ACACIA MINING PLC - International arbitration and NEMC Prohibition Notice

ACACIA MINING PLC - International arbitration and NEMC Prohibition Notice

PR Newswire

London, July 16

17 July 2019

Acacia Mining plc

("Acacia", "Group" or the "Company")

This announcement contains inside information

Acacia Operating Subsidiaries Seek Stay of International Arbitration and

NEMC Issues Prohibition Notice for North Mara Tailings Storage Facility ("TSF")

Acacia announces that its local Tanzanian operating subsidiaries, Bulyanhulu Gold Mine Ltd and Pangea Minerals Ltd, will immediately seek a stay of their international arbitration with the Government of Tanzania ("GoT"). If the GoT agrees to the stay, Acacia would expect the arbitration hearing to be postponed to provide time for the GoT to complete its settlement discussions with Barrick Gold Corp ("Barrick"). Acacia will continue to support those discussions and remains ready and willing to engage directly with the GoT.

NEMC Prohibition Notice

Acacia also announces that the Tanzanian National Environment Management Council ("NEMC") has issued its North Mara mine with a Prohibition Notice (the "Notice") which orders the North Mara mine to stop use of its TSF by 6.00am local time Saturday 20 July 2019. NEMC cites the North Mara mine's failure to contain and prevent seepage from the TSF as grounds for its issuance of the Notice. The Notice states that it shall remain effective until such time that NEMC is satisfied that the North Mara mine has taken measures to contain seepage from the TSF.

Acacia is immediately reaching out to NEMC and to the GoT to seek clarification on the Notice received yesterday, including to request copies of any investigation reports or data upon which the Notice is based.

Acacia's North Mara mine was issued with an Environmental Protection Order ("EPO") and fine in May 2019 for alleged deficiencies at the TSF. However, the North Mara mine has never received any supporting reports, findings or technical data in relation to these allegations.

As previously disclosed on 8 March 2019, the North Mara mine's technical team has been working constructively and collaboratively with the GoT in order to address the GoT's concerns regarding alleged breaches of various environmental regulations and alleged discharges from the mine. The North Mara mine undertook to manage all seepage through the use of additional pumps and construction of other containment facilities to return any seepage to the TSF and ensure it is confined to the mine site. All seepage is and will be contained on the site, does not flow into the surrounding environment or present a risk of contamination to any public water source.

In January 2019, the GoT issued a directive to the North Mara mine to construct a new TSF. The mine commenced planning and design for a new TSF, and has been working with the GoT to progress the construction of a new TSF to support its future mine production plans.

Acacia will provide further updates as required.

ENQUIRIES

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

Acacia Mining plc [phone]

Sally Marshak, Head of Investor Relations and Communications [phone]

Camarco [phone]

Gordon Poole / Nick Hennis

About Acacia Mining plc

Acacia Mining plc (LSE:ACA) is the UK holding company of the Acacia Group, Tanzania's largest gold miner and one of the largest producers of gold in Africa. The Acacia Group has three mines, all located in north-west Tanzania: Bulyanhulu, which is owned and operated by Bulyanhulu Gold Mine Limited, Buzwagi, which is owned and operated by Pangea Minerals Limited and North Mara, which is owned and operated by North Mara Gold Mine Limited.

The Acacia Group also has a portfolio of exploration projects in Kenya, Burkina Faso and Mali. 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 report 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 report. 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 on-going 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 report 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 report 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.