Avocet Mining PLC ("Avocet" or "the Company") today 
announces production and cash costs for the third 
quarter of 2016 from the Inata gold mine and that 
operations at Inata have been suspended from today. 

-		Total gold production at Inata for the 
quarter was 17,694 ounces at a cash cost of US$1,047 
per ounce, compared with 21,086 ounces produced in the 
second quarter of 2016 at a cash cost of US$903 per 
ounce
-		Suspension of operations at Inata 
pending resolution of gold seizure
-		Tri-K transaction with Managem aiming 
to complete before end 2016

Q3 Production
Production in the quarter was lower than in Q2, as 
anticipated, as a result of lower recoveries due 
primarily to the treatment of ore types with a higher 
preg-robbing index (PRI), and the impact of 
maintenance work on the plant. 

Ore mined in the quarter was from Minfo North, Centre 
West and South East, while work continued towards the 
completion of the North Pit pushback (finally 
completed in October). Ore supply to the mill was a 
combination of harder higher grade but carbonaceous 
material from the mine, and marginal, predominantly 
oxide material from stockpiles. 

Plant availability, and therefore throughput, was also 
impacted by mechanical issues, including a main 
circuit breaker failure in the powerhouse in August.

Suspension of operations at Inata
Following the seizure of a gold shipment from the 
Inata mine on 7 October 2016, no further shipments 
have been made. On 24 October 2016, a hearing was held 
at which the Company challenged the legality of the 
gold seizure, and requested its lifting. A verdict is 
due to be heard on 7 November. 
Accordingly, given the potential threat of further 
seizure of gold shipments before the verdict, Société 
des Mines de Bélahouro SA ("SMB", the owner of the 
Inata gold mine) has taken the decision to temporarily 
suspend operations at Inata from today. A skeleton 
crew will remain on site to ensure that the mill is 
properly maintained to ensure a smooth re-start once a 
resolution to the current situation has been found and 
it is appropriate to do so.
A prolonged cessation of operations may mean that the 
mine cannot be re-started without significant 
investment, if at all, and will likely have a material 
adverse effect on both SMB's and the Company's 
financial position. In particular, funding will likely 
be required to support the Company's head office 
operations ahead of the completion of the Tri-K 
transaction (as detailed below), which, subject, inter 
alia, to shareholder and regulatory approvals, will 
result in the receipt by the Company of an initial 
consideration of US$4.0m (approximately US$2.5m after 
costs). However, meetings are due to be held in 
Ouagadougou, the capital of Burkina Faso, in the 
coming days between representatives of the mine, its 
workforce, and government officials to try to find a 
resolution to the situation and to avoid a prolonged 
cessation.
If funding is required before completion of the Tri-K 
transaction and such funding is not available from 
Inata or the Company is unable to secure alternative 
funding, the Company will likely enter an insolvency 
process in which circumstance it is highly unlikely 
that any value will remain for shareholders.
Update on Tri-K transaction
The transaction announced on 10 October 2016 to enter 
into a Joint Venture agreement with Managem SA with 
respect to the Tri-K project in Guinea remains 
subject, inter alia, to shareholder approval, as well 
as the ratification of a Mining Convention by the 
Guinean parliament. The Company is aiming to complete 
the transaction before the end of 2016.

For further information see the appendix at 
[http://www.newsweb.no].