ACACIA’S BUSINESS CONTINUES TO BE RESILIENT IN THE FACE OF THE CHALLENGES IN TANZANIA

Acacia’s business has continued to be resilient in the face of the challenges in Tanzania and delivered production of 191,203 ounces during the quarter at all-in sustaining costs of $939 per ounce sold”, said Brad Gordon, Chief Executive Officer of Acacia Mining.

“Whilst production at Buzwagi was especially pleasing, the continued restrictions on the export of gold/copper concentrate, together with a lack of refunds of VAT have further impacted our balance sheet, with our cash position falling to $95 million at the end of the quarter,” he said.

To preserve balance sheet and the long-term viability of business, the minor took a range of actions including the transition of Bulyanhulu to a reduced operational state, changing the processing flow sheet at Buzwagi to enable the mine to sell all of the gold it produces, and securing a $1,300/oz floor price for the majority of our gold sales until February 2018.

“We note yesterday’s announcement that a framework agreement has been signed, which highlights the progress in the discussions between Barrick Gold Corporation and the Government of Tanzania. We continue to seek further clarification on the agreement and as yet no formal proposal has been put to Acacia,” Gordon said.

In late July, the Government of Tanzania and Barrick Gold Corporation, Acacia’s majority shareholder, commenced discussions with the aim of resolving the current situation.

As previously announced, the Government and Barrick, hosted a press conference in Tanzania yesterday to provide an update on the ongoing discussions. “Acacia has received a copy of the framework agreement referred to in Barrick’s two releases on 19 October and is seeking further clarification. No formal proposal has been put to Acacia for consideration at this point in time,”Mr. Gordon said.

He said that any proposal agreed in principle between Barrick and the Government will require Acacia’s approval. “Acacia will consider any proposal once it receives the full details and a further update will be provided when appropriate.”