African Barrick Gold

In March 2010, we offered about 25% of the equity in African Barrick Gold plc (“ABG”) through an initial public offering (“IPO”) on the London Stock Exchange. ABG holds Barrick’s previously held African gold mines and exploration properties. ABG sold approximately 101 million ordinary shares in the offering, or about 25% of its equity and Barrick retained an interest in approximately 303 million ordinary shares, or about 75% of the equity of ABG. In April 2010, the over-allotment option was partially exercised resulting in a 1.1% dilution of our interest in ABG to 73.9%. The net proceeds to ABG from the IPO and the over-allotment option were approximately $884 million. As Barrick has retained a controlling interest in ABG, we will continue to consolidate their results and we have set up a noncontrolling interest to reflect the change in our ownership interest.

African Barrick Gold has four producing gold mines in northwest Tanzania — North Mara, Bulyanhulu, Tulawaka and Buzwagi — in addition to a suite of exploration properties, and as at year end 2009 had 16.8 million ounces of proven and probable gold reserves¹ (100% basis). Production in 2009 was 716,000 ounces of gold at total cash costs of $545 per ounce² (100% basis).

» www.africanbarrickgold.com

¹ Click here for more information regarding reserve and resource measurements.
² Click here for more information regarding the calculation of total cash costs.