy to reduce dilution 53 37 20 Long Hole as main mining method 33 Setting mine up to deliver on its geological 6 0 endowment 2013 LOM 2014A 2015A 2016 (Plan) CCF Longhole Alimak Ore development * 2013 planning allocated development to each of the mining method categories Investor Site Tour 11 04.02.2016
Significant progress to date Production (koz) AISC per ounce sold (US$/oz) 300 1,400 250 274 1,300 1,344 Q4 -78 235 200 1,266 1,200 1,253 198 Q3 - 62 150 1,100 100 Q2 - 71 1,000 999 900 50 Q1 - 62 800 - 2013 2014 2015 Q4 15 2013 2014 2015 2015 Ore Tonnes hoisted (Kt) Capital Expenditure ($m) 1,000 200 993 185 950 150 132 900 100 909 101 871 850 50 800 0 2013 2014 2015 2013 2014 2015 Investor Site Tour 12 04.02.2016
KPIs have improved significantly Dramatic productivity improvements already realised at the mine Breakdown of workforce Total Development metres (km) Nationals 3,000 20.00 151 Internationals 2,500 15.00 111 15.9 2,000 2,225 1,843 12.3 1,500 72 10.00 10.4 1,000 1,197 5.00 500 - - 2013 2014 2015 2013 2014 2015 Average long-hole stoping width (m) Average daily ROM tonnes milled (t) 5.0 3,000 4.0 2,762 2,500 2,636 4.1 2,625 3.9 2,510 3.0 2,329 2,268 2,000 2.8 2.0 1,500 1.0 0.0 1,000 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 2013 2014 2015 Investor Site Tour 13 04.02.2016
Upper East Deferred ramp up whilst undertake further definition drilling Area located 2km east of shaft with existing small scale decline to the area Includes material on both Reef 1 and the Reef 2 series Commenced production from development ore in H2 2015 Expected stoping ramp-up in 2016 When developing saw divergence between reserve model and results from the production drilling in Reef 2 series Previous drill spacing of 100m centres, not tight enough to accurately predict variation in the lode geometries Spacing is the same as has been used across the mine successfully for last 15 years Deferred development in the Reef 2 Series whilst undertake definition drilling programme Investor Site Tour 14 04.02.2016
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