Barrick Reports On Operations And Continued Progress

TORONTO - Barrick Gold Corporation reported that its new Pueblo Viejo mine in the Dominican Republic has achieved first gold production, with ore now being processed through the first two of four autoclaves.

"Bringing this mine successfully into production on schedule, within capital guidance and with an excellent safety record is the result of tremendous efforts from across the company," said Jamie Sokalsky, President and Chief Executive Officer of Barrick. "Pueblo Viejo is a world-class asset, one of only a handful of mines that will produce more than one million ounces of gold per year. We expect it to be a major contributor of low cost production to Barrick for decades to come."

The mine is now proceeding with remaining plant commissioning activities, including the final two autoclaves, with commercial production anticipated in the fourth quarter of 2012. Barrick's 60 percent share of 2012 production from Pueblo Viejo is expected to be 100,000-125,000 ounces at total cash costs of $400-$500 per ounce1. In its first full five years of operation, Barrick's share of production is anticipated to be 625,000-675,000 ounces at total cash costs of $300-$350 per ounce.

The 2012 exploration budget is $450-$490 million6, of which over 40 percent is for major exploration programs at Goldrush, Turquoise Ridge in Nevada and Lumwana in Zambia. These are key projects with large drill programs which are expected to add to and upgrade gold and copper resources in 2012-2013 and directly contribute to various planned scoping, prefeasibility and expansion studies.

In Nevada, over 50 drill rigs are operating, 12 of which are located at Goldrush. Overall, the robustness and continuity of the Goldrush system continues to be demonstrated. The limits of the entire system still remain open in multiple directions. Based on results to date, a significant increase is expected by 2012 year end to the already defined indicated resource of 1.3 million ounces and inferred resource of 5.7 million ounces.

At Lumwana, the full contingent of 23 exploration drill rigs is operating at Chimiwungo. Drilling to date has increased confidence in the ability to substantially upgrade resource categorization and has also demonstrated strong potential for resource expansion outside of current reserve and resource areas. Favorably thickened ore zones, grading 0.8 percent copper on average in the Equinox and Roan Shoots, are being intersected both within the current inferred resource areas as well as in areas of no previously defined resources, adjacent to and along the trend of these ore shoots.

Results have also identified strong mineralization between the shoots, typically grading 0.7-0.8 percent copper. This Intershoot zone appears to project to depths of less than 150 meters from surface, which could favorably impact near term development opportunities and offer significantly more operational flexibility.

These results are expected to significantly grow 2011 copper reserves and resources, which had already been increased by about 75 percent from the pre-acquisition copper inventory to 4.9 billion pounds of proven and probable reserves, 2.1 billion pounds of measured and indicated resources and 10.7 billion pounds of inferred resources7.

Barrick is evaluating its next tier of projects. Cerro Casale and Donlin Gold do not currently meet our investment criteria, primarily due to their large initial capital investments, and under our disciplined capital allocation framework we would not make a decision to construct them at this time. Sokalakk said, However, they contain large, long life mineral resources in stable jurisdictions, have significant leverage to the price of gold, and therefore represent valuable long-term opportunities for the company. We will maintain and enhance the option value of these projects by advancing permitting activities at reasonable costs which, in the case of Donlin Gold, will take a number of years. During this time, we will monitor the attractiveness of these projects and evaluate alternatives to improve their economics. This will provide the company with the option to make construction decisions in the future should investment conditions warrant.

Barrick maintains its full year gold production guidance of 7.3-7.8 million ounces. As previously indicated, production is expected to be higher in the second half of 2012 compared to the first half as production commences at Pueblo Viejo and as Goldstrike and Lagunas Norte contribute to a greater proportion of production.

Total and net cash costs for gold are now expected to be slightly higher in the range of $550-$575 per ounce and $460-$500 per ounce, respectively, mainly due to higher costs in Australia Pacific and at African Barrick Gold in the first half of the year. Total cash costs are expected to be lower in the second half as a result of significantly higher overall production levels and lower cost mines contributing to a greater share of total company production.

Full year copper production is now expected to be 460-500 million pounds, primarily as a result of lower than anticipated production from Lumwana, at C1 cash costs of $2.10-$2.30 per pound.

The company's address is 161 Bay Street, Suite 3700, Toronto M5J 2S1, 416-861-9911, fax: 416-861-2492.