Newmont Signs Agreement To Sell Stake in Penmont Joint Venture

DENVER, CO - Newmont Mining Corporation has entered into a binding purchase and sale agreement with Fresnillo plc to divest its 44 percent stake in the Penmont joint venture in Mexico for a gross transaction value of approximately US$477 million, including cash proceeds of US$450 million at closing. Fresnillo is acquiring all assets and liabilities, including all employee and future environmental obligations.

We are pleased to announce our agreement with Fresnillo, which further strengthens Newmont's financial flexibility while allowing our partner to consolidate their position in the Herradura Corridor, said Randy Engel, Newmont's Executive Vice President for Strategic Development. Since last year, Newmont has generated $1.3 billion from the sale of non-core assets at fair value, thereby significantly improving our financial flexibility and better positioning us to fund the next generation of the Company's profitable operations, such as Merian in Suriname.

Newmont owns a 44 percent interest in the Penmont joint venture and related gold properties (La Herradura, Soledad-Dipolos and Noche Buena), which are located in the Sonora region of Mexico. Penmont is operated by Fresnillo through Minera Penmont S. de R.L. de C.V. (Minera Penmont) and Fresnillo owns the remaining 56 percent interest. At December 31, 2013, Newmont recognized net book value of the Penmont joint venture totaling approximately $365 million.

La Herradura has been in operation since 1998. Soledad-Dipolos is located nine kilometers northwest of La Herradura and commenced operations in January 2010. Noche Buena is located 23 kilometers northwest of La Herradura and operations commenced in the first quarter of 2012. Penmont produced approximately 183,000 attributable ounces of gold in 2013, and at December 31, 2013 Newmont reported 2.2 million attributable ounces of gold reserves.