AVM.L Regulatory News (AVM)

London, 5 September 2018

Tri-K update

Avocet Mining Plc ("Avocet" or the "Company") announces today that it has transferred 30 per cent of its Tri-K gold project in Guinea to Managem SA ("Managem"), a Moroccan mining group listed on the Casablanca stock exchange.

On 10 October 2016, Avocet announced that it had entered into an agreement with Managem, under which Managem would ultimately hold an interest of 70 per cent in the project conditional upon (a) an initial payment of US$4 million for 40 per cent of the project and related shareholder loans, (b) the completion of a US$10 million work programme, and (c) the production of a bankable feasibility study for an operation with a reserve of at least 1 million ounces.

On 22 May 2017, Avocet received from Managem US$4 million for 40 per cent of the project and related shareholder loans as part of the first closing.

On 3 August 2018, Managem sent the Company an overview of the work programme, the costs incurred as part of that programme, and a feasibility study indicating a reserve of approximately 1.1 million ounces (which is now available on the Company's website).

The Company has now transferred the remaining 30 per cent of the Tri-K project and the related shareholder loans to Managem. However, a discussion is ongoing between the parties regarding a significant overspend of the costs incurred as part of the work programme.

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NOTES TO EDITORS

Avocet Mining PLC ("Avocet" or the "Company") is a gold mining and exploration company listed on the London Stock Exchange (ticker: AVM.L) and the Oslo Børs (ticker: AVM.OL). The Company's principal activity is gold exploration in Guinea, West Africa: the Tri-K project.