ACA.L Regulatory News (ACA)

ACACIA MINING PLC - Accelaration of Organisational Changes

PR Newswire

London, December 2

3 December 2015

Acacia Mining plc

LSE:ACA

(“Acacia” or the “Company”)

Acceleration of Organisational Changes

Over the past two years, Acacia has been undertaking a process to drive productivity and cash flow across the Company. We have implemented significant improvements to our mine plans, including the mechanisation of the Bulyanhulu mine and the move from open pit to underground mining at the Gokona pit at North Mara. Alongside a formal cost saving programme, these changes have led to a reduction in our costs of approximately 30% from their peak in 2012.

As part of this process, there has been an ongoing programme to ensure that our workforce is of the appropriate size and mix for our operations. This process, initially scheduled to continue through to the end of 2016, has already led to a 60% reduction in the number of higher-cost expatriates. Following a further review of the organisation in light of the current gold price and recent performance, Acacia has accelerated the process of organisational change. As a result, approximately 1,050 of our people, representing approximately 27% of our workforce, have either left or are expected to leave Acacia over the next few months through a combination of voluntary separation agreements and redundancies. The largest proportion of the role reductions are at Bulyanhulu, but all of our mines and offices will be affected. As part of this process Acacia has fulfilled all local legislative requirements and is committed to minimising any employee hardship; as such we have put in place support services to assist those affected.

The restructuring, which is expected to lead to an annual saving of US$25 million, prior to a restructuring charge of approximately US$11 million predominantly incurred in 2015, is one of a number of initiatives underway to ensure costs within the business are optimised, in turn enhancing cash flow generation even in a low gold price environment. Acacia is also working to further refine capital expenditure, renew discussions with contractors and major suppliers to improve their rates, rationalise corporate administration spend and ensure our community spending is in line with our corporate strategy and delivering sustainable development. Further details on the expected impact of the restructuring and other initiatives, along with full year guidance, will be provided with fourth quarter production results in January 2016.

Commenting on the news, Brad Gordon, CEO, said: “The steps we are announcing today are not taken lightly but are an important element of the ongoing transformation of Acacia for the long-term benefit of both our people and our wider stakeholders. These, and the other planned changes, will help to ensure that we are able to generate sustainable positive free cash flow in 2016 and beyond, and do not experience a recurrence of the unacceptable cash outflow we saw in Q3. The majority of those employees affected have already left Acacia, with operational performance continuing to be in line with plan for the quarter.”

ENQUIRIES

For further information, please visit our website: http://www.acaciamining.com/ or contact:

Acacia Mining plc +44 (0) 20 7129 7150

Giles Blackham, Investor Relations Manager

Bell Pottinger +44 (0)20 3772 2500

Daniel Thöle

About Acacia Mining plc

Acacia Mining plc (LSE:ACA) is Tanzania’s largest gold miner and one of the largest producers of gold in Africa. We have three producing mines, all located in north-west Tanzania: Bulyanhulu, Buzwagi, and North Mara and a portfolio of exploration projects in Tanzania, Kenya, Burkina Faso and Mali.

Our approach is focused on strengthening our three core pillars; our business, our people and our relationships, whilst continuing to invest in our future. Our name change from African Barrick Gold to Acacia in November 2014 reflected a new approach to mining, and an ambition to create a leading African Company.

Acacia is a UK public company headquartered in London. We are listed on the Main Market of the London Stock Exchange with a secondary listing on the Dar es Salaam Stock Exchange. Barrick Gold Corporation is our majority shareholder. Acacia reports in US dollars and in accordance with IFRS as adopted by the European Union, unless otherwise stated in this announcement.

Disclaimer and forward-looking statements

This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of Acacia in any jurisdiction.

This announcement 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 ongoing 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 announcement.

Any forward-looking statements in this announcement only reflect information available at the time of preparation. Subject to the requirements of the Disclosure and Transparency Rules and the Listing Rules or applicable law, Acacia explicitly disclaims any obligation or undertaking publicly to update or revise any forward-looking statements in this announcement, whether as a result of new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast or estimate.