Centamin PLC Regulatory News (CEY)

Centamin plc ("Centamin" or "the Company")

(LSE:CEY, TSX:CEE)

Centamin plc Results for the Third Quarter and Nine Months Ended 30 September 2018

Financial Highlights(1,2,3,4)

Q3 2018 compared with Q2 2018

· Sukari Gold Mine ("Sukari") produced 117,720 ounces, a 27% improvement on the second quarter ("Q2") QoQ, resulting from month on month operational improvements in the open pit and underground;

· Gold sales of 106,798 ounces, a 9% increase QoQ. The increased difference between gold produced and gold sold is due to the timing of final month end gold pour and the gold shipment schedule; The 20,163 unsold ounces were sold at the next shipment, contributing to fourth quarter ("Q4") revenue;

· Average realised gold price of US$1,206 per ounce, a decrease of approximately 7% QoQ;

· Revenue of US$125.1 million, a 1% increase QoQ, due to the 9% increase in ounces sold offset by 7% decrease in gold price; Revenue of US$421.5 million generated YTD from gold sales of 328,433 ounces (Excl. Cleopatra ounces) at an average realised gold price of US$1,281 per ounce;

· EBITDA (1,2,4) of US$48.7 million, a 6% increase QoQ, resulting in EBITDA of US$178.5 million YTD;

· Profit before tax(4) of US$21.8 million, a 1% decrease QoQ, and US$102.2 million YTD;

· Basic earnings per share after profit share(2,4) ("EPS") of 0.93 US cents, a 29% decrease QoQ, largely reflecting the Sukari profit share mechanism as per the Concession Agreement with Egyptian Minerals Resources Authority ("EMRA"), Centamin's state partners, which from July 2018 moved from a ratio of 60:40 to 55:45 (Centamin:EMRA); YTD EPS of 4.80 US cents;

· Operational cash flow of US$27.3 million, a 27% decrease QoQ, due to the factors mentioned above and an 8% increase in operating costs driven by increased volumes of material moved; Operational cash flow YTD of US$150.0 million;

· Royalties of US$3.9 million payable to Arab Republic of Egypt ("ARE") and profit share of US$10.6 million paid to EMRA, resulting in a US$62.7 million YTD direct financial contribution to Egypt;

· Sustaining capital expenditure of US$21.8 million, a 24% decrease QoQ; YTD capital expenditure of US$75.7 million;

· Negative Group free cash flow(1) of US$1.0 million, largely driven by timing of gold sales resulting in increased bullion inventory and the phased Sukari profit share mechanism, referred to above;

· Group free cash flow generated YTD is US$35.1 million;

· Cash and liquid assets(1,3) of US$292.2 million, at 30 September 2018, after payment of the interim dividend of US$28.9 million (2.5 US cents per share) on 28 September 2018; and

· The Company remains debt-free and unhedged.

Operational Highlights(1,2)

Q3 2018 compared with Q2 2018

· Group Lost Time Injury Frequency Rate ("LTIFR") of 0.13 per 200,000 man hours, with one lost-time injury in Q3, a reflection of our ongoing focus and commitment on health and safety;

· Sukari Gold Mine ("Sukari") produced 117,720 ounces, a 27% improvement QoQ, resulting from month on month operational improvements in the open pit and underground; September was a significant improvement on July and August, producing 48,511 ounces, driven by good underground grades and reduction in stope dilution; Underground operational improvements have taken longer than planned to materialise and are expected to continue to flow through in Q4;

· Group production for the first nine months, year-to-date ("YTD") is 334,819 ounces;

· Cash costs of production(1,2) of US$70.9 million, a 10% increase QoQ, primarily driven by increased volumes of material movement, in particular the combined mining stockpile build-up of US$32.7 million, due to increased material mined from the open pit, offsetting a collective stores inventory reduction of US$10.9 million;

· Unit cash cost (1,2) reduced by 13% QoQ to US$619 per ounce produced, driven by increased production; Unit cash costs YTD are US$631 per ounce produced;

· AISC (1,2) of US$92.1 million, a 10% decrease QoQ driven by an increase in inventory (stockpiles and bullion in safe) and scheduled reduction in sustaining capital expenditure over the period. Maintenance and equipment rebuild programmes are on schedule;

· Unit All-in sustaining costs ("AISC" (1,2)) reduced 17% QoQ to US$889 per ounce sold; Unit AISC YTD are US$917 per ounce sold;

· Record open pit material movement of 19.9Mt, an 8% increase QoQ, totalling 56.8Mt YTD, including record open pit ore mined of 6.6Mt, a 19% increase QoQ, totalling 18.1Mt YTD as mining of the Stage 4 transitional zone was completed and progressed into the higher-grade sulphide material, the predominant source of ore from the open pit for the next three years.

· Open pit average milled grade was 0.81g/t, a 37% increase QoQ, and lifting the average milled grade YTD to 0.70g/t;

· The run of mine ("ROM") ore stockpile increased from 6.45Mt (at 0.44 g/t) at the end of Q2, to 10.13Mt (at 0.47g/t) at the end of Q3, a 57% increase in tonnes QoQ, with 8.0Mt at 0.42g/t now classified as longer term stockpiles;

· Total underground ore mining of 327kt, a 13% increase QoQ, at an average mined grade of 5.18 g/t, a 12% increase QoQ due to the successful ongoing implementation of changes initiated in Q2, in particular the reduction in tonnes impacted by dilution from cascade stoping; YTD 928kt ore mined at an average mined grade of 5.52gt;

· There has been no underground equipment utilisation or availability disruptions; the backup long-haul drill rig ("LHDR") is in transit and expected to arrive on site in Q4; and

· Plant throughput of 3.1Mt, a 1% reduction QoQ, at a head grade of 1.29g/t, a 31% increase QoQ.

Exploration Highlights(4)

The Group exploration programme has delivered strong results across the portfolio in Q3.

· A comprehensive drilling programme at the Sukari underground continues to return excellent results;

· These results, whilst outside the existing Mineral Resource, are largely near to existing development and infrastructure thereby expanding the structural architecture of the orebody and in turn, supporting increased mine life potential. Drill highlights include:

Ptah: 3m @ 428 g/t

43m @ 8.2 g/t, including 15m @ 12 g/t

22m @ 8.5 g/t

21m @ 8.1 g/t

3.9m @ 20.4 g/t

0.8m @ 106 g/t

10.7m @ 9.26g/t

4.2m @ 9.9 g/t, including 3.8m @ 10.5 g/t

Amun: 8m @ 180 g/t, including 1m @ 259 g/t

9m @ 51.9 g/t

9.2m @ 25.8 g/t, including 2.7m @ 20 g/t

0.7m @ 15.9 g/t, including 1.2m @ 563 g/t

4m @ 18.9 g/t, including 0.9m @ 287.2 g/t

Top of Horus: 0.7m @ 213 g/t

6m @ 26 g/t

0.8 m @ 25.8 g/t

· Cleopatra exploration continued to return solid results, as further drilling systematically tested the contacts and internal geological structures during the quarter. Drill highlights include:

1m @ 110.94g/t

2m @ 6.3g/t, including 0.7m @ 9.3g/t

1.4m @ 12.8 g/t

1m @ 11.5 g/t

0.9m @ 9.5 g/t

10m @ 3.9 g/t

4m @ 5.4 g/t

15m @ 3 g/t

10m @ 3.9 g/t

Total spend of US$2.8 million on Cleopatra exploration and development has generated pre-production revenue of US$2.7 million;

· West Africa exploration expenditure(4) was US$4.7 million, progressing the Doropo Preliminary Economic Assessment ("PEA") study, which is on schedule for H1 2019, and further drilling at ABC Project targeting a maiden resource; and

Doropo Project, Côte d'Ivoire, resource extension and infill drilling returned positive results. Drill highlights include:

Nopka deposit: 37m @ 6.4 g/t

40m @ 2.7 g/t

12m @ 6.5 g/t

10m @ 6.4 g/t

6m @ 9.4 g/t

Chegue South deposit:

15m @ 8.4 g/t

9m @ 9.7 g/t

11m @ 5.5 g/t

5m @ 10.7 g/t

Kekeda, Enioda, Hinda, Tchouahinin deposits:

13m @ 11.2 g/t

3m @ 30.5 g/t

4m @ 16.1 g/t

10m @ 5.8 g/t

7m @ 8.1 g/t

2m @ 19 g/t

ABC Project, Côte d'Ivoire, early stage reconnaissance exploration has identified some very encouraging mineralised zones. Drill highlights include:

Kona Project: 44m @ 2.5 g/t

100m @ 0.8 g/t

60m @ 1.2 g/t

36m @ 1.4 g/t

30m @ 1.5 g/t

83m @ 0.8 g/t

Q4 Update and 2018 Guidance

· To date, in Q4, operational sections are performing in line with the plan and the Company remains on track to produce 145,000 ounces;

· Whilst the Company continues to realise further improvements from the underground, production guidance for 2018 has been revised to 480,000 ounces;

· Notwithstanding the reduced annual production profile, the cash cost of production guidance remains unchanged with unit cash cost of production on track to deliver between US$625-US$640 per ounce produced, resulting from a positive impact from increased inventory;

· The Company expects AISC per ounce sold to continue to trend downwards in Q4 and expects to be at the top end of the guidance range of US$875-US$890 per ounce sold, and benefitting from the unsold ounces at the end of Q3 and therefore we expect gold sales to exceed gold produced;

· Reduced total 2018 capital expenditure to US$125 million; and

· Updated Sukari Mineral Reserve and Resource estimates scheduled to be published with year-end results.

_________________________________________________________________________________________________________

(1) Cash cost of production, AISC, EBITDA and cash, bullion on hand, gold sales receivables, financial assets at fair value through other comprehensive income and free cash flow are non-GAAP measures and are defined at the end of the Financial Review section.

(2) Basic EPS, EBITDA, cash cost of production and AISC reflect a provision against prepayments to reflect the removal of fuel subsidies which occurred in January 2012 (refer to note 8 of the financial statements for further details).

(3) Cash and cash equivalents, bullion on hand, gold sales receivables and financial assets at fair value through other comprehensive income.

(4) The Group accounting policy for Greenfield exploration expenditure, has been updated in line with market practice. This has resulted in prior period results being restated. Accordingly, YoY comparatives are on a consistent basis. For full details, please refer to Note 1 of the Financial Statements.

Conference Call

A conference call will be hosted by the Company at 08.30 GMT (UK) today to discuss the results with investors and analysts. Please find below the required dial-in details. Where possible, please dial in 10 minutes before. The Results Presentation can be found on the Company website: www.centamin.com/investors/presentations/2018 ahead of the call.

Participant code: 72669053#

UK Toll: +44 (0)203 428 1542

UK Toll-Free: 0808 237 0040

A replay will be made available on the Company website from 12.00 GMT (UK) today for 30 days.

For further information, please visit the website www.centamin.com or contact:

These results demonstrate a material operational improvement on Q2. We are extremely pleased with the operational performance from the open pit and were pleased to see the underground returning towards expected production levels. The open pit, following another record quarter for material moved, is now through the transitional ore, grades are improving and are expected to continue to improve throughout Q4. The underground has shown month on month improvements throughout Q3, with production contribution from cascading stopes declining from 49% in Q2 to 34% in Q3 as stopes in upper Amun levels were progressively completed. By September, cascade stopes contributed less than 20% of production ore as higher-grade stopes were commenced in the Amun zone along the western contact. There are additional modifications underway as we return operations to their steady state.

We are committed to maintaining a tight cost base, with costs remaining firmly in the bottom half of the global gold producing cost curve with unit cash costs of production of US$619/oz and all-in sustaining costs of US$889/oz, down 13% and 17% QoQ, respectively, despite sector wide supply chain pressures. This has underpinned what is a profitable business, generating US$21.8 million for Q3 (US$102.2 million 2018 YTD) in what has been a sustained weak gold market.

The build-up in stockpiles has helped to reduce costs which have been further contained by improvements to fleet scheduling and utilisation, resulting in less trucks per unit moved, ongoing improvements in working capital, negotiation of improved commercial terms on some key supply contracts and deferral of non-critical sustaining capex items. Of note, fuel costs have been stable for the quarter.

The Company maintains a strong financial position, with cash and liquid assets of US$292.2 million as at 30 September 2018, after paying out US$28.9m for the interim dividend. Group free cash flow was negative US$1m for the quarter, after generating US$27.3m in operating activities, investing US$17.7 million in sustaining and exploration capex and distributing US$10.6 million to our local partners, EMRA, in profit share. We expect Q4 to be highly cash flow generative, including the benefit from the unsold ounces produced in Q3, where we expect gold sales to exceed gold produced.

The exploration programme has returned another quarter of strong results. Sukari is a world class asset with untapped growth potential as demonstrated by the continued excellent high-grade underground drill results in Q3. The underground drill results largely sit outside of the existing Sukari resource, yet are near to current underground development. Some of the results are also from less well understood extensions to the orebody, generating ample drill targets for Q4 and beyond. We look forward to providing our updated reserve and resource numbers with year-end results.

At Doropo in Côte d'Ivoire, the Preliminary Economic Assessment is on track for H1 2019. Geotechnical and hydrological studies are complete with the full metallurgical studies scheduled for completion in Q4. Environmental and community studies are underway and are scheduled for completion in H1 2019 along with the updated resource estimation. Based on ongoing drilling and work done to date, the Doropo Project is demonstrating increasing potential to be Centamin's next development project.

During the quarter, we were delighted to welcome Dr Ibrahim Fawzy to our Board as Independent Non-Executive Director and Raitt Marshall as General Manager of Sukari Gold Mines. Raitt brings a wealth of experience and joins us from Kinross Gold, where he was the General Manager of Tasiast Gold Mine, Mauritania.

Centamin's corporate strategy remains focused on the delivery of low cost operations at our world class Sukari Gold Mine; from this solid foundation we are able to generate significant cash flow, driving shareholder returns whilst simultaneously progressing multiple stages of future potential growth within our exploration and development pipeline.

(1) Gold produced is gold poured and does not include gold-in-circuit at period end.

(2) Cash cost of production exclude royalties, exploration and corporate administration expenditure. Cash costs of production reflect a provision against prepayments to reflect the removal of fuel subsidies which occurred in January 2012 (refer to note 8 of the financial statements for further details).

(3) Cash cost of production and all-in sustaining costs are non-GAAP financial performance measures with no standard meaning under GAAP. Please see the financial review for details of non-GAAP measures.

Health and safety

The Group Lost Time Injury Frequency Rate ("LTIFR") for Q3 was 0.13, with one lost-time injury over a total of 1,590,855 man hours worked. The Company remains committed to further improving this health and safety measure towards our zero‑harm target with details of the safety initiatives and employee welfare set out in the CSR report, which can be found on our website www.centamin.com.

Sukari Gold Mine, Egypt

Overview

Sukari had one lost-time injury over 1,441,307 man hours worked in Q3, resulting in an LTIFR of 0.14. The site continues to focus on leading indicators such as hazard reporting and regular routine training.

Sukari produced 117,720 ounces in Q3, a 27% increase on the previous quarter, reflecting operational improvements across all sections of the mine. Significant month on month improvements delivered total production for September of 48,511 ounces, more than a 50% increase compared to July production. This was due to mining of the high-grade stopes along the western contact in the Amun zone and some small high-grade stopes in the Ptah sediments.

Whilst many of the changes implemented in Q2 successfully resulted in improved performance, focus firmly remains on realising further improvements and ensuring consistency of performance.

Open pit mining of the transitional zone was completed in the quarter, with mined grades improving month on month, slightly ahead of expectations. Underground operations delivered the most improved month on month performance, with September production of 23,601 ounces greater than 70% increase compared to July production.

Underground stope production continued to improve during the quarter, although slower than expected, as cascade stopes in the upper levels were completed and progressively replaced with higher grade stopes with lower dilution. In addition to completing a number of cascade stopes in July and August, there were some issues opening up new stopes in August which were resolved by the end of the month, enabling September to record a much-improved performance.

Open pit

The open pit delivered a total material movement of 19.9Mt. A total of 6.6Mt of ore was mined at 0.64g/t, of which 2.7Mt was milled at an average head grade of 0.81 g/t; 189kt at 0.35 g/t was delivered to the dump leach pad; the balance of approximately 3.7Mt at 0.52g/t was delivered to the stockpiles. The run of mine ("ROM") ore stockpile at the end of Q3 was 10.1Mt at 0.47g/t, with 8.0Mt at 0.42g/t now classified as longer term stockpiles;

The open pit achieved another record quarter for ore mined and material moved. Additional ore tonnes were mined at medium grade slightly ahead of expectations. More ore tonnes were delineated from the grade control drilling, as we mined into the sulphide material.

Open pit mined grade for Q3 was 0.64 g/t, a 25% improvement QoQ, with September grade of 0.74 g/t, a 29% increase on July. In line with the mine plan, ore mining reduced in September with 17% less ore tonnes mined than in July.

Stage 4 mining is now into the higher-grade sulphide material, which will be the primary source of ore for at least the next three years. In Q4, the mine plan forecasts lower tonnage at higher grades of ore mined, as mining in the sulphides progresses at depth.

Underground

The underground delivered ore mined of 327kt, at an average grade of 5.18 g/t for the quarter; of which 199kt at 6.16 g/t was from stoping and 128kt at 3.65g/t was from development. The ratio of stoping-to-development ore for the period was 60:40. There have been no material equipment utilisation or availability issues and the backup LHDR is in transit and expected on site in Q4.

During Q3, the total tonnes mined from cascade stoping reduced from 49% to 34%, as mining commenced in the lower levels of the Amun zone where conventional open stoping is the suitable mining method for that section of the orebody.

Stope production in Amun amounted to 155kt at 6.71g/t, whilst development was 47kt at 3.18g/t. In the Ptah zone, stope production amounted to 44kt at 4.37g/t, whilst development was 81kt at 3.94g/t.

In Q4, approximately 15% of total stoping tonnage scheduled is exposed to increased dilution due to cascading material. The underground mine plan schedules for stoping to development in a split of 60:40.

Total underground development was 1,759m, a 2% decrease QoQ. Decline development contributed 88m, with the remainder ore drive and cross-cut development in the Amun (593m) between 590 and 695 levels and Ptah (1,078m) on the P615 to P700 levels. Development in Q4 is forecast at 2,000m, of which 450m is waste in the Ptah and Horus (below Amun) declines.

Processing

The plant processed 3.1Mt of ore at a head grade of 1.29g/t, a 31% increase QoQ, in line with annual budget expectations. Metallurgical recovery averaged 88.7%, a 1.6% improvement on the prior quarter.

Cleopatra decline development in mineralised material produced 3,223 ounces. The dump leach operations produced 3,894 ounces.

Sukari Exploration

Exploration primarily focused within the mine site, to further unlocking underground resource potential at Amun, Ptah, Cleopatra and Top of Horus. A total of 9,286 diamond drill metres were completed, targeting Amun near development reserve and resource extensions, Cleopatra and Ptah resource drilling and Top of Horus extensions. A further 10,000 metre drill programme is underway for Q4.

Amun / Ptah

During Q3, exploration within the Amun zone was focussed on resource extension along the southern strike of the mine. A total of 1,783 metres were drilled from the Amun 650 level, targeting reserve and resource extensions within the Osiris flat structure and resource extensions to the south of the Top of Horus zone.

The Osiris zone is characterised by a major, low-angle thrust rotating the major W-WNW gently dipping porphyry block. The main high-grade veins occur on the upper and lower contacts of the porphyry with high-angle steeper dipping secondary veins ramping up, linking through to the western porphyry contact. The Top of Horus, forms on the contacts and develops within the steeply dipping Horus porphyry. The Top of Horus high grade veins are typically high-angle dipping towards the Northwest. This structural setting, where the low-angle Osiris thrust caps and possibly shifts laterally the top of the sub-vertical Horus porphyry, is open up and down plunge along strike.

Results confirmed the high-grade consistency along the southern and western extension of the Osiris zone. This is proximal to the current decline development drives and outside the existing reserve and resource. Top of Horus zone is still open to the south with higher grade located at the brecciated contact. More drilling is required but this is an area of high potential for reserve and resource growth.

 OPERATING REVIEW

Table 1. Amun Underground Exploration Significant Drill Intercepts - Q3 2018 Highlights

During Q3, the Company completed more than 3,800m of drilling in the Ptah zone with the focus on resource definition drilling and infill drilling on the Ptah Keel as well as the ongoing exploration drilling to support the current underground development in front of and below P605/P615 at Western contact and below P660 at Eastern contact. Drilling from Ptah 660 level, and later in September from Ptah 735 level, where a second rig commenced drilling, targeted the Ptah East Contact Stockworks Zone, Ptah West Contact Stockworks Zone, Ptah Western Contact High-grade Quartz-Veins and the Ptah Keel.

Results demonstrated grade continuity along the North-South strike of the ore zones on both the Eastern and Western Contacts. The quartz lodes on the Western contact remain a very prospective high-grade zone where the interaction between Hapi structure with western contact shear. Porphyry Keel drill results confirm resource extension potential at depth towards the north.

Table 2. Ptah Underground Exploration Significant Drill Intercepts - Q3 2018 Highlights

The drilling from the Ptah P660 and P735 levels is currently targeting the Eastern and Western contacts in Ptah to convert and extend our reserves to the North and South. The Porphyry-keel remains a potential target for resource growth with further infill drilling planned for the North extension. Amun exploration remains focussed on resource growth and testing extensions along the southern strike of the mine. In Q4, drilling will focus along the structural contacts at Osiris and top of Horus zones, with the aim to unlock the underground resource potential to South.

EXPLORATION REVIEW

Cleopatra Exploration Decline

The Cleopatra Zone consists of a set of three stacked, northwest dipping mineralised zones in the northern section of Sukari, named from surface as Cleopatra, Antony and Julius. Exploration continues to focus on the development and exploration of the Upper Cleopatra Zone to provide more detailed geological information and establish drill platforms targeting the Lower Cleopatra, Antony, Julius, Ptah Keel and Ptah Deeps ore zones.

During Q3, Cleopatra exploration completed 865m of development extracting 70,897 tonnes of mineralised development ore at an average grade of 1.6 g/t, producing 3,223 ounces. Cleopatra exploration drilling continues to test the contact zones and at depth.

One LM90 rig operated full-time drilling Cleopatra, completing 3,683 metres from the C 1150RL S2 platform. The principle focus of the Q3 program was targeting the high-grade mineralisation on the eastern contact ahead of the Antony Decline along the southern strike and the high-grade extension of the northern end of the Keel spine expressed there as the Ptah Deeps.

Results received from the Antony infill drilling show medium-grade near the eastern contact along the North-South strike of the zone. Other intercepts show both Cleopatra zone and Antony zone extensions are open down dip to the west.

Table 3. Cleopatra Exploration Decline - Underground Exploration Significant Drill Intercepts - Q3 2018 Highlights

Sukari Tenement Area

Sukari is a gold deposit hosted on a major Arabian Nubian Shield terrane boundary. The Sukari Resources are currently drill defined around the 2.7km long by 0.6km deep Sukari porphyry that sits axially within a much wider 17km long by 3.7km ophiolite shear zone. There are 7 surface prospects hosted along this trend within the license. All surface prospects are within trucking distance to the existing processing plant and infrastructure,

In Q2 initial work commenced to construct a robust district 3D geo-seismic architecture of the license area to depths greater than 1.5km, targeting potential new Sukari-style porphyries.

During Q3, detailed preliminary work was completed to calibrate the technology with the ground conditions and Sukari core. This is to be followed by further down the hole ("DTH") geophysics in Q4 and to then begin 2D seismic sections in Q1 2019.

Cote d'Ivoire

The Company has eleven exploration permits, covering circa 3,472km2 land holding and a further ten permits under application. During the quarter, the exploration team achieved zero lost-time injuries over a total of 135,090 man-hours worked during Q3. The overall exploration work focussed on resource growth as well as on extending the surface detailed geochemistry coverage at both the Doropo Project and the ABC Project.

Doropo Project

At Doropo drilling focused on the end of year resource upgrade targeting the shallow mineralisation along the Enioda, Tchouahinin, Hinda and Chegue structures and elevating the classification in the core of the two main reserve blocks at Nokpa and Souwa to support the forthcoming PEA study in H1 2019.

A total of 15,970m of RC and 6,543m of auger drilling was completed. The RC drilling was conducted on the Kalamon and Danoa permits and the auger drilling on the Tehini 1 and Tehini 2 permits.

Following encouraging preliminary test work on the oxide material, full laboratory metallurgical results will be received in Q4.

The Nokpa deposit is one of the key deposits in the 2017 resource update. The drilling completed in Q3 focused on resource expansion. Some of the intercepts include 10m at 6.4 g/t (from 26m downhole depth), 12m at 6.5 g/t (from 69m downhole depth), 40m at 2.7 g/t (from 71m downhole depth) and 37m at 6.4 g/t (from 70m downhole depth).

The Chegue South resource was extended southward during the quarter, with the discovery of several new mineralised shoots of high grade hidden under a thin veneer of barren, transported alluvium, that masked the original surface signature. The mineralisation extends from surface and includes intercepts up to 15m at 8.4 g/t (from 12m downhole depth) and 9m at 9.7 g/t (from 13m downhole depth).

The 2017 Chegue Main resource was composed of two main mineralised shoots plunging off a 2 km section of a regional 060o trending shear zone. In 2018, a further three new mineralised shoots have been identified between the existing mineralised shoots which the shoots into one continuous, coherent deposit. The shoots are stacked parallel, plunging shallowly towards 330o WNW and extend from surface. Representative intercepts include 15m at 1.9 g/t (from 50m downhole depth), 7m at 2.2 g/t (from 43m downhole depth) and 11m at 5.5 g/t (from 46m downhole depth).

The Enioda resource continues to grow and consolidate with a number of significant mineralised intercepts being reported in Q3, including 13m at 3.6 g/t (from 70m downhole depth),11m at 3.3 g/t (from 17m downhole depth) and 4m at 16.1g/t (from 21m downhole depth).

Q4 drilling will focus on completing the resource upgrade on Souwa and Nokpa. All the results will be submitted for the 2018 resource estimation and optimisation studies.

Below is a table of significant Doropo drill intercepts reported during the quarter.

Table 4. Doropo Project - Exploration Significant Drill Intercepts (0.5 g/t cut off) - Q3 2018 Highlights

At the regional scale, the auger program completed on the Tehini 1 and Tehini 2 permits has confirmed the in situ mineralised structure, along approximately 8km of strike. This anomaly is well correlated with a strong magnetic feature and is scheduled drill tested by RC in Q4.

The detailed surface geochemical program will continue in Q4 into the Kalamon and Danoa permits.

PEA Update

The PEA remains on schedule for completion by H1 2019.The geotechnical and hydrogeology studies were completed in Q3 and did not raise any areas of concern. The metallurgical study is awaiting the final reporting of the 10kg Bottle Rolls and Column Leach test work on the upper and lower oxide material from the deposits. Centamin is working with Digby Wells Environmental ("Digby Wells"), to assist with the PEA study and assist in the execution of wider social initiatives throughout the Group.

ABC "Archaean-Birimian Contact" Project

We have defined two priority prospects on the Lolosso corridor for resource drilling the "Central Zone" and the "Southern Zone". Both outcrop at surface. Work has subsequently infilled the rest of the structure with soils in the residual regolith and auger drilling in the areas of transported alluvium. The Southern Zone hosts a 2km by 100m wide mineralised, west dipping shear package, which has produced the majority of the better intercepts reported in 2018 from the ABC Project. The Central Zone is currently drill defined over a similar strike length of 2km but is nominally wider at an average width of 200m and is generally lower grade. The mineralisation in both areas is open and the strike length between the two prospects is geochemically anomalous but currently undrilled.

A total of 4,589m of RC and 2,177m of diamond drilling was completed for the quarter.

The drilling completed until the end of Q3 covers the majority of the Southern zone with 100m spaced sections (that will be infilled in Q4). The mineralisation is hosted by psammitic facies, sandwiched between calc-silicates to the West in the hanging wall and a progressively gneissified foot wall to the east. Some of the representative intercepts include 30m at 1.5 g/t, 100m at 0.8 g/t and 44m at 2.5 g/t.

The Central zone is currently drill tested on 200m and 400m spaced drill sections. The lithological profile is similar to the Southern zone with calc-silicate hanging wall and gneiss footwall with a further interbedded quartzitic facies that also hosts mineralisation.

One sample of the Fresh ABC ore was composited from drill core from the Southern Zone and sent to AMMTEC for metallurgical characterisation in Q2. Results received in Q3 indicate the fresh material is non-refractory with the total gold extraction, following a simple gravity-direct feed CIL process, of 88.9%. The QEMSCAN report indicates the gold deportment is primarily free and structurally hosted within micro-fractures in the arsenopyrite and pyrite. No significant gold is locked in the sulphides or quartz.

Below is a table of significant ABC drill intercepts reported during the quarter.

Table 5. ABC Project - Exploration Significant Drill Intercepts (0.3 g/t cut off) - Q3 2018 Highlights

After the first pass auger reconnaissance drilling completed in Q2, we commenced to infill the auger starting in the south in Q3. The auger drilling was stopped in August due to the wet season. The auger program will resume at the end of Q4. Results received highlight the strike continuity between the prospects and beyond. The auger drilling and soils sampling has defined a coherent anomalous corridor with targets located on each of the gneissic contacts and on, what are interpreted from the coincident GAIP to be, an anastomosing array of intervening facies-shear contacts. A significant number of new targets are expected to be developed with the on-going surface geochemical program.

Drilling will continue in Q4 with a focus on delivering a maiden ABC resource by end of year.

Burkina Faso

The Group's Batie West project in south-west Burkina Faso comprises one exploitation (mining) licence and nine exploration permits (including one permit for which notification of grant has been received) which cover a total of approximately 1,100km2. The 64km2 Konkera exploitation permit holds a NI43-101 compliant Indicated resource of 1.9Moz at a grade of 1.7g/t in addition to Inferred resources of 1.3Moz at a grade of 1.7g/t. Beyond Konkera, the Group's drill programmes have identified significant additional potential resources across the exploration areas, most notably at Napelapera (ca.10km south of Konkera), and Wadarado (ca. 35km north of Konkera).

There were zero lost-time injuries across all project areas in Burkina Faso during Q3. The Group undergoes regular routine training and a focus on leading indicators to maintain the highest standards of health and safety.

No material operational updates for the quarter.

The condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted for use by the European Union and in accordance with the Companies (Jersey) Law 1991.

Now in its ninth year of production, Sukari remains cash generative and this is reflected in the Group's financial results for the nine months ended 30 September 2018:

· Revenue of US$421.5 million, a 13% decrease compared to the nine months ended 30 September 2017 ("YoY") (nine months ended 30 September 2017: US$485.1 million); Gold sales of 328,433 ounces (excl. 7,038 ounces attributable to Cleopatra), a 15% decrease YoY. Average realised gold price of US$1,281 per ounce approximately 2% increase YoY;

· EBITDA(1,2,4) of US$178.5 million, a 15% decrease YoY as a result of lower revenue, lower cash costs of production lower other operating costs offset by an increase of 8% in exploration and evaluation costs, please note the change in accounting policy where all greenfield exploration costs are now being expensed as incurred;

· In line with the Group's updated accounting policy, operating costs include greenfield exploration expenses of US$16.5 million (2017 figures have been restated to include US$15.3 million of exploration expenditure);

· Profit before tax(4) of US$102.2 million, a 21% decrease YoY, due to the factors outlined above;

· Basic earnings per share after profit share(2) ("EPS") of 4.80 US cents, a 5% increase YoY, due to lower revenue, lower cost of sales, lower other operating costs and lower profit share partially offset by an increase in exploration and evaluation costs (nine months ended 30 September 2017: 4.60 US cents);

· Operational cash flow of US$150.0 million, a 35% decrease YoY, due to decreased revenues and higher cash operating costs per ounce sold;

· Free cash flow(1) of US$35.1 million generated, down 64% YoY (nine months ended 30 September 2017: US$96.5 million) due to the impact of the factors outlined above;

· Cash costs of production(1,2) of US$206.8 million, a 11% decrease in cost profile YoY, resulting in a unit cost of US$631 per ounce produced, a 6% increase YoY;

· AISC(1,2) of US$301.2 million, a 4% decrease YoY, resulting in a unit cost of US$917 per ounce sold, a 13% increase YoY, mainly due to higher unit production costs, higher sustaining capital costs resulting from the scheduled fleet rebuild programme and underground mine development and lower gold ounces sold YoY;

· Royalties of US$12.9 million to Arab Republic of Egypt ("ARE") and profit share(1) of US$49.8 million paid to Egyptian Minerals Resources Authority ("EMRA"), our state partners;

· Gross capital expenditure of US$75.7 million, a 29% increase YoY, in line with the US$103 million(4) expected for the full year;

· Cash and liquid assets(1,3) of US$292.2 million at 30 September 2018, the Company remains debt-free and unhedged; and

· Consistent with the dividend policy, the Board paid an interim dividend of 2.5 US cents per share ("Interim Dividend") on 28 September 2018, US$28.9 million, equivalent to returning 80% of free cash flow generated in H1.

____________________________________________________________________________________________________________

(1) Cash cost of production, AISC, EBITDA and cash, bullion on hand, gold sales receivables, financial assets at fair value through other comprehensive income and free cash flow are non-GAAP measures, please refer to pages 16-18.

(2) Basic EPS, EBITDA, cash cost of production and AISC reflect a provision against prepayments to reflect the removal of fuel subsidies which occurred in January 2012 (refer to note 8 of the financial statements for further details).

(3) Cash and cash equivalents, bullion on hand, gold sales receivables and financial assets at fair value through other comprehensive income.

(4) The Group accounting policy for greenfield exploration expenditure, has been updated in line with market practice. For full details, please refer to Note 1 of the Financial Statements.

Centamin remains committed to its policy of being 100% exposed to the gold price through its unhedged position, and maintained a healthy cash, bullion on hand, gold sales receivables and available‑for‑sale financial assets balance of US$292.2 million, as at 30 September 2018, after the interim dividend pay out of 2.5 US cents per share which equates to US$28.9 million on 28 September 2018.

Revenue

Revenue from gold and silver sales for the period decreased by 13% to US$421.5 million (US$485.1 million in nine months ended 30 September 2017), with a 2% increase in the average realised gold sales price to US$1,281 per ounce (US$1,254 per ounce for the nine months ended 30 September 2017) and a 13% decrease in gold sold to 335,470 ounces, including 7,038 ounces attributable to Cleopatra (386,237 ounces in the nine months ended 30 September 2017).

Cost of sales

Cost of sales represents the cost of mining, processing, refining, transport, site administration, depreciation, amortisation and movement in production inventories. Cost of sales is inclusive of US$33.1 million categorised as fuel pre-payments (refer to Note 8 of the financial statements for further information) and is down 9% compared with the nine months ended 30 September 2017 to US$285.2 million, mainly as a result of:

· A positive movement in inventory adjustment of US$32.7 million compared to negative movement in inventory adjustment of US$1.4 million in the nine months ended 30 September 2017 reflecting the significant increase in ore stockpiles over the year to date;

· 3% increase in total mine production costs from US$232.3 million to US$238.3 million, due to a 7% increase in mined tonnes combined with a 5% increase in processed tonnes and an increase in unit costs mainly due to increased fuel and reagent costs;

· 2% decrease in depreciation and amortisation charges from US$81.5 million in the nine months ended 30 September 2017 to US$79.6 million at 30 September 2018 due to lower production effecting amortisation rates and US$44.5 million of additions (excl. capital work in progress) which increased the associated amortisation charges; and

· The positive impact on unit costs of production has been predominantly driven by the increase in ore stockpiles. As per Note 7, the processing of ore in stockpiles occurs in accordance with the Life of Mine (LoM) processing plan based on the known mineral reserves, current plant capacity and mine design. Ore tonnes contained in the stockpile which exceed the annual tonnes to be milled as per the mine plan in the following year, are classified as non-current in the statement of financial position.

Other operating costs

Other operating costs comprise expenditure incurred for communications, consultants, directors' fees, stock exchange listing fees, share registry fees, employee entitlements, general office administration expenses, the unwinding of the restoration and rehabilitation provision, foreign exchange movements and the 3% production royalty payable to the ARE. Other operating costs decreased by US$5.7 million or 21% from US$27.0 million in the nine months ended 30 September 2017 to US$21.2 million in the nine months ended 30 September 2018, mainly as a result of:

· US$3.4 million increase in net foreign exchange gains (-ve);

· US$1.6 million decrease in royalty paid to the government of the ARE in line with the decrease in gold sales revenue (-ve);

· US$3.7 million decrease in inventory obsolescence costs (-ve);

· US$2.7 million increase in corporate and other costs (+ve) mainly due to increased payroll and compliance costs; and

· US$0.3 million increase in other expenses (+ve).

Exploration and evaluation expenditure

Exploration and evaluation expenditure comprise expenditure incurred for exploration activities in Côte d'Ivoire and Burkina Faso. Exploration and evaluation costs increased by US$1.2 million or 8% from US$15.3 million in the nine months ended 30 September 2017 to US$16.5 million in the nine months ended 30 September 2018. These expenses are now shown on the income statement after the change in accounting policy regarding the treatment of Greenfield exploration and evaluation costs, please refer to note 1 of the financial statements for the change in accounting policy regarding exploration and evaluation expenditure.

Finance income

Finance income comprises interest income applicable on the Company's available cash and term deposit amounts. The movements in finance income are in line with the movements in the Company's available cash and term deposit amounts.

Profit before tax

As a result of the factors outlined above, Centamin recorded a profit before tax for the nine months ended 30 September 2018 of US$102.2 million (nine months ended 30 September 2017: US$130.0 million).

Tax

The group operates in several countries and, accordingly, it is subject to the various tax regimes in the countries in which it operates. The tax expense of US$0.01 million for the nine months ended 30 September 2018 was associated with timings in income taxes provisions and charges.

EMRA profit share

During the nine months ended 30 September 2018, US$49.8 million was paid as profit share payments to the Egyptian Mineral Resources Authority ("EMRA").

Profit share payments made to EMRA, pursuant to the provisions of the Concession Agreement, are recognised as a variable charge in the income statement (below profit after tax) of Centamin, resulting in a reduction in earnings per share. The profit share payments during the year will be reconciled against SGM's audited June financial statements. Any variation between payments made during the year (which are based on the Company's estimates) and the audited financial statements, may result in a balance due and payable to EMRA or advances to be offset against future distributions.

Earnings per share

Earnings per share (after profit share) of 4.80 US cents for the nine months ended 30 September 2018 increased by 5% when compared with the same period in 2017 of 4.60 US cents. The increase was driven by the factors outlined above.

Comprehensive income

Other comprehensive income movement was the result of the revaluation of financial assets at fair value through other comprehensive income to US$nil.

Financial position

Centamin has a strong and flexible financial position with no debt, no hedging and cash, bullion on hand, gold sales receivables and financial assets of US$292.2 million at 30 September 2018 (30 September 2017: US$345.8 million).

The majority of funds have been invested in international rolling short-term interest money market deposits.

Current assets have decreased by US$127.1 million or 25% from US$502.6 million at 31 December 2017 to US$375.5 million at 30 September 2018, as a result of:

· US$0.9 million decrease (-ve) in inventory driven by a US$10.9 million decrease (-ve) in collective stores inventory (due to cost reduction and minimisation initiatives), a US$8.8 million increase (+ve) in overall combined mining stockpiles and gold in circuit levels and a US$1.2 million decrease in the provision for obsolete stores inventory (+ve);

· US$15.2 million decrease in trade and other receivables (including gold sale receivables) (-ve);

· US$5.3 million decrease in prepayments (-ve);

· US$0.1 million decrease in the financial assets at fair value through other comprehensive income (-ve); and

· US$105.6 million decrease in net cash (net of foreign exchange movements) (-ve) driven by the profit for the period less the payment of the 2017 final dividend of US$115.6 million, payment of the 2018 interim dividend of US$28.9 million and a US$49.8 million payment to EMRA as profit share for the year to date.

Non‑current assets have increased by US$12.9 million or 1.4% to US$934.4 million from US$921.7 million at 31 December 2017, as a result of:

· US$65.9 million increase in the cost of property, plant and equipment (+ve);

· US$79.6 million charge for depreciation and amortisation (-ve);

· US$23.9 million increase in mining stockpiles that will not be processed in the next 12 months (+ve), refer to Note 7; and

· US$2.7 million increase in exploration and evaluation assets, as a result of the drilling programmes in Sukari Hill (+ve). With the change in accounting policies all Greenfield exploration is no longer capitalised to the balance sheet and this has been retrospectively restated.

Current liabilities have decreased by US$28.3 million or 43% to US$38.1 million, as a result of:

· US$17.2 million decrease in trade payables and a US$9.3 million decrease in accruals (-ve);

· US$0.5 million decrease in tax liabilities accrued during the period (-ve); and

· US$1.3 million decrease in current provisions primarily driven by a US$5.1 million increase in the fuel provision, a US$4.3 million decrease in withholding tax, customs and rebate provisions and a US$2.1 million decrease in employee benefit provisions held at period end (-ve).

Non‑current liabilities have increased by US$1.1 million to US$12.1 million as a result of an increase in the rehabilitation provision.

There has been a 2.615 million increase in the number of issued shares over the period due to share-based payment awards vesting.

Share option reserves reported have increased by US$0.5 million to US$4.8 million as result of the vesting of the 2015 RSP awards on 4 June 2018 offset by the recognition of the share‑based payment expenses for the period and new share-based payment awards granted in 2018.

Accumulated profits decreased by US$89.3 million to US$584.6 million as a result of:

· US$102.2 million profit for the period after tax (+ve); offset by

· US$46.8 million profit share charge to EMRA in the period (-ve);

· US$115.6 million 2017 shareholder approved final dividend (-ve) and US$28.9 million 2018 interim dividend (-ve); and

· US$0.2 million decrease in the value of the financial asset held at fair value through other comprehensive income (-ve).

Cash flow

Net cash flows generated by operating activities comprise receipts from gold and silver sales and interest income, offset by operating and corporate administration costs. Cash flows from operating activities decreased by US$80.6 million to US$150.0 million for the nine months ended 30 September 2018 compared to the nine months ended 30 September 2017, primarily attributable to the decrease in revenue, driven by a large decrease in ounces sold marginally offset by a higher average realised price, as well as a decrease in costs as explained above.

Net cash flows used in investing activities comprise exploration expenditure and capital development expenditures including the acquisition of financial and mineral assets. Cash outflows have increased by US$7.5 million for the nine months ended 30 September 2018 to US$65.0 million from US$57.5 million in the nine months ended 30 September 2017. The primary use of the funds in the period was for purchase of property, plant and equipment and investment in underground development at the Sukari site in Egypt.

Net cash flows used in financing activities decreased by US$66.6 million in the nine months ended 30 September 2018 to US$194.4 million (from US$261.0 million in the nine months ended 30 September 2017) due to US$39.8 million decrease in dividends being paid in 2018 relating to the 2017 final dividend, and a US$26.7 million decrease in payments to EMRA as profit share.

Effects of exchange rate changes have increased by US$2.9 million as a result of movements of the currencies used across the operations in the year.

Capital expenditure

The following table provides a breakdown of the total capital expenditure of the group during Q3 2018:

(1) Only includes US$2.8 million of Sukari expenditure relating to Cleopatra in non-sustaining capital expenditure.

(2) Please refer to note 1 of the financial statements for the change in accounting policy regarding exploration and evaluation expenditure.

Cumulative exploration expenditure capitalised for Cleopatra at Sukari is US$12.9 million (project to date) offset by pre-production net revenues of US$11.9 million (refer to notes 2 and 3 to the financial statements for further details) resulting in US$1.0 million remaining on the statement of financial position at 30 September 2018.

Exploration expenditure

The following table provides a breakdown of the total exploration expenditure of the group during Q3 2018:

Exploration and evaluation assets - impairment considerations

As discussed in note 10 to the financial statements, in consideration of the requirements of IFRS 6, management is not aware of any information that would otherwise suggest that an impairment trigger has occurred which would require a full impairment test to be carried out at 30 September 2018.

Exchange rates

Foreign exchange gains/(losses) have increased from a US$1.3 million gain to a US$4.7 million gain, resulting in a US$3.4 million increase on the nine months ended 30 September 2017.

Non‑GAAP financial measures

Four non‑GAAP financial measures are used in this report:

1) EBITDA

EBITDA is a non‑GAAP financial measure, which excludes the following from profit before tax:

· Finance costs;

· Finance income; and

· Depreciation and amortisation.

Management believes that EBITDA is a valuable indicator of the group's ability to generate liquidity by producing operating cash flow to fund working capital needs and fund capital expenditures. EBITDA is also frequently used by investors and analysts for valuation purposes whereby EBITDA is multiplied by a factor or "EBITDA multiple" that is based on an observed or inferred relationship between EBITDA and market values to determine the approximate total enterprise value of a company. EBITDA is intended to provide additional information to investors and analysts and does not have any standardised definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. EBITDA excludes the impact of cash cost of production and income of financing activities and taxes, and therefore is not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate EBITDA differently. The following table provides a reconciliation of EBITDA to profit for the period before tax.

Reconciliation of profit before tax to EBITDA:

(1) Profit before tax, depreciation and amortisation and EBITDA includes a charge to reflect the removal of fuel subsidies (refer to note 8 to the financial statements for further details).

2) Cash cost of production per ounce produced and sold and all-in sustaining costs per ounce sold calculation

Cash cost of production and AISC are non-GAAP financial measures. Cash cost of production per ounce is a measure of the average cost of producing an ounce of gold, calculated by dividing the operating costs in a period by the total gold production over the same period. Operating costs represent total operating costs less administrative expenses, royalties, depreciation and amortisation. Management uses this measure internally to better assess performance trends for the Company as a whole. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use such non-GAAP information to evaluate the Company's performance and ability to generate cash flow. The Company believes that these measures provide an alternative reflection of the group's performance for the current period and are an alternative indication of its expected performance in future periods. Cash cost of production is intended to provide additional information, does not have any standardised meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. This measure is not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently.

During June 2013 the World Gold Council ("WGC"), an industry body, published a Guidance Note on the 'all in sustaining costs' metric, which gold mining companies can use to supplement their overall non-GAAP disclosure. AISC is an extension of the existing 'cash cost' metric and incorporates all costs related to sustaining production and in particular recognising the sustaining capital expenditure associated with developing and maintaining gold mines. In addition, this metric includes the cost associated with developing and maintaining gold mines. In addition, this metric includes the cost associated with corporate office structures that support these operations, the community and rehabilitation costs attendant with responsible mining and any exploration and evaluation costs associated with sustaining current operations. AISC US$/oz is arrived at by dividing the dollar value of the sum of these cost metrics, by the ounces of gold sold (as compared to using ounces produced which is used in the cash cost of production calculation).

FINANCIAL REVIEW

Reconciliation of cash cost of production per ounce produced:

(1) Mine production costs and cash cost of production includes a charge to reflect the removal of fuel subsidies (refer to note 8 to the financial statements for further details).

(2) The movement in inventory on ounces produced is only the movement on mining stockpiles and ore in circuit while the movement on ounces sold is the net movement on mining stockpiles, ore in circuit and gold in safe inventory.

Reconciliation of AISC per ounce sold:

(1) Mine production costs, cash cost of production, cash cost of production per ounce, AISC and AISC per ounce sold includes prepayments recorded since Q4 2012 to reflect the removal of fuel subsidies (refer to note 8 to the financial statements for further details).

(2) Includes refinery and transport.

3) Cash and cash equivalents, bullion on hand, gold sales receivables and financial assets at fair value through other comprehensive income

Cash and cash equivalents, bullion on hand, gold sales receivables and financial assets at fair value through other comprehensive income is a non-GAAP financial measures. Cash and cash equivalents, bullion on hand, gold sales receivables and financial assets at fair value through other comprehensive income is a measure of the available cash and liquid assets at a point in time. Management uses this measure internally to better assess performance trends for the Company as a whole. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use such non-GAAP information to evaluate the Company's performance and ability to generate cash flow. The Company believes that these measures provide an alternative reflection of the group's performance for the current period and are an alternative indication of its expected performance in future periods. Cash and cash equivalents, bullion on hand, gold sales receivables and financial assets at fair value through other comprehensive income is intended to provide additional information, does not have any standardised meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. This measure is not necessarily indicative of cash and cash equivalents as determined under GAAP. This is a non‑GAAP financial measure and other companies may calculate these measures differently.

Reconciliation to cash and cash equivalents, bullion on hand, gold sales receivables and financial assets at fair value through other comprehensive income:

4) Free cash flow

Free cash flow is a non-GAAP financial measure. Free cash flow is a measure of the available cash after EMRA profit share payments that the group has at its disposal to use for capital reinvestment and to distribute to shareholders as dividends in accordance with the Company's dividend policy. Management uses this measure internally to better assess performance trends for the Company as a whole. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use such non-GAAP information to evaluate the Company's performance and ability to generate cash flow. The Company believes that these measures provide an alternative reflection of the group's performance for the current period and are an alternative indication of its expected performance in future periods. Free cash flow is intended to provide additional information, does not have any standardised meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. This measure is not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. This is a non-GAAP financial measure and other companies may calculate these measures differently.

Legal Developments in Egypt

Concession Agreement Appeal

All material has been submitted by the Company to the courts. The appeal has been stayed pending the decision on Law No. 32 as referred to below. Consequently, there will be no further hearings on the Concession Agreement Appeal until a judgment is given on the Law No. 32 Appeal in the Supreme Constitutional Court. Note. The Law No. 32 Appeal is independent from the Group and neither Pharaoh Gold Mine ("PGM") nor Sukari Gold Mine ("SGM") are a party.

The Law No. 32 Appeal is awaiting the State Commissioner to submit their report to the Supreme Constitutional Court. This is expected in H1 2019 but subject to change.

Law No. 32 is legislation, enforced and ratified by Parliament in 2014. The law is designed to protect and encourage foreign investment in the Arab Republic of Egypt ("ARE") by restricting the capacity for third parties to challenge contractual agreements between the Egyptian government and an investor.

Diesel Fuel Oil Litigation

All required documentation has been submitted by the Company to the courts. EGPC, the counterparty, has the opportunity to submit the requested documentation before the Court can deliver a judgment.

Andrew Pardey

Chief Executive Officer

Set out below are the unaudited consolidated Financial Statements for the Group, including notes thereto, for the quarter and nine months ended 30 September 2018.

RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE QUARTER AND NINE MONTHS ENDED 30 SEPTEMBER 2018 FINANCIAL REPORT

We confirm that to the best of our knowledge:

(a) the condensed set of interim consolidated financial statements for the quarter and nine months ended 30 September 2018 has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' as adopted by the European Union;

(b) the condensed set of interim consolidated financial statements, which has been prepared in accordance with the applicable set of accounting standards, gives a true and fair view of the assets, liabilities, financial position and profit or loss of the issuer, or the undertakings included in the consolidation as a whole as required by DTR 4.2.4;

(c) the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first nine months and description of principal risks and uncertainties for the remaining three months of the year); and

(d) the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

The board of directors that served during all or part of the quarter and nine month period ended on 30 September 2018 and their respective responsibilities can be found on pages 82 to 93 of the 2017 annual report of Centamin plc.

By order of the Board,

Chief Executive Officer Chief Financial Officer

Andrew Pardey Ross Jerrard

1 November 2018 1 November 2018

UNAUDITED INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

FOR THE QUARTER AND NINE MONTHS ENDED

30 SEPTEMBER 2018

(1) Restated due to the change in accounting policy, refer to note 1 for further information.

The above unaudited interim condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

(1) Restated due to the change in accounting policy, refer to note 1 for further information.

The above unaudited interim condensed consolidated statement of financial position should be read in conjunction with the accompanying notes.

The unaudited interim condensed consolidated financial statements were approved by the board of directors on 1 November 2018 and signed on its behalf by:

Andrew Pardey Ross Jerrard

Chief executive officer Chief financial officer

1 November 2018 1 November 2018