Newmont Announces Plan to Increase Annual Gold Production to Approximately 7 Million Ounces by 2017 

DENVER, CO - Newmont Mining Corporation reports plan for the development of its current global portfolio of assets that would increase annual gold production to approximately 7 million ounces by 2017. This production target represents a potential aggregate increase of approximately 35% in anticipated 2017 annual production from the Company's previously announced 2011 attributable gold production outlook of 5.1 to 5.3 million ounces. The Company also announced a new dividend policy that will link its quarterly dividend payment to Newmont's average realized price of gold sales.

"Newmont offers investors a powerful combination of organic growth potential from projects that can be developed with competitive returns and significant exploration upside," said Richard O'Brien, President and Chief Executive Officer. "With our strong balance sheet and cash flow, we are positioned to fund profitable growth and to pay a new gold price-linked dividend."
Production Growth Potential to achieve approximately 7 million ounces of attributable annual gold production and 400 million pounds of attributable annual copper production by 2017, representing approximately 35% and 90% growth, respectively, from the Company's expected 2011 production outlook. Project Returns  Internal rates of return on key strategic projects are expected to average greater than 20% at current metals prices. Capital expenditures associated with these projects are estimated at approximately $7 billion in aggregate over the next 6-7 years, substantially funded through anticipated free cash flow and existing balance sheet strength. Reserves and Exploration Upside  The Company currently has approximately 93.5 million ounces of gold in reserves and 37.5 million ounces in non-reserve mineralization, as well as the potential to add the equivalent of the Company's current reserves over the next decade. Balance Sheet Strength  Available cash and marketable securities was approximately $5 billion at December 31, 2010 (before the use of approximately $2 billion in the Fronteer transaction and net cash flow generated in the first quarter of 2011); the Company also anticipates strong free cash flow at planned production levels and current metals prices. Gold Price-linked Dividend  Newmont's gold price-linked dividend policy contemplates a quarterly payable dividend based on Newmont's average realized gold price for the preceding quarter. The annual payout will increase at a rate of $0.20 per share for each $100 per ounce rise in the average realized gold price. At the current gold price of approximately $1,450 per ounce (i.e. between $1,400 - $1,499 per ounce), Newmont's annual dividend would be $1.00 per share. Subject to Board approval, the first quarterly dividend under this policy is expected to be payable on June 29, 2011 to shareholders of record on June 16, 2011. The declaration and payment of dividends remains at the discretion of the Board of Directors and will depend on the Company's financial results, cash requirements, future prospects and other factors deemed relevant by the Board.