ACA.L Regulatory News (ACA)

ACACIA MINING PLC - Maiden high-grade Resource at West Kenya Project

PR Newswire

London, February 26

27 February 2015

Acacia Mining plc

LSE:ACA

(“Acacia” or the “Company”)

Maiden high-grade Resource declared at West Kenya Project

Acacia announces a maiden NI 43-101 compliant Inferred Mineral Resource Estimate of 1.31 million ounces of gold at 12.1 grams per tonne on the Liranda Corridor within the Company’s West Kenya Project.

Commenting on the news, CEO Brad Gordon said, “We are delighted to report a maiden high-grade Inferred Mineral Resource on the Liranda Corridor in Kenya of 1.31 million ounces at 12.1 grams per tonne of gold. This is one of the highest grade projects in Africa today, and we believe that this initial resource is a first step in the delineation of a multi-million ounce high-grade corridor. In addition to the Acacia prospect, which hosts all of this maiden resource, we have known mineralisation on the Bushiangala prospect, one kilometre away to the west, with a further three prospective lodes in early stage testing. Whilst Kenya is a relatively new mining destination we are very pleased with the relationships we have built and the support we have received and look forward to working closely with all stakeholders as we progress this highly promising project.”

Commenting on the West Kenya Project, Cabinet Secretary for Mining, the Honourable Dan Kazungu said, “Kenya is undoubtedly a geologically rich country, and we are taking significant steps, such as the ratification of the 2016 Mining Act, to establish a robust legislative framework to support our developing mining industry. We are excited about the potential of Acacia’s West Kenya Project, as it could ultimately lead to the creation of a gold mining industry that would have a benefit to our country, economy and people. We look forward to continuing to work with Acacia and welcome their continued interest and investment in Kenya.”

Overview

Acacia is pleased to announce the maiden NI 43-101 compliant Inferred Mineral Resource Estimate (MRE) on the Liranda Corridor, within its West Kenya Project. The Inferred MRE of 3.46 million tonnes at 12.1 grams per tonne for 1.31 million ounces is primarily located on three main zones of mineralisation at the Acacia prospect. The gold mineralisation at Acacia is associated with shear zones ranging in width from 0.5 metres to 10 metres (averaging 3 metres true width dependent on the zone), hosted by a mafic volcanic sequence. The strike lengths of the explored sections of the main mineralised zones at Acacia vary between 200m and 600m and the resource is currently defined down to a vertical depth of 750m with the structures open down plunge.

In addition, we have identified mineralised zones on the Bushiangala prospect, approximately one kilometre away from the Acacia prospect, but at this stage this material remains unclassified due to drill density and the need to further understand the controls on the mineralisation and its continuity. Recent results from the Bushiangala prospect include, 7m @ 17.6g/t Au, 3m @ 6.88g/t Au and 4m @ 9.99g/t from step-out holes. Based on the work undertaken to date, the current scale of the mineralisation is between 0.60Mt and 1.50Mt at a grade between 6.0g/t Au and 10.0g/t Au, for a metal target of between 190,000 ounces and 290,000 ounces of contained gold. A key element of the 2017 drilling programmes at Bushiangala is to both move this existing target mineralisation into the Inferred Resource category and to expand the scale of the targeted mineralisation.

The total drilling on Liranda Corridor targets since 2014 amounts to 44 Reverse Circulation holes for 4,438 metres and 132 diamond core holes for 64,700 metres. To date, approximately 80% of the holes drilled to date have been on the Acacia prospect.

The Mineral Resource has been estimated by Ms C Pitman, P.Geo.(Ontario) of AdiuvareGE, who takes responsibility for the estimate. All the modelling and the estimation were carried out in Datamine® software. The Mineral Resources are stated using 12 February 2017 as the cut-off date for the drill assay database. The Inferred Mineral Resource has been estimated 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). Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

Table 1: Inferred Mineral Resource estimate for the Acacia prospect

The full NI 43-101 report, containing estimation methodology, together with the table of significant intercepts, can be downloaded from: https://www.acaciamining.com/operations/exploration/kenya/liranda-corridor/downloads

2017 Forward Plan

During 2017, we plan to spend US$12 million on exploration on the West Kenya project, with the majority of this on a 45,000 metre drilling programme on the Liranda Corridor which is designed to:

Drilling to date in 2017 on the Acacia prospect continues to deliver high grade intersections, these include the following assays, which are not included in the current resource:

We expect the drilling to continue on the Acacia prospect for at least a further 12 months and are targeting a significant increase in the resource to 2 million ounces prior to the end of 2017. We also plan to commence a scoping study looking at the potential for an underground mining operation towards the end of 2017. In order to increase the testing of the five main prospects in the Liranda Corridor we also plan to increase the number of drill rigs operating to eight.

Figure 1: Schematic Long Sections of the targets along the Liranda Corridor

See http://www.acaciamining.com/ for figure 1

Acacia’s Contribution in Kenya

During the past four years of exploring the West Kenya Project, Acacia has employed a full time staff of between 30 and 40 Kenyan employees, including more than twenty graduates, project and senior geologists from Kenyan universities. At the same time the Company and its contractors have employed several hundred part-time labourers, field technicians, drill hands and support staff drawn from the immediate areas of exploration activity across the four counties in which we operate (Kakamega, Vihiga, Siaya and Kisumu), ensuring that employment opportunities are given locally as far as possible.

Acacia remains committed to all our stakeholders, especially the communities in which we work, and over the past four years we have spent over US$500,000 (KES 50,000,000) in supporting a number of community projects in the areas we have worked. This includes the recently launched Acacia Vocational Scholarship Programme, where 66 students, including 36 women, from the Liranda Corridor have been granted scholarships to attend technical colleges situated within Ikolomani. Courses offered were those which Acacia may potentially tap in to in the long term should our exploration be successful, in a bid to build local capacity and improve local employment prospects. We have also supported the Mago Polytechnic in Vihiga with training and medical supplies and a further 50 scholarships, and we have undertaken a number of water bore and water harvesting programmes, improvements to school facilities, as well as the planting of more than 10,000 trees In Vihiga County.

To ensure meaningful stakeholder engagement in the Liranda Corridor area, Acacia has set up a Community Consultative Committee which ensures the free flow of information between the community and the company. The Company also runs regular site tours for community members to demystify the exploration process, and has also set up a community outreach office. A grievance mechanism is in place to ensure that community issues are attended to according to industry best practice as and when they arise. We are proud of the spirit we have developed in the local villages and the counties in which we operate, and we plan to continue to foster and strengthen our relationships within our host communities through continued meaningful engagement.

ENQUIRIES

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

Giles Blackham, Investor Relations

Lorna Cobbett

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: North Mara, Bulyanhulu and Buzwagi 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. Forward-looking statements are statements that are not historical facts. These statements include, without limitation, 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 in this announcement. 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 including, the 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 report. Any forward-looking statements in this announcement only reflect information available at the time of preparation. Save as required under the Market Abuse Regulation or otherwise under applicable law, Acacia explicitly disclaims any obligation or undertaking publicly to update or revise any forward-looking statements in this report, whether as a result of new information, future events or otherwise. Nothing in this announcement 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 the historical published profits or earnings per share of Acacia.

Note on mineral resources estimates

The Mineral resource estimates contained in this announcement are estimated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. The Mineral Resource has been estimated 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). Estimates are as of 07 February 2017 unless otherwise noted. Calculations have been reviewed, verified (including estimation methodology, sampling, analytical and test data) and compiled by Ms C Pitman, P.Geo.(Ontario) of AdiuvareGE, who takes responsibility for the estimates contained in this announcement. However, the figures stated are estimates and no assurances can be given that the indicated quantities of metal will be produced. Resource estimates can also change and tend to be influenced mostly by new information pertaining to the understanding of the deposit and secondly the conversion to ore reserves. In addition, estimates of inferred mineral resources may not form the basis of an economic analysis and it cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Therefore, investors are cautioned not to assume that all or any part of an inferred mineral resource exists, that it can be economically or legally mined, or that it will ever be upgraded to a higher category. Likewise, investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be upgraded to mineral reserves. Complete mineral resource data for the projects referenced in this announcement, including tonnes, grades, and ounces, can be found in the technical report produced for the project, which is available at: http://www.acaciamining.com/operations/exploration/kenya/west-kenya-jv-overview.aspx

Appendix: About the Liranda Corridor

The Liranda Corridor is located in the County of Kakamega within the Western Province of Kenya. The project area lies approximately 48 km north-northwest of Kisumu City (Kenya’s third largest City) and 30km southwest of Kakamega and 350 km west of Nairobi. The Liranda Corridor covers a 7km2 area within Special Licence 213 and sits towards the northeast of Acacia’s West Kenya Project consisting of five exploration licences covering a land package of approximately 1,600km2.

The Liranda Corridor falls within the Busia-Kakamega Greenstone Belt, the northern most greenstone belt in the Lake Victoria Goldfields. It comprises an overall northeast-ward facing sequence of volcanic and sedimentary rocks intruded by granitoids.

Figure 2: Location of the Liranda Project with the West Kenya Project, which consists of five licences for approximately 1,600km2.

See http://www.acaciamining.com/ for Figure 2

Since acquiring an initial 49% of the West Kenya Project (“Project”) in November 2012, Acacia has undertaken an extensive regional exploration programme resulting in the identification of more than 50 targets across the current 1,600km2 project area with the aim of identifying corridors with the potential to host multi-million ounce gold deposits.

Total exploration expenditure on the West Kenya Project from November 2012 to December 2016 amounts to US$29.5 million with more than 26,312 soil samples, 575 rock chip samples, 1,200km2 of mapping, 190 line kilometres of ground geophysics, 2,535 line km of airborne Electromagnetic surveys, approximately 61,000 metres of Aircore drilling and 83,450 metres of reverse circulation (“RC”) and diamond core (“DD”) drilling completed. This implies a very low cost initial discovery and on a per ounce basis, we are confident that we will demonstrate significant value creation for Acacia shareholders as additional resource ounces are proven up.

This work has resulted in seven multi-kilometre gold corridors being identified across the project. The Liranda Corridor, in the far northeast of the project area was the highest priority target identified. Reconnaissance Aircore drilling of gold-in-soil anomalies identified significant gold mineralisation.

Figure 3. Imaged soil geochemistry and prospect map of the West Kenya Project

See http://www.acaciamining.com/ for Figure 3

Follow-up diamond drilling of 12 prospect-scale targets within the Liranda Corridor identified three areas of focus, the Acacia, Bushiangala and Shigokho prospects, with narrow high-grade gold intersections encountered at all three. The Acacia and Bushiangala prospects were prioritised for further drill testing and are located within the centre of the Liranda Corridor where a 5km x 2km area of high-intensity flooding of carbonate-sericite alteration has been mapped in outcrop and drilling. This strong alteration zone has predominantly overprinted mafic volcanic rocks and in some examples sediments throughout the sequence. The carbonate flooding is of an intensity and size typical of major Archaean lode gold systems. Proximal to mineralisation, the alteration is represented by silica flooding, sericite and green mica alteration.

Given the assay results from the initial diamond core drilling, the mineralisation style and structural information, it was decided to target mineralisation at depth early in the drill programme with ten diamond core holes drilled beneath each prospect targeting gold mineralisation at between 300 and 500m vertical depth. Several of the deep diamond core holes were successful in identifying multiple narrow high-grade zones and subsequently it was decided to focus on the Acacia prospect, with a smaller amount of drilling on the Bushiangala prospect.

During 2016 a total of 70 diamond holes for 40,600 metres were drilled on the Liranda Corridor targeting extensions of mineralisation on the Bushiangala and Acacia shoots. This brings the total drilling on Liranda Corridor targets since 2014 to 44 RC Holes for 4,438 metres and 132 DD holes for 64,700 metres.

In 2016, based on the results of drilling carried out during the first half of the year, Acacia made the decision to acquire the remaining 51% of the West Kenya JV Project from AfriOre (a Lonmin plc subsidiary) for US$5million, resulting in Acacia owning 100% of the main two licences covering the West Kenya Project, whilst retaining approximately 87% of three other small licences held in joint venture with Advance Gold.